Capital City Bank Group, Inc. Reports Third Quarter 2024 Results

Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.1 million, or $0.78 per diluted share, for the third quarter of 2024 compared to $14.2 million, or $0.83 per diluted share, for the second quarter of 2024, and $12.7 million, or $0.74 per diluted share, for the third quarter of 2023.

QUARTER HIGHLIGHTS (3rd Quarter 2024 versus 2nd Quarter 2024)

Income Statement

Tax-equivalent net interest income totaled $40.3 million compared to $39.3 million for the prior quarter
- Net interest margin increased 10 basis points to 4.12% (earning asset yield up 7 basis points and total deposit cost down 3 basis points to 92 basis points)
Stable credit quality metrics and credit loss provision - net loan charge-offs were 19 basis points (annualized) of average loans – allowance coverage ratio increased to 1.11% at September 30, 2024
Noninterest income remained stable, decreasing $0.1 million, or 0.5%, and reflected a $0.4 million decline in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees
Noninterest expense increased $2.5 million, or 6.1%, due to increases in compensation (annual merit and health care) and other expenses (professional and processing). Other expense also included a $0.5 million expense related to a counterparty payment for our VISA Class B share swap

Balance Sheet

Loan balances decreased $33.2 million, or 1.2% (average), and declined $7.1 million, or 0.3% (end of period)
Deposit balances decreased by $69.0 million, or 1.9% (average), and decreased $29.5 million, or 0.8% (end of period), reflecting the seasonal decline in our public fund balances
Tangible book value per diluted share (non-GAAP financial measure) increased $0.91, or 4.2%

Commenting on the company's results, William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO, said, "I am pleased with what we accomplished in the quarter to enhance shareowner value – 4.2% growth in tangible book value per share and a 9.5% increase in the dividend. Earnings for the quarter remained stable driven by margin expansion, stable credit, and core deposit growth. Looking ahead, I remain optimistic about our full year financial performance and beyond, driven by our balance sheet flexibility, revenue diversification, and focus on continuous improvement.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the third quarter of 2024 totaled $40.2 million, compared to $39.3 million for the second quarter of 2024, and $39.3 million for the third quarter of 2023. Compared to the second quarter of 2024, the increase was primarily due to increases in loan and investment interest income and a decrease in deposit interest expense, partially offset by a decrease in overnight funds interest income. One additional calendar day also contributed to the increase. Favorable repricing of existing adjustable/fixed rate loans at higher rates drove the increase in loan interest income. The increase in investment interest income was due to the reinvestment of maturing securities at higher rates. The decrease in deposit interest expense was attributable to lower average NOW account balances and average rate, in addition to lower rates on promotional deposit products.

Compared to the third quarter of 2023, the $0.9 million increase was primarily driven by an increase in loan interest income and to a lesser extent overnight funds interest income, partially offset by an increase in deposit interest expense. For the first nine months of 2024, tax-equivalent net interest income totaled $118.0 million compared to $120.1 million for the same period of 2023 with the decrease primarily attributable to an increase in deposit interest expense and a decrease in investment interest income, partially offset by an increase in loan interest income.

Our net interest margin for the third quarter of 2024 was 4.12%, an increase of 10 basis points over the second quarter of 2024 and an increase of nine basis points over the third quarter of 2023. For the month of September 2024, our net interest margin was 4.16%. For the first nine months of 2024, our net interest margin was 4.05% compared to 4.04% for the same period of 2023. The increase over the second quarter of 2024 reflected favorable loan and investment repricing, partially offset by a lower overnight funds rate. The increase over both prior year periods reflected higher loan rates partially offset by a higher cost of deposits. For the third quarter of 2024, our cost of funds was 93 basis points, a decrease of four basis points from the second quarter of 2024 and an increase of 27 basis points over the third quarter of 2023. Our cost of deposits (including noninterest bearing accounts) was 92 basis points, 95 basis points, and 58 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $1.2 million for the third quarter of 2024, comparable to the second quarter of 2024 and a $1.2 million decrease from the third quarter of 2023. The provision expense for the third quarter of 2024 reflected a $0.7 million increase in the provision for loans held for investment (“HFI”), a $0.6 million provision benefit for unfunded loan commitments, and a $0.1 million provision benefit for debt securities. The increase in the provision for loans HFI was primarily due to loan grade migration and slightly higher loss rates partially offset by lower loan balances. A lower level of commitments drove the provision benefit for unfunded loan commitments. For the first nine months of 2024, we recorded a provision expense for credit losses of $3.3 million compared to $7.7 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 third quarter of 2024 totaled $19.5 million compared to $19.6 million for the second quarter of 2024 and $16.7 million for the third quarter of 2023. The slight decrease from the second quarter of 2024 reflected a $0.4 million decrease in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees. Compared to the third quarter of 2023, the $2.8 million increase was primarily attributable to a $2.1 million increase in mortgage banking revenues driven by a higher gain on sale margin, and a $0.8 million increase in wealth management fees.

For the first nine months of 2024, noninterest income totaled $57.2 million compared to $54.5 million for the same period of 2023, primarily attributable to a $3.2 million increase in mortgage banking revenues and a $1.8 million increase in wealth management fees, partially offset by a $2.1 million decrease in other income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The increase in wealth management fees was primarily driven by higher retail brokerage fees and to a lesser extent trust fees, primarily attributable to both new account growth and higher account values driven by higher market returns. The decrease in other income was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights in the second quarter of 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.

Noninterest expense for the third quarter of 2024 totaled $42.9 million compared to $40.4 million for the second quarter of 2024 and $39.1 million for the third quarter of 2023. The $2.5 million increase over the second quarter of 2024 was primarily due to a $1.4 million increase in compensation and a $1.0 million increase in other expense. The increase in compensation reflected higher salary expense of $0.9 million and associate benefit expense of $0.5 million. The increase in salary expense was driven by annual merit adjustments, and the increase in other associate benefit expense was primarily attributable to higher health insurance cost, and to a lesser extent higher stock-based compensation expense. The increase in other expense was primarily due to a $0.5 million increase in professional fees, processing fees of $0.3 million, and higher miscellaneous expense which included a $0.5 million payment to the counterparty for our VISA Class B share swap due to revision to the share conversion rate related to additional funding by VISA of the merchant litigation reserve. Compared to the third quarter of 2023, the $3.8 million increase was primarily attributable to a $2.8 million increase in compensation expense and a $0.9 million increase in other expense. The unfavorable variance in compensation expense reflected higher salary expense of $2.2 million and associate benefit expense of $0.6 million, with the salary variance driven by merit adjustments and the associate benefit expense variance reflective of higher health insurance cost. Further, salary expense was unfavorably impacted by lower realized loan cost (credit offset to salary expense) of $1.0 million which reflected lower loan volume in 2024. The increase in other expense was attributable to a $0.6 million increase in professional fees and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in the third quarter of 2024.

For the first nine months of 2024, noninterest expense totaled $123.5 million compared to $117.1 million for the same period of 2023 with the $6.4 million increase primarily attributable to increases in compensation expense of $4.6 million, occupancy expense of $0.5 million, and other expense of $1.3 million. The increase in compensation expense reflected a $3.9 million increase in salary expense and a $0.7 million increase in associate benefit expense. The increase in salary expense was primarily due to a lower level of realized loan cost (credit offset to salary expense) of $2.9 million (lower new loan volume) and higher base salary expense of $1.9 million (primarily annual merit raises), partially offset by lower commission expense of $1.3 million (lower residential mortgage volume). The increase in occupancy was primarily attributable to an increase in maintenance agreement expense (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 and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in 2024, that was partially offset by lower pension plan expense (service cost) of $1.0 million.

Income Taxes

We realized income tax expense of $3.0 million (effective rate of 19.1%) for the third quarter of 2024 compared to $3.2 million (effective rate of 18.5%) for the second quarter of 2024 and $3.0 million (effective rate of 20.7%) for the third quarter of 2023. For the first nine months of 2024, we realized income tax expense of $9.7 million (effective rate of 20.1%) compared to $10.1 million (effective rate of 20.5%) for the same period of 2023. The decrease in our effective tax rate from both prior year periods was primarily due to a higher level of tax benefit accrued from investments in solar tax credit equity funds. 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 $3.883 billion for the third quarter of 2024, a decrease of $51.9 million, or 1.3%, from the second quarter of 2024, and an increase of $59.4 million, or 1.6%, over the fourth quarter of 2023. The change for both prior periods was driven by variances in deposit balances (see below – Deposits). Compared to the second quarter of 2024, the change in the earning asset mix reflected a $33.2 million decrease in loans HFI, a $11.4 million decline in investment securities, and a $5.6 million decrease increase in overnight funds sold. Compared to the fourth quarter of 2023, the change in the earning asset mix reflected a $157.1 million increase in overnight funds that was partially offset by a $17.7 million decrease in loans HFI, a $54.7 million decrease in investment securities and a $25.2 million decline in loans held for sale.

Average loans HFI decreased $33.2 million, or 1.2%, from the second quarter of 2024 and decreased $17.7 million, or 0.7%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was driven by a $19.4 million decrease in consumer loans (primarily indirect auto), commercial loans of $13.2 million, and commercial real estate loans of $7.7 million, partially offset by a $7.4 million increase in residential real estate loans. Compared to the fourth quarter of 2023, the decrease was primarily attributable to a $54.5 million decrease in consumer loans (primarily indirect auto) and commercial loans of $24.2 million (primarily tax-exempt loans) that was partially offset by a $59.2 million increase in residential real estate loans.

Period end loans HFI decreased $7.1 million, or 0.3%, from the second quarter of 2024 and decreased $50.8 million, or 1.9%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decline reflected a $20.9 million decrease in consumer loans (primarily indirect auto), a $10.4 million decrease in commercial loans, and a $3.2 million decline in commercial real estate loans, partially offset by a $10.9 million increase in residential real estate loans and a $18.1 million increase in construction loans. The decrease from the fourth quarter of 2023 was primarily attributable to a $57.7 million decrease in consumer loans (primarily indirect auto), a $30.6 million decline in commercial loans, and a $5.5 million decrease in commercial real estate loans, partially offset by a $22.2 million increase in residential real estate loans and a $22.8 million increase in construction real estate loans.

Allowance for Credit Losses

At September 30, 2024, the allowance for credit losses for loans HFI totaled $29.8 million compared to $29.2 million at June 30, 2024 and $29.9 million at December 31, 2023. Activity within the allowance is provided on Page 9. The increase in the allowance over June 30, 2024 was primarily attributable to slightly higher forecasted unemployment rate utilized in calculating loan loss rates and loan grade migration (see above – Provision for Credit Losses). Net loan charge-offs were 19 basis points of average loans for the third quarter of 2024 versus 18 basis points for the second quarter of 2024. At September 30, 2024, the allowance represented 1.11% of loans HFI compared to 1.09% at June 30, 2024, and 1.10% at December 31, 2023.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $7.2 million at September 30, 2024 compared to $6.2 million at June 30, 2024 and $6.2 million at December 31, 2023. At September 30, 2024, nonperforming assets as a percent of total assets equaled 0.17%, compared to 0.15% at June 30, 2024 and 0.15% at December 31, 2023. Nonaccrual loans totaled $6.6 million at September 30, 2024, a $1.1 million increase over June 30, 2024 and a $0.3 million increase over December 31, 2023. Further, classified loans totaled $25.5 million at September 30, 2024, a $0.1 million decrease from June 30, 2024 and a $3.3 million increase over December 31, 2023.

Deposits

Average total deposits were $3.572 billion for the third quarter of 2024, a decrease of $69.0 million, or 1.9%, from the second quarter of 2024 and an increase of $23.5 million, or 0.7%, over the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was primarily attributable to lower NOW account balances primarily due to the seasonal decline in our public fund balances. The increase over the fourth quarter of 2023 reflected growth in both money market and certificate of deposit balances which reflected a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.

At September 30, 2024, total deposits were $3.579 billion, a decrease of $29.5 million, or 0.8%, from June 30, 2024, and a decrease of $122.7 million, or 3.3%, from December 31, 2023. The decrease from June 30, 2024 was primarily due to lower noninterest bearing, money market, and savings account balances. The decrease from December 31, 2023 was primarily due to lower NOW account balances, primarily due to the seasonal decline in our public funds, partially offset by higher money market and certificate of deposit balances from both new and existing clients. Total public funds balances were $516.2 million at September 30, 2024, $575.0 million at June 30, 2024, and $709.8 million at December 31, 2023.

Liquidity

The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $256.9 million in the third quarter of 2024 compared to $262.4 million in the second quarter of 2024 and $99.8 million in the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease reflected lower average deposits (primarily seasonal public funds) that was substantially offset by a decline in average loans. Compared to the fourth quarter of 2023, the increase was primarily driven by higher average deposits and lower average investments.

At September 30, 2024, we had the ability to generate approximately $1.522 billion (excludes overnight funds position of $262 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 September 30, 2024, the weighted-average maturity and duration of our portfolio were 2.51 years and 2.17 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.5 million.

Capital

Shareowners’ equity was $476.5 million at September 30, 2024 compared to $461.0 million at June 30, 2024 and $440.6 million at December 31, 2023. For the first nine months of 2024, shareowners’ equity was positively impacted by net income attributable to shareowners of $39.8 million, a $8.7 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, and stock compensation accretion of $1.1 million. Shareowners’ equity was reduced by a common stock dividend of $11.0 million ($0.65 per share), the repurchase of common stock of $2.3 million (82,540 shares), a $0.6 million increase in the fair value of the interest rate swap related to subordinated debt, and a $0.7 million reclassification to temporary equity.

At September 30, 2024, our total risk-based capital ratio was 17.97% compared to 17.50% at June 30, 2024 and 16.57% at December 31, 2023. Our common equity tier 1 capital ratio was 14.88%, 14.44%, and 13.52%, respectively, on these dates. Our leverage ratio was 10.89%, 10.51%, and 10.30%, respectively, on these dates. At September 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 9.28% at September 30, 2024 compared to 8.91% and 8.26% at June 30, 2024 and December 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $12.9 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.00%.

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; the effects of changes in the level 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; legislative or regulatory changes; adverse developments in the financial services industry; 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 for the fiscal year ended December 31, 2023, as amended, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

USE OF NON-GAAP FINANCIAL MEASURESUnaudited

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

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023
Shareowners' Equity (GAAP)		$	476,499	$	460,999	$	448,314	$	440,625	$	419,706
Less: Goodwill and Other Intangibles (GAAP)			92,813		92,853		92,893		92,933		92,973
Tangible Shareowners' Equity (non-GAAP)	A		383,686		368,146		355,421		347,692		326,733
Total Assets (GAAP)			4,225,316		4,225,695		4,259,922		4,304,477		4,138,287
Less: Goodwill and Other Intangibles (GAAP)			92,813		92,853		92,893		92,933		92,973
Tangible Assets (non-GAAP)	B	$	4,132,503	$	4,132,842	$	4,167,029	$	4,211,544	$	4,045,314
Tangible Common Equity Ratio (non-GAAP)	A/B		9.28%		8.91%		8.53%		8.26%		8.08%
Actual Diluted Shares Outstanding (GAAP)	C		16,980,686		16,970,228		16,947,204		17,000,758		16,997,886
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	22.60	$	21.69	$	20.97	$	20.45	$	19.22

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited

		Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)		Sep 30, 2024		Jun 30, 2024		Sep 30, 2023		Sep 30, 2024		Sep 30, 2023
EARNINGS
Net Income Attributable to Common Shareowners	$	13,118	$	14,150	$	12,655	$	39,825	$	40,539
Diluted Net Income Per Share	$	0.78	$	0.83	$	0.74	$	2.35	$	2.38
PERFORMANCE
Return on Average Assets (annualized)		1.24	%	1.33	%	1.19	%	1.26	%	1.26	%
Return on Average Equity (annualized)		10.87		12.23		11.74		11.39		13.00
Net Interest Margin		4.12		4.02		4.03		4.05		4.04
Noninterest Income as % of Operating Revenue		32.67		33.30		29.87		32.69		31.25
Efficiency Ratio		71.81	%	68.61	%	69.88	%	70.49	%	67.07	%
CAPITAL ADEQUACY
Tier 1 Capital		16.77	%	16.31	%	15.11	%	16.77	%	15.11	%
Total Capital		17.97		17.50		16.30		17.97		16.30
Leverage		10.89		10.51		9.98		10.89		9.98
Common Equity Tier 1		14.88		14.44		13.26		14.88		13.26
Tangible Common Equity (1)		9.28		8.91		8.08		9.28		8.08
Equity to Assets		11.28	%	10.91	%	10.14	%	11.28	%	10.14	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		452.64	%	529.79	%	619.58	%	452.64	%	619.58	%
Allowance as a % of Loans HFI		1.11		1.09		1.08		1.11		1.08
Net Charge-Offs as % of Average Loans HFI		0.19		0.18		0.17		0.20		0.16
Nonperforming Assets as % of Loans HFI and OREO		0.27		0.23		0.17		0.27		0.17
Nonperforming Assets as % of Total Assets		0.17	%	0.15	%	0.11	%	0.17	%	0.11	%
STOCK PERFORMANCE
High	$	36.67	$	28.58	$	33.44	$	36.67	$	36.86
Low		26.72		25.45		28.64		25.45		28.03
Close	$	35.29	$	28.44	$	29.83	$	35.29	$	29.83
Average Daily Trading Volume		37,151		29,861		26,774		32,720		33,936

(1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including areconciliation to GAAP, refer to Page 6.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited

	2024										2023
(Dollars in thousands)	Third Quarter				Second Quarter			First Quarter			Fourth Quarter			Third Quarter
ASSETS
Cash and Due From Banks	$	83,431		$	75,304		$	73,642		$	83,118		$	72,379
Funds Sold and Interest Bearing Deposits		261,779			272,675			231,047			228,949			95,119
Total Cash and Cash Equivalents		345,210			347,979			304,689			312,067			167,498

Investment Securities Available for Sale		336,187			310,941			327,338			337,902			334,052
Investment Securities Held to Maturity		561,480			582,984			603,386			625,022			632,076
Other Equity Securities		6,976			2,537			3,445			3,450			3,585
Total Investment Securities		904,643			896,462			934,169			966,374			969,713

Loans Held for Sale		31,251			24,022			24,705			28,211			34,013

Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural		194,625			204,990			218,298			225,190			221,704
Real Estate - Construction		218,899			200,754			202,692			196,091			197,526
Real Estate - Commercial		819,955			823,122			823,690			825,456			828,234
Real Estate - Residential		1,023,485			1,012,541			1,012,791			1,001,257			966,512
Real Estate - Home Equity		210,988			211,126			214,617			210,920			203,606
Consumer		213,305			234,212			254,168			270,994			285,122
Other Loans		461			2,286			3,789			2,962			1,401
Overdrafts		1,378			1,192			1,127			1,048			1,076
Total Loans Held for Investment		2,683,096			2,690,223			2,731,172			2,733,918			2,705,181
Allowance for Credit Losses		(29,836	)		(29,219	)		(29,329	)		(29,941	)		(29,083	)
Loans Held for Investment, Net		2,653,260			2,661,004			2,701,843			2,703,977			2,676,098

Premises and Equipment, Net		81,876			81,414			81,452			81,266			81,677
Goodwill and Other Intangibles		92,813			92,853			92,893			92,933			92,973
Other Real Estate Owned		650			650			1			1			1
Other Assets		115,613			121,311			120,170			119,648			116,314
Total Other Assets		290,952			296,228			294,516			293,848			290,965
Total Assets	$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477		$	4,138,287
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,330,715		$	1,343,606		$	1,361,939		$	1,377,934		$	1,472,165
NOW Accounts		1,174,585			1,177,180			1,212,452			1,327,420			1,092,996
Money Market Accounts		401,272			413,594			398,308			319,319			304,323
Savings Accounts		507,604			514,560			530,782			547,634			571,003
Certificates of Deposit		164,901			159,624			151,320			129,515			99,958
Total Deposits		3,579,077			3,608,564			3,654,801			3,701,822			3,540,445

Repurchase Agreements		29,339			22,463			23,477			26,957			22,910
Other Short-Term Borrowings		7,929			3,307			8,409			8,384			18,786
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		794			1,009			265			315			364
Other Liabilities		71,974			69,987			65,181			66,080			75,585
Total Liabilities		3,742,000			3,758,217			3,805,020			3,856,445			3,710,977

Temporary Equity		6,817			6,479			6,588			7,407			7,604
SHAREOWNERS' EQUITY
Common Stock		169			169			169			170			170
Additional Paid-In Capital		36,070			35,547			34,861			36,326			36,182
Retained Earnings		454,342			445,959			435,364			426,275			418,030
Accumulated Other Comprehensive Loss, Net of Tax		(14,082	)		(20,676	)		(22,080	)		(22,146	)		(34,676	)
Total Shareowners' Equity		476,499			460,999			448,314			440,625			419,706
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477		$	4,138,287
OTHER BALANCE SHEET DATA
Earning Assets	$	3,880,769		$	3,883,382		$	3,921,093		$	3,957,452		$	3,804,026
Interest Bearing Liabilities		2,339,311			2,344,624			2,377,900			2,412,431			2,163,227
Book Value Per Diluted Share	$	28.06		$	27.17		$	26.45		$	25.92		$	24.69
Tangible Book Value Per Diluted Share(1)		22.60			21.69			20.97			20.45			19.22
Actual Basic Shares Outstanding		16,944			16,942			16,929			16,950			16,958
Actual Diluted Shares Outstanding		16,981			16,970			16,947			17,001			16,998
(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				Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Third Quarter		Second Quarter		First Quarter		Fourth Quarter		Third Quarter		2024		2023
INTEREST INCOME
Loans, including Fees	$	41,659	$	41,138	$	40,683	$	40,407	$	39,344	$	123,480	$	111,845
Investment Securities		4,155		4,004		4,244		4,392		4,561		12,403		14,300
Federal Funds Sold and Interest Bearing Deposits		3,514		3,624		1,893		1,385		1,848		9,031		8,741
Total Interest Income		49,328		48,766		46,820		46,184		45,753		144,914		134,886
INTEREST EXPENSE
Deposits		8,223		8,579		7,594		5,872		5,214		24,396		11,710
Repurchase Agreements		221		217		201		199		190		639		314
Other Short-Term Borrowings		52		68		39		310		440		159		1,228
Subordinated Notes Payable		610		630		628		627		625		1,868		1,800
Other Long-Term Borrowings		11		3		3		5		4		17		15
Total Interest Expense		9,117		9,497		8,465		7,013		6,473		27,079		15,067
Net Interest Income		40,211		39,269		38,355		39,171		39,280		117,835		119,819
Provision for Credit Losses		1,206		1,204		920		2,025		2,393		3,330		7,689
Net Interest Income after Provision for Credit Losses		39,005		38,065		37,435		37,146		36,887		114,505		112,130
NONINTEREST INCOME
Deposit Fees		5,512		5,377		5,250		5,304		5,456		16,139		16,021
Bank Card Fees		3,624		3,766		3,620		3,713		3,684		11,010		11,205
Wealth Management Fees		4,770		4,439		4,682		4,276		3,984		13,891		12,061
Mortgage Banking Revenues		3,966		4,381		2,878		2,327		1,839		11,225		8,072
Other		1,641		1,643		1,667		1,537		1,765		4,951		7,093
Total Noninterest Income		19,513		19,606		18,097		17,157		16,728		57,216		54,452
NONINTEREST EXPENSE
Compensation		25,800		24,406		24,407		23,822		23,003		74,613		69,965
Occupancy, Net		7,098		6,997		6,994		7,098		6,980		21,089		20,562
Other		10,023		9,038		8,770		9,038		9,122		27,831		26,539
Total Noninterest Expense		42,921		40,441		40,171		39,958		39,105		123,533		117,066
OPERATING PROFIT		15,597		17,230		15,361		14,345		14,510		48,188		49,516
Income Tax Expense		2,980		3,189		3,536		2,909		3,004		9,705		10,130
Net Income		12,617		14,041		11,825		11,436		11,506		38,483		39,386
Pre-Tax Loss Attributable to Noncontrolling Interest		501		109		732		284		1,149		1,342		1,153
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	13,118	$	14,150	$	12,557	$	11,720	$	12,655	$	39,825	$	40,539
PER COMMON SHARE
Basic Net Income	$	0.77	$	0.84	$	0.74	$	0.69	$	0.75	$	2.35	$	2.38
Diluted Net Income		0.78		0.83		0.74		0.70		0.74		2.35		2.38
Cash Dividend	$	0.23	$	0.21	$	0.21	$	0.20	$	0.20	$	0.65	$	0.56
AVERAGE SHARES
Basic		16,943		16,931		16,951		16,947		16,985		16,942		17,001
Diluted		16,979		16,960		16,969		16,997		17,025		16,966		17,031

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited

		2024								2023					Nine Months EndedSeptember 30,
(Dollars in thousands, except per share data)		Third Quarter			Second Quarter		First Quarter			Fourth Quarter			Third Quarter		2024			2023
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,219		$	29,329	$	29,941		$	29,083		$	28,243	$	29,941		$	25,068
Transfer from Other (Assets) Liabilities		-			-		(50	)		66			-		(50	)		-
Provision for Credit Losses		1,879			1,129		932			2,354			1,993		3,940			7,175
Net Charge-Offs (Recoveries)		1,262			1,239		1,494			1,562			1,153		3,995			3,160
Balance at End of Period	$	29,836		$	29,219	$	29,329		$	29,941		$	29,083	$	29,836		$	29,083
As a % of Loans HFI		1.11%			1.09%		1.07%			1.10%			1.08%		1.11%			1.08%
As a % of Nonperforming Loans		452.64%			529.79%		431.46%			479.70%			619.58%		452.64%			619.58%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period		3,139		$	3,121	$	3,191		$	3,502		$	3,120	$	3,191		$	2,989
Provision for Credit Losses		(617	)		18		(70	)		(311	)		382		(669	)		513
Balance at End of Period(1)		2,522			3,139		3,121			3,191			3,502		2,522			3,502
ACL - DEBT SECURITIES
Provision for Credit Losses	$	(56	)	$	57	$	58		$	(18	)	$	18	$	59		$	1
CHARGE-OFFS
Commercial, Financial and Agricultural	$	331		$	400	$	282		$	217		$	76	$	1,013		$	294
Real Estate - Construction		-			-		-			-			-		-			-
Real Estate - Commercial		3			-		-			-			-		3			120
Real Estate - Residential		-			-		17			79			-		17			-
Real Estate - Home Equity		23			-		76			-			-		99			39
Consumer		1,315			1,061		1,550			1,689			1,340		3,926			4,065
Overdrafts		611			571		638			602			659		1,820			2,187
Total Charge-Offs	$	2,283		$	2,032	$	2,563		$	2,587		$	2,075	$	6,878		$	6,705
RECOVERIES
Commercial, Financial and Agricultural	$	176		$	59	$	41		$	83		$	28	$	276		$	194
Real Estate - Construction		-			-		-			-			-		-			2
Real Estate - Commercial		5			19		204			16			17		228			36
Real Estate - Residential		88			23		37			34			30		148			219
Real Estate - Home Equity		59			37		24			17			53		120			209
Consumer		405			313		410			433			418		1,128			1,503
Overdrafts		288			342		353			442			376		983			1,382
Total Recoveries	$	1,021		$	793	$	1,069		$	1,025		$	922	$	2,883		$	3,545
NET CHARGE-OFFS (RECOVERIES)	$	1,262		$	1,239	$	1,494		$	1,562		$	1,153	$	3,995		$	3,160
Net Charge-Offs as a % of Average Loans HFI(2)		0.19%			0.18%		0.22%			0.23%			0.17%		0.20%			0.16%
CREDIT QUALITY
Nonaccruing Loans	$	6,592		$	5,515	$	6,798		$	6,242		$	4,694
Other Real Estate Owned		650			650		1			1			1
Total Nonperforming Assets ("NPAs")	$	7,242		$	6,165	$	6,799		$	6,243		$	4,695

Past Due Loans 30-89 Days	$	9,388		$	5,672	$	5,392		$	6,855		$	5,577
Classified Loans		25,501			25,566		22,305			22,203			21,812

Nonperforming Loans as a % of Loans HFI		0.25%			0.21%		0.25%			0.23%			0.17%
NPAs as a % of Loans HFI and Other Real Estate		0.27%			0.23%		0.25%			0.23%			0.17%
NPAs as a % of Total Assets		0.17%			0.15%		0.16%			0.15%			0.11%

(1) Recorded in other liabilities
(2) Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited

		Third Quarter 2024							Second Quarter 2024							First Quarter 2024							Fourth Quarter 2023							Third Quarter 2023							Sep 2024 YTD							Sep 2023 YTD
(Dollars in thousands)		AverageBalance			Interest	AverageRate			AverageBalance			Interest	AverageRate			AverageBalance			Interest	AverageRate			AverageBalance			Interest	AverageRate			AverageBalance			Interest	AverageRate			AverageBalance			Interest	AverageRate			AverageBalance			Interest	AverageRate
ASSETS:
Loans Held for Sale	$	24,570		$	720	7.49	%	$	26,281		$	517	5.26	%	$	27,314		$	563	5.99	%	$	49,790			817	6.50	%	$	62,768		$	971	6.14	%	$	26,050		$	1,800	6.22	%	$	57,438		$	2,416	5.62	%
Loans Held for Investment(1)		2,693,533			40,985	6.09			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			2,716,220			121,864	6.02			2,637,911			109,688	5.56

Investment Securities
Taxable Investment Securities		907,610			4,148	1.82			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			926,241			12,385	1.78			1,034,825			14,265	1.84
Tax-Exempt Investment Securities(1)		846			10	4.33			843			9	4.36			856			9	4.34			862			7	4.32			2,456			17	2.66			848			28	4.34			2,649			50	2.49

Total Investment Securities		908,456			4,158	1.82			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			927,089			12,413	1.78			1,037,474			14,315	1.84

Federal Funds Sold and Interest Bearing Deposits		256,855			3,514	5.44			262,419			3,624	5.56			140,488			1,893	5.42			99,763			1,385	5.51			136,556			1,848	5.37			220,056			9,031	5.48			237,987			8,741	4.91

Total Earning Assets		3,883,414		$	49,377	5.06	%		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	%		3,889,415		$	145,108	4.98	%		3,970,810		$	135,160	4.55	%

Cash and Due From Banks		70,994							74,803							75,763							76,681							75,941							73,843							75,483
Allowance for Credit Losses		(29,905	)						(29,564	)						(30,030	)						(29,998	)						(29,172	)						(29,833	)						(27,581	)
Other Assets		291,359							291,669							295,275							296,114							295,106							292,762							297,688

Total Assets	$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,218,855						$	4,226,187						$	4,316,400

LIABILITIES:
Noninterest Bearing Deposits	$	1,332,305						$	1,346,546						$	1,344,188						$	1,416,825						$	1,474,574						$	1,340,981						$	1,538,268
NOW Accounts		1,145,544		$	4,087	1.42	%		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	%		1,184,596		$	13,009	1.47	%		1,184,453		$	8,679	0.98	%
Money Market Accounts		418,625			2,694	2.56			407,387			2,752	2.72			353,591			1,985	2.26			318,844			1,421	1.77			322,623			1,294	1.59			393,294			7,431	2.52			293,089			2,249	1.03
Savings Accounts		512,098			180	0.14			519,374			176	0.14			539,374			188	0.14			557,579			202	0.14			579,245			200	0.14			523,573			544	0.14			603,643			396	0.09
Time Deposits		163,462			1,262	3.07			160,078			1,226	3.08			138,328			924	2.69			116,797			553	1.88			95,203			231	0.96			153,991			3,412	2.96			90,970			386	0.57
Total Interest Bearing Deposits		2,239,729			8,223	1.46			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			2,255,454			24,396	1.44			2,172,155			11,710	0.72
Total Deposits		3,572,034			8,223	0.92			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			3,596,435			24,396	0.91			3,710,423			11,710	0.42
Repurchase Agreements		27,126			221	3.24			26,999			217	3.24			25,725			201	3.14			26,831			199	2.94			25,356			190	2.98			26,619			639	3.21			17,588			314	2.39
Other Short-Term Borrowings		2,673			52	7.63			6,592			68	4.16			3,758			39	4.16			16,906			310	7.29			24,306			440	7.17			4,334			159	4.88			26,586			1,228	6.17
Subordinated Notes Payable		52,887			610	4.52			52,887			630	4.71			52,887			628	4.70			52,887			627	4.64			52,887			625	4.62			52,887			1,868	4.64			52,887			1,800	4.49
Other Long-Term Borrowings		795			11	5.55			258			3	4.31			281			3	4.80			336			5	4.72			387			4	4.73			447			17	5.16			433			15	4.78
Total Interest Bearing Liabilities		2,323,210		$	9,117	1.56	%		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	%		2,339,741		$	27,079	1.55	%		2,269,649		$	15,067	0.89	%

Other Liabilities		73,767							72,634							68,295							78,772							83,099							71,574							82,877

Total Liabilities		3,729,282							3,800,398							3,727,459							3,724,238							3,782,851							3,752,296							3,890,794
Temporary Equity		6,443							6,493							7,150							7,423							8,424							6,694							8,719

SHAREOWNERS' EQUITY:		480,137							465,297							456,014							435,116							427,580							467,197							416,887

Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,218,855						$	4,226,187						$	4,316,400

Interest Rate Spread				$	40,260	3.49	%				$	39,334	3.38	%				$	38,435	3.43	%				$	39,264	3.55	%				$	39,367	3.54	%				$	118,029	3.43	%				$	120,093	3.66	%

Interest Income and Rate Earned(1)					49,377	5.06						48,831	4.99						46,900	4.90						46,277	4.80						45,840	4.69						145,108	4.98						135,160	4.55
Interest Expense and Rate Paid(2)					9,117	0.93						9,497	0.97						8,465	0.88						7,013	0.73						6,473	0.66						27,079	0.93						15,067	0.51

Net Interest Margin				$	40,260	4.12	%				$	39,334	4.02	%				$	38,435	4.01	%				$	39,264	4.07	%				$	39,367	4.03	%				$	118,029	4.05	%				$	120,093	4.04	%

(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.