• Capital City Bank Group Reports First Quarter 2022 Results

    Source: Nasdaq GlobeNewswire / 25 Apr 2022 07:00:02   America/New_York

    TALLAHASSEE, Fla., April 25, 2022 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $8.5 million, or $0.50 per diluted share, for the first quarter of 2022 compared to net income of $6.4 million, or $0.38 per diluted share, for the fourth quarter of 2021, and $9.5 million, or $0.56 per diluted share, for the first quarter of 2021.

    First Quarter 2022 HIGHLIGHTS

    • Period-end loan balances grew $54 million, or 2.8% sequentially
    • Net interest income gained momentum driven by growth in investment portfolio and higher rates
    • Noninterest income increased by 4.6% sequentially, driven by wealth management fees (insurance commission revenues)
    • Noninterest expense decreased $1.0 million, or 2.4% sequentially, attributable to lower pension plan expense
    • Continued strong credit quality resulted in no credit loss provision

    “We begin 2022 with a quarter of solid financial performance,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group.  “Loan growth, credit quality, rising rates, wealth management and lower expenses all contributed to this quarter’s strong performance.  Much has changed in a short period of time – rapidly escalating inflation, a pivot by the Federal Reserve toward a quicker tightening of monetary policy and the Russia-Ukraine war, along with the accompanying sanctions and questions around how the financial markets will respond to these macro-economic events. While much of this is out of our control, we believe we are well positioned to navigate through this year and beyond.  While acknowledging higher rates will generate unrealized losses in our investment portfolio, our asset-sensitive balance sheet and pension related other comprehensive loss should respond well to rising rates.  Capital City Strategic Wealth (“CCSW”) also had a strong first quarter and we continue our expansion efforts in west Florida and the northern arc of Atlanta.  While challenges remain, we continue to focus on identifying opportunities and executing strategies we believe are sustainable and add long-term value for our shareowners.”

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the first quarter of 2022 totaled $24.8 million, comparable to the fourth quarter of 2021, and $24.6 million for the first quarter of 2021. Compared to the fourth quarter of 2021, higher rates on overnight funds and growth in the investment portfolio was offset by two less calendar days during the quarter. Compared to the first quarter of 2021, the increase was due to growth in our investment portfolio which was funded by higher deposit balances.

    Our net interest margin for the first quarter of 2022 was 2.55%, a decrease of five basis points from the fourth quarter of 2021 and a decrease of 30 basis points from the first quarter of 2021. Compared to both prior periods, the decrease was primarily attributable to growth in earning assets (driven by deposit inflows), which negatively impacted our margin percentage. Our net interest margin for the first quarter of 2022, excluding the impact of overnight funds in excess of $200 million, was 3.11%.

    Provision for Credit Loss

    We did not record a provision for credit losses for the first quarter of 2022 or the fourth quarter of 2021 and recorded a negative provision of $1.0 million for the first quarter of 2021. The lack of provision for the first quarter of 2022 reflected continued strong credit quality and slight improvement in the forecasted level of unemployment. We discuss the allowance for credit losses further below.

    Noninterest Income and Noninterest Expense

    Noninterest income for the first quarter of 2022 totaled $25.8 million compared to $24.7 million for the fourth quarter of 2021 and $29.8 million for the first quarter of 2021. The increase over the fourth quarter of 2021 was primarily attributable to higher wealth management fees of $2.1 million that were partially offset by lower mortgage banking revenues of $0.9 million. The increase in wealth management fees was attributable to higher insurance commission revenues. Lower loan production and a slightly lower gain on sale margin drove the decline in mortgage banking revenues. Compared to the first quarter of 2021, the decline was due to lower mortgage banking revenues attributable to lower loan production (primarily refinancing activity) and a lower gain on sale margin. Additional detail on our mortgage banking operation (CCHL) is provided on Page 11.

    Noninterest expense for the first quarter of 2022 totaled $39.2 million compared to $40.2 million for the fourth quarter of 2021 and $40.5 million for the first quarter of 2021. The decrease from the fourth quarter of 2021 was primarily attributable to lower pension expense of $1.6 million (reflected in other expense) offset by higher commission expense of $0.7 million related to higher insurance revenues. The decrease in pension expense generally reflected a higher discount rate in 2022 for determining plan liabilities and strong asset returns in 2021. Compared to the first quarter of 2021, the decrease was attributable to lower commission expense of $2.6 million related to lower mortgage banking revenues offset by higher associate benefits of $0.5 million and a decrease in realized loan cost of $0.8 million (credit offset to salary expense).

    Income Taxes

    We realized income tax expense of $2.2 million (effective rate of 20%) for the first quarter of 2022 compared to $2.0 million (effective rate of 22%) for the fourth quarter of 2021 and $2.8 million (effective rate of 19%) for the first quarter of 2021. Tax expense for the fourth quarter of 2021 was unfavorably impacted by discrete tax expense of $0.1 million. Absent discrete items, we expect our annual effective tax rate to approximate 19%-20% in 2022. 

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $3.939 billion for the first quarter of 2022, an increase of $147.5 million, or 3.9%, over the fourth quarter of 2021, and an increase of $440.9 million, or 12.6%, over the first quarter of 2021. The increase over the fourth quarter of 2021 was primarily attributable to seasonal growth in our public fund deposits. The increase compared to the first quarter of 2021 was primarily driven by higher deposit balances (see below – Funding).

    We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $873.1 million in the first quarter of 2022 compared to $789.1 million in the fourth quarter of 2021 and $814.6 million in the first quarter of 2021. The growth compared to the fourth quarter of 2021 primarily reflected higher seasonal public fund balances. The increase compared to the first quarter of 2021 reflected higher deposit balance (see below – Funding).

    Average loans held for investment (“HFI”) increased $15.3 million, or 0.8%, over the fourth quarter of 2021 and decreased $80.8 million, or 4.0%, from the first quarter of 2021. Excluding SBA PPP loans, average loans HFI increased $18.8 million compared to the fourth quarter of 2021, and increased $115.9 million compared to the first quarter of 2021. Compared to the fourth quarter of 2021, the increase in average loans (excluding SBA PPP loans) reflected growth in commercial loans (primarily institutional), residential loans, HELOCs, and consumer loans (indirect auto). Compared to the first quarter of 2021, we realized growth in commercial loans, construction loans, residential mortgages, and consumer loans (indirect auto). New loan production strengthened in the latter part of the first quarter of 2022 resulting in period end loan growth of $54 million over the fourth quarter of 2021. Increases were realized in most loan categories with the largest growth in commercial loans (primarily institutional) and consumer loans (indirect auto).

    Allowance for Credit Losses

    At March 31, 2022, the allowance for credit losses for HFI loans totaled $20.8 million compared to $21.6 million at December 31, 2021 and $22.0 million at March 31, 2021. Activity within the allowance is provided on Page 9. At March 31, 2022, the allowance represented 1.05% of HFI loans and provided coverage of 761% of nonperforming loans compared to 1.12% and 500%, respectively, at December 31, 2021, and 1.07% and 411%, respectively, at March 31, 2021.

    Credit Quality

    Overall credit quality is strong and continues to improve. Nonperforming assets (nonaccrual loans and other real estate) totaled $2.7 million at March 31, 2022 compared to $4.3 million at December 31, 2021 and $5.5 million at March 31, 2021. At March 31, 2022, nonperforming assets as a percentage of total assets totaled 0.06% compared to 0.10% at December 31, 2021 and 0.14% at March 31, 2021. Nonaccrual loans totaled $2.7 million at March 31, 2022, a $1.7 million decrease from December 31, 2021 and a $2.7 million decrease from March 31, 2021. The $4.4 million increase in classified loans over the fourth quarter of 2021, reflects one loan relationship that is in the loan workout process and has been reserved for at March 31, 2022.

    Funding (Deposits/Debt)

    Average total deposits were $3.714 billion for the first quarter of 2022, an increase of $164.9 million, or 4.6%, over the fourth quarter of 2021 and $474.6 million, or 14.6%, over the first quarter of 2021. Growth over the fourth quarter of 2021 was primarily attributable to an increase in seasonal public fund deposits. Compared to the first quarter 2021, strong growth occurred in our noninterest bearing deposits, NOW accounts, and savings account balances. Over the past few years, we have experienced strong core deposit growth, in addition to growth related to multiple government stimulus programs in response to the Covid-19 pandemic, such as those under the CARES Act and the American Rescue Plan Act. Given these increases, the potential exists for our deposit levels to be volatile into 2022 due to the uncertain timing of the outflows of the stimulus related balances, in addition to the frequency and degree to which the Federal Open Market Committee (FOMC) raises the overnight funds rate. It is anticipated that current liquidity levels will remain robust due to our strong overnight funds sold position. The Bank continues to strategically consider ways to safely deploy a portion of this liquidity.

    Average borrowings decreased $14.6 million from the fourth quarter of 2021 and declined $36.6 million from the first quarter of 2021, as both periods reflected lower warehouse line borrowing needs to support CCHL’s loans held for sale.

    Capital

    Shareowners’ equity was $372.1 million at March 31, 2022 compared to $383.2 million at December 31, 2021 and $324.4 million at March 31, 2021. During the first quarter of 2022, shareowners’ equity was positively impacted by net income of $8.5 million, a $0.2 million decrease in the accumulated other comprehensive loss for our pension plan, a $1.4 million increase in the fair value of the interest rate swap related to subordinated debt, net adjustments totaling $0.5 million related to transactions under our stock compensation plans, and stock compensation accretion of $0.2 million. Shareowners’ equity was reduced by common stock dividends of $2.7 million ($0.16 per share) and a $19.1 million increase in the unrealized loss on investment securities.

    At March 31, 2022, our total risk-based capital ratio was 16.98% compared to 17.15% at December 31, 2021 and 17.20% at March 31, 2021. Our common equity tier 1 capital ratio was 13.77%, 13.86%, and 13.63%, respectively, on these dates. Our leverage ratio was 8.78%, 8.95%, and 8.97%, respectively, on these dates. All of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio was 6.61% at March 31, 2022 compared to 6.95% and 6.13% at December 31, 2021 and March 31, 2021, respectively. The slight reduction in our regulatory capital ratios was attributable to loan growth and higher asset levels.

    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 $4.3 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 57 banking offices and 86 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 following factors, among others, could cause our actual results to differ: fluctuations in inflation, interest rates, or monetary policies; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; natural disasters, widespread health emergencies, military conflict, terrorism or other geopolitical events; changes in the stock market and other capital and real estate markets; the magnitude and duration of the ongoing COVID-19 pandemic and its impact on the global economy and financial market conditions and our business; customer acceptance of third-party products and services; increased competition and its effect on pricing; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; 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)Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
    Shareowners' Equity (GAAP) $372,145 $383,166 $348,868 $335,880 $324,426 
    Less: Goodwill and Other Intangibles (GAAP)  93,213  93,253  93,293  93,333  89,095 
    Tangible Shareowners' Equity (non-GAAP)A 278,932  289,913  255,575  242,547  235,331 
    Total Assets (GAAP)  4,310,045  4,263,849  4,048,733  4,011,459  3,929,884 
    Less: Goodwill and Other Intangibles (GAAP)  93,213  93,253  93,293  93,333  89,095 
    Tangible Assets (non-GAAP)B$4,216,832 $4,170,596 $3,955,440 $3,918,126 $3,840,789 
    Tangible Common Equity Ratio (non-GAAP)A/B 6.61% 6.95% 6.46% 6.19% 6.13%
    Actual Diluted Shares Outstanding (GAAP)C 16,962,362  16,935,389  16,911,715  16,901,375  16,875,719 
    Tangible Book Value per Diluted Share (non-GAAP)A/C$16.44 $17.12 $15.11 $14.35 $13.94 


    CAPITAL CITY BANK GROUP, INC.       
    EARNINGS HIGHLIGHTS       
    Unaudited       
            
      Three Months Ended 
    (Dollars in thousands, except per share data) Mar 31, 2022 Dec 31, 2021 Mar 31, 2021 
    EARNINGS       
    Net Income Attributable to Common Shareowners$8,455$6,372$9,506  
    Diluted Net Income Per Share$0.50$0.38$0.56  
    PERFORMANCE       
    Return on Average Assets 0.80%0.61%1.01 %
    Return on Average Equity 8.93 7.22 11.81  
    Net Interest Margin 2.55 2.60 2.85  
    Noninterest Income as % of Operating Revenue 51.11 49.96 54.90  
    Efficiency Ratio 77.55%81.29%74.36 %
    CAPITAL ADEQUACY       
    Tier 1 Capital 15.98%16.14%16.08 %
    Total Capital 16.98 17.15 17.20  
    Leverage 8.78 8.95 8.97  
    Common Equity Tier 1 13.77 13.86 13.63  
    Tangible Common Equity (1) 6.61 6.95 6.13  
    Equity to Assets 8.63%8.99%8.26 %
    ASSET QUALITY       
    Allowance as % of Non-Performing Loans 760.83%499.93%410.78 %
    Allowance as a % of Loans HFI 1.05 1.12 1.07  
    Net Charge-Offs as % of Average Loans HFI 0.16 0.02 (0.10) 
    Nonperforming Assets as % of Loans HFI and OREO 0.14 0.22 0.27  
    Nonperforming Assets as % of Total Assets 0.06%0.10%0.14 %
    STOCK PERFORMANCE       
    High$28.88$29.00$28.98  
    Low 25.96 24.77 21.42  
    Close$26.36$26.40$26.02  
    Average Daily Trading Volume 24,019 29,900 30,303  
            
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4.
            


    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION      
    Unaudited          
               
     2022 2021
    (Dollars in thousands)First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
    ASSETS          
    Cash and Due From Banks$77,963 $65,313 $73,132 $78,894 $73,973 
    Funds Sold and Interest Bearing Deposits 790,465  970,041  708,988  766,920  851,910 
    Total Cash and Cash Equivalents 868,428  1,035,354  782,120  845,814  925,883 
               
    Investment Securities Available for Sale 624,361  654,611  645,844  480,890  406,245 
    Investment Securities Held to Maturity 518,678  339,601  341,228  325,559  199,109 
    Other Equity Securities 855  861  -  -  - 
    Total Investment Securities 1,143,894  995,073  987,072  806,449  605,354 
               
    Loans Held for Sale 50,815  52,532  77,036  80,821  82,081 
               
    Loans Held for Investment ("HFI"):          
    Commercial, Financial, & Agricultural 230,213  223,086  218,929  292,953  413,819 
    Real Estate - Construction 174,293  174,394  177,443  149,884  138,104 
    Real Estate - Commercial 669,110  663,550  683,379  707,599  669,158 
    Real Estate - Residential 368,020  346,756  355,958  362,018  358,849 
    Real Estate - Home Equity 188,174  187,821  187,642  190,078  202,099 
    Consumer 347,785  321,511  309,983  298,464  267,666 
    Other Loans 6,692  13,265  6,792  6,439  7,082 
    Overdrafts 1,222  1,082  1,299  1,227  950 
    Total Loans Held for Investment 1,985,509  1,931,465  1,941,425  2,008,662  2,057,727 
    Allowance for Credit Losses (20,756) (21,606) (21,500) (22,175) (22,026)
    Loans Held for Investment, Net 1,964,753  1,909,859  1,919,925  1,986,487  2,035,701 
               
    Premises and Equipment, Net 82,518  83,412  84,750  85,745  86,370 
    Goodwill and Other Intangibles 93,213  93,253  93,293  93,333  89,095 
    Other Real Estate Owned 17  17  192  1,192  110 
    Other Assets 106,407  94,349  104,345  111,618  105,290 
    Total Other Assets 282,155  271,031  282,580  291,888  280,865 
    Total Assets$4,310,045 $4,263,849 $4,048,733 $4,011,459 $3,929,884 
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,704,329 $1,668,912 $1,592,345 $1,552,864 $1,473,891 
    NOW Accounts 1,062,498  1,070,154  926,201  970,705  993,571 
    Money Market Accounts 288,877  274,611  286,065  280,805  269,041 
    Regular Savings Accounts 614,599  599,811  559,714  539,477  518,373 
    Certificates of Deposit 95,204  99,374  101,637  103,070  103,232 
    Total Deposits 3,765,507  3,712,862  3,465,962  3,446,921  3,358,108 
               
    Short-Term Borrowings 30,865  34,557  51,410  47,200  55,687 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 806  884  1,610  1,720  1,829 
    Other Liabilities 77,323  67,735  113,720  105,534  109,487 
    Total Liabilities 3,927,388  3,868,925  3,685,589  3,654,262  3,577,998 
               
    Temporary Equity 10,512  11,758  14,276  21,317  27,460 
    SHAREOWNERS' EQUITY          
    Common Stock 169  169  169  169  169 
    Additional Paid-In Capital 35,188  34,423  33,876  33,560  32,804 
    Retained Earnings 370,531  364,788  359,550  345,574  335,324 
    Accumulated Other Comprehensive Loss, Net of Tax (33,743) (16,214) (44,727) (43,423) (43,871)
    Total Shareowners' Equity 372,145  383,166  348,868  335,880  324,426 
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,310,045 $4,263,849 $4,048,733 $4,011,459 $3,929,884 
    OTHER BALANCE SHEET DATA          
    Earning Assets$3,970,684 $3,949,111 $3,714,521 $3,662,852 $3,597,071 
    Interest Bearing Liabilities 2,145,736  2,132,278  1,979,524  1,995,864  1,994,620 
    Book Value Per Diluted Share$21.94 $22.63 $20.63 $19.87 $19.22 
    Tangible Book Value Per Diluted Share(1) 16.44  17.12  15.11  14.35  13.94 
    Actual Basic Shares Outstanding 16,948  16,892  16,878  16,874  16,852 
    Actual Diluted Shares Outstanding 16,962  16,935  16,912  16,901  16,876 
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4.


               
    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF OPERATIONS       
    Unaudited          
               
      2022  2021 
    (Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
    INTEREST INCOME          
    Loans, including Fees$22,133 $22,744 $25,885 $24,582 $23,350 
    Investment Securities 2,896  2,505  2,350  2,054  1,883 
    Federal Funds Sold and Interest Bearing Deposits 409  300  285  200  213 
    Total Interest Income 25,438  25,549  28,520  26,836  25,446 
    INTEREST EXPENSE          
    Deposits 224  213  210  208  208 
    Short-Term Borrowings 192  307  317  324  412 
    Subordinated Notes Payable 317  306  307  308  307 
    Other Long-Term Borrowings 9  12  14  16  21 
    Total Interest Expense 742  838  848  856  948 
    Net Interest Income 24,696  24,711  27,672  25,980  24,498 
    Provision for Credit Losses -  -  -  (571) (982)
    Net Interest Income after Provision for Credit Losses 24,696  24,711  27,672  26,551  25,480 
    NONINTEREST INCOME          
    Deposit Fees 5,191  5,300  5,075  4,236  4,271 
    Bank Card Fees 3,763  3,872  3,786  3,998  3,618 
    Wealth Management Fees 6,070  3,706  3,623  3,274  3,090 
    Mortgage Banking Revenues 8,946  9,800  12,283  13,217  17,125 
    Other 1,848  1,994  1,807  1,748  1,722 
    Total Noninterest Income 25,818  24,672  26,574  26,473  29,826 
    NONINTEREST EXPENSE          
    Compensation 24,856  24,783  25,245  25,378  26,064 
    Occupancy, Net 6,093  5,960  6,032  5,973  5,967 
    Other Real Estate, Net 25  26  (1,126) (270) (118)
    Pension Settlement 209  572  500  2,000  - 
    Other 8,050  8,866  9,051  9,042  8,563 
    Total Noninterest Expense 39,233  40,207  39,702  42,123  40,476 
    OPERATING PROFIT 11,281  9,176  14,544  10,901  14,830 
    Income Tax Expense 2,235  2,040  2,949  2,059  2,787 
    Net Income 9,046  7,136  11,595  8,842  12,043 
    Pre-Tax Income Attributable to Noncontrolling Interest (591) (764) (1,504) (1,415) (2,537)
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		$8,455 $6,372 $10,091 $7,427 $9,506 
    PER COMMON SHARE          
    Basic Net Income$0.50 $0.38 $0.60 $0.44 $0.56 
    Diluted Net Income 0.50  0.38  0.60  0.44  0.56 
    Cash Dividend$0.16 $0.16 $0.16 $0.15 $0.15 
    AVERAGE SHARES          
    Basic 16,931  16,880  16,875  16,858  16,838 
    Diluted 16,946  16,923  16,909  16,885  16,862 


    CAPITAL CITY BANK GROUP, INC.          
    ALLOWANCE FOR CREDIT LOSSES ("ACL")        
    AND CREDIT QUALITY          
    Unaudited          
               
      2022 2021
    (Dollars in thousands, except per share data) First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter
    ACL - HELD FOR INVESTMENT LOANS          
    Balance at Beginning of Period$21,606 $21,500 $22,175 $22,026 $23,816 
    Provision for Credit Losses (79) 200  (546) (184) (2,312)
    Net Charge-Offs (Recoveries) 771  94  129  (333) (522)
    Balance at End of Period$20,756 $21,606 $21,500 $22,175 $22,026 
    As a % of Loans HFI 1.05% 1.12% 1.11% 1.10% 1.07%
    As a % of Nonperforming Loans 760.83% 499.93% 710.39% 433.93% 410.78%
    ACL - DEBT SECURITIES          
    Provision for Credit Losses$- $20 $16 $- $- 
    ACL - UNFUNDED COMMITMENTS          
    Balance at Beginning of Period 2,897 $3,117 $2,587 $2,974 $1,644 
    Provision for Credit Losses 79  (220) 530  (387) 1,330 
    Balance at End of Period(1) 2,976  2,897  3,117  2,587  2,974 
    CHARGE-OFFS          
    Commercial, Financial and Agricultural$73 $101 $37 $32 $69 
    Real Estate - Construction -  -  -  -  - 
    Real Estate - Commercial 266  -  405  -  - 
    Real Estate - Residential -  20  17  65  6 
    Real Estate - Home Equity 33  9  15  74  5 
    Consumer 622  254  221  230  564 
    Overdrafts 780  678  1,093  440  492 
    Total Charge-Offs$1,774 $1,062 $1,788 $841 $1,136 
    RECOVERIES          
    Commercial, Financial and Agricultural$165 $148 $66 $103 $136 
    Real Estate - Construction 8  -  10  -  - 
    Real Estate - Commercial 29  25  169  26  645 
    Real Estate - Residential 27  33  401  244  75 
    Real Estate - Home Equity 58  173  46  70  124 
    Consumer 183  214  334  332  311 
    Overdrafts 533  375  633  399  367 
    Total Recoveries$1,003 $968 $1,659 $1,174 $1,658 
    NET CHARGE-OFFS (RECOVERIES)$771 $94 $129 $(333)$(522)
    Net Charge-Offs as a % of Average Loans HFI(2) 0.16% 0.02% 0.03% (0.07)% (0.10)%
    CREDIT QUALITY          
    Nonaccruing Loans$2,728 $4,322 $3,026 $5,110 $5,362 
    Other Real Estate Owned 17  17  192  1,192  110 
    Total Nonperforming Assets ("NPAs")$2,745 $4,339 $3,218 $6,302 $5,472 
               
    Past Due Loans 30-89 Days$3,120 $3,600 $3,360 $3,745 $2,622 
    Past Due Loans 90 Days or More 74  -  -  -  - 
    Classified Loans 22,348  17,912  16,310  19,397  20,608 
    Performing Troubled Debt Restructurings$7,304 $7,643 $7,919 $8,992 $13,597 
               
    Nonperforming Loans as a % of Loans HFI 0.14% 0.22% 0.16% 0.25% 0.26%
    NPAs as a % of Loans HFI and Other Real Estate 0.14% 0.22% 0.17% 0.31% 0.27%
    NPAs as a % of Total Assets 0.06% 0.10% 0.08% 0.16% 0.14%
               
    (1) Recorded in other liabilities          
    (2) Annualized          


    CAPITAL CITY BANK GROUP, INC.                             
    AVERAGE BALANCE AND INTEREST RATES                               
    Unaudited                                   
                                        
      First Quarter 2022  Fourth Quarter 2021  Third Quarter 2021  Second Quarter 2021  First Quarter 2021 
    (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    		 
    ASSETS:                                   
    Loans Held for Sale$43,004 $397 3.75%$62,809 $522 3.29%$67,753 $497 2.91%$77,101  566 2.94%$106,242 $970 3.70%
    Loans Held for Investment(1) 1,963,578  21,811 4.50  1,948,324  22,296 4.54  1,974,132  25,458 5.12  2,036,781  24,095 4.74  2,044,363  22,483 4.46 
                                        
    Investment Securities                                   
    Taxable Investment Securities 1,056,736  2,889 1.10  987,700  2,493 1.00  904,962  2,333 1.03  687,882  2,036 1.18  528,842  1,863 1.41 
    Tax-Exempt Investment Securities(1) 2,409  10 1.60  3,380  17 2.07  4,332  25 2.31  3,530  23 2.58  3,844  25 2.61 
                                        
    Total Investment Securities 1,059,145  2,899 1.10  991,080  2,510 1.01  909,294  2,358 1.03  691,412  2,059 1.19  532,686  1,888 1.42 
                                        
    Federal Funds Sold and Interest Bearing Deposits 873,097  409 0.19  789,100  300 0.15  741,944  285 0.15  818,616  200 0.10  814,638  213 0.11 
                                        
    Total Earning Assets 3,938,824 $25,516 2.63% 3,791,313 $25,628 2.68% 3,693,123 $28,598 3.07% 3,623,910 $26,920 2.98% 3,497,929 $25,554 2.96%
                                        
    Cash and Due From Banks 74,253       73,752       72,773       74,076       68,978      
    Allowance for Loan Losses (21,655)      (22,127)      (22,817)      (22,794)      (24,128)     
    Other Assets 275,353       284,999       283,534       281,157       278,742      
                                        
    Total Assets$4,266,775      $4,127,937      $4,026,613      $3,956,349      $3,821,521      
                                        
    LIABILITIES:                                   
    Interest Bearing Deposits                                   
    NOW Accounts$1,079,906 $86 0.03%$963,778 $72 0.03%$945,788 $72 0.03%$966,649 $74 0.03%$985,517 $76 0.03%
    Money Market Accounts 285,406  33 0.05  289,335  34 0.05  282,860  34 0.05  272,138  33 0.05  269,829  33 0.05 
    Savings Accounts 599,359  72 0.05  573,563  71 0.05  551,383  68 0.05  529,844  64 0.05  492,252  60 0.05 
    Time Deposits 97,054  33 0.14  101,037  36 0.14  102,765  36 0.14  102,995  37 0.15  102,089  39 0.15 
    Total Interest Bearing Deposits 2,061,725  224 0.04% 1,927,713  213 0.04% 1,882,796  210 0.04% 1,871,626  208 0.04% 1,849,687  208 0.05%
                                        
    Short-Term Borrowings 32,353  192 2.40% 46,355  307 2.63% 49,773  317 2.53% 51,152  324 2.54% 67,033  412 2.49%
    Subordinated Notes Payable 52,887  317 2.40  52,887  306 2.26  52,887  307 2.27  52,887  308 2.30  52,887  307 2.32 
    Other Long-Term Borrowings 833  9 4.49  1,414  12 3.50  1,652  14 3.37  1,762  16 3.38  2,736  21 3.18 
                                        
    Total Interest Bearing Liabilities 2,147,798 $742 0.14% 2,028,369 $838 0.16% 1,987,108 $848 0.17% 1,977,427 $856 0.17% 1,972,343 $948 0.19%
                                        
    Noninterest Bearing Deposits 1,652,337       1,621,432       1,564,892       1,515,726       1,389,821      
    Other Liabilities 72,166       114,657       112,707       107,801       111,050      
                                        
    Total Liabilities 3,872,301       3,764,458       3,664,707       3,600,954       3,473,214      
    Temporary Equity 10,518       13,339       20,446       26,355       21,977      
                                        
    SHAREOWNERS' EQUITY: 383,956       350,140       341,460       329,040       326,330      
                                        
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,266,775      $4,127,937      $4,026,613      $3,956,349      $3,821,521      
                                        
    Interest Rate Spread  $24,774 2.49%  $24,790 2.52%  $27,750 2.91%  $26,064 2.81%  $24,606 2.77%
                                        
    Interest Income and Rate Earned(1)   25,516 2.63    25,628 2.68    28,598 3.07    26,920 2.98    25,554 2.96 
    Interest Expense and Rate Paid(2)   742 0.08    838 0.09    848 0.09    856 0.09    948 0.11 
                                        
    Net Interest Margin  $24,774 2.55%  $24,790 2.60%  $27,750 2.98%  $26,064 2.89%  $24,606 2.85%
                                        
    (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.                               


    CAPITAL CITY HOME LOANS      
    MORTGAGE BANKING ACTIVITY      
    Unaudited      
           
      Three Months Ended
    (Dollars in thousands) Mar 31, 2022 Dec 31, 2021 Mar 31, 2021
    Net Interest Income$75 $35 $(153)
           
    Mortgage Banking Fees 8,947  9,800  16,846 
    Other 467  470  426 
    Total Noninterest Income 9,414  10,270  17,272 
           
    Salaries 6,024  6,643  10,276 
    Other Associate Benefits 181  202  221 
    Total Compensation 6,205  6,845  10,497 
           
    Occupancy, Net 885  743  861 
    Other 1,313  1,312  1,101 
    Total Noninterest Expense 8,403  8,900  12,459 
           
    Operating Profit$1,086 $1,405 $4,660 
           
    Key Performance Metrics      
    Total Loans Closed$246,887 $294,237 $463,126 
    Total Loans Closed - Mix      
    Purchase 79% 76% 60%
    Refinance 21% 24% 40%

    For Information Contact:
    J. Kimbrough Davis
    Executive Vice President and Chief Financial Officer
    850.402.7820


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