GlobeNewswire Inc | Apr 27, 2021 07:00AM EDT

April 27, 2021

TALLAHASSEE, Fla., April 27, 2021 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $9.5 million, or $0.56 per diluted share, for the first quarter of 2021 compared to net income of $7.7 million, or $0.46 per diluted share, for the fourth quarter of 2020, and $4.3 million, or $0.25 per diluted share, for the first quarter of 2020.

QUARTER HIGHLIGHTS

-- Return on assets of 1.01% and return on equity of 11.81% -- Credit quality metrics remained stable and reduced COVID-19 exposure drove a negative credit loss provision of $1.0 million -- Period-end loan balances grew by $51 million, or 2.6% sequentiallySBA PPP Round 2 originations totaled $65 million through March 31stSBA PPP Round 1 forgiveness pay-offs totaled $36 million - $143 million in balances remain at period-endSBA PPP deferred fees remaining at March 31st totaled $5 million ($2 million for Round 1 and $3 million for Round 2) -- Average deposit balances grew $173 million, or 5.7% sequentially and reflected stimulus inflows as well as strong core deposit growth -- Noninterest expense declined $0.9 million driven by lower expense for other real estate and compensation -- Capital City Home Loans (CCHL) contributed $0.09 per share

I am pleased with our first quarter results, said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group. Rising consumer spending, lower unemployment, improving credit quality and a noticeable increase in loan activity in and around our markets, are contributing to a stronger economy. Our core business is performing well. In addition to round two of the SBA PPP loans, we experienced solid growth in commercial real estate and residential loans, culminating in net loan growth of $51 million, or 2.6% for the quarter. Wealth management, mortgage and debit/credit cards performed well. Expenses declined $0.9 million, or 2% quarter over quarter. After evaluating our credit risk, we lowered our allowance for credit losses by $1.8 million, or 8%. This was based on our current level of problem assets and pandemic-related extensions, a $0.5 million net recovery for the quarter and our positive outlook on the economy. The past year has been challenging. Our team has responded to every challenge and we have tweaked our business model, where appropriate. While our tactics may change, our strategy remains the same -- to produce long-term value for our shareowners. I am optimistic about our future.

COVID-19 Update

-- We continue to closely monitor conditions in our communities. With case counts trending downward in most of our markets, we established a phased plan for safely returning to work beginning February 1st. -- On March 1st, all of our banking offices returned to normal banking hours and lobby services. -- For the near term, we will continue to maintain flexible in-office and remote working arrangements for non-retail associates to limit building capacity. -- We are adhering to national guidelines and local safety ordinances to protect both clients and associates. -- We continue to support clients with the Small Business Administration Payment Protection Program (SBA PPP) by actively assisting with the Round 1 forgiveness process and offering funding for clients eligible in Round 2.

Discussion of Operating Results

Summary Overview

Compared to the fourth quarter of 2020, the $2.0 million increase in operating profit was attributable to a $2.3 million decrease in the provision for credit losses and lower noninterest expense of $0.9 million, partially offset by a $0.7 million decrease in noninterest income and lower net interest income of $0.5 million.

Compared to the first quarter of 2020, the $9.5 million increase in operating profit was attributable to a $14.3 million increase in noninterest income and a lower provision for credit losses of $6.0 million, partially offset by higher noninterest expense of $9.5 million and lower net interest income of $1.3 million. This comparison reflects the acquisition of a 51% membership interest in, and consolidation of, CCHL on March 1, 2020.

Our return on average assets (ROA) was 1.01% and our return on average equity (ROE) was 11.81% for the first quarter of 2021. These metrics were 0.84% and 8.97% for the fourth quarter of 2020, respectively, and 0.57% and 5.20% for the first quarter of 2020, respectively.

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2021 was $24.6 million compared to $25.1 million for the fourth quarter of 2020 and $25.9 million for the first quarter of 2020. The decrease compared to both prior periods reflected lower rates earned on investment securities and variable/adjustable rate loans. The year-over-year decline also reflected lower rates on overnight funds. Partially offsetting these declines were higher volumes of earning assets, including lower yielding SBA PPP loans and overnight funds.

The federal funds target rate has remained in the range of 0.00%-0.25% since March 2020 when the Fed reduced its overnight rate by 150 basis points, and as a result, we continue to experience lower repricing of our variable/adjustable rate earning assets and investment securities. Our overall cost of funds remained low during the first quarter of 2021 at 0.11%, a decrease of three basis points compared to the fourth quarter of 2020, primarily due to a reduction in short-term borrowings.

Our net interest margin for the first quarter of 2021 was 2.85%, a decrease of 15 basis points from the fourth quarter of 2020 and a decline of 93 basis points from the first quarter of 2020. The decreases were primarily attributable to significant growth in overnight funds which reduced our margin. Our net interest margin for the first quarter of 2021, excluding the impact of overnight funds in excess of $200 million, was 3.45%. We discuss the effect of the pandemic related stimulus programs on our balance sheet in more detail below under Discussion of Financial Condition.

Provision for Credit Loss

We recorded a negative provision for credit losses of $1.0 million (consisting of a negative $2.3 million for HFI loans, partially offset by a $1.3 million expense for unfunded loan commitments) for the first quarter of 2021 compared to provision expense of $1.3 million for the fourth quarter of 2020 and $5.0 million for the first quarter of 2020. The negative provision for the first quarter of 2021 generally reflected improving economic conditions and a lower level of expected losses related to COVID-19. Further, we recognized net loan recoveries of $0.5 million in the first quarter of 2021. We discuss the allowance for credit losses and COVID-19 exposure further below.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2021 totaled $29.8 million compared to $30.5 million for the fourth quarter of 2020 and $15.5 million for the first quarter of 2020. The decrease from the fourth quarter of 2020 was due to lower mortgage banking revenues of $0.6 million and deposit of $0.4 million, partially offset by higher bank card fees of $0.2 million and other income of $0.1 million. Compared to the first quarter of 2020, the $14.3 million increase reflected higher mortgage banking revenues of $13.9 million, wealth management fees of $0.5 million, and bank card fees of $0.6 million, partially offset by lower deposit fees of $0.7 million.

Noninterest expense for the first quarter of 2021 totaled $40.5 million compared to $41.3 million for the fourth quarter of 2020 and $31.0 million for the first quarter of 2020. The decrease from the fourth quarter of 2020 was primarily attributable to lower compensation expense of $0.6 million and other real estate owned (OREO) expense of $0.7 million, partially offset by higher other expense of $0.5 million. Compared to the first quarter of 2020, the $9.5 million increase reflected expenses added by the CCHL acquisition as Core CCBGs expenses remained flat.

The 51% ownership acquisition of CCHL and consolidation into CCBGs financial statements occurred on March 1, 2020. The table below reflects the major components of noninterest income for both Core CCBG and CCHL to help facilitate a better understanding of the year over year comparison.

Three Months Ended Mar 31, 2021 Dec 31, 2020 Mar 31, 2020(Dollars in thousands) Core CCHL Core CCHL Core CCHL CCBG CCBG CCBGDeposit Fees $ 4,271 - $ 4,713 $ - $ 5,015 $ -Bank Card Fees 3,618 - 3,462 - 3,051 -Wealth Management Fees 3,090 - 3,069 - 2,604 -Mortgage Banking Fees 279 16,846 302 17,409 1,138 2,115Other 1,296 426 1,205 363 1,459 96Total Noninterest $ 12,554 $ 17,272 $ 12,751 $ 17,772 $ 13,267 $ 2,211Income Salaries $ 12,171 $ 10,276 $ 12,384 $ 10,398 $ 13,488 $ 2,242Other Associate 3,396 221 3,740 200 3,957 49BenefitsTotal Compensation 15,567 10,497 16,124 10,598 17,445 2,291 Occupancy, Net 5,106 861 5,056 920 4,748 231Other 7,344 1,101 6,899 1,751 5,797 457Total Noninterest $ 28,017 $ 12,459 $ 28,079 $ 13,269 $ 27,990 $ 2,979Expense

Income Taxes

We realized income tax expense of $2.8 million (effective rate of 19%) for the first quarter of 2021 compared to $2.8 million (effective rate of 22%) for the fourth quarter of 2020 and $1.3 million (effective rate of 24%) for the first quarter of 2020. Tax expense for the fourth quarter of 2020 was unfavorably impacted by a $0.3 million discrete tax expense. Compared to the first quarter of 2020, the decrease in our effective tax rate was attributable to converting CCHL to a partnership for tax purposes in the second quarter of 2020. Absent discrete items, we expect our annual effective tax rate to approximate 18%-19% in 2021.

Discussion of Financial Condition

Earning Assets

Average earning assets were $3.498 billion for the first quarter of 2021, an increase of $160.5 million, or 4.8%, over the fourth quarter of 2020, and an increase of $746.0 million, or 27.1%, over the first quarter of 2020. The increase over both prior periods was primarily driven by higher deposit balances, which funded growth in both overnight funds sold and SBA PPP loans. Deposit balances increased as a result of strong core deposit growth, in addition to funding retained at the bank from SBA PPP loans, and various other stimulus programs.

We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $814.6 million in the first quarter of 2021 compared to an average net overnight funds sold position of $705.1 million in the fourth quarter of 2020 and $234.4 million in the first quarter of 2020. The increase compared to both prior periods was driven by strong core deposit growth, in addition to pandemic related stimulus programs (see below Funding).

Average loans held for investment (HFI) increased $50.9 million, or 2.6%, over the fourth quarter of 2020 and increased $196.6 million, or 10.6%, over the first quarter of 2020. Compared to the fourth quarter of 2020, average loan balances increased across all loan types except institutional and consumer, which declined slightly. Compared to the first quarter of 2020, average loan balances increased across all loan types except institutional, consumer, and HELOCs. Period-end HFI loans increased $51.3 million, or 2.6%, over the fourth quarter of 2020 and increased $195.3 million, or 10.5%, over the first quarter of 2020.

In the first quarter of 2021, we originated an additional round of SBA PPP loans totaling $65.4 million (reflected in the commercial loan category) which averaged $23.7 million for the quarter. Approximately $256 million in SBA PPP loans have been made since the inception of this program. Through the first quarter of 2021, approximately $47 million in SBA PPP loans have been forgiven and paid-off ($11 million in Q4 2020 and $36 million in Q1 2021). Forgiveness applications are expected to remain strong over the next three months for SBA PPP loans funded in 2020, and then over the course of 2021 for the SBA PPP loans funded in 2021. SBA PPP loan fee income totaled approximately $1.2 million for the first quarter of 2021. At March 31, 2021 we had $5.0 million (net) in deferred SBA PPP loan fees.

Allowance for Credit Losses

At March 31, 2021, the allowance for credit losses for HFI loans totaled $22.0 million compared to $23.8 million at December 31, 2020 and $21.1 million at March 31, 2020. Activity within the allowance is provided on Page 9. The $1.8 million net decrease in the allowance for the first quarter of 2021 reflected net loan recoveries totaling $0.5 million and the release of $2.3 million in reserves which reflected lower expected loan losses related to COVID-19. At March 31, 2021, the allowance represented 1.07% of HFI loans and provided coverage of 411% of nonperforming loans compared to 1.19% and 406%, respectively, at December 31, 2020 and 1.13% and 433%, respectively, at March 31, 2020. At March 31, 2021, excluding SBA PPP loans (100% government guaranteed), the allowance represented 1.19% of HFI loans compared to 1.30% at December 31, 2020.

Credit Quality/COVID-19 Exposure

Nonperforming assets (nonaccrual loans and OREO) totaled $5.5 million at March 31, 2021 compared to $6.7 million at December 31, 2020 and $6.3 million at March 31, 2020. Nonaccrual loans totaled $5.4 million at March 31, 2021, a $0.5 million decrease from December 31, 2020 and a $0.5 million increase over March 31, 2020. The balance of OREO totaled $0.1 million at March 31, 2021, a decrease of $0.7 million from December 31, 2020 and a $1.3 million decrease from March 31, 2020.

We continue to monitor our loan portfolio for segments that continue to be affected by the pandemic. To assist our clients, we have extended loans totaling $333 million of which 75% were for commercial borrowers and 25% were for consumer borrowers. Approximately $328 million, or 98%, of the loan balances associated with these borrowers have resumed making regularly scheduled payments of which loan balances totaling $2.9 million were over 30 days delinquent and an additional $0.6 million was on nonaccrual status at March 31, 2021. Of the $5 million that remains on extension, no loans were classified at March 31, 2021.

Funding (Deposits/Debt)

Average total deposits were $3.240 billion for the first quarter of 2021, an increase of $173.4 million, or 5.7%, over the fourth quarter of 2020 and $686.8 million, or 26.9%, over the first quarter of 2020. Average core deposits grew $546.8 million over the first quarter of 2020, which includes $342.9 million in noninterest bearing deposits and $113.0 million in savings account balances. In addition, average public fund deposits grew $121 million during this period. Over the past 12 months, multiple government stimulus programs have been implemented, including the CARES Act and the American Rescue Plan Act, which are responsible for a large part of the growth in average deposits. Given these increases, the potential exists for our deposit levels to be volatile throughout 2021 due to the uncertain timing of the outflows of the stimulus related balances and the economic recovery. 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 short-term borrowings decreased $29.2 million over the fourth quarter of 2020 and increased $30.5 million over the first quarter of 2020, which reflected a seasonal fluctuation in warehouse line borrowing needs to support CCHLs loans held for sale.

Capital

Shareowners equity was $324.4 million at March 31, 2021 compared to $320.8 million at December 31, 2020 and $328.5 million at March 31, 2020. During the first quarter of 2021, shareowners equity was positively impacted by net income of $9.5 million, a $1.6 million increase in fair value of the interest rate swap related to subordinated debt, net adjustments totaling $0.3 million related to transactions under our stock compensation plans, stock compensation accretion of $0.2 million, and a $0.1 million decrease in the accumulated other comprehensive loss for our pension plan. Shareowners equity was reduced by a common stock dividend of $2.5 million ($0.15 per share), reclassification of $4.2 million to temporary equity to increase the redemption value of the non-controlling interest in CCHL, and a $1.4 million decrease in the unrealized gain on investment securities.

At March 31, 2021, our total risk-based capital ratio was 17.20% compared to 17.30% at December 31, 2020 and 17.19% at March 31, 2020. Our common equity tier 1 capital ratio was 13.63%, 13.71%, and 13.55%, respectively, on these dates. Our leverage ratio was 8.97%, 9.33%, and 10.81%, 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 6.13% at March 31, 2021 compared to 6.25% and 7.98% at December 31, 2020 and March 31, 2020, respectively.

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 $3.9 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 and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 85 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: the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations and financial condition, including the impact of our participation in government programs related to COVID-19; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; fluctuations in inflation, interest rates, or monetary policies; 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; 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, 2020, and our other filings with the SEC, which are available at the SECs 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 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 inThousands, Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020except pershare data)Shareowners'Equity $ 324,426 $ 320,837 $ 339,425 $ 335,057 $ 328,507 (GAAP)Less:Goodwill 89,095 89,095 89,095 89,095 89,275 (GAAP)TangibleShareowners' A 235,331 231,742 250,330 245,962 239,232 Equity(non-GAAP)Total Assets 3,929,884 3,798,071 3,587,041 3,499,524 3,086,523 (GAAP)Less:Goodwill 89,095 89,095 89,095 89,095 89,275 (GAAP)TangibleAssets B $ 3,840,789 $ 3,708,976 $ 3,497,946 $ 3,410,429 $ 2,997,248 (non-GAAP)TangibleCommon A/ 6.13 % 6.25 % 7.16 % 7.21 % 7.98 %Equity Ratio B(non-GAAP)ActualDilutedShares C 16,875,719 16,844,997 16,800,563 16,821,743 16,845,462 Outstanding(GAAP)TangibleBook Value A/per Diluted C $ 13.94 $ 13.76 $ 14.90 $ 14.62 $ 14.20 Share(non-GAAP)

CAPITAL CITY BANK GROUP, INC. EARNINGS HIGHLIGHTS Unaudited Three Months Ended (Dollars in thousands, except per Mar 31, Dec 31, Mar 31, share data) 2021 2020 2020EARNINGS Net Income Attributable to Common $ 9,506 $ 7,746 $ 4,287 ShareownersDiluted Net Income Per Share $ 0.56 $ 0.46 $ 0.25 PERFORMANCE Return on Average Assets 1.01 % 0.84 % 0.57 %Return on Average Equity 11.81 8.97 5.20 Net Interest Margin 2.85 3.00 3.78 Noninterest Income as % of Operating 54.90 55.00 37.52 RevenueEfficiency Ratio 74.36 % 74.36 % 74.89 %CAPITAL ADEQUACY Tier 1 Capital 16.08 % 16.19 % 16.12 %Total Capital 17.20 17.30 17.19 Leverage 8.97 9.33 10.81 Common Equity Tier 1 13.63 13.71 13.55 Tangible Common Equity ^(1) 6.13 6.25 7.98 Equity to Assets 8.26 % 8.45 % 10.64 %ASSET QUALITY Allowance as % of Non-Performing Loans 410.78 % 405.66 % 432.61 %Allowance as a % of Loans HFI 1.07 1.19 1.13 Net Charge-Offs as % of Average Loans (0.10 ) 0.09 0.23 HFINonperforming Assets as % of Loans HFI 0.27 0.33 0.34 and OREONonperforming Assets as % of Total 0.14 % 0.18 % 0.21 %AssetsSTOCK PERFORMANCE High $ 28.98 $ 26.35 $ 30.62 Low 21.42 18.14 15.61 Close $ 26.02 $ 24.58 $ 20.12 Average Daily Trading Volume 30,303 22,271 40,536 ^(1) Tangible common equity ratio is a non-GAAP financial measure. Foradditional information, including a reconciliation to GAAP, refer toPage 5.

CAPITAL CITY BANK GROUP, INC.CONSOLIDATED STATEMENT OF FINANCIAL CONDITIONUnaudited 2021 2020(Dollars in First Quarter Fourth Third Second Firstthousands) Quarter Quarter Quarter QuarterASSETS Cash and Due $ 73,973 $ 67,919 $ 76,509 $ 75,155 $ 72,676 From BanksFunds Soldand Interest 851,910 860,630 626,104 513,273 196,936 BearingDepositsTotal Cashand Cash 925,883 928,549 702,613 588,428 269,612 Equivalents InvestmentSecurities 406,245 324,870 328,253 341,180 382,514 Available forSaleInvestmentSecurities 199,109 169,939 202,593 232,178 251,792 Held toMaturity TotalInvestment 605,354 494,809 530,846 573,358 634,306 Securities Loans Heldfor Sale 82,081 114,039 116,561 76,610 82,598 ("HFS") Loans Heldfor Investment("HFI"):Commercial,Financial, & 413,819 393,930 402,997 421,270 249,020 AgriculturalReal Estate - 138,104 135,831 125,804 117,794 122,595 ConstructionReal Estate - 669,158 648,393 656,064 662,434 656,084 CommercialReal Estate - 358,849 342,664 335,713 353,831 354,150 ResidentialReal Estate - 202,099 205,479 197,363 194,479 196,443 Home EquityConsumer 267,666 269,520 268,393 266,417 275,982 Other Loans 7,082 9,879 10,488 4,883 6,580 Overdrafts 950 730 1,339 1,069 1,533 Total LoansHeld for 2,057,727 2,006,426 1,998,161 2,022,177 1,862,387 InvestmentAllowance for (22,026 ) (23,816 ) (23,137 ) (22,457 ) (21,083 )Credit LossesLoans Heldfor 2,035,701 1,982,610 1,975,024 1,999,720 1,841,304 Investment,Net Premises andEquipment, 86,370 86,791 87,192 87,972 87,684 NetGoodwill 89,095 89,095 89,095 89,095 89,275 Other Real 110 808 1,227 1,059 1,463 Estate OwnedOther Assets 105,290 101,370 84,483 83,282 80,281 Total Other 280,865 278,064 261,997 261,408 258,703 AssetsTotal Assets $ 3,929,884 $ 3,798,071 $ 3,587,041 $ 3,499,524 $ 3,086,523 LIABILITIES Deposits: NoninterestBearing $ 1,473,891 $ 1,328,809 $ 1,378,314 $ 1,377,033 $ 1,066,607 DepositsNOW Accounts 993,571 1,046,408 827,506 808,244 779,467 Money Market 269,041 266,649 247,823 240,754 210,124 AccountsRegularSavings 518,373 474,100 451,944 423,924 384,480 AccountsCertificates 103,232 101,594 103,859 105,041 104,907 of DepositTotal 3,358,108 3,217,560 3,009,446 2,954,996 2,545,585 Deposits Short-Term 55,687 79,654 90,936 63,958 76,516 BorrowingsSubordinated 52,887 52,887 52,887 52,887 52,887 Notes PayableOtherLong-Term 1,829 3,057 5,268 5,583 5,896 BorrowingsOther 109,487 102,076 71,880 75,702 70,044 LiabilitiesTotal 3,577,998 3,455,234 3,230,417 3,153,126 2,750,928 Liabilities Temporary 27,460 22,000 17,199 11,341 7,088 Equity SHAREOWNERS' EQUITYCommon Stock 169 168 168 168 168 AdditionalPaid-In 32,804 32,283 31,425 31,575 32,100 CapitalRetained 335,324 332,528 333,545 328,570 321,772 EarningsAccumulatedOtherComprehensive (43,871 ) (44,142 ) (25,713 ) (25,256 ) (25,533 )Loss, Net ofTaxTotalShareowners' 324,426 320,837 339,425 335,057 328,507 EquityTotalLiabilities,Temporary $ 3,929,884 $ 3,798,071 $ 3,587,041 $ 3,499,524 $ 3,086,523 Equity andShareowners'Equity OTHER BALANCE SHEET DATAEarning $ 3,597,071 $ 3,475,904 $ 3,271,672 $ 3,185,418 $ 2,776,228 AssetsInterestBearing 1,994,620 2,024,349 1,780,223 1,700,391 1,614,277 LiabilitiesBook ValuePer Diluted $ 19.22 $ 19.05 $ 20.20 $ 19.92 $ 19.50 ShareTangible BookValue Per 13.94 13.76 14.90 14.62 14.20 Diluted Share^(1)Actual BasicShares 16,852 16,791 16,761 16,780 16,812 OutstandingActualDiluted 16,876 16,845 16,801 16,822 16,845 SharesOutstanding^(1) Tangible book value per diluted share is a non-GAAP financial measure.For additional information, including a reconciliation to GAAP, refer to Page5.

CAPITAL CITY BANK GROUP, INC.CONSOLIDATED STATEMENT OF OPERATIONSUnaudited 2021 2020(Dollars inthousands, First Fourth Third Second Firstexcept per Quarter Quarter Quarter Quarter Quartershare data) INTEREST INCOMEInterest and $ 23,350 $ 23,878 $ 23,594 $ 23,687 $ 23,593 Fees on LoansInvestment 1,883 2,096 2,426 2,737 3,015 SecuritiesFunds Sold 213 180 146 88 757 Total Interest 25,446 26,154 26,166 26,512 27,365 Income INTEREST EXPENSEDeposits 208 201 190 218 939 Short-Term 412 639 498 421 132 BorrowingsSubordinated 307 311 316 374 471 Notes PayableOtherLong-Term 21 30 40 41 50 BorrowingsTotal Interest 948 1,181 1,044 1,054 1,592 ExpenseNet Interest 24,498 24,973 25,122 25,458 25,773 IncomeProvision for (982 ) 1,342 1,308 2,005 4,990 Credit LossesNet InterestIncome after 25,480 23,631 23,814 23,453 20,783 Provision forCredit Losses NONINTEREST INCOMEDeposit Fees 4,271 4,713 4,316 3,756 5,015 Bank Card Fees 3,618 3,462 3,389 3,142 3,051 WealthManagement 3,090 3,069 2,808 2,554 2,604 FeesMortgageBanking 17,125 17,711 22,983 19,397 3,253 RevenuesOther 1,722 1,568 1,469 1,350 1,555 TotalNoninterest 29,826 30,523 34,965 30,199 15,478 Income NONINTEREST EXPENSECompensation 26,064 26,722 26,164 23,658 19,736 Occupancy, Net 5,967 5,976 5,906 5,798 4,979 Other Real (118 ) 567 219 116 (798 )Estate, NetOther 8,563 8,083 8,053 7,731 7,052 TotalNoninterest 40,476 41,348 40,342 37,303 30,969 Expense OPERATING 14,830 12,806 18,437 16,349 5,292 PROFITIncome Tax 2,787 2,833 3,165 2,950 1,282 ExpenseNet Income 12,043 9,973 15,272 13,399 4,010 Pre-Tax IncomeAttributable to (2,537 ) (2,227 ) (4,875 ) (4,253 ) 277 NoncontrollingInterestNET INCOMEATTRIBUTABLE $ 9,506 $ 7,746 $ 10,397 $ 9,146 $ 4,287 TO COMMONSHAREOWNERS PER COMMON SHAREBasic Net $ 0.56 $ 0.46 $ 0.62 $ 0.55 $ 0.25 IncomeDiluted Net 0.56 0.46 0.62 0.55 0.25 IncomeCash Dividend $ 0.15 $ 0.15 $ 0.14 $ 0.14 $ 0.14 AVERAGE SHARES Basic 16,838 16,763 16,771 16,797 16,808 Diluted 16,862 16,817 16,810 16,839 16,842

CAPITAL CITY BANK GROUP, INC.ALLOWANCE FOR CREDIT LOSSES ("ACL")AND RISK ELEMENT ASSETSUnaudited 2021 2020(Dollars inthousands, First Fourth Third Second Firstexcept per Quarter Quarter Quarter Quarter Quartershare data)ACL - HELD FOR INVESTMENTBalance atBeginning of $ 23,816 $ 23,137 $ 22,457 $ 21,083 $ 13,905 PeriodImpact ofAdopting ASC - - - - 3,269 326 (CECL)Provision for (2,312 ) 1,165 1,265 1,615 4,990 Credit LossesNet Charge-Offs (522 ) 486 585 241 1,081 Balance at End $ 22,026 $ 23,816 $ 23,137 $ 22,457 $ 21,083 of PeriodAs a % of Loans 1.07 % 1.19 % 1.16 % 1.11 % 1.13 %HFIAs a % ofNonperforming 410.78 % 405.66 % 420.30 % 322.37 % 432.61 %LoansACL - UNFUNDED COMMITMENTSBalance atBeginning of 1,644 $ 1,467 $ 1,424 $ 1,033 $ 157 PeriodImpact ofAdopting ASC - - - - 876 326 (CECL)Provision for 1,330 177 43 391 - Credit LossesBalance at End 2,974 1,644 1,467 1,424 1,033 of Period^(1)CHARGE-OFFS Commercial,Financial and $ 69 $ 104 $ 137 $ 186 $ 362 AgriculturalReal Estate - - - 17 - 11 CommercialReal Estate - 6 38 1 1 110 ResidentialReal Estate - 5 10 58 52 31 Home EquityConsumer 564 668 619 634 864 Overdrafts 492 564 450 541 702 Total $ 1,136 $ 1,384 $ 1,282 $ 1,414 $ 2,080 Charge-OffsRECOVERIES Commercial,Financial and $ 136 $ 64 $ 74 $ 74 $ 40 AgriculturalReal Estate - - 50 - - - ConstructionReal Estate - 645 27 30 70 191 CommercialReal Estate - 75 153 35 51 40 ResidentialReal Estate - 124 40 41 64 33 Home EquityConsumer 311 306 280 365 268 Overdrafts 367 258 237 549 427 Total $ 1,658 $ 898 $ 697 $ 1,173 $ 999 RecoveriesNET CHARGE-OFFS $ (522 ) $ 486 $ 585 $ 241 $ 1,081 Net Charge-Offsas a % of (0.10 )% 0.09 % 0.11 % 0.05 % 0.23 %Average LoansHFI^(2)RISK ELEMENT ASSETSNonaccruing $ 5,362 $ 5,871 $ 5,505 $ 6,966 $ 4,874 LoansOther Real 110 808 1,227 1,059 1,463 Estate OwnedTotalNonperforming $ 5,472 $ 6,679 $ 6,732 $ 8,025 $ 6,337 Assets ("NPAs") Past Due Loans $ 2,622 $ 4,594 $ 3,191 $ 2,948 $ 5,077 30-89 DaysClassified 20,608 17,631 16,772 17,091 16,548 LoansPerformingTroubled Debt $ 13,597 $ 13,887 $ 14,693 $ 15,133 $ 15,934 Restructuring's NonperformingLoans as a % of 0.26 % 0.29 % 0.28 % 0.34 % 0.26 %Loans HFINPAs as a % ofLoans HFI and 0.27 % 0.33 % 0.34 % 0.40 % 0.34 %Other RealEstateNPAs as a %of Total 0.14 % 0.18 % 0.19 % 0.23 % 0.21 %Assets ^(1) Recordedin other liabilities^(2) Annualized

CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited First Quarter 2021 Fourth Quarter 2020 Third Quarter 2020 Second Quarter 2020 First Quarter 2020 (Dollars in Average Interest Average Average Interest Average Average Interest Average Average Interest Average Average Interest Average thousands) Balance Rate Balance Rate Balance Rate Balance Rate Balance RateASSETS: Loans Held $ 106,242 $ 970 3.70 % $ 121,052 $ 878 3.85 % $ 92,522 $ 671 3.64 % $ 74,965 550 3.41 % $ 34,923 $ 210 2.64 %for SaleLoans Heldfor 2,044,363 22,483 4.46 1,993,470 23,103 4.55 2,005,178 23,027 4.53 1,982,960 23,235 4.70 1,847,780 23,482 5.11 Investment^(1) Investment SecuritiesTaxableInvestment 528,842 1,863 1.41 513,277 2,072 1.61 553,395 2,401 1.73 601,509 2,708 1.80 629,512 2,995 1.91 SecuritiesTax-ExemptInvestment 3,844 25 2.61 4,485 30 2.71 4,860 32 2.66 5,865 37 2.51 5,293 25 1.86 Securities^(1) TotalInvestment 532,686 1,888 1.42 517,762 2,102 1.62 558,255 2,433 1.74 607,374 2,745 1.81 634,805 3,020 1.91 Securities Funds Sold 814,638 214 0.11 705,125 180 0.10 567,883 146 0.10 351,473 88 0.10 234,372 757 1.30 TotalEarning 3,497,929 $ 25,555 2.96 % 3,337,409 $ 26,263 3.14 % 3,223,838 $ 26,277 3.25 % 3,016,772 $ 26,618 3.55 % 2,751,880 $ 27,469 4.01 %Assets Cash and Due 68,978 73,968 69,893 72,647 56,958 From BanksAllowancefor Loan (24,128 ) (23,725 ) (22,948 ) (21,642 ) (14,389 ) LossesOther Assets 278,742 264,784 268,549 261,449 244,339 Total Assets $ 3,821,521 $ 3,652,436 $ 3,539,332 $ 3,329,226 $ 3,038,788 LIABILITIES: InterestBearing DepositsNOW Accounts $ 985,517 $ 76 0.03 % $ 879,564 $ 66 0.03 % $ 826,776 $ 61 0.03 % $ 789,378 $ 78 0.04 % $ 808,811 $ 725 0.36 %Money Market 269,829 33 0.05 261,543 34 0.05 247,185 32 0.05 222,377 40 0.07 212,211 117 0.22 AccountsSavings 492,252 60 0.05 466,116 57 0.05 438,762 54 0.05 409,366 50 0.05 379,237 46 0.05 AccountsTime 102,089 39 0.15 102,809 44 0.17 104,522 43 0.16 104,718 50 0.19 105,542 51 0.19 DepositsTotalInterest 1,849,687 208 0.05 % 1,710,032 201 0.05 % 1,617,245 190 0.05 % 1,525,839 218 0.06 % 1,505,801 939 0.25 %BearingDeposits Short-Term 67,033 412 2.49 % 95,280 639 2.67 % 74,557 498 2.66 % 73,377 421 2.31 % 32,915 132 1.61 %BorrowingsSubordinatedNotes 52,887 307 2.32 52,887 311 2.30 52,887 316 2.34 52,887 374 2.80 52,887 471 3.52 PayableOtherLong-Term 2,736 21 3.18 3,700 30 3.18 5,453 40 2.91 5,766 41 2.84 6,312 50 3.21 Borrowings TotalInterest 1,972,343 $ 948 0.19 % 1,861,899 $ 1,181 0.25 % 1,750,142 $ 1,044 0.24 % 1,657,869 $ 1,054 0.26 % 1,597,915 $ 1,592 0.40 %BearingLiabilities NoninterestBearing 1,389,821 1,356,104 1,354,032 1,257,614 1,046,889 DepositsOther 111,050 74,605 83,192 72,073 59,587 Liabilities Total 3,473,214 3,292,608 3,187,366 2,987,556 2,704,391 LiabilitiesTemporary 21,977 16,154 11,893 8,155 2,506 Equity SHAREOWNERS' 326,330 343,674 340,073 333,515 331,891 EQUITY: TotalLiabilities,Temporary $ 3,821,521 $ 3,652,436 $ 3,539,332 $ 3,329,226 $ 3,038,788 Equity andShareowners'Equity Interest $ 24,607 2.77 % $ 25,082 2.88 % $ 25,233 3.01 % $ 25,564 3.30 % $ 25,877 3.61 %Rate Spread InterestIncome and 25,555 2.96 26,263 3.14 26,277 3.25 26,618 3.55 27,469 4.01 Rate Earned^(1)InterestExpense and 948 0.11 1,181 0.14 1,044 0.13 1,054 0.14 1,592 0.23 Rate Paid^(2) Net Interest $ 24,607 2.85 % $ 25,082 3.00 % $ 25,233 3.12 % $ 25,564 3.41 % $ 25,877 3.78 %Margin ^(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:J. Kimbrough DavisExecutive Vice President and Chief Financial Officer850.402.7820