GlobeNewswire Inc | Oct 26, 2021 07:00AM EDT

October 26, 2021

TALLAHASSEE, Fla., Oct. 26, 2021 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $10.1 million, or $0.60 per diluted share, for the third quarter of 2021 compared to net income of $7.4 million, or $0.44 per diluted share, for the second quarter of 2021, and $10.4 million, or $0.62 per diluted share, for the third quarter of 2020.

For the first nine months of 2021, net income totaled $27.0 million, or $1.60 per diluted share, compared to net income of $23.8 million, or $1.42 per diluted share, for the same period of 2020. Net income for 2021 included partial pre-tax pension settlement charges totaling $2.5 million (3Q - $0.5 million and 2Q - $2.0 million), or $0.12 per diluted share (after tax).

Our return on average assets (ROA) was 0.99% and our return on average equity (ROE) was 11.72% for the third quarter of 2021. These metrics were 0.75% and 9.05% for the second quarter of 2021, respectively, and 1.17% and 12.16% for the third quarter of 2020, respectively. For the first nine months of 2021, our ROA was 0.92% and our ROE was 10.87% compared to 0.96% and 9.50%, respectively, for the same period of 2020.

QUARTER HIGHLIGHTS

-- Net interest income grew $1.7 million, or 6.5% sequentially, driven by higher loan fees of $1.3 million (primarily SBA PPP fees of $1.0 million) and a better earning asset mix -- Average loans, excluding PPP loans, grew $35 million and average investment securities increased $218 million -- Strong credit quality metrics resulted in no loan loss provision for the quarter -- Noninterest expense decreased $2.4 million due to lower pension settlement charges of $1.5 million and a $1.0 million gain from the sale of a banking office -- Capital City Home Loans (CCHL) contributed $0.06 per share

Capital City posted strong third quarter results and, year over year, earnings have increased 13.4%, said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group. Historically favorable credit quality continued to improve resulting in no provision for loan losses in the third quarter and a net provision credit year-to-date. Operating revenues improved as we experienced growth in both net interest income and noninterest income, while noninterest expense declined reflecting lower pension settlement charges and a gain on the sale of ORE (office building). Our recent addition of Capital City Strategic Wealth (a financial planning/advisory service) is gaining traction and expands our portfolio of wealth management businesses. We continue to focus our expansion efforts on markets in west Florida and the northern arc of Atlanta. While challenges remain, we are identifying opportunities and executing on strategies we believe are sustainable and add long-term value for our shareowners. I am optimistic about the future and appreciate your continued support.

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the third quarter of 2021 totaled $27.7 million compared to $26.1 million for the second quarter of 2021 and $25.2 million for the third quarter of 2020. Compared to the second quarter of 2021, the increase reflected higher loan fees of $1.3 million (SBA PPP loan fees increased $1.0 million) and higher investment securities income of $0.3 million, which reflected deployment of excess overnight funds into the investment portfolio. Compared to the second quarter of 2021, lower loan interest income from SBA PPP loans was offset by loan interest income from growth in non-SBA PPP loans. Compared to the third quarter of 2020, the increase was primarily attributable to higher SBA PPP loan fees of $2.5 million. For the first nine months of 2021, tax-equivalent net interest income totaled $78.4 million compared to $76.7 million for the same period of 2020. The increase generally reflected higher SBA PPP loan fees and lower interest expense, partially offset by lower rates earned on investment securities and variable/adjustable rate loans.

Our net interest margin for the third quarter of 2021 was 2.98%, an increase of nine basis points over the second quarter of 2021 and a decrease of 14 basis points from the third quarter of 2020. Compared to the second quarter of 2021, the increase was primarily driven by higher SBA PPP loan fees. Compared to the third quarter of 2020, the decrease was primarily attributable to growth in earning assets (driven by deposit inflows), which negatively impacts our margin percentage. For the first nine months of 2021, the net interest margin decreased 51 basis points to 2.91%, which is generally reflective of growth in earning assets. Our net interest margin for the third quarter of 2021, excluding the impact of overnight funds in excess of $200 million, was 3.50%.

Provision for Credit Loss

We did not record a provision for credit losses for the third quarter of 2021. This compares to a negative provision of $0.6 million for the second quarter of 2021 and a provision expense of $1.3 million for the third quarter of 2020. For the first nine months of 2021, we recorded a negative provision of $1.6 million compared to provision expense of $8.3 million for the same period of 2020. The negative provision for the first nine months of 2021 generally reflected improving economic conditions, favorable loan migration and strong net loan recoveries totaling $0.7 million. We discuss the allowance for credit losses further below.

Noninterest Income and Noninterest Expense

Noninterest income for the third quarter of 2021 totaled $26.6 million compared to $26.5 million for the second quarter of 2021 and $35.0 million for the third quarter of 2020. The slight increase over the second quarter of 2021 was primarily due to higher deposit fees of $0.8 million and wealth management fees of $0.3 million, partially offset by lower mortgage banking revenues of $0.9 million. The $8.4 million decrease from the third quarter of 2020 was primarily attributable to lower mortgage banking revenues at CCHL of $10.7 million, partially offset by higher deposit fees of $0.8 million, wealth management fees of $0.8 million, and bank card fees of $0.4 million. The decline in mortgage banking revenues was driven by lower production volume (primarily re-finance activity) and a lower gain on sale margin (additional information on CCHL is provided on Page 11). The increase in deposit fees reflected the conversion of the remaining free checking accounts to a monthly maintenance fee account type. The increase in wealth management fees was attributable to higher retail brokerage transaction volume and advisory accounts added from the acquisition of Capital City Strategic Wealth on May 1, 2021. The increase in bank card fees generally reflected an increase in card-not-present debit card transactions as well increased consumer spending. For the first nine months of 2021, noninterest income totaled $82.9 million compared to $80.6 million for the same period of 2020 with the increase driven by higher wealth management fees of $2.0 million, bank card fees of $1.8 million, deposit fees of $0.5 million, and other income of $0.9 million (primarily loan servicing income at CCHL), partially offset by lower mortgage banking revenues of $3.0 million. These variances were generally due to the same aforementioned factors noted in the year over year quarterly comparison.

Noninterest expense for the third quarter of 2021 totaled $39.7 million compared to $42.1 million for the second quarter of 2021 and $40.3 million for the third quarter of 2020. The $2.4 million decrease from the second quarter of 2021 reflected a pension settlement charge of $2.0 million in the second quarter of 2021 versus $0.5 million in the third quarter of 2021. In addition, OREO expense declined by $0.9 million due to a gain on the sale of a banking office in the third quarter of 2021. Compared to the third quarter of 2020, the $0.6 million decrease was primarily attributable to lower compensation expense of $0.9 million (primarily incentive compensation at CCHL) and OREO expense of $1.3 million partially offset by higher other expense of $1.0 million and a pension settlement charge of $0.5 million. For the first nine months of 2021, noninterest expense totaled $122.3 million compared to $108.6 million for the same period of 2020. The $13.7 million increase was attributable to the addition of expenses at CCHL of $6.7 million as well as higher expenses at the core bank totaling $7.0 million. The increase in expenses at the core bank were primarily due to higher compensation expense of $1.5 million (primarily merit raises), processing fees of $0.6 million (debit card volume), professional fees of $0.5 million, occupancy expense of $0.4 million, and FDIC insurance of $0.4 million (higher asset size), partially offset by lower OREO expense of $1.1 million (gains from the sale of two banking offices). In addition, we have realized pension settlement charges totaling $2.5 million so far in 2021 and other expense increased $1.5 million, which reflected higher expense for our base pension plan attributable to the utilization of a lower discount rate for plan liabilities. We anticipate additional settlement expense in the fourth quarter of 2021.

Income Taxes

We realized income tax expense of $2.9 million (effective rate of 20%) for the third quarter of 2021 compared to $2.1 million (effective rate of 19%) for the second quarter of 2021 and $3.2 million (effective rate of 17%) for the third quarter of 2020. For the first nine months of 2021, we realized income tax expense of $7.8 million (effective rate of 19%) compared to $7.4 million (effective rate of 19%) for the same period of 2020. Absent discrete items, we expect our annual effective tax rate to approximate 18%-19%.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.693 billion for the third quarter of 2021, an increase of $69.2 million, or 1.9%, over the second quarter of 2021, and an increase of $355.7 million, or 10.7%, over the fourth quarter of 2020. The increase over both prior periods was primarily driven by higher deposit balances, which funded growth in the investment portfolio. Deposit balances increased as a result of strong core deposit growth, SBA PPP loan proceeds deposited in client accounts, 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 $741.9 million in the third quarter of 2021 compared to an average net overnight funds sold position of $818.6 million in the second quarter of 2021 and $705.1 million in the fourth quarter of 2020. The decrease compared to the second quarter of 2021 was primarily due to growth in the investment portfolio. The increase compared to the fourth quarter 2020 was driven by strong core deposit growth, in addition to pandemic related stimulus programs (see below Funding).

Average loans held for investment (HFI) decreased $62.6 million, or 3.1%, from the second quarter of 2021 and $19.3 million, or 1.0%, from the fourth quarter of 2020. Over these same prior periods, average loans (excluding SBA PPP loans) increased $34.9 million and $125.2 million and period end loans increased $5.1 million and $102.8 million, respectively. Compared to the second quarter of 2021, the increase in period end loans reflected growth in construction and indirect loans, partially offset by a decline in commercial real estate. Compared to the fourth quarter of 2020, we realized growth in construction, residential, commercial real estate and indirect loans. At September 30, 2021, SBA PPP loan balances totaled $7.5 million and remaining deferred SBA PPP net loan fees totaled $0.3 million. SBA PPP loan forgiveness applications are expected to be completed in the fourth quarter 2021.

Allowance for Credit Losses

At September 30, 2021, the allowance for credit losses for HFI loans totaled $21.5 million compared to $22.2 million at June 30, 2021 and $23.8 million at December 31, 2020. Activity within the allowance is provided on Page 9. At September 30, 2021, the allowance represented 1.11% of HFI loans and provided coverage of 710% of nonperforming loans compared to 1.10% and 434%, respectively, at June 30, 2021, and 1.19% and 406%, respectively, at December 31, 2020. At September 30, 2021, excluding SBA PPP loans (100% government guaranteed), the allowance represented 1.12% of HFI loans compared to 1.30% at December 31, 2020.

Credit Quality

Nonperforming assets (nonaccrual loans and OREO) totaled $3.2 million at September 30, 2021 compared to $6.3 million at June 30, 2021 and $6.7 million at December 31, 2020. Nonaccrual loans totaled $3.0 million at September 30, 2021, a $2.1 million decrease from June 30, 2021 and a $2.8 million decrease from December 31, 2020. The balance of OREO totaled $0.2 million at September 30, 2021, a $1.0 million decrease from June 30, 2021 and $0.6 million decrease from December 31, 2020.

Funding (Deposits/Debt)

Average total deposits were $3.448 billion for the third quarter of 2021, an increase of $60.3 million, or 1.8%, over the second quarter of 2021 and $381.6 million, or 12.4%, over the fourth quarter of 2020. The strongest growth over both comparable periods occurred in our noninterest bearing deposits and savings account balances. Average public deposits in the third quarter 2021 decreased slightly compared to the second quarter of 2021, but increased compared to the fourth quarter of 2020. Over the past 12 months, multiple government stimulus programs have been implemented, including those under 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 for the remainder of 2021 and into 2022 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 $1.4 million over the second quarter of 2021 and declined $45.5 million from the fourth quarter of 2020, both of which reflected a seasonal fluctuation in warehouse line borrowing needs to support CCHLs loans held for sale.

Capital

Shareowners equity was $348.9 million at September 30, 2021 compared to $335.9 million at June 30, 2021 and $320.8 million at December 31, 2020. For the first nine months of 2021, shareowners equity was positively impacted by net income of $27.0 million, a $1.0 million increase in fair value of the interest rate swap related to subordinated debt, net adjustments totaling $2.2 million related to transactions under our stock compensation plans, and reclassification of $7.8 million from temporary equity to decrease the redemption value of the non-controlling interest in CCHL. In addition, $1.6 million was reclassified from accumulated other comprehensive loss to pension expense in conjunction with the partial pension settlement charge reflected in earnings, therefore, the charge had no net effect on equity. Shareowners equity was reduced by common stock dividends of $7.8 million ($0.46 per share), a $3.2 million decrease in the unrealized gain on investment securities, and stock compensation of $0.5 million.

At September 30, 2021, our total risk-based capital ratio was 16.70% compared to 16.48% at June 30, 2021 and 17.30% at December 31, 2020. Our common equity tier 1 capital ratio was 13.45%, 13.14%, and 13.71%, respectively, on these dates. Our leverage ratio was 9.05%, 8.84%, and 9.33%, 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 6.46% at September 30, 2021 compared to 6.19% and 6.25% at June 30, 2021 and December 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 $4.0 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 life insurance. 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: 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 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 inThousands, Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020except pershare data)Shareowners'Equity $ 348,868 $ 335,880 $ 324,426 $ 320,837 $ 339,425 (GAAP)Less:Goodwill andOther 93,293 93,333 89,095 89,095 89,095 Intangibles(GAAP)TangibleShareowners' A 255,575 242,547 235,331 231,742 250,330 Equity(non-GAAP)Total Assets 4,048,733 4,011,459 3,929,884 3,798,071 3,587,041 (GAAP)Less:Goodwill andOther 93,293 93,333 89,095 89,095 89,095 Intangibles(GAAP)TangibleAssets B $ 3,955,440 $ 3,918,126 $ 3,840,789 $ 3,708,976 $ 3,497,946 (non-GAAP)TangibleCommon A/ 6.46 % 6.19 % 6.13 % 6.25 % 7.16 %Equity Ratio B(non-GAAP)ActualDilutedShares C 16,911,715 16,901,375 16,875,719 16,844,997 16,800,563 Outstanding(GAAP)TangibleBook Value A/per Diluted C $ 15.11 $ 14.35 $ 13.94 $ 13.76 $ 14.90 Share(non-GAAP)

CAPITAL CITY BANK GROUP, INC.EARNINGS HIGHLIGHTS Unaudited Three Months Ended Nine Months Ended (Dollars in Sep Jun 30, Sep Sep 30, Septhousands, except 30, 2021 30, 2021 30, per share data) 2021 2020 2020EARNINGS Net IncomeAttributable to $ 10,091 $ 7,427 $ 10,397 $ 27,024 $ 23,830 Common ShareownersDiluted Net Income $ 0.60 $ 0.44 $ 0.62 $ 1.60 $ 1.42 Per SharePERFORMANCE Return on Average 0.99 % 0.75 % 1.17 % 0.92 % 0.96 %AssetsReturn on Average 11.72 9.05 12.16 10.87 9.50 EquityNet Interest Margin 2.98 2.89 3.12 2.91 3.42 Noninterest Incomeas % of Operating 48.99 50.47 58.19 51.47 51.37 RevenueEfficiency Ratio 73.09 % 80.18 % 67.01 % 75.83 % 69.04 %CAPITAL ADEQUACY Tier 1 Capital 15.69 % 15.44 % 16.77 % 15.69 % 16.77 %Total Capital 16.70 16.48 17.88 16.70 17.88 Leverage 9.05 8.84 9.64 9.05 9.64 Common Equity Tier 1 13.45 13.14 14.20 13.45 14.20 Tangible Common 6.46 6.19 7.16 6.46 7.16 Equity ^(1)Equity to Assets 8.62 % 8.37 % 9.46 % 8.62 % 9.46 %ASSET QUALITY Allowance as % of 710.39 % 433.93 % 420.30 % 710.39 % 420.30 %Non-Performing LoansAllowance as a % of 1.11 1.10 1.16 1.11 1.16 Loans HFINet Charge-Offs as % 0.03 (0.07 ) 0.11 (0.05 ) 0.13 of Average Loans HFINonperforming Assetsas % of Loans HFI 0.17 0.31 0.34 0.17 0.34 and OREONonperforming Assets 0.08 % 0.16 % 0.19 % 0.08 % 0.19 %as % of Total AssetsSTOCK PERFORMANCE High $ 26.10 $ 27.39 $ 21.71 $ 28.98 $ 30.62 Low 22.02 24.55 17.55 21.42 15.61 Close $ 24.74 $ 25.79 $ 18.79 $ 24.74 $ 18.79 Average Daily 30,515 28,958 28,517 29,925 39,477 Trading Volume ^(1) Tangible common equity ratio is a non-GAAP financial measure. Foradditional information, including a reconciliation to GAAP, refer toPage 5.

CAPITAL CITYBANK GROUP, INC.CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited 2021 2020(Dollars in Third Quarter Second First Fourth Thirdthousands) Quarter Quarter Quarter QuarterASSETS Cash and Due $ 73,132 $ 78,894 $ 73,973 $ 67,919 $ 76,509 From BanksFunds Soldand Interest 708,988 766,920 851,910 860,630 626,104 BearingDepositsTotal Cashand Cash 782,120 845,814 925,883 928,549 702,613 Equivalents InvestmentSecurities 645,844 480,890 406,245 324,870 328,253 Available forSaleInvestmentSecurities 341,228 325,559 199,109 169,939 202,593 Held toMaturityTotalInvestment 987,072 806,449 605,354 494,809 530,846 Securities Loans Held 77,036 80,821 82,081 114,039 116,561 for Sale Loans Heldfor Investment("HFI"):Commercial,Financial, & 218,929 292,953 413,819 393,930 402,997 AgriculturalReal Estate - 177,443 149,884 138,104 135,831 125,804 ConstructionReal Estate - 683,379 707,599 669,158 648,393 656,064 CommercialReal Estate - 355,958 362,018 358,849 342,664 335,713 ResidentialReal Estate - 187,642 190,078 202,099 205,479 197,363 Home EquityConsumer 309,983 298,464 267,666 269,520 268,393 Other Loans 6,792 6,439 7,082 9,879 10,488 Overdrafts 1,299 1,227 950 730 1,339 Total LoansHeld for 1,941,425 2,008,662 2,057,727 2,006,426 1,998,161 InvestmentAllowance for (21,500 ) (22,175 ) (22,026 ) (23,816 ) (23,137 )Credit LossesLoans Heldfor 1,919,925 1,986,487 2,035,701 1,982,610 1,975,024 Investment,Net Premises andEquipment, 84,750 85,745 86,370 86,791 87,192 NetGoodwill andOther 93,293 93,333 89,095 89,095 89,095 IntangiblesOther Real 192 1,192 110 808 1,227 Estate OwnedOther Assets 104,345 111,618 105,290 101,370 84,483 Total Other 282,580 291,888 280,865 278,064 261,997 AssetsTotal Assets $ 4,048,733 $ 4,011,459 $ 3,929,884 $ 3,798,071 $ 3,587,041 LIABILITIES Deposits: NoninterestBearing $ 1,592,345 $ 1,552,864 $ 1,473,891 $ 1,328,809 $ 1,378,314 DepositsNOW Accounts 926,201 970,705 993,571 1,046,408 827,506 Money Market 286,065 280,805 269,041 266,649 247,823 AccountsRegularSavings 559,714 539,477 518,373 474,100 451,944 AccountsCertificates 101,637 103,070 103,232 101,594 103,859 of DepositTotal 3,465,962 3,446,921 3,358,108 3,217,560 3,009,446 Deposits Short-Term 51,410 47,200 55,687 79,654 90,936 BorrowingsSubordinated 52,887 52,887 52,887 52,887 52,887 Notes PayableOtherLong-Term 1,610 1,720 1,829 3,057 5,268 BorrowingsOther 113,720 105,534 109,487 102,076 71,880 LiabilitiesTotal 3,685,589 3,654,262 3,577,998 3,455,234 3,230,417 Liabilities Temporary 14,276 21,317 27,460 22,000 17,199 Equity SHAREOWNERS' EQUITYCommon Stock 169 169 169 168 168 AdditionalPaid-In 33,876 33,560 32,804 32,283 31,425 CapitalRetained 359,550 345,574 335,324 332,528 333,545 EarningsAccumulatedOtherComprehensive (44,727 ) (43,423 ) (43,871 ) (44,142 ) (25,713 )Loss, Net ofTaxTotalShareowners' 348,868 335,880 324,426 320,837 339,425 EquityTotalLiabilities,Temporary $ 4,048,733 $ 4,011,459 $ 3,929,884 $ 3,798,071 $ 3,587,041 Equity andShareowners'Equity OTHER BALANCE SHEET DATAEarning $ 3,714,521 $ 3,662,852 $ 3,597,071 $ 3,475,904 $ 3,271,672 AssetsInterestBearing 1,979,524 1,995,864 1,994,620 2,024,349 1,780,223 LiabilitiesBook ValuePer Diluted $ 20.63 $ 19.87 $ 19.22 $ 19.05 $ 20.20 ShareTangible BookValue Per 15.11 14.35 13.94 13.76 14.90 Diluted Share^(1)Actual BasicShares 16,878 16,874 16,852 16,791 16,761 OutstandingActualDiluted 16,912 16,901 16,876 16,845 16,801 SharesOutstanding^(1) Tangible book value per diluted share is a non-GAAP financial measure. Foradditional information, including a reconciliation to GAAP, refer to Page 5.

CAPITAL CITYBANK GROUP, INC.CONSOLIDATED STATEMENT OF OPERATIONSUnaudited 2021 2020 September 30,(Dollars inthousands, Third Second First Fourth Third 2021 2020except per Quarter Quarter Quarter Quarter Quartershare data)INTEREST INCOMEInterest and $ 25,885 $ 24,582 $ 23,350 $ 23,878 $ 23,594 $ 73,817 $ 70,874 Fees on LoansInvestment 2,350 2,054 1,883 2,096 2,426 6,287 8,178 SecuritiesFunds Sold 285 200 213 180 146 698 991 Total Interest 28,520 26,836 25,446 26,154 26,166 80,802 80,043 IncomeINTEREST EXPENSEDeposits 210 208 208 201 190 626 1,347 Short-Term 317 324 412 639 498 1,053 1,051 BorrowingsSubordinated 307 308 307 311 316 922 1,161 Notes PayableOtherLong-Term 14 16 21 30 40 51 131 BorrowingsTotal Interest 848 856 948 1,181 1,044 2,652 3,690 ExpenseNet Interest 27,672 25,980 24,498 24,973 25,122 78,150 76,353 IncomeProvision for - (571 ) (982 ) 1,342 1,308 (1,553 ) 8,303 Credit LossesNet InterestIncome after 27,672 26,551 25,480 23,631 23,814 79,703 68,050 Provision forCredit LossesNONINTEREST INCOMEDeposit Fees 5,075 4,236 4,271 4,713 4,316 13,582 13,087 Bank Card Fees 3,786 3,998 3,618 3,462 3,389 11,402 9,582 WealthManagement 3,623 3,274 3,090 3,069 2,808 9,987 7,966 FeesMortgageBanking 12,283 13,217 17,125 17,711 22,983 42,625 45,633 RevenuesOther 1,807 1,748 1,722 1,568 1,469 5,277 4,374 TotalNoninterest 26,574 26,473 29,826 30,523 34,965 82,873 80,642 IncomeNONINTEREST EXPENSECompensation 25,245 25,378 26,064 26,722 26,164 76,687 69,558 Occupancy, Net 6,032 5,973 5,967 5,976 5,906 17,972 16,683 Other Real (1,126 ) (270 ) (118 ) 567 219 (1,514 ) (463 )Estate, NetPension 500 2,000 - - - 2,500 - AdjustmentOther 9,051 9,042 8,563 8,083 8,053 26,656 22,836 TotalNoninterest 39,702 42,123 40,476 41,348 40,342 122,301 108,614 ExpenseOPERATING 14,544 10,901 14,830 12,806 18,437 40,275 40,078 PROFITIncome Tax 2,949 2,059 2,787 2,833 3,165 7,795 7,397 ExpenseNet Income 11,595 8,842 12,043 9,973 15,272 32,480 32,681 Pre-Tax IncomeAttributableto (1,504 ) (1,415 ) (2,537 ) (2,227 ) (4,875 ) (5,456 ) (8,851 )NoncontrollingInterestNET INCOMEATTRIBUTABLETO $ 10,091 $ 7,427 $ 9,506 $ 7,746 $ 10,397 $ 27,024 $ 23,830 COMMONSHAREOWNERSPER COMMON SHAREBasic Net $ 0.60 $ 0.44 $ 0.56 $ 0.46 $ 0.62 $ 1.60 $ 1.42 IncomeDiluted Net 0.60 0.44 0.56 0.46 0.62 1.60 1.42 IncomeCash Dividend $ 0.16 $ 0.15 $ 0.15 $ 0.15 $ 0.14 $ 0.46 $ 0.42 AVERAGE SHARES Basic 16,875 16,858 16,838 16,763 16,771 16,857 16,792 Diluted 16,909 16,885 16,862 16,817 16,810 16,886 16,823

CAPITAL CITYBANK GROUP, INC.ALLOWANCE FOR CREDIT LOSSES ("ACL")AND RISK ELEMENT ASSETSUnaudited 2021 2020 September 30,(Dollars inthousands, Third Second First Fourth Third 2021 2020except per Quarter Quarter Quarter Quarter Quartershare data)ACL - HELD FORINVESTMENT LOANSBalance atBeginning of $ 22,175 $ 22,026 $ 23,816 $ 23,137 $ 22,457 $ 23,816 $ 13,905 PeriodImpact ofAdopting ASC - - - - - - 3,269 326 (CECL)Provision for (546 ) (184 ) (2,312 ) 1,165 1,265 (3,042 ) 7,870 Credit LossesNetCharge-Offs 129 (333 ) (522 ) 486 585 (726 ) 1,907 (Recoveries)Balance at End $ 21,500 $ 22,175 $ 22,026 $ 23,816 $ 23,137 $ 21,500 $ 23,137 of PeriodAs a % of 1.11 % 1.10 % 1.07 % 1.19 % 1.16 % 1.11 % 1.16 %Loans HFIAs a % ofNonperforming 710.39 % 433.93 % 410.78 % 405.66 % 420.30 % 710.39 % 420.30 %LoansACL - DEBT SECURITIESProvision for $ 16 $ - $ - $ - $ - $ 16 $ - Credit LossesACL - UNFUNDED COMMITMENTSBalance atBeginning of 2,587 $ 2,974 $ 1,644 $ 1,467 $ 1,424 $ 1,644 $ 157 PeriodImpact ofAdopting ASC - - - - - - 876 326 (CECL)Provision for 530 (387 ) 1,330 177 43 1,473 434 Credit LossesBalance at End 3,117 2,587 2,974 1,644 1,467 3,117 1,467 of Period^(1)CHARGE-OFFS Commercial,Financial and $ 37 $ 32 $ 69 $ 104 $ 137 $ 138 $ 685 AgriculturalReal Estate - - - - - - - - ConstructionReal Estate - 405 - - - 17 405 28 CommercialReal Estate - 17 65 6 38 1 88 112 ResidentialReal Estate - 15 74 5 10 58 94 141 Home EquityConsumer 221 230 564 668 619 1,015 2,117 Overdrafts 1,093 440 492 564 450 2,025 1,693 Total $ 1,788 $ 841 $ 1,136 $ 1,384 $ 1,282 $ 3,765 $ 4,776 Charge-OffsRECOVERIES Commercial,Financial and $ 66 $ 103 $ 136 $ 64 $ 74 $ 305 $ 188 AgriculturalReal Estate - 10 - - 50 - 10 - ConstructionReal Estate - 169 26 645 27 30 840 291 CommercialReal Estate - 401 244 75 153 35 720 126 ResidentialReal Estate - 46 70 124 40 41 240 138 Home EquityConsumer 334 332 311 306 280 977 913 Overdrafts 633 399 367 258 237 1,399 1,213 Total $ 1,659 $ 1,174 $ 1,658 $ 898 $ 697 $ 4,491 $ 2,869 RecoveriesNETCHARGE-OFFS $ 129 $ (333 ) $ (522 ) $ 486 $ 585 $ (726 ) $ 1,907 (RECOVERIES)NetCharge-Offs as 0.03 % (0.07 )% (0.10 )% 0.09 % 0.11 % (0.05 )% 0.13 %a % of AverageLoans HFI^(2)RISK ELEMENT ASSETSNonaccruing $ 3,026 $ 5,110 $ 5,362 $ 5,871 $ 5,505 LoansOther Real 192 1,192 110 808 1,227 Estate OwnedTotalNonperforming $ 3,218 $ 6,302 $ 5,472 $ 6,679 $ 6,732 Assets("NPAs") Past Due Loans $ 3,360 $ 3,745 $ 2,622 $ 4,594 $ 3,191 30-89 DaysPast Due Loans90 Days or - - - - - MoreClassified 16,310 19,397 20,608 17,631 16,772 LoansPerformingTroubled Debt $ 7,919 $ 8,992 $ 13,597 $ 13,887 $ 14,693 Restructurings NonperformingLoans as a % 0.16 % 0.25 % 0.26 % 0.29 % 0.28 % of Loans HFINPAs as a % ofLoans HFI and 0.17 % 0.31 % 0.27 % 0.33 % 0.34 % Other RealEstateNPAs as a % of 0.08 % 0.16 % 0.14 % 0.18 % 0.19 % Total Assets ^(1) Recordedin other liabilities^(2) Annualized

CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited Third Quarter 2021 Second Quarter 2021 First Quarter 2021 Fourth Quarter 2020 Third Quarter 2020 Sep 2021 YTD Sep 2020 YTD(Dollars in Average Average Average Average Average Average Average Average Average Average Average Average Averagethousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate Balance Interest Rate BalanceInterestAverage RateASSETS: Loans Held $ 67,753 $ 497 2.91 % $ 77,101 $ 566 2.94 % $ 106,242 $ 970 3.70 % $ 121,052 878 3.85 % $ 92,522 $ 671 3.64 % $ 83,558 $ 2,033 3.24 % $67,719$1,5773.50%for SaleLoans Heldfor 1,974,132 25,458 5.12 2,036,781 24,095 4.74 2,044,363 22,483 4.46 1,993,470 23,103 4.55 2,005,178 23,027 4.53 2,018,168 72,036 4.76 1,945,52469,5984.77Investment^(1) Investment SecuritiesTaxableInvestment 904,962 2,333 1.03 687,882 2,036 1.18 528,842 1,863 1.41 513,277 2,072 1.61 553,395 2,401 1.73 708,606 6,232 1.17 594,6548,1041.82SecuritiesTax-ExemptInvestment 4,332 25 2.31 3,530 23 2.58 3,844 25 2.61 4,485 30 2.71 4,860 32 2.66 3,904 73 2.49 5,338942.34Securities^(1) TotalInvestment 909,294 2,358 1.03 691,412 2,059 1.19 532,686 1,888 1.42 517,762 2,102 1.62 558,255 2,433 1.74 712,510 6,305 1.18 599,9928,1981.82Securities Funds Sold 741,944 285 0.15 818,616 200 0.10 814,638 213 0.11 705,125 180 0.10 567,883 146 0.10 791,466 698 0.12 385,2459910.34 TotalEarning 3,693,123 $ 28,598 3.07 % 3,623,910 $ 26,920 2.98 % 3,497,929 $ 25,554 2.96 % 3,337,409 $ 26,263 3.14 % 3,223,838 $ 26,277 3.25 % 3,605,702 $ 81,072 3.01 % 2,998,480$80,3643.58%Assets Cash and Due 72,773 74,076 68,978 73,968 69,893 71,956 66,512From BanksAllowancefor Loan (22,817 ) (22,794 ) (24,128 ) (23,725 ) (22,948 ) (23,241 ) (19,672)LossesOther Assets 283,534 281,157 278,742 264,784 268,549 281,162 257,993 Total Assets $ 4,026,613 $ 3,956,349 $ 3,821,521 $ 3,652,436 $ 3,539,332 $ 3,935,579 $3,303,313 LIABILITIES: InterestBearing DepositsNOW Accounts $ 945,788 $ 72 0.03 % $ 966,649 $ 74 0.03 % $ 985,517 $ 76 0.03 % $ 879,564 $ 66 0.03 % $ 826,776 $ 61 0.03 % $ 965,839 $ 222 0.03 % $808,389$8640.14%Money Market 282,860 34 0.05 272,138 33 0.05 269,829 33 0.05 261,543 34 0.05 247,185 32 0.05 274,990 100 0.05 227,3311890.11AccountsSavings 551,383 68 0.05 529,844 64 0.05 492,252 60 0.05 466,116 57 0.05 438,762 54 0.05 524,710 192 0.05 409,2301500.05AccountsTime 102,765 36 0.14 102,995 37 0.15 102,089 39 0.15 102,809 44 0.17 104,522 43 0.16 102,619 112 0.15 104,9251440.18DepositsTotalInterest 1,882,796 210 0.04 % 1,871,626 208 0.04 % 1,849,687 208 0.05 % 1,710,032 201 0.05 % 1,617,245 190 0.05 % 1,868,158 626 0.04 % 1,549,8751,3470.12%BearingDeposits Short-Term 49,773 317 2.53 % 51,152 324 2.54 % 67,033 412 2.49 % 95,280 639 2.67 % 74,557 498 2.66 % 55,923 1,053 2.52 % 60,3351,0512.33%BorrowingsSubordinatedNotes 52,887 307 2.27 52,887 308 2.30 52,887 307 2.32 52,887 311 2.30 52,887 316 2.34 52,887 922 2.30 52,8871,1612.89PayableOtherLong-Term 1,652 14 3.37 1,762 16 3.38 2,736 21 3.18 3,700 30 3.18 5,453 40 2.91 2,046 51 3.29 5,8421313.00Borrowings TotalInterest 1,987,108 $ 848 0.17 % 1,977,427 $ 856 0.17 % 1,972,343 $ 948 0.19 % 1,861,899 $ 1,181 0.25 % 1,750,142 $ 1,044 0.24 % 1,979,014 $ 2,652 0.18 % 1,668,939$3,6900.30%BearingLiabilities NoninterestBearing 1,564,892 1,515,726 1,389,821 1,356,104 1,354,032 1,490,787 1,220,002DepositsOther 112,707 107,801 111,050 74,605 83,192 110,526 71,661Liabilities Total 3,664,707 3,600,954 3,473,214 3,292,608 3,187,366 3,580,327 2,960,602LiabilitiesTemporary 20,446 26,355 21,977 16,154 11,893 22,920 7,534Equity SHAREOWNERS' 341,460 329,040 326,330 343,674 340,073 332,332 335,177EQUITY: TotalLiabilities,Temporary $ 4,026,613 $ 3,956,349 $ 3,821,521 $ 3,652,436 $ 3,539,332 $ 3,935,579 $3,303,313Equity andShareowners'Equity Interest $ 27,750 2.91 % $ 26,064 2.81 % $ 24,606 2.77 % $ 25,082 2.88 % $ 25,233 3.01 % $ 78,420 2.83 % $76,6743.29%Rate Spread InterestIncome and 28,598 3.07 26,920 2.98 25,554 2.96 26,263 3.14 26,277 3.25 81,072 3.01 80,3643.58Rate Earned^(1)InterestExpense and 848 0.09 856 0.09 948 0.11 1,181 0.14 1,044 0.13 2,652 0.10 3,6900.16Rate Paid^(2) Net Interest $ 27,750 2.98 % $ 26,064 2.89 % $ 24,606 2.85 % $ 25,082 3.00 % $ 25,233 3.12 % $ 78,420 2.91 % $76,6743.42%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.

CAPITAL CITY HOME LOANSMORTGAGEBANKING ACTIVITYUnaudited Three Months Ended Nine Months Ended(Dollars in Sep 30, Jun 30, 2021 Sep 30, 2020 Sep 30, 2021 Sep 30, 2020thousands) 2021Net Interest $ (30 ) $ 19 $ 17 $ (165 ) $ 142 Income Mortgage 12,293 13,116 22,775 42,255 44,046 Banking FeesOther 455 425 287 1,306 587 TotalNoninterest 12,748 13,541 23,062 43,561 44,633 Income Salaries 7,600 8,538 10,753 26,414 21,376 OtherAssociate 215 210 192 646 446 BenefitsTotal 7,815 8,748 10,945 27,060 21,822 Compensation Occupancy, 849 854 845 2,564 1,844 NetOther 1,292 1,359 1,342 3,751 3,048 TotalNoninterest 9,956 10,961 13,132 33,375 26,714 Expense Operating $ 2,762 $ 2,599 $ 9,947 $ 10,021 $ 18,061 Profit KeyPerformance MetricsTotal Loans $ 360,167 $ 406,859 $ 526,252 $ 1,230,151 $ 1,139,681 ClosedTotal Loans Closed - MixPurchase 71 % 76 % 60 % 69 % 59 %Refinance 29 % 24 % 40 % 31 % 41 %

For Information Contact:J. Kimbrough DavisExecutive Vice President and Chief Financial Officer850.402.7820