• Capital City Bank Group, Inc. Reports Second Quarter 2021 Results

    ソース: Nasdaq GlobeNewswire / 27 7 2021 07:00:02   America/New_York

    TALLAHASSEE, Fla., July 27, 2021 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $7.4 million, or $0.44 per diluted share, for the second quarter of 2021 compared to net income of $9.5 million, or $0.56 per diluted share, for the first quarter of 2021, and $9.1 million, or $0.55 per diluted share, for the second quarter of 2020. Net income for the second quarter of 2021 included a partial pension settlement charge of $2.0 million (pre-tax), or $0.10 per diluted share (after tax).

    For the first six months of 2021, net income totaled $16.9 million, or $1.00 per diluted share, compared to net income of $13.4 million, or $0.80 per diluted share, for the same period of 2020.

    Our return on average assets (“ROA”) was 0.75% and our return on average equity (“ROE”) was 9.05% for the second quarter of 2021. These metrics were 1.01% and 11.81% for the first quarter of 2021, respectively, and 1.10% and 11.03% for the second quarter of 2020, respectively. For the first six months of 2021, our ROA was 0.88% and our ROE was 10.42% compared to 0.85% and 8.12%, respectively, for the same period of 2020.

    QUARTER HIGHLIGHTS

    • Net interest income grew 6% sequentially driven by strong loan growth and higher SBA PPP fees
    • Period-end loan balances (net of SBA PPP balances) grew by $74 million, or 4.0% sequentially
      • Remaining SBA PPP balances and deferred fees totaled $80 million and $3.5 million, respectively, at period-end
    • Strong credit quality metrics and a net loan loss recovery drove a negative credit loss provision of $0.6 million
    • Average deposit balances grew $148 million, or 4.6% sequentially and reflected additional stimulus inflows as well as strong core deposit growth
    • Noninterest expense increased $1.6 million and included a partial pension settlement charge of $2.0 million – controllable expenses at CCB continued to be well managed
    • Capital City Home Loans (“CCHL”) contributed $0.05 per share

    “Challenges remain, but Capital City produced solid results for both the second quarter and first half of 2021,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group. “Excluding PPP loans, our loan portfolio grew $74.3 million, or 3.8%, for the quarter with commercial mortgages and auto finance contributing a majority of the net growth. Continued improvement in the economy and favorable credit quality resulted in a negative credit loss provision of $570,000. Quarter over quarter, our fee based businesses performed well. Wealth management revenues increased 6.0%, and I am pleased to welcome Capital City Strategic Wealth (“CCSW” – formerly Strategic Wealth Group) to our team. CCSW offers financial planning services specializing in life insurance solutions and we are excited about the prospects it brings to our wealth management business. Debit and credit card fees were up 10% as consumer spending gains momentum. Although mortgage revenues were down for the quarter, CCHL continues to perform well above its historical norms. After adjusting for the pension settlement expense of $2.0 million, our total expenses were down quarter over quarter and continue to be well managed. Our management team focuses on those aspects of our business we can do something about and strives to implement strategies that are sustainable and produce long-term value for our shareowners. I am optimistic about our future and appreciate your support.”

    COVID-19 Update

    • We continue to closely monitor conditions including the rising case count in some of our communities.
    • We have established a tentative return to work date for all associates, but we will adjust as necessary depending on changing conditions.
    • All of our banking offices have returned to normal banking hours and lobby services.
    • 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 and 2 forgiveness process.

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the second quarter of 2021 totaled $26.1 million compared to $24.6 million for the first quarter of 2021 and $25.6 million for the second quarter of 2020. Compared to the first quarter of 2021, the increase reflected higher SBA PPP loan fees of $0.7 million, higher loan interest of $0.5 million driven by loan growth, and higher investment securities income of $0.2 million which reflected deployment of excess overnight funds into the investment portfolio. Compared to the second quarter of 2020, the increase was driven by higher SBA PPP loan fees of $1.3 million partially offset by lower interest earned on investment securities and variable/adjustable rate loans. For the first six months of 2021, tax-equivalent net interest income totaled $50.7 million compared to $51.4 million for the same period of 2020. The decrease generally reflected lower rates earned on investment securities and variable/adjustable rate loans partially offset by higher SBA PPP loan fees and lower interest expense.

    Our net interest margin for the second quarter of 2021 was 2.89%, an increase of three basis points over the first quarter of 2021 and a decrease of 52 basis points from the second quarter of 2020. Compared to the first quarter of 2021, the increase was driven by higher SBA PPP loan fees. Compared to the second quarter of 2020, the decrease was primarily attributable to downward re-pricing of earning assets and significant growth in overnight funds (driven by deposit inflows) which negatively impacts our margin percentage. For the first six months of 2021, the net interest margin decreased 72 basis points to 2.87% generally reflective of downward re-pricing of our earning assets (variable/adjustable rate loans and securities portfolio) partially offset by a lower cost of funds and higher SBA PPP loan fees. Our net interest margin for the second quarter of 2021, excluding the impact of overnight funds in excess of $200 million, was 3.46%.

    Provision for Credit Loss

    We recorded a negative provision for credit losses of $0.6 million for the second quarter of 2021 compared to a negative provision of $1.0 million for the first quarter of 2021 and provision expense of $2.0 million for the second quarter of 2020. For the first six months of 2021, we recorded a negative provision of $1.6 million compared to provision expense of $7.0 million for the same period of 2020. The negative provision for the first half of 2021 generally reflected improving economic conditions and strong net loan recoveries totaling $0.9 million. We discuss the allowance for credit losses further below.

    Noninterest Income and Noninterest Expense

    Noninterest income for the second quarter of 2021 totaled $26.5 million compared to $29.8 million for the first quarter of 2021 and $30.2 million for the second quarter of 2020. The aforementioned declines were primarily due to lower mortgage banking revenues at CCHL, partially offset by improvements in wealth management and bank card fees. The decline in mortgage banking revenues reflected lower production volume (primarily re-finance activity) and a lower gain on sale margin. For the first six months of 2021, noninterest income totaled $56.3 million compared to $45.7 million for the same period of 2020 with the increase driven by the addition of CCHL mortgage banking revenues late in the first quarter of 2020, and higher bank card and wealth management fees which grew $1.4 million and $1.2 million, respectively. Additional detail on CCHL’s operations and key performance metrics is provided on page 11.

    Noninterest expense for the second quarter of 2021 totaled $42.1 million compared to $40.5 million for the first quarter of 2021 and $37.3 million for the second quarter of 2020. For the first six months of 2021, noninterest expense totaled $82.6 million compared to $68.3 million for the same period of 2020. The $1.6 million increase over the first quarter of 2021 reflected a $2.0 million partial pension settlement charge that was partially offset by lower commission expense at CCHL and lower legal fees and other real estate owned (“OREO”) expense at CCB. The partial pension settlement charge was attributable to a higher level of lump sum pay-outs, a trend that we expect will continue for the remainder of the year. Compared to the prior year periods, the increase was primarily attributable to the partial pension settlement charge of $2.0 million, lower realized loan cost (credit offset to salary expense), higher pension plan expense (driven by a lower discount rate for plan liabilities), and performance based compensation. Additionally, the increase for the first half of 2021 reflects the inclusion of CCHL expenses for a full six month period versus only four months in 2020.

    Income Taxes

    We realized income tax expense of $2.1 million (effective rate of 19%) for the second quarter of 2021 compared to $2.8 million (effective rate of 19%) for the first quarter of 2021 and $2.9 million (effective rate of 18%) for the second quarter of 2020. For the first six months of 2021, we realized income tax expense of $4.8 million (effective rate of 19%) compared to $4.2 million (effective rate of 20%) 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 $3.624 billion for the second quarter of 2021, an increase of $126.0 million, or 3.6%, over the first quarter of 2021, and an increase of $286.5 million, or 8.6%, over the fourth 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 the investment portfolio. 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 $818.6 million in the second quarter of 2021 compared to an average net overnight funds sold position of $814.6 million in the first 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 $7.6 million, or 0.4%, from the first quarter of 2021 and increased $43.3 million, or 2.2%, over the fourth quarter of 2020. Excluding SBA PPP loans, average core loans grew $54.4 million and $90.4 million over both respective periods and period end loans grew $74.3 million and $97.7 million over both respective periods. Growth in period end loans was driven primarily in the commercial mortgage, indirect, and construction categories. At June 30, 2021, SBA PPP loan balances totaled $79.9 million and remaining deferred SBA PPP net loan fees totaled $3.5 million. SBA PPP loan forgiveness applications are expected to remain strong for the remainder of 2021.

    Allowance for Credit Losses

    At June 30, 2021, the allowance for credit losses for HFI loans totaled $22.2 million compared to $22.0 million at March 31, 2021 and $23.8 million at December 31, 2020. Activity within the allowance is provided on Page 9. At June 30, 2021, the allowance represented 1.10% of HFI loans and provided coverage of 434% of nonperforming loans compared to 1.07% and 411%, respectively, at March 31, 2021, and 1.19% and 406%, respectively, at December 31, 2020. At June 30, 2021, excluding SBA PPP loans (100% government guaranteed), the allowance represented 1.15% of HFI loans compared to 1.30% at December 31, 2020.

    Credit Quality

    Nonperforming assets (nonaccrual loans and OREO) totaled $6.3 million at June 30, 2021 compared to $5.5 million at March 31, 2021 and $6.7 million at December 31, 2020. Nonaccrual loans totaled $5.1 million at June 30, 2021, a $0.3 million decrease from March 31, 2021 and a $0.8 million decrease from December 31, 2020. The balance of OREO totaled $1.2 million at June 30, 2021, a $1.0 million increase over March 31, 2021 and $0.4 million increase over December 31, 2020.

    Funding (Deposits/Debt)

    Average total deposits were $3.387 billion for the second quarter of 2021, an increase of $147.8 million, or 4.6%, over the first quarter of 2021 and $321.2 million, or 10.5%, 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 second quarter 2021 increased compared to the fourth quarter 2020, but declined compared to the first quarter 2021 due to the seasonality of these deposits. 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 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 $15.9 million over the first quarter of 2021 and declined $44.1 million over the fourth quarter of 2020, both of which reflected a seasonal fluctuation in warehouse line borrowing needs to support CCHL’s loans held for sale.

    Capital

    Shareowners’ equity was $335.9 million at June 30, 2021 compared to $324.4 million at March 31, 2021 and $320.8 million at December 31, 2020. For the first six months of 2021, shareowners’ equity was positively impacted by net income of $16.9 million, a $0.9 million increase in fair value of the interest rate swap related to subordinated debt, net adjustments totaling $1.0 million related to transactions under our stock compensation plans, stock compensation accretion of $0.4 million, and reclassification of $1.2 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 $5.1 million ($0.30 per share) and a $1.8 million decrease in the unrealized gain on investment securities.

    At June 30, 2021, our total risk-based capital ratio was 16.48% compared to 17.20% at March 31, 2021 and 17.30% at December 31, 2020. Our common equity tier 1 capital ratio was 13.14%, 13.63%, and 13.71%, respectively, on these dates. Our leverage ratio was 8.84%, 8.97%, 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 6.19% at June 30, 2021 compared to 6.13% and 6.25% at March 31, 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 (“CCB”), 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 SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

    USE OF NON-GAAP FINANCIAL MEASURES

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

    The GAAP to non-GAAP reconciliations are provided below.

    (Dollars in Thousands, except per share data)Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020
    Shareowners' Equity (GAAP) $335,880 $324,426 $320,837 $339,425 $335,057 
    Less: Goodwill and Other Intangibles (GAAP)  93,333  89,095  89,095  89,095  89,095 
    Tangible Shareowners' Equity (non-GAAP)A 242,547  235,331  231,742  250,330  245,962 
    Total Assets (GAAP)  4,011,459  3,929,884  3,798,071  3,587,041  3,499,524 
    Less: Goodwill and Other Intangibles (GAAP)  93,333  89,095  89,095  89,095  89,095 
    Tangible Assets (non-GAAP)B$3,918,126 $3,840,789 $3,708,976 $3,497,946 $3,410,429 
    Tangible Common Equity Ratio (non-GAAP)A/B 6.19% 6.13% 6.25% 7.16% 7.21%
    Actual Diluted Shares Outstanding (GAAP)C 16,901,375  16,875,719  16,844,997  16,800,563  16,821,743 
    Tangible Book Value per Diluted Share (non-GAAP)A/C$14.35 $13.94 $13.76 $14.90 $14.62 


    CAPITAL CITY BANK GROUP, INC.           
    EARNINGS HIGHLIGHTS           
    Unaudited           
                
      Three Months Ended Six Months Ended 
    (Dollars in thousands, except per share data) Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Jun 30, 2021 Jun 30, 2020 
    EARNINGS           
    Net Income Attributable to Common Shareowners$7,427 $9,506 $9,146$16,933 $13,433 
    Diluted Net Income Per Share$0.44 $0.56 $0.55$1.00 $0.80 
    PERFORMANCE           
    Return on Average Assets 0.75 %1.01 %1.10%0.88 %0.85%
    Return on Average Equity 9.05  11.81  11.03 10.42  8.12 
    Net Interest Margin 2.89  2.85  3.41 2.87  3.59 
    Noninterest Income as % of Operating Revenue 50.47  54.90  54.26 52.73  47.13 
    Efficiency Ratio 80.18 %74.36 %66.90%77.22 %70.30%
    CAPITAL ADEQUACY           
    Tier 1 Capital 15.44 %16.08 %16.59%15.44 %16.59%
    Total Capital 16.48  17.20  17.60 16.48  17.60 
    Leverage 8.84  8.97  10.12 8.84  10.12 
    Common Equity Tier 1 13.14  13.63  14.01 13.14  14.01 
    Tangible Common Equity (1) 6.19  6.13  7.21 6.19  7.21 
    Equity to Assets 8.37 %8.26 %9.57%8.37 %9.57%
    ASSET QUALITY           
    Allowance as % of Non-Performing Loans 433.93 %410.78 %322.37%433.93 %322.37%
    Allowance as a % of Loans HFI 1.10  1.07  1.11 1.10  1.11 
    Net Charge-Offs as % of Average Loans HFI (0.08) (0.10) 0.05 (0.08) 0.14 
    Nonperforming Assets as % of Loans HFI and OREO 0.31  0.27  0.40 0.31  0.40 
    Nonperforming Assets as % of Total Assets 0.16 %0.14 %0.23%0.16 %0.23%
    STOCK PERFORMANCE           
    High$27.39 $28.98 $23.99$28.98 $30.62 
    Low 24.55  21.42  16.16 21.42  15.61 
    Close$25.79 $26.02 $20.95$25.79 $20.95 
    Average Daily Trading Volume 28,958  30,303  49,569 29,620  45,089 
                
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5. 


    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION      
    Unaudited          
               
     2021 2020
    (Dollars in thousands)Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter
    ASSETS          
    Cash and Due From Banks$78,894 $73,973 $67,919 $76,509 $75,155 
    Funds Sold and Interest Bearing Deposits 766,920  851,910  860,630  626,104  513,273 
    Total Cash and Cash Equivalents 845,814  925,883  928,549  702,613  588,428 
               
    Investment Securities Available for Sale 480,890  406,245  324,870  328,253  341,180 
    Investment Securities Held to Maturity 325,559  199,109  169,939  202,593  232,178 
      Total Investment Securities 806,449  605,354  494,809  530,846  573,358 
               
    Loans Held for Sale ("HFS") 80,821  82,081  114,039  116,561  76,610 
               
    Loans Held for Investment ("HFI"):          
    Commercial, Financial, & Agricultural 292,953  413,819  393,930  402,997  421,270 
    Real Estate - Construction 149,884  138,104  135,831  125,804  117,794 
    Real Estate - Commercial 707,599  669,158  648,393  656,064  662,434 
    Real Estate - Residential 362,018  358,849  342,664  335,713  353,831 
    Real Estate - Home Equity 190,078  202,099  205,479  197,363  194,479 
    Consumer 298,464  267,666  269,520  268,393  266,417 
    Other Loans 6,439  7,082  9,879  10,488  4,883 
    Overdrafts 1,227  950  730  1,339  1,069 
    Total Loans Held for Investment 2,008,662  2,057,727  2,006,426  1,998,161  2,022,177 
    Allowance for Credit Losses (22,175) (22,026) (23,816) (23,137) (22,457)
    Loans Held for Investment, Net 1,986,487  2,035,701  1,982,610  1,975,024  1,999,720 
               
    Premises and Equipment, Net 85,745  86,370  86,791  87,192  87,972 
    Goodwill and Other Intangibles 93,333  89,095  89,095  89,095  89,095 
    Other Real Estate Owned 1,192  110  808  1,227  1,059 
    Other Assets 111,618  105,290  101,370  84,483  83,282 
    Total Other Assets 291,888  280,865  278,064  261,997  261,408 
    Total Assets$4,011,459 $3,929,884 $3,798,071 $3,587,041 $3,499,524 
               
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,552,864 $1,473,891 $1,328,809 $1,378,314 $1,377,033 
    NOW Accounts 970,705  993,571  1,046,408  827,506  808,244 
    Money Market Accounts 280,805  269,041  266,649  247,823  240,754 
    Regular Savings Accounts 539,477  518,373  474,100  451,944  423,924 
    Certificates of Deposit 103,070  103,232  101,594  103,859  105,041 
    Total Deposits 3,446,921  3,358,108  3,217,560  3,009,446  2,954,996 
               
    Short-Term Borrowings 47,200  55,687  79,654  90,936  63,958 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 1,720  1,829  3,057  5,268  5,583 
    Other Liabilities 105,534  109,487  102,076  71,880  75,702 
    Total Liabilities 3,654,262  3,577,998  3,455,234  3,230,417  3,153,126 
               
    Temporary Equity 21,317  27,460  22,000  17,199  11,341 
               
    SHAREOWNERS' EQUITY          
    Common Stock 169  169  168  168  168 
    Additional Paid-In Capital 33,560  32,804  32,283  31,425  31,575 
    Retained Earnings 345,574  335,324  332,528  333,545  328,570 
    Accumulated Other Comprehensive Loss, Net of Tax (43,423) (43,871) (44,142) (25,713) (25,256)
    Total Shareowners' Equity 335,880  324,426  320,837  339,425  335,057 
    Total Liabilities, Temporary Equity and Shareowners' Equity$4,011,459 $3,929,884 $3,798,071 $3,587,041 $3,499,524 
               
    OTHER BALANCE SHEET DATA          
    Earning Assets$3,662,852 $3,597,071 $3,475,904 $3,271,672 $3,185,418 
    Interest Bearing Liabilities 1,995,864  1,994,620  2,024,349  1,780,223  1,700,391 
    Book Value Per Diluted Share$19.87 $19.22 $19.05 $20.20 $19.92 
    Tangible Book Value Per Diluted Share(1) 14.35  13.94  13.76  14.90  14.62 
    Actual Basic Shares Outstanding 16,874  16,852  16,791  16,761  16,780 
    Actual Diluted Shares Outstanding 16,901  16,876  16,845  16,801  16,822 
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.


                   
    CAPITAL CITY BANK GROUP, INC.              
    CONSOLIDATED STATEMENT OF OPERATIONS           
    Unaudited              
                   
      2021 2020 June 30,
    (Dollars in thousands, except per share data) Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		 2021  2020 
    INTEREST INCOME              
    Interest and Fees on Loans$24,582 $23,350 $23,878 $23,594 $23,687 $47,932 $47,280 
    Investment Securities 2,054  1,883  2,096  2,426  2,737  3,937  5,752 
    Funds Sold 200  213  180  146  88  413  845 
    Total Interest Income 26,836  25,446  26,154  26,166  26,512  52,282  53,877 
    INTEREST EXPENSE              
    Deposits 208  208  201  190  218  416  1,157 
    Short-Term Borrowings 324  412  639  498  421  736  553 
    Subordinated Notes Payable 308  307  311  316  374  615  845 
    Other Long-Term Borrowings 16  21  30  40  41  37  91 
    Total Interest Expense 856  948  1,181  1,044  1,054  1,804  2,646 
    Net Interest Income 25,980  24,498  24,973  25,122  25,458  50,478  51,231 
    Provision for Credit Losses (571) (982) 1,342  1,308  2,005  (1,553) 6,995 
    Net Interest Income after Provision for Credit Losses 26,551  25,480  23,631  23,814  23,453  52,031  44,236 
    NONINTEREST INCOME              
    Deposit Fees 4,236  4,271  4,713  4,316  3,756  8,507  8,771 
    Bank Card Fees 3,998  3,618  3,462  3,389  3,142  7,616  6,193 
    Wealth Management Fees 3,274  3,090  3,069  2,808  2,554  6,364  5,158 
    Mortgage Banking Revenues 13,217  17,125  17,711  22,983  19,397  30,342  22,650 
    Other 1,748  1,722  1,568  1,469  1,350  3,470  2,905 
    Total Noninterest Income 26,473  29,826  30,523  34,965  30,199  56,299  45,677 
    NONINTEREST EXPENSE              
    Compensation 25,378  26,064  26,722  26,164  23,658  51,442  43,394 
    Occupancy, Net 5,973  5,967  5,976  5,906  5,798  11,940  10,777 
    Other Real Estate, Net (270) (118) 567  219  116  (388) (682)
    Pension Adjustment 2,000  -  -  -  -  2,000  - 
    Other 9,042  8,563  8,083  8,053  7,731  17,605  14,783 
    Total Noninterest Expense 42,123  40,476  41,348  40,342  37,303  82,599  68,272 
    OPERATING PROFIT 10,901  14,830  12,806  18,437  16,349  25,731  21,641 
    Income Tax Expense 2,059  2,787  2,833  3,165  2,950  4,846  4,232 
    Net Income 8,842  12,043  9,973  15,272  13,399  20,885  17,409 
    Pre-Tax Income Attributable to Noncontrolling Interest (1,415) (2,537) (2,227) (4,875) (4,253) (3,952) (3,976)
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		$7,427 $9,506 $7,746 $10,397 $9,146 $16,933 $13,433 
    PER COMMON SHARE              
    Basic Net Income$0.44 $0.56 $0.46 $0.62 $0.55 $1.00 $0.80 
    Diluted Net Income 0.44  0.56  0.46  0.62  0.55  1.00  0.80 
    Cash Dividend$0.15 $0.15 $0.15 $0.14 $0.14 $0.30 $0.28 
    AVERAGE SHARES              
    Basic 16,858  16,838  16,763  16,771  16,797  16,848  16,803 
    Diluted 16,885  16,862  16,817  16,810  16,839  16,874  16,844 


    CAPITAL CITY BANK GROUP, INC.              
    ALLOWANCE FOR CREDIT LOSSES ("ACL")            
    AND RISK ELEMENT ASSETS              
    Unaudited              
                   
      2021 2020 June 30,
    (Dollars in thousands, except per share data) Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		 2021  2020 
    ACL - HELD FOR INVESTMENT              
    Balance at Beginning of Period$22,026 $23,816 $23,137 $22,457 $21,083 $23,816 $13,905 
    Impact of Adopting ASC 326 (CECL) -  -  -  -  -  -  3,269 
    Provision for Credit Losses (184) (2,312) 1,165  1,265  1,615  (2,496) 6,605 
    Net Charge-Offs (Recoveries) (333) (522) 486  585  241  (855) 1,322 
    Balance at End of Period$22,175 $22,026 $23,816 $23,137 $22,457 $22,175 $22,457 
    As a % of Loans HFI 1.10% 1.07% 1.19% 1.16% 1.11% 1.10% 1.11%
    As a % of Nonperforming Loans 433.93% 410.78% 405.66% 420.30% 322.37% 433.93% 322.37%
    ACL - UNFUNDED COMMITMENTS              
    Balance at Beginning of Period 2,974 $1,644 $1,467 $1,424 $1,033 $1,644 $157 
    Impact of Adopting ASC 326 (CECL) -  -  -  -  -  -  876 
    Provision for Credit Losses (387) 1,330  177  43  391  943  391 
    Balance at End of Period(1) 2,587  2,974  1,644  1,467  1,424  2,587  1,424 
    CHARGE-OFFS              
    Commercial, Financial and Agricultural$32 $69 $104 $137 $186 $101 $548 
    Real Estate - Construction -  -  -  -  -  -  - 
    Real Estate - Commercial -  -  -  17  -  -  11 
    Real Estate - Residential 65  6  38  1  1  71  111 
    Real Estate - Home Equity 74  5  10  58  52  79  83 
    Consumer 230  564  668  619  634  794  1,498 
    Overdrafts 440  492  564  450  541  932  1,243 
    Total Charge-Offs$841 $1,136 $1,384 $1,282 $1,414 $1,977 $3,494 
    RECOVERIES              
    Commercial, Financial and Agricultural$103 $136 $64 $74 $74 $239 $114 
    Real Estate - Construction -  -  50  -  -  -  - 
    Real Estate - Commercial 26  645  27  30  70  671  261 
    Real Estate - Residential 244  75  153  35  51  319  91 
    Real Estate - Home Equity 70  124  40  41  64  194  97 
    Consumer 332  311  306  280  365  643  633 
    Overdrafts 399  367  258  237  549  766  976 
    Total Recoveries$1,174 $1,658 $898 $697 $1,173 $2,832 $2,172 
    NET CHARGE-OFFS (RECOVERIES)$(333)$(522)$486 $585 $241 $(855)$1,322 
    Net Charge-Offs as a % of Average Loans HFI(2) (0.07)% (0.10)% 0.09% 0.11% 0.05% (0.08)% 0.14%
    RISK ELEMENT ASSETS              
    Nonaccruing Loans$5,110 $5,362 $5,871 $5,505 $6,966     
    Other Real Estate Owned 1,192  110  808  1,227  1,059     
    Total Nonperforming Assets ("NPAs")$6,302 $5,472 $6,679 $6,732 $8,025     
                   
    Past Due Loans 30-89 Days$3,745 $2,622 $4,594 $3,191 $2,948     
    Past Due Loans 90 Days or More -  -  -  -  -     
    Classified Loans 19,397  20,608  17,631  16,772  17,091     
    Performing Troubled Debt Restructurings$8,992 $13,597 $13,887 $14,693 $15,133     
                   
    Nonperforming Loans as a % of Loans HFI 0.25% 0.26% 0.29% 0.28% 0.34%    
    NPAs as a % of Loans HFI and Other Real Estate 0.31% 0.27% 0.33% 0.34% 0.40%    
    NPAs as a % of Total Assets 0.16% 0.14% 0.18% 0.19% 0.23%    
                   
    (1) Recorded in other liabilities              
    (2) Annualized              


    CAPITAL CITY BANK GROUP, INC.                                            
    AVERAGE BALANCE AND INTEREST RATES                                              
    Unaudited                                                  
                                                       
      Second Quarter 2021  First Quarter 2021  Fourth Quarter 2020  Third Quarter 2020  Second Quarter 2020   Jun 2021 YTD  Jun 2020 YTD 
    (Dollars in thousands) Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		   Average
    Balance    		 Interest Average
    Rate    		  Average
    Balance    		 Interest Average
    Rate    		 
    ASSETS:                                                  
    Loans Held for Sale$77,101 $566 2.94%$106,242 $970 3.70%$121,052 $878 3.85%$92,522  671 3.64%$74,965 $550 3.41% $91,591 $1,536 3.38%$55,181 $906 3.30%
    Loans Held for Investment(1) 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  1,982,960  23,235 4.70   2,040,551  46,578 4.71  1,915,370  46,571 4.89 
                                                       
    Investment Securities                                                  
    Taxable Investment Securities 687,882  2,036 1.18  528,842  1,863 1.41  513,277  2,072 1.61  553,395  2,401 1.73  601,509  2,708 1.80   608,801  3,899 1.28  615,511  5,703 1.86 
    Tax-Exempt Investment Securities(1) 3,530  23 2.58  3,844  25 2.61  4,485  30 2.71  4,860  32 2.66  5,865  37 2.51   3,686  48 2.60  5,579  62 2.20 
                                                       
    Total Investment Securities 691,412  2,059 1.19  532,686  1,888 1.42  517,762  2,102 1.62  558,255  2,433 1.74  607,374  2,745 1.81   612,487  3,947 1.29  621,090  5,765 1.86 
                                                       
    Funds Sold 818,616  200 0.10  814,638  214 0.11  705,125  180 0.10  567,883  146 0.10  351,473  88 0.10   816,638  414 0.10  292,922  845 0.58 
                                                       
    Total Earning Assets 3,623,910 $26,920 2.98% 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%  3,561,267 $52,475 2.97% 2,884,563 $54,087 3.77%
                                                       
    Cash and Due From Banks 74,076       68,978       73,968       69,893       72,647        71,541       64,802      
    Allowance for Loan Losses (22,794)      (24,128)      (23,725)      (22,948)      (21,642)       (23,457)      (18,015)     
    Other Assets 281,157       278,742       264,784       268,549       261,449        279,956       252,657      
                                                       
    Total Assets$3,956,349      $3,821,521      $3,652,436      $3,539,332      $3,329,226       $3,889,307      $3,184,007      
                                                       
    LIABILITIES:                                                  
    Interest Bearing Deposits                                                  
    NOW Accounts$966,649 $74 0.03%$985,517 $76 0.03%$879,564 $66 0.03%$826,776 $61 0.03%$789,378 $78 0.04% $976,031 $150 0.03%$799,094 $803 0.20%
    Money Market Accounts 272,138  33 0.05  269,829  33 0.05  261,543  34 0.05  247,185  32 0.05  222,377  40 0.07   270,990  66 0.05  217,295  157 0.15 
    Savings Accounts 529,844  64 0.05  492,252  60 0.05  466,116  57 0.05  438,762  54 0.05  409,366  50 0.05   511,152  124 0.05  394,301  96 0.05 
    Time Deposits 102,995  37 0.15  102,089  39 0.15  102,809  44 0.17  104,522  43 0.16  104,718  50 0.19   102,544  76 0.15  105,130  101 0.19 
    Total Interest Bearing Deposits 1,871,626  208 0.04% 1,849,687  208 0.05% 1,710,032  201 0.05% 1,617,245  190 0.05% 1,525,839  218 0.06%  1,860,717  416 0.05% 1,515,820  1,157 0.15%
                                                       
    Short-Term Borrowings 51,152  324 2.54% 67,033  412 2.49% 95,280  639 2.67% 74,557  498 2.66% 73,377  421 2.31%  59,049  736 2.51% 53,146  553 2.09%
    Subordinated Notes Payable 52,887  308 2.30  52,887  307 2.32  52,887  311 2.30  52,887  316 2.34  52,887  374 2.80   52,887  615 2.31  52,887  845 3.16 
    Other Long-Term Borrowings 1,762  16 3.38  2,736  21 3.18  3,700  30 3.18  5,453  40 2.91  5,766  41 2.84   2,246  37 3.26  6,039  91 3.03 
                                                       
    Total Interest Bearing Liabilities 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% 1,657,869 $1,054 0.26%  1,974,899 $1,804 0.18% 1,627,892 $2,646 0.33%
                                                       
    Noninterest Bearing Deposits 1,515,726       1,389,821       1,356,104       1,354,032       1,257,614        1,453,121       1,152,251      
    Other Liabilities 107,801       111,050       74,605       83,192       72,073        109,417       65,830      
                                                       
    Total Liabilities 3,600,954       3,473,214       3,292,608       3,187,366       2,987,556        3,537,437       2,845,973      
    Temporary Equity 26,355       21,977       16,154       11,893       8,155        24,178       5,331      
                                                       
    SHAREOWNERS' EQUITY: 329,040       326,330       343,674       340,073       333,515        327,692       332,703      
                                                       
    Total Liabilities, Temporary Equity and Shareowners' Equity$3,956,349      $3,821,521      $3,652,436      $3,539,332      $3,329,226       $3,889,307      $3,184,007      
                                                       
    Interest Rate Spread  $26,064 2.81%  $24,607 2.77%  $25,082 2.88%  $25,233 3.01%  $25,564 3.30%   $50,671 2.79%  $51,441 3.44%
                                                       
    Interest Income and Rate Earned(1)   26,920 2.98    25,555 2.96    26,263 3.14    26,277 3.25    26,618 3.55     52,475 2.97    54,087 3.77 
    Interest Expense and Rate Paid(2)   856 0.09    948 0.11    1,181 0.14    1,044 0.13    1,054 0.14     1,804 0.10    2,646 0.18 
                                                       
    Net Interest Margin  $26,064 2.89%  $24,607 2.85%  $25,082 3.00%  $25,233 3.12%  $25,564 3.41%   $50,671 2.87%  $51,441 3.59%
                                                       
    (1) Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.                                
    (2) Rate calculated based on average earning assets.                                              


    CAPITAL CITY HOME LOANS           
    MORTGAGE BANKING ACTIVITY           
    Unaudited           
                
      Three Months Ended Six Months Ended
    (Dollars in thousands) Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Jun 30, 2021Jun 30, 2020
    Net Interest Income$19 $(153)$109  $(134)$125 
                
    Mortgage Banking Fees 13,116  16,846  19,156   29,962  21,271 
    Other 425  426  203   851  299 
    Total Noninterest Income 13,541  17,272  19,359   30,813  21,570 
                
    Salaries 8,538  10,276  8,381   18,814  10,623 
    Other Associate Benefits 210  221  204   431  253 
    Total Compensation 8,748  10,497  8,585   19,245  10,876 
                
    Occupancy, Net 854  861  768   1,715  999 
    Other 1,359  1,101  1,248   2,460  1,705 
    Total Noninterest Expense 10,961  12,459  10,601   23,420  13,580 
                
    Operating Profit$2,599 $4,660 $8,867  $7,259 $8,115 
                
    Key Performance Metrics           
    Total Loans Closed$406,859 $463,126 $407,118  $869,985 $510,008 
    Total Loans Closed - Mix           
    Purchase 76% 60% 51%  68% 53%
    Refinance 24% 40% 49%  32% 47%

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


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