GlobeNewswire Inc | Jan 25, 2022 07:00AM EST

January 25, 2022

TALLAHASSEE, Fla., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $6.4 million, or $0.38 per diluted share, for the fourth quarter of 2021 compared to net income of $10.1 million, or $0.60 per diluted share, for the third quarter of 2021, and $7.7 million, or $0.46 per diluted share, for the fourth quarter of 2020.

For the full year of 2021, net income totaled $33.4 million, or $1.98 per diluted share, compared to net income of $31.6 million, or $1.88 per diluted share, for 2020.

Fourth Quarter 2021 HIGHLIGHTS

-- Operating revenues (excluding mortgage revenues and SBA PPP loan income) improved 1.9% -- Capital City Home Loans (CCHL) contributed $0.03 per share versus $0.06 per share in the prior quarter reflective of a typical seasonal slowdown -- Noninterest expense increased $0.5 million, or 1.3%, on higher other real estate expense related to a third quarter gain of $1.0 million on the sale of a banking office -- Average loans, excluding PPP loans, grew $8 million and average investment securities increased $82 million -- Noninterest expense included a pension settlement charge of $0.6 million or $0.03 per share -- Strong credit quality metrics resulted in no loan loss provision and an allowance coverage ratio of 1.12% -- Average Deposits grew $101 million, or 2.9%, primarily due to a seasonal increase in public fund inflows -- Capital growth of $34.3 million ($2.03 per share), or 9.8%, primarily attributable to a favorable adjustment for year-end pension plan re-measurement

Full Year 2021 HIGHLIGHTS

-- 2021 net income totaled $33.4 million, a record year -- Operating revenues (excluding mortgage revenues and SBA PPP loan income) improved 1.4% -- CCHL contributed $0.23 per share versus $0.52 per share in 2020 -- Average loans, excluding PPP loans, grew $76 million and average investment securities increased $203 million -- Negative loan loss provision of $1.6 million -- Noninterest expense included pension settlement charges totaling $3.1 million or $0.15 per share -- Average Deposits grew $563 million, or 19.8%, reflective of government stimulus related inflows -- Capital growth of $62.3 million ($3.69 per share), or 19.4%

Capital City reported record earnings in 2021, said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group. SBA PPP loan income, pristine credit quality and growth in our fee-based businesses drove earnings, more than offsetting the adverse impacts of a normalizing mortgage market, pension settlement charges and a lower interest rate environment. We are well positioned for rising interest rates given our asset sensitive balance sheet and the favorable impact higher interest rates have on our pension related other comprehensive loss. Year over year, the favorable pension equity adjustment added $2.01 per share to book value. As I look toward 2022, I am excited about the prospects of our recent addition of Capital City Strategic Wealth (a financial planning/advisory service), which gained traction in the latter half of 2021, and our market expansion in the western panhandle of 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 fourth quarter of 2021 totaled $24.8 million compared to $27.8 million for the third quarter of 2021 and $25.1 million for the fourth quarter of 2020. For the full year 2021 tax-equivalent net interest income totaled $103.2 million compared to $101.8 million for 2020. Compared to the third quarter of 2021 and the fourth quarter of 2020, the decrease was primarily due to lower SBA PPP loan income. Compared to the full year 2020, the increase was primarily attributable to higher SBA PPP loan income and higher average loan balances, partially offset by unfavorable rate repricing due to a generally lower rate environment.

Our net interest margin for the fourth quarter of 2021 was 2.60%, a decrease of 38 basis points over the third quarter of 2021 and a decrease of 40 basis points from the fourth quarter of 2020. Compared to both prior periods, the decrease was attributable to a decline in SBA PPP loan income, in conjunction with growth in earning assets (driven by deposit inflows), which negatively impacts our margin percentage. For the full year 2021, the net interest margin declined 47 basis points compared to 2020, primarily driven by growth in earning assets. Our net interest margin for the fourth quarter of 2021, excluding the impact of overnight funds in excess of $200 million, was 3.10%.

Provision for Credit Loss

We did not record a provision for credit losses for the fourth quarter of 2021. This compares to provision expense of $1.3 million for the fourth quarter of 2020. For the full year 2021, we recorded a negative provision of $1.6 million compared to provision expense of $9.6 million for 2020. The lower provision in 2021 was attributable to improvements in forecasted economic conditions, favorable loan migration and net loan recoveries totaling $0.6 million. We discuss the allowance for credit losses further below.

Noninterest Income and Noninterest Expense

Noninterest income for the fourth quarter of 2021 totaled $24.7 million compared to $26.6 million for the third quarter of 2021 and $30.5 million for the fourth quarter of 2020. For the full year 2021, noninterest income totaled $107.5 million compared to $111.2 million for 2020. The decrease from all prior periods was primarily attributable to lower mortgage banking revenues that were partially offset by strong gains in deposit fees, bank card fees, and wealth management fees. The decline in mortgage banking revenues for the fourth quarter of 2021 reflected a normal seasonal decline in loan purchase activity. Year over year, the decline in mortgage banking revenues was driven generally by lower refinancing activity, a shift in production mix (lower government versus conventional product), and lower market driven gain on sale margins. Additional detail on our mortgage banking operation (CCHL) is provided on Page 11. The increase in deposit fees reflected the conversion, in the third quarter of 2021, of the remaining free checking accounts to a monthly maintenance fee account type. The increase in wealth management fees was primarily attributable to higher retail brokerage transaction volume and advisory accounts added from the acquisition of Capital City Strategic Wealth on May 1, 2021. To a lesser extent, higher trust fees contributed to the increase in wealth management fees driven by higher assets under management. The increase in bank card fees generally reflected an increase in card-not-present debit card transactions and increased consumer spending.

Noninterest expense for the fourth quarter of 2021 totaled $40.2 million compared to $39.7 million for the third quarter of 2021 and $41.3 million for the fourth quarter of 2020. The increase over the third quarter of 2021 was primarily attributable to higher other real estate expense of $1.2 million, partially offset by lower compensation expense of $0.5 million. The increase in other real estate expense reflected a gain on the sale of a banking office in the third quarter of 2021. The decrease in compensation was attributable to lower commission expense at CCHL. Compared to the fourth quarter of 2020, the decrease was primarily due to lower commission expense at CCHL.

For the full year 2021, noninterest expense totaled $162.5 million compared to $150.0 million for 2021. The $12.5 million increase was attributable to the addition of expenses at CCHL (March 1, 2020 acquisition) of $2.3 million and higher expenses at the core bank totaling $10.2 million. The increase in expenses at the core bank were primarily due to higher compensation expense of $3.7 million (merit raises, pension/service cost expense, and realized loan cost), pension settlement expense of $3.1 million, and an increase in other expense of $5.0 million, partially offset by lower other real estate expense of $1.6 million. The increase in other expense was primarily attributable to higher expense of $2.1 million for the non-service cost component of our pension plan attributable to the utilization of a lower discount rate for plan liabilities. Higher processing fees of $0.7 million (debit card volume), professional fees of $0.6 million, occupancy expense of $0.5 million, and FDIC insurance of $0.5 million (higher asset size) also contributed to the increase in other expense.

Income Taxes

We realized income tax expense of $2.0 million (effective rate of 22%) for the fourth quarter of 2021 compared to $2.9 million (effective rate of 20%) for the third quarter of 2021 and $2.8 million (effective rate of 22%) for the fourth quarter of 2020. For the full year 2021, we realized income tax expense of $9.8 million (effective rate of 20%) compared to $10.2 million (effective rate of 19%) for the same period of 2020. Tax expense for the fourth quarter of 2021 and 2020 was unfavorably impacted by discrete tax expense of $0.1 million and $0.3 million, respectively. Absent discrete items, we expect our annual effective tax rate to approximate 19%-20% in 2022.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.791 billion for the fourth quarter of 2021, an increase of $98.2 million, or 2.7%, over the third quarter of 2021, and an increase of $453.9 million, or 13.6%, over the fourth quarter of 2020. The increase over both prior periods was primarily driven by higher deposit balances. 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 $789.1 million in the fourth quarter of 2021 compared to an average net overnight funds sold position of $741.9 million in the third quarter of 2021 and $705.1 million in the fourth 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) decreased $25.8 million, or 1.3%, from the third quarter of 2021 and decreased $45.1 million, or 2.3%, from the fourth quarter of 2020. Excluding SBA PPP loans, average loans HFI increased $7.8 million compared to the third quarter of 2021, and increased $133.1 million compared to the fourth quarter of 2020. Compared to the third quarter of 2021 the increase in average loans (excluding PPP loans) reflected growth in construction and indirect loans, partially offset by declines in the remaining loan products. Compared to the fourth quarter of 2020, we realized growth in construction, residential, commercial real estate and indirect loans. At December 31, 2021, remaining SBA PPP loan balances and fees totaled less than $0.2 million.

Allowance for Credit Losses

At December 31, 2021, the allowance for credit losses for HFI loans totaled $21.6 million compared to $21.5 million at September 30, 2021 and $23.8 million at December 31, 2020. Activity within the allowance is provided on Page 9. At December 31, 2021, the allowance represented 1.12% of HFI loans and provided coverage of 546% of nonperforming loans compared to 1.11% and 710%, respectively, at September 30, 2021, and 1.19% and 406%, respectively, at December 31, 2020. At December 31, 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

Overall credit quality continues to remain strong. Nonperforming assets (nonaccrual loans and other real estate) totaled $4.3 million at December 31, 2021 compared to $3.2 million at September 30, 2021 and $6.7 million at December 31, 2020. At December 31, 2021, nonperforming assets as a percentage of total assets was stable at 0.10%. Nonaccrual loans totaled $4.3 million at December 31, 2021, a $1.3 million increase over September 30, 2021 and a $1.5 million decrease from December 31, 2020.

Funding (Deposits/Debt)

Average total deposits were $3.549 billion for the fourth quarter of 2021, an increase of $101.5 million, or 2.9%, over the third quarter of 2021 and $483.0 million, or 15.8%, over the fourth quarter of 2020. Compared to both prior periods, growth in average total deposits was experienced in all products except certificates of deposit, with the strongest growth occurring in our noninterest bearing deposits and savings account balances. Over the past 18 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 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 $3.4 million from the third quarter of 2021 and declined $48.9 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 $383.2 million at December 31, 2021 compared to $348.9 million at September 30, 2021 and $320.8 million at December 31, 2020. For the full year 2021, shareowners equity was positively impacted by net income of $33.4 million, a $34.1 million decrease in the accumulated other comprehensive loss for our pension plan, a $1.1 million increase in fair value of the interest rate swap related to subordinated debt, net adjustments totaling $1.4 million related to transactions under our stock compensation plans, stock compensation accretion of $0.8 million, and reclassification of $9.3 million from temporary equity to decrease the redemption value of the non-controlling interest in CCHL. Shareowners equity was reduced by common stock dividends of $10.5 million ($0.62 per share) and a $7.3 million decrease in the unrealized gain on investment securities.

At December 31, 2021, our total risk-based capital ratio was 17.15% compared to 16.70% at September 30, 2021 and 17.30% at December 31, 2020. Our common equity tier 1 capital ratio was 13.86%, 13.45%, and 13.71%, respectively, on these dates. Our leverage ratio was 8.95%, 9.05%, 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 6.95% at December 31, 2021 compared to 6.46% and 6.25% at September 30, 2021 and December 31, 2020, respectively. Our tangible capital ratio was favorably impacted at December 31, 2021 by the aforementioned annual adjustment to the other comprehensive loss for our pension plan. The favorable adjustment was primarily attributable to the utilization of higher discount rates to re-measure the present value of the projected benefit obligation and a strong return on plan assets for 2021.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.3 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and 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 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, Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020except pershare data)Shareowners'Equity $ 383,166 $ 348,868 $ 335,880 $ 324,426 $ 320,837 (GAAP)Less:Goodwill andOther 93,253 93,293 93,333 89,095 89,095 Intangibles(GAAP)TangibleShareowners' A 289,913 255,575 242,547 235,331 231,742 Equity(non-GAAP)Total Assets 4,263,849 4,048,733 4,011,459 3,929,884 3,798,071 (GAAP)Less:Goodwill andOther 93,253 93,293 93,333 89,095 89,095 Intangibles(GAAP)TangibleAssets B $ 4,170,596 $ 3,955,440 $ 3,918,126 $ 3,840,789 $ 3,708,976 (non-GAAP)TangibleCommon A/ 6.95 % 6.46 % 6.19 % 6.13 % 6.25 %Equity Ratio B(non-GAAP)ActualDilutedShares C 16,935,389 16,911,715 16,901,375 16,875,719 16,844,997 Outstanding(GAAP)TangibleBook Value A/per Diluted C $ 17.12 $ 15.11 $ 14.35 $ 13.94 $ 13.76 Share(non-GAAP)

CAPITAL CITY BANK GROUP, INC.EARNINGS HIGHLIGHTS Unaudited Three Months Ended Twelve Months Ended (Dollars in thousands, Dec Sep Dec Dec 31, Decexcept per share data) 31, 30, 31, 2021 31, 2021 2021 2020 2020EARNINGS Net Income Attributable $ 6,372 $ 10,091 $ 7,746 $ 33,396 $ 31,576 to Common ShareownersDiluted Net Income Per $ 0.38 $ 0.60 $ 0.46 $ 1.98 $ 1.88 SharePERFORMANCE Return on Average 0.61 % 0.99 % 0.84 % 0.84 % 0.93 %AssetsReturn on Average 7.22 11.72 8.97 9.92 9.36 EquityNet Interest Margin 2.60 2.98 3.00 2.83 3.30 Noninterest Income as % 49.96 48.99 55.00 51.11 52.32 of Operating RevenueEfficiency Ratio 81.29 % 73.09 % 74.36 % 77.11 % 70.43 %CAPITAL ADEQUACY Tier 1 Capital 16.14 % 15.69 % 16.19 % 16.14 % 16.19 %Total Capital 17.15 16.70 17.30 17.15 17.30 Leverage 8.95 9.05 9.33 8.95 9.33 Common Equity Tier 1 13.86 13.45 13.71 13.86 13.71 Tangible Common Equity 6.95 6.46 6.25 6.95 6.25 ^(1)Equity to Assets 8.99 % 8.62 % 8.45 % 8.99 % 8.45 %ASSET QUALITY Allowance as % of 499.93 % 710.39 % 405.66 % 499.93 % 405.66 %Non-Performing LoansAllowance as a % of 1.12 1.11 1.19 1.12 1.19 Loans HFINet Charge-Offs as % of 0.02 0.03 0.09 (0.03 ) 0.12 Average Loans HFINonperforming Assets as 0.22 0.17 0.33 0.22 0.33 % of Loans HFI and OREONonperforming Assets as 0.10 % 0.08 % 0.18 % 0.10 % 0.18 %% of Total AssetsSTOCK PERFORMANCE High $ 29.00 $ 26.10 $ 26.35 $ 29.00 $ 30.62 Low 24.77 22.02 18.14 21.42 15.61 Close $ 26.40 $ 24.74 $ 24.58 $ 26.40 $ 24.58 Average Daily Trading 29,900 30,515 22,271 29,919 35,125 Volume ^(1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.

CAPITAL CITYBANK GROUP, INC.CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited 2021 2020 (Dollars in Fourth Quarter Third Second First Fourththousands) Quarter Quarter Quarter QuarterASSETS Cash and Due $ 65,313 $ 73,132 $ 78,894 $ 73,973 $ 67,919 From BanksFunds Soldand Interest 970,041 708,988 766,920 851,910 860,630 BearingDepositsTotal Cashand Cash 1,035,354 782,120 845,814 925,883 928,549 Equivalents InvestmentSecurities 654,611 645,844 480,890 406,245 324,870 Available forSaleInvestmentSecurities 339,601 341,228 325,559 199,109 169,939 Held toMaturityOther Equity 861 - - - - SecuritiesTotalInvestment 995,073 987,072 806,449 605,354 494,809 Securities Loans Held 52,532 77,036 80,821 82,081 114,039 for Sale Loans Heldfor Investment("HFI"):Commercial,Financial, & 223,086 218,929 292,953 413,819 393,930 AgriculturalReal Estate - 174,394 177,443 149,884 138,104 135,831 ConstructionReal Estate - 663,550 683,379 707,599 669,158 648,393 CommercialReal Estate - 346,756 355,958 362,018 358,849 342,664 ResidentialReal Estate - 187,821 187,642 190,078 202,099 205,479 Home EquityConsumer 321,511 309,983 298,464 267,666 269,520 Other Loans 13,265 6,792 6,439 7,082 9,879 Overdrafts 1,082 1,299 1,227 950 730 Total LoansHeld for 1,931,465 1,941,425 2,008,662 2,057,727 2,006,426 InvestmentAllowance for (21,606 ) (21,500 ) (22,175 ) (22,026 ) (23,816 )Credit LossesLoans Heldfor 1,909,859 1,919,925 1,986,487 2,035,701 1,982,610 Investment,Net Premises andEquipment, 83,412 84,750 85,745 86,370 86,791 NetGoodwill andOther 93,253 93,293 93,333 89,095 89,095 IntangiblesOther Real 17 192 1,192 110 808 Estate OwnedOther Assets 94,349 104,345 111,618 105,290 101,370 Total Other 271,031 282,580 291,888 280,865 278,064 AssetsTotal Assets $ 4,263,849 $ 4,048,733 $ 4,011,459 $ 3,929,884 $ 3,798,071 LIABILITIES Deposits: NoninterestBearing $ 1,668,912 $ 1,592,345 $ 1,552,864 $ 1,473,891 $ 1,328,809 DepositsNOW Accounts 1,070,154 926,201 970,705 993,571 1,046,408 Money Market 274,611 286,065 280,805 269,041 266,649 AccountsRegularSavings 599,811 559,714 539,477 518,373 474,100 AccountsCertificates 99,374 101,637 103,070 103,232 101,594 of DepositTotal 3,712,862 3,465,962 3,446,921 3,358,108 3,217,560 Deposits Short-Term 34,557 51,410 47,200 55,687 79,654 BorrowingsSubordinated 52,887 52,887 52,887 52,887 52,887 Notes PayableOtherLong-Term 884 1,610 1,720 1,829 3,057 BorrowingsOther 67,735 113,720 105,534 109,487 102,076 LiabilitiesTotal 3,868,925 3,685,589 3,654,262 3,577,998 3,455,234 Liabilities Temporary 11,758 14,276 21,317 27,460 22,000 EquitySHAREOWNERS' EQUITYCommon Stock 169 169 169 169 168 AdditionalPaid-In 34,423 33,876 33,560 32,804 32,283 CapitalRetained 364,788 359,550 345,574 335,324 332,528 EarningsAccumulatedOtherComprehensive (16,214 ) (44,727 ) (43,423 ) (43,871 ) (44,142 )Loss, Net ofTaxTotalShareowners' 383,166 348,868 335,880 324,426 320,837 EquityTotalLiabilities,Temporary $ 4,263,849 $ 4,048,733 $ 4,011,459 $ 3,929,884 $ 3,798,071 Equity andShareowners'EquityOTHER BALANCE SHEET DATAEarning $ 3,949,111 $ 3,714,521 $ 3,662,852 $ 3,597,071 $ 3,475,904 AssetsInterestBearing 2,132,278 1,979,524 1,995,864 1,994,620 2,024,349 LiabilitiesBook ValuePer Diluted $ 22.63 $ 20.63 $ 19.87 $ 19.22 $ 19.05 ShareTangible BookValue Per 17.12 15.11 14.35 13.94 13.76 Diluted Share^(1)Actual BasicShares 16,892 16,878 16,874 16,852 16,791 OutstandingActualDiluted 16,935 16,912 16,901 16,876 16,845 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 December 31,(Dollars inthousands, Fourth Third Second First Fourth 2021 2020 except per Quarter Quarter Quarter Quarter Quartershare data)INTEREST INCOMEInterest and $ 22,744 $ 25,885 $ 24,582 $ 23,350 $ 23,878 $ 96,561 $ 94,752 Fees on LoansInvestment 2,505 2,350 2,054 1,883 2,096 8,792 10,274 SecuritiesFunds Sold 300 285 200 213 180 998 1,171 Total Interest 25,549 28,520 26,836 25,446 26,154 106,351 106,197 IncomeINTEREST EXPENSEDeposits 213 210 208 208 201 839 1,548 Short-Term 307 317 324 412 639 1,360 1,690 BorrowingsSubordinated 306 307 308 307 311 1,228 1,472 Notes PayableOtherLong-Term 12 14 16 21 30 63 161 BorrowingsTotal Interest 838 848 856 948 1,181 3,490 4,871 ExpenseNet Interest 24,711 27,672 25,980 24,498 24,973 102,861 101,326 IncomeProvision for - - (571 ) (982 ) 1,342 (1,553 ) 9,645 Credit LossesNet InterestIncome after 24,711 27,672 26,551 25,480 23,631 104,414 91,681 Provision forCredit LossesNONINTEREST INCOMEDeposit Fees 5,300 5,075 4,236 4,271 4,713 18,882 17,800 Bank Card Fees 3,872 3,786 3,998 3,618 3,462 15,274 13,044 WealthManagement 3,706 3,623 3,274 3,090 3,069 13,693 11,035 FeesMortgageBanking 9,800 12,283 13,217 17,125 17,711 52,425 63,344 RevenuesOther 1,994 1,807 1,748 1,722 1,568 7,271 5,942 TotalNoninterest 24,672 26,574 26,473 29,826 30,523 107,545 111,165 IncomeNONINTEREST EXPENSECompensation 24,783 25,245 25,378 26,064 26,722 101,470 96,280 Occupancy, Net 5,960 6,032 5,973 5,967 5,976 23,932 22,659 Other Real 26 (1,126 ) (270 ) (118 ) 567 (1,488 ) 104 Estate, NetPension 572 500 2,000 - - 3,072 - SettlementOther 8,866 9,051 9,042 8,563 8,083 35,522 30,919 TotalNoninterest 40,207 39,702 42,123 40,476 41,348 162,508 149,962 ExpenseOPERATING 9,176 14,544 10,901 14,830 12,806 49,451 52,884 PROFITIncome Tax 2,040 2,949 2,059 2,787 2,833 9,835 10,230 ExpenseNet Income 7,136 11,595 8,842 12,043 9,973 39,616 42,654 Pre-Tax IncomeAttributableto (764 ) (1,504 ) (1,415 ) (2,537 ) (2,227 ) (6,220 ) (11,078 )NoncontrollingInterestNET INCOMEATTRIBUTABLETO $ 6,372 $ 10,091 $ 7,427 $ 9,506 $ 7,746 $ 33,396 $ 31,576 COMMONSHAREOWNERSPER COMMON SHAREBasic Net $ 0.38 $ 0.60 $ 0.44 $ 0.56 $ 0.46 $ 1.98 $ 1.88 IncomeDiluted Net 0.38 0.60 0.44 0.56 0.46 1.98 1.88 IncomeCash Dividend $ 0.16 $ 0.16 $ 0.15 $ 0.15 $ 0.15 $ 0.62 $ 0.57 AVERAGE SHARES Basic 16,880 16,875 16,858 16,838 16,763 16,863 16,785 Diluted 16,923 16,909 16,885 16,862 16,817 16,893 16,822

CAPITAL CITYBANK GROUP, INC.ALLOWANCE FOR CREDIT LOSSES ("ACL")AND RISK ELEMENT ASSETSUnaudited 2021 2020 December 31,(Dollars inthousands, Fourth Third Second First Fourth 2021 2020 except per Quarter Quarter Quarter Quarter Quartershare data)ACL - HELD FORINVESTMENT LOANSBalance atBeginning of $ 21,500 $ 22,175 $ 22,026 $ 23,816 $ 23,137 $ 23,816 $ 13,905 PeriodImpact ofAdopting ASC - - - - - - 3,269 326 (CECL)Provision for 200 (546 ) (184 ) (2,312 ) 1,165 (2,842 ) 9,035 Credit LossesNetCharge-Offs 94 129 (333 ) (522 ) 486 (632 ) 2,393 (Recoveries)Balance at End $ 21,606 $ 21,500 $ 22,175 $ 22,026 $ 23,816 $ 21,606 $ 23,816 of PeriodAs a % of 1.12 % 1.11 % 1.10 % 1.07 % 1.19 % 1.12 % 1.19 %Loans HFIAs a % ofNonperforming 499.93 710.39 % 433.93 % 410.78 % 405.66 % 499.93 % 405.66 %LoansACL - DEBT SECURITIESProvision for $ 20 $ 16 $ - $ - $ - $ 36 $ - Credit LossesACL - UNFUNDED COMMITMENTSBalance atBeginning of 3,117 $ 2,587 $ 2,974 $ 1,644 $ 1,467 $ 1,644 $ 157 PeriodImpact ofAdopting ASC - - - - - - 876 326 (CECL)Provision for (220 ) 530 (387 ) 1,330 177 1,253 611 Credit LossesBalance at End 2,897 3,117 2,587 2,974 1,644 2,897 1,644 of Period^(1)CHARGE-OFFS Commercial,Financial and $ 101 $ 37 $ 32 $ 69 $ 104 $ 239 $ 789 AgriculturalReal Estate - - - - - - - - ConstructionReal Estate - - 405 - - - 405 28 CommercialReal Estate - 20 17 65 6 38 108 150 ResidentialReal Estate - 9 15 74 5 10 103 151 Home EquityConsumer 254 221 230 564 668 1,269 2,785 Overdrafts 678 1,093 440 492 564 2,703 2,257 Total $ 1,062 $ 1,788 $ 841 $ 1,136 $ 1,384 $ 4,827 $ 6,160 Charge-OffsRECOVERIES Commercial,Financial and $ 148 $ 66 $ 103 $ 136 $ 64 $ 453 $ 252 AgriculturalReal Estate - - 10 - - 50 10 50 ConstructionReal Estate - 25 169 26 645 27 865 318 CommercialReal Estate - 33 401 244 75 153 753 279 ResidentialReal Estate - 173 46 70 124 40 413 178 Home EquityConsumer 214 334 332 311 306 1,191 1,219 Overdrafts 375 633 399 367 258 1,774 1,471 Total $ 968 $ 1,659 $ 1,174 $ 1,658 $ 898 $ 5,459 $ 3,767 RecoveriesNETCHARGE-OFFS $ 94 $ 129 $ (333 ) $ (522 ) $ 486 $ (632 ) $ 2,393 (RECOVERIES)NetCharge-Offs as 0.02 % 0.03 % (0.07 )% (0.10 )% 0.09 % (0.03 )% 0.12 %a % of AverageLoans HFI^(2)RISK ELEMENT ASSETSNonaccruing $ 4,322 $ 3,026 $ 5,110 $ 5,362 $ 5,871 LoansOther Real 17 192 1,192 110 808 Estate OwnedTotalNonperforming $ 4,339 $ 3,218 $ 6,302 $ 5,472 $ 6,679 Assets("NPAs") Past Due Loans $ 3,600 $ 3,360 $ 3,745 $ 2,622 $ 4,594 30-89 DaysPast Due Loans90 Days or - - - - - MoreClassified 17,912 16,310 19,397 20,608 17,631 LoansPerformingTroubled Debt $ 7,643 $ 7,919 $ 8,992 $ 13,597 $ 13,887 Restructurings NonperformingLoans as a % 0.22 % 0.16 % 0.25 % 0.26 % 0.29 % of Loans HFINPAs as a % ofLoans HFI and 0.22 % 0.17 % 0.31 % 0.27 % 0.33 % Other RealEstateNPAs as a % of 0.10 % 0.08 % 0.16 % 0.14 % 0.18 % Total Assets ^(1) Recordedin other liabilities^(2) Annualized

CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited Fourth Quarter 2021 Third Quarter 2021 Second Quarter 2021 First Quarter 2021 Fourth Quarter 2020 Dec 2021 YTD Dec 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 $ 62,809 $ 522 3.29 % $ 67,753 $ 497 2.91 % $ 77,101 $ 566 2.94 % $ 106,242 970 3.70 % $ 121,052 $ 878 3.85 % $ 78,328 $ 2,555 3.24 %$81,125$2,8953.57%for SaleLoans Heldfor 1,948,324 22,296 4.54 1,974,132 25,458 5.12 2,036,781 24,095 4.74 2,044,363 22,483 4.46 1,993,470 23,103 4.55 2,000,563 94,332 4.76 1,957,57692,2614.71Investment^(1) Investment SecuritiesTaxableInvestment 987,700 2,493 1.00 904,962 2,333 1.03 687,882 2,036 1.18 528,842 1,863 1.41 513,277 2,072 1.61 778,953 8,725 1.12 574,19910,1761.77SecuritiesTax-ExemptInvestment 3,380 17 2.07 4,332 25 2.31 3,530 23 2.58 3,844 25 2.61 4,485 30 2.71 3,772 90 2.39 5,1231242.42Securities^(1) TotalInvestment 991,080 2,510 1.01 909,294 2,358 1.03 691,412 2,059 1.19 532,686 1,888 1.42 517,762 2,102 1.62 782,725 8,815 1.12 579,32210,3001.78Securities Funds Sold 789,100 300 0.15 741,944 285 0.15 818,616 200 0.10 814,638 213 0.11 705,125 180 0.10 790,870 998 0.13 465,6521,1710.25 TotalEarning 3,791,313 $ 25,628 2.68 % 3,693,123 $ 28,598 3.07 % 3,623,910 $ 26,920 2.98 % 3,497,929 $ 25,554 2.96 % 3,337,409 $ 26,263 3.14 % 3,652,486 $ 106,700 2.92 %3,083,675$106,6273.46%Assets Cash and Due 73,752 72,773 74,076 68,978 73,968 72,409 68,386From BanksAllowancefor Loan (22,127 ) (22,817 ) (22,794 ) (24,128 ) (23,725 ) (22,960 ) (20,690)LossesOther Assets 284,999 283,534 281,157 278,742 264,784 282,129 259,700 Total Assets $ 4,127,937 $ 4,026,613 $ 3,956,349 $ 3,821,521 $ 3,652,436 $ 3,984,064 $3,391,071 LIABILITIES: InterestBearing DepositsNOW Accounts $ 963,778 $ 72 0.03 % $ 945,788 $ 72 0.03 % $ 966,649 $ 74 0.03 % $ 985,517 $ 76 0.03 % $ 879,564 $ 66 0.03 % $ 965,320 $ 294 0.03 %$826,280$9300.11%Money Market 289,335 34 0.05 282,860 34 0.05 272,138 33 0.05 269,829 33 0.05 261,543 34 0.05 278,606 134 0.05 235,9312230.09AccountsSavings 573,563 71 0.05 551,383 68 0.05 529,844 64 0.05 492,252 60 0.05 466,116 57 0.05 537,023 263 0.05 423,5292070.05AccountsTime 101,037 36 0.14 102,765 36 0.14 102,995 37 0.15 102,089 39 0.15 102,809 44 0.17 102,220 148 0.14 104,3931880.18DepositsTotalInterest 1,927,713 213 0.04 % 1,882,796 210 0.04 % 1,871,626 208 0.04 % 1,849,687 208 0.05 % 1,710,032 201 0.05 % 1,883,169 839 0.04 %1,590,1331,5480.10%BearingDeposits Short-Term 46,355 307 2.63 % 49,773 317 2.53 % 51,152 324 2.54 % 67,033 412 2.49 % 95,280 639 2.67 % 53,511 1,360 2.54 %69,1191,6902.44%BorrowingsSubordinatedNotes 52,887 306 2.26 52,887 307 2.27 52,887 308 2.30 52,887 307 2.32 52,887 311 2.30 52,887 1,228 2.29 52,8871,4722.74PayableOtherLong-Term 1,414 12 3.50 1,652 14 3.37 1,762 16 3.38 2,736 21 3.18 3,700 30 3.18 1,887 63 3.33 5,3041613.03Borrowings TotalInterest 2,028,369 $ 838 0.16 % 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 % 1,991,454 $ 3,490 0.18 %1,717,443$4,8710.28%BearingLiabilities NoninterestBearing 1,621,432 1,564,892 1,515,726 1,389,821 1,356,104 1,523,717 1,254,214DepositsOther 114,657 112,707 107,801 111,050 74,605 111,567 72,400Liabilities Total 3,764,458 3,664,707 3,600,954 3,473,214 3,292,608 3,626,738 3,044,057LiabilitiesTemporary 13,339 20,446 26,355 21,977 16,154 20,505 9,701Equity SHAREOWNERS' 350,140 341,460 329,040 326,330 343,674 336,821 337,313EQUITY: TotalLiabilities,Temporary $ 4,127,937 $ 4,026,613 $ 3,956,349 $ 3,821,521 $ 3,652,436 $ 3,984,064 $3,391,071Equity andShareowners'Equity Interest $ 24,790 2.52 % $ 27,750 2.91 % $ 26,064 2.81 % $ 24,606 2.77 % $ 25,082 2.88 % $ 103,210 2.75 %$101,7563.18%Rate Spread InterestIncome and 25,628 2.68 28,598 3.07 26,920 2.98 25,554 2.96 26,263 3.14 106,700 2.92 106,6273.46Rate Earned^(1)InterestExpense and 838 0.09 848 0.09 856 0.09 948 0.11 1,181 0.14 3,490 0.10 4,8710.16Rate Paid^(2) Net Interest $ 24,790 2.60 % $ 27,750 2.98 % $ 26,064 2.89 % $ 24,606 2.85 % $ 25,082 3.00 % $ 103,210 2.83 %$101,7563.30%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 Twelve Months Ended(Dollars in Dec 31, Sep 30, Dec 31, 2020 Dec 31, 2021 Dec 31, 2020thousands) 2021 2021Net Interest $ 35 $ (30 ) $ 43 $ (129 ) $ 184 Income Mortgage 9,800 12,293 17,409 52,055 61,455 Banking FeesOther 470 455 363 1,776 950 TotalNoninterest 10,270 12,748 17,772 53,831 62,405 Income Salaries 6,643 7,600 10,398 33,057 31,774 OtherAssociate 202 215 200 848 645 BenefitsTotal 6,845 7,815 10,598 33,905 32,419 Compensation Occupancy, 743 849 920 3,307 2,764 NetOther 1,312 1,292 1,751 5,064 4,798 TotalNoninterest 8,900 9,956 13,269 42,276 39,981 Expense Operating $ 1,405 $ 2,762 $ 4,546 $ 11,426 $ 22,608 Profit KeyPerformance MetricsTotal Loans $ 294,237 $ 360,167 $ 520,039 $ 1,523,858 $ 1,659,719 ClosedTotal Loans Closed - MixPurchase 76 % 71 % 61 % 71 % 60 %Refinance 24 % 29 % 39 % 29 % 40 %

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