• Capital City Bank Group, Inc. Reports Fourth Quarter 2020 Results

    ソース: Nasdaq GlobeNewswire / 26 1 2021 06:00:01   America/Chicago

    TALLAHASSEE, Fla., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income of $7.7 million, or $0.46 per diluted share for the fourth quarter of 2020 compared to net income of $10.4 million, or $0.62 per diluted share for the third quarter of 2020, and $8.6 million, or $0.51 per diluted share, for the fourth quarter of 2019.

    For the full year of 2020, net income totaled $31.6 million, or $1.88 per diluted share, compared to net income of $30.8 million, or $1.83 per diluted share, for 2019.

    Fourth Quarter 2020 HIGHLIGHTS

    • Operating revenues (excluding mortgage fees) improved 1.8%  
      • Net interest income held firm, declining $0.1 million
      • 7% increase in other fee revenues (deposit, bankcard, and wealth management)
    • Noninterest expense included $0.9 million related to other real estate valuation adjustments ($0.5 million) and other expenses totaling $0.4 million (additional funding for our foundation and consulting/legal costs related to a strategic initiative)
    • Period-end core loans (excluding SBA PPP) increased $20 million, or 1.1% sequentially
      • SBA PPP loan forgiveness pay-offs totaled $12 million - $178 million in balances and $3.2 million in related fees remain at period-end
    • Credit quality remains strong with no significant problem loan migration
      • 97% of loan balances for pandemic related extensions have resumed payments – only $9 million remains on extension
    • Capital City Home Loans (“CCHL”) contributed $0.10 per share

    Full Year 2020 HIGHLIGHTS

    • Operating revenues (excluding mortgage fees) held firm as unfavorable asset re-pricing was offset by SBA PPP loan fees and higher other fee revenues   
    • Loan balances buoyed by SBA PPP loan originations which totaled $190 million
      • Core loan balances (excluding SBA PPP) held firm due to stronger loan production in the fourth quarter
    • Reserve build of $6.6 million (provision of $9.0 million less net charge-offs of $2.4 million) in response to potential credit losses related to the pandemic
      • Allowance coverage ratio (excluding SBA PPP) was 1.30% at year-end
    • Deposits grew $572 million (period-end) and $307 million (average) and reflected stimulus inflows as well as strong core deposit growth
    • Acquired 51% ownership in Brand Mortgage, LLC on March 1, 2020 (renamed CCHL) – contributed $0.52 per share

    “Our strategic alliance with CCHL and the origination of $190 million in SBA PPP loans more than offset the adverse impact of our reserve build and lower interest rates, resulting in year over year earnings growth,” said William G. Smith, Jr., Chairman, President and CEO.  “As we entered 2020, I certainly didn’t anticipate the difficulties we would face, but I could not be prouder of our team’s response to the COVID-19 pandemic.  We continue to put the safety and well-being of our associates and clients first, as we reach out to assist our communities through the origination of SBA PPP loans, grants and volunteer hours, and endeavor to meet the needs of our clients through both in-person and virtual delivery channels.  2021 will bring challenges and opportunities, but I am confident our team has the skills and capacity to successfully navigate the future, and we will continue to focus on implementing strategies that produce long-term value for our shareowners.  My outlook for Capital City remains optimistic, and I appreciate your continued support.”

    COVID-19 Update

    • We continue to monitor and adhere to national guidelines and local safety ordinances to protect both clients and associates and respond to changing conditions with the pandemic and its impact on client and associate interactions
    • We continue to monitor COVID-19 case count trends in our markets and respond appropriately to help ensure client and associate safety
    • On November 24, 2020 we proactively closed lobby access to clients in response to higher case count trends in our markets - banking services are being provided via drive-thru or in-person by appointment only (subject to safety protocols)
    • On November 30, 2020 we reinstated remote work arrangements for non-retail associates
    • We continue to provide enhanced digital banking options available for banking products and access to sales associates
    • We continue to support clients with the Small Business Administration Payment Protection Program (“SBA PPP”) by actively assisting with the Round 1 forgiveness process and will offer funding for clients eligible for Round 2

    Discussion of Operating Results

    Summary Overview

    Compared to the third quarter of 2020, the $5.6 million decrease in operating profit was attributable to a $4.5 million decrease in noninterest income, a $1.0 million increase in noninterest expense, and a $0.1 million decrease in net interest income.  

    Compared to the fourth quarter of 2019, the $1.7 million increase in operating profit was attributable to a $16.7 million increase in noninterest income, partially offset by higher noninterest expense of $12.2 million, a $1.5 million increase in the provision for credit losses and lower net interest income of $1.3 million.

    The $12.1 million increase in operating profit for the full year 2020 versus 2019 was attributable to higher noninterest income of $58.1 million, partially offset by higher noninterest expense of $36.4 million, a $7.6 million increase in the provision for credit losses and lower net interest income of $2.0 million.

    The aforementioned year over year variances primarily reflect the acquisition of a 51% membership interest and consolidation of CCHL on March 1, 2020.

    Our return on average assets (“ROA”) was 0.84% and our return on average equity (“ROE”) was 8.97% for the fourth quarter of 2020. These metrics were 1.17% and 12.16% for the third quarter of 2020, respectively, and 1.14% and 10.39% for the fourth quarter of 2019, respectively. For the full year 2020, our ROA was 0.93% and our ROE was 9.36% compared to 1.03% and 9.72%, respectively, for 2019.

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the fourth quarter of 2020 was $25.1 million compared to $25.2 million for the third quarter of 2020 and $26.4 million for the fourth quarter of 2019. For the full year 2020, tax-equivalent net interest income totaled $101.8 million compared to $103.9 million for 2019. The decrease compared to all prior periods reflected lower rates earned on investment securities and variable/adjustable rate loans. The year-over-year decline also reflected lower rates on overnight funds. Partially offsetting these declines were higher volumes of earning assets, including lower yielding SBA PPP loans and overnight funds.

    The federal funds target rate has remained in the range of 0.00%-0.25% since March 2020 when the Fed reduced its overnight rate by 150 basis points, and as a result we continue to experience lower repricing of our variable/adjustable rate earning assets and investment securities. Our overall cost of funds remained low during the fourth quarter of 2020 at 0.14%, an increase of one basis point compared to the third quarter of 2020, due to a higher mix of seasonal public deposits.   

    Our net interest margin for the fourth quarter of 2020 was 3.00%, a decrease of 12 basis points from the third quarter of 2020 and 89 basis points from the fourth quarter of 2019. For the full year 2020, the net interest margin decreased 55 basis points to 3.30%. The decreases were primarily attributable to significant growth in overnight funds which reduced our margin. Our net interest margin for the fourth quarter of 2020, excluding the impact of overnight funds in excess of $200 million, was 3.50%. We discuss the effect of the pandemic related stimulus programs on our balance sheet in more detail below under Discussion of Financial Condition.

    Provision for Credit Loss

    The provision for credit losses was $1.3 million for both the third and fourth quarters of 2020, and was negative $0.2 million for the fourth quarter of 2019. For the full year 2020, the provision was $9.6 million ($9.0 million for loans held for investment (“HFI”) and $0.6 million for unfunded loan commitments) compared to $2.0 million in 2019. The higher provision in 2020 reflected expected losses due to deterioration in economic conditions related to COVID-19. We discuss the allowance for credit losses and COVID-19 exposure further below.

    Noninterest Income and Noninterest Expense

    CCHL’s mortgage banking operations impacted our noninterest income and noninterest expense for the three and twelve month periods ended December 31, 2020, and thus, the period over period comparisons reflect the impact of the CCHL consolidation, which occurred on March 1, 2020. The table below provides an overview of CCHL’s impact on our noninterest income and noninterest expense for 2020.

    Noninterest income for the fourth quarter of 2020 totaled $30.5 million compared to $35.0 million for the third quarter of 2020 and $15.5 million for the fourth quarter of 2019. For the full year 2020, noninterest income totaled $111.2 million compared to $53.1 million for 2019. The decrease from the third quarter of 2020 was primarily due to lower mortgage banking revenues which reflected a seasonal slowdown in loan production and a lower gain on sale margin. The improvement over both periods of 2019 was primarily attributable to higher mortgage banking revenues at CCHL with higher wealth management fees and bank card fees contributing, but to a lesser extent. For the full year 2020, deposit fees declined primarily due to the impact of government stimulus in the second quarter related to the COVID-19 pandemic. The decline in fees realized in the second quarter reversed in the third and fourth quarters of 2020 reflecting higher utilization of our overdraft product.

    Noninterest expense for the fourth quarter of 2020 totaled $41.3 million compared to $40.3 million for the third quarter of 2020 and $29.1 million for the fourth quarter of 2019.   The increase over the third quarter of 2020 was primarily attributable to higher compensation expense of $0.6 million and other real estate expense of $0.3 million. The increase in compensation reflected higher commission expense of $0.2 million, salary expense of $0.2 million, and cash incentive expense of $0.2 million.   Valuation adjustments totaling $0.5 million for two properties drove the increase in other real estate expense. In addition, we recognized $0.4 million in expenses during the fourth quarter of 2020 related to additional funding of our foundation and consulting/legal costs for a strategic initiative.  

    For the full year 2020, noninterest expense totaled $150.0 million, an increase of $36.4 million over 2019 primarily attributable to the addition of expenses at CCHL, including compensation expense of $32.4 million, occupancy expense of $2.8 million, and other expense of $4.8 million. Core CCBG noninterest expense decreased $3.6 million and reflected lower compensation expense of $2.5 million, ORE expense of $0.4 million, and other expense of $2.2 million, partially offset by higher occupancy expense of $1.5 million.   The decrease in compensation expense was primarily attributable to lower commission expense of $2.2 million related to the transfer of our legacy mortgage production division to CCHL and to a lesser extent, higher realized loan cost of $0.4 million related to the aforementioned increase in SBA PPP loan originations. A $1.0 million gain from the sale of a banking office in the first quarter of 2020 drove the reduction in ORE expense. The decline in other expense was primarily attributable to lower service cost expense for our pension plan. Higher expense for FF&E depreciation and maintenance agreements (related to technology investment and upgrades), higher than normal premises maintenance, and pandemic related cleaning/supply costs drove the increase in occupancy.   The same aforementioned factors drove the decrease in compensation, occupancy, and other expense from the fourth quarter of 2019.   

    Overall, CCHL contributed significantly to the improvement in our efficiency ratio for 2020.

                         
      Three Months Ended Twelve Months Ended
      Dec 31, 2020 Sep 30, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019
    (Dollars in thousands) Core
    CCBG    		 CCHL Core
    CCBG    		 CCHL Core
    CCBG    		 CCHL Core
    CCBG    		 CCHL Core
    CCBG    		 CCHL
    Deposit Fees$4,713 -$4,316$-$4,980$-$17,800$-$19,472$-
    Bank Card Fees 3,462 - 3,389 - 3,131 - 13,044 - 11,994 -
    Wealth Management Fees 3,069 - 2,808 - 2,761 - 11,035 - 10,480 -
    Mortgage Banking Fees 302 17,409 208 22,775 1,542 - 1,889 61,455 5,321 -
    Other 1,205 363 1,182 287 1,414 - 4,992 950 5,786 -
    Total Noninterest Income$12,751$17,772$11,903$23,062$13,828$-$48,760$62,405$53,053$-
                         
    Salaries$12,384$10,398$11,603$10,753$13,374$-$49,072$31,774$50,688$-
    Other Associate Benefits 3,470 200 3,616 192 3,989 - 14,789 645 15,664 -
    Total Compensation 16,124 10,598 15,219 10,945 17,363 - 63,861 32,419 66,352 -
                         
    Occupancy, Net 5,056 920 5,061 845 4,680 - 19,895 2,764 18,436 -
    Other 6,899 1,751 6,930 1,342 7,099 - 26,225 4,798 28,821 -
    Total Noninterest Expense$28,079$13,269$27,210$13,132$29,142$-$109,981$39,981$113,609$-

    Income Taxes

    We realized income tax expense of $2.8 million (effective rate of 22%) for the fourth quarter of 2020 compared to $3.2 million (effective rate of 17%) for the third quarter of 2020 and $2.5 million (effective rate of 23%) for the fourth quarter of 2019. For the full year 2020, we realized income tax expense of $10.2 million (effective rate of 19%) compared to $10.0 million (effective rate of 24%) for the same period of 2019.   Tax expense for the fourth quarter of 2020 was unfavorably impacted by a $0.3 million discrete tax expense. The decrease in our effective tax rate in 2020 reflected the impact of converting CCHL to a partnership for tax purposes in the second quarter of 2020.   Absent discrete items, we expect our annual effective tax rate to approximate 18%-19% in 2021. 

    Discussion of Financial Condition

    Earning Assets

    Average earning assets were $3.337 billion for the fourth quarter of 2020, an increase of $113.6 million, or 3.5%, over the third quarter of 2020, and an increase of $642.7 million, or 23.9% over the fourth quarter of 2019. The increase over both prior periods was primarily driven by higher deposit balances, which funded growth in both overnight funds sold and SBA PPP loans. Deposit balances increased as a result of strong core deposit growth, in addition to funding retained at the bank from SBA PPP loans, and various other stimulus programs.

    We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $705.1 million during the fourth quarter of 2020 compared to an average net overnight funds sold position of $567.9 million in the third quarter of 2020 and $228.1 million in the fourth quarter of 2019. 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 HFI decreased $11.7 million, or 0.6%, from the third quarter of 2020 and increased $159.4 million, or 8.7%, over the fourth quarter of 2019. In 2020, we originated SBA PPP loans totaling $190 million (reflected in the commercial loan category) which averaged $185 million in the fourth quarter and totaled $178 million at period-end. Compared to the third quarter of 2020, the decline in average loans was primarily due to lower commercial and commercial mortgage balances with the decline in commercial loans due to the reduction in SBA PPP loans and lower utilization of commercial lines of credit reflective of the economic slowdown.   Period-end HFI loans increased $8.3 million, or 0.4%, over the third quarter of 2020 and increased $170.5 million, or 9.3%, over the fourth quarter of 2019. The increase over the third quarter of 2020 reflected higher home equity, construction, and residential loan balances.

    To date, approximately $12 million in SBA PPP loans have been forgiven and paid-off. Forgiveness applications are expected to accelerate over the next three to six months driven by the recent COVID Relief Bill which allows a streamlined forgiveness application process for loans of $150,000 and less. At December 31, 2020, SBA PPP loans of $150,000 or less totaled $69 million. SBA PPP loan fees totaled approximately $0.8 million for the fourth quarter of 2020, $0.6 million for the third quarter of 2020, and $0.4 million for the second quarter of 2020. At December 31, 2020 we had $3.2 million (net) in deferred SBA PPP loan fees.

    Allowance for Credit Losses

    At December 31, 2020, the allowance for credit losses totaled $23.8 million compared to $23.1 million at September 30, 2020 and $13.9 million at December 31, 2019. At December 31, 2020, the allowance represented 1.19% of HFI loans and provided coverage of 406% of nonperforming loans compared to 1.16% and 420%, respectively, at September 30, 2020 and 0.75% and 311%, respectively, at December 31, 2019. At December 31, 2020, excluding SBA PPP loans (100% government guaranteed), the allowance represented 1.30% of loans held for investment.

    The adoption of ASC 326 (“CECL”) on January 1, 2020 had an impact of $4.0 million ($3.3 million increase in the allowance for credit losses and $0.7 million increase in the allowance for unfunded loan commitments (other liability account)). The $6.6 million build (provision of $9.0 million less net charge-offs of $2.4 million) in the allowance for credit losses in 2020 was attributable to stressed economic conditions related to the COVID-19 pandemic and its potential effect on rates of default.

    Credit Quality/COVID-19 Exposure

    Nonperforming assets (nonaccrual loans and OREO) totaled $6.7 million at December 31, 2020, comparable to September 30, 2020, and a $1.3 million increase over December 31, 2019. Nonaccrual loans totaled $5.9 million at December 31, 2020, a $0.4 million increase over September 30, 2020 and a $1.4 million increase over December 31, 2019. The balance of OREO totaled $0.8 million at December 31, 2020, a decrease of $0.4 million from September 30, 2020 and a $0.1 million decrease from December 31, 2019.

    We continue to analyze our loan portfolio for segments that have been affected by the stressed economic and business conditions caused by the pandemic. Certain at-risk segments total 8% of our loan balances at December 31, 2020, including hotel (3%), restaurant (1%), retail and shopping centers (3%), and other (1%). The other segment includes churches, non-profits, education, and recreational. To assist our clients, in mid-March of 2020, we began allowing short term 60 to 90 day loan extensions for affected borrowers. We have extended loans totaling $333 million of which 75% were for commercial borrowers and 25% were for consumer borrowers. Approximately $324 million, or 97% of the loan balances associated with these borrowers have resumed making regularly scheduled payments. Of the $9 million that remains on extension, no loans were classified at December 31, 2020. Of the $324 million that have resumed payments, loan balances totaling $3.5 million were over 30 days delinquent and an additional $0.4 million was on nonaccrual status at December 31, 2020.             

    Funding (Deposits/Debt)

    Average total deposits were $3.066 billion for the fourth quarter of 2020, an increase of $94.9 million, or 3.2%, over the third quarter of 2020 and $541.2 million, or 21.4%, over the fourth quarter of 2019. The estimated deposit inflows related to the first round of pandemic related stimulus programs that occurred primarily during the second quarter were $179 million (SBA PPP) and $64 million (Economic Impact Payment stimulus checks). Average seasonal public funds increased $30 million over the third quarter of 2020 and $81 million over the fourth quarter of 2019.   For each quarter during 2020, we’ve also realized strong core deposit growth. Given these large increases as well as the incoming second round of stimulus checks, the potential exists for our deposit levels to be volatile in 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.

    Average short-term borrowings increased $20.7 million over the third quarter of 2020 and $87.8 million over the fourth quarter of 2019, which reflected warehouse line borrowings used to support CCHL’s loans held for sale.

    Capital

    Shareowners’ equity was $320.8 million at December 31, 2020 compared to $339.4 million at September 30, 2020 and $327.0 million at December 31, 2019.   For the full year of 2020, shareowners’ equity was positively impacted by net income of $31.6 million, a $1.8 million increase in the unrealized gain on investment securities, net adjustments totaling $1.4 million related to transactions under our stock compensation plans, stock compensation accretion of $0.9 million, and a $0.4 million increase in fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by an $18.2 million increase in the accumulated other comprehensive loss for our pension plan, common stock dividends of $9.6 million ($0.57 per share), a $3.1 million (net of tax) adjustment to retained earnings for the adoption of CECL, reclassification of $9.4 million to temporary equity to increase the redemption value of the non-controlling interest in CCHL, and share repurchases of $2.0 million (99,952 shares).

    At December 31, 2020, our total risk-based capital ratio was 17.30% compared to 17.88% at September 30, 2020 and 17.90% at December 31, 2019. Our common equity tier 1 capital ratio was 13.71%, 14.20%, and 14.47%, respectively, on these dates. Our leverage ratio was 9.33%, 9.64%, and 11.25%, 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 6.25% at December 31, 2020 compared to 7.16% and 8.06% at September 30, 2020 and December 31, 2019, respectively.   Our tangible capital ratio was unfavorably impacted at December 31, 2020 by the aforementioned annual adjustment to the other comprehensive loss for our pension plan which was negatively impacted due to the lower discount rate used to calculate the present value of the pension obligation. The lower discount rate reflected the significant decline in long-term interest rates in 2020.  

    About Capital City Bank Group, Inc.

    Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $3.8 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 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, 2019, 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 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)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019
    Shareowners' Equity (GAAP) $320,837 $339,425 $335,057 $328,507 $327,016 
    Less: Goodwill (GAAP)  89,095  89,095  89,095  89,275  84,811 
    Tangible Shareowners' Equity (non-GAAP)A 231,742  250,330  245,962  239,232  242,205 
    Total Assets (GAAP)  3,798,071  3,587,041  3,499,524  3,086,523  3,088,953 
    Less: Goodwill (GAAP)  89,095  89,095  89,095  89,275  84,811 
    Tangible Assets (non-GAAP)B$3,708,976 $3,497,946 $3,410,429 $2,997,248 $3,004,142 
    Tangible Common Equity Ratio (non-GAAP)A/B 6.25% 7.16% 7.21% 7.98% 8.06%
    Actual Diluted Shares Outstanding (GAAP)C 16,844,997  16,800,563  16,821,743  16,845,462  16,855,161 
    Tangible Book Value per Diluted Share (non-GAAP)A/C$13.76 $14.90 $14.62 $14.20 $14.37 


    CAPITAL CITY BANK GROUP, INC.           
    EARNINGS HIGHLIGHTS           
    Unaudited           
                
      Three Months Ended Twelve Months Ended 
    (Dollars in thousands, except per share data) Dec 31, 2020 Sep 30, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 
    EARNINGS           
    Net Income Attributable to Common Shareowners$7,746$10,397$8,565$31,576$30,807 
    Diluted Net Income Per Share$0.46$0.62$0.51$1.88$1.83 
    PERFORMANCE           
    Return on Average Assets 0.84%1.17%1.14%0.93%1.03%
    Return on Average Equity 8.97 12.16 10.39 9.36 9.72 
    Net Interest Margin 3.00 3.12 3.89 3.30 3.85 
    Noninterest Income as % of Operating Revenue 55.00 58.19 34.50 52.32 33.92 
    Efficiency Ratio 74.36%67.01%72.48%70.43%72.40%
    CAPITAL ADEQUACY           
    Tier 1 Capital 16.19%16.77%17.16%16.19%17.16%
    Total Capital 17.30 17.88 17.90 17.30 17.90 
    Leverage 9.33 9.64 11.25 9.33 11.25 
    Common Equity Tier 1 13.71 14.20 14.47 13.71 14.47 
    Tangible Common Equity (1) 6.25 7.16 8.06 6.25 8.06 
    Equity to Assets 8.45%9.46%10.59%8.45%10.59%
    ASSET QUALITY           
    Allowance as % of Non-Performing Loans 405.66%420.30%310.99%405.66%310.99%
    Allowance as a % of Loans HFI 1.19 1.16 0.75 1.19 0.75 
    Net Charge-Offs as % of Average Loans HFI 0.09 0.11 0.05 0.12 0.13 
    Nonperforming Assets as % of Loans HFI and OREO0.33 0.34 0.29 0.33 0.29 
    Nonperforming Assets as % of Total Assets 0.18%0.19%0.18%0.18%0.18%
    STOCK PERFORMANCE           
    High$26.35$21.71$30.95$30.62$30.95 
    Low 18.14 17.55 25.75 15.61 21.04 
    Close$24.58$18.79$30.50$24.58$30.50 
    Average Daily Trading Volume 22,271 28,517 41,247 35,125 27,496 
                
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6. 


    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
    Unaudited          
               
     2020  2019 
    (Dollars in thousands)Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter
    ASSETS          
    Cash and Due From Banks$67,919 $76,509 $75,155 $72,676 $60,087 
    Funds Sold and Interest Bearing Deposits 860,630  626,104  513,273  196,936  318,336 
    Total Cash and Cash Equivalents 928,549  702,613  588,428  269,612  378,423 
               
    Investment Securities Available for Sale 324,870  328,253  341,180  382,514  403,601 
    Investment Securities Held to Maturity 169,939  202,593  232,178  251,792  239,539 
    Total Investment Securities 494,809  530,846  573,358  634,306  643,140 
               
    Loans Held for Sale ("HFS") 114,039  116,561  76,610  82,598  9,509 
               
    Loans Held for Investment ("HFI"):          
    Commercial, Financial, & Agricultural 393,930  402,997  421,270  249,020  255,365 
    Real Estate - Construction 135,831  125,804  117,794  122,595  115,018 
    Real Estate - Commercial 648,393  656,064  662,434  656,084  625,556 
    Real Estate - Residential 342,664  335,713  353,831  354,150  353,642 
    Real Estate - Home Equity 205,479  197,363  194,479  196,443  197,360 
    Consumer 269,520  268,393  266,417  275,982  279,565 
    Other Loans 9,879  10,488  4,883  6,580  7,808 
    Overdrafts 730  1,339  1,069  1,533  1,615 
    Total Loans Held for Investment 2,006,426  1,998,161  2,022,177  1,862,387  1,835,929 
    Allowance for Credit Losses (23,816) (23,137) (22,457) (21,083) (13,905)
    Loans Held for Investment, Net 1,982,610  1,975,024  1,999,720  1,841,304  1,822,024 
               
    Premises and Equipment, Net 86,791  87,192  87,972  87,684  84,543 
    Goodwill 89,095  89,095  89,095  89,275  84,811 
    Other Real Estate Owned 808  1,227  1,059  1,463  953 
    Other Assets 101,370  84,483  83,282  80,281  65,550 
    Total Other Assets 278,064  261,997  261,408  258,703  235,857 
    Total Assets$3,798,071 $3,587,041 $3,499,524 $3,086,523 $3,088,953 
               
    LIABILITIES          
    Deposits:          
    Noninterest Bearing Deposits$1,328,809 $1,378,314 $1,377,033 $1,066,607 $1,044,699 
    NOW Accounts 1,046,408  827,506  808,244  779,467  902,499 
    Money Market Accounts 266,649  247,823  240,754  210,124  217,839 
    Regular Savings Accounts 474,100  451,944  423,924  384,480  374,396 
    Certificates of Deposit 101,594  103,859  105,041  104,907  106,021 
    Total Deposits 3,217,560  3,009,446  2,954,996  2,545,585  2,645,454 
               
    Short-Term Borrowings 79,654  90,936  63,958  76,516  6,404 
    Subordinated Notes Payable 52,887  52,887  52,887  52,887  52,887 
    Other Long-Term Borrowings 3,057  5,268  5,583  5,896  6,514 
    Other Liabilities 102,076  71,880  75,702  70,044  50,678 
    Total Liabilities 3,455,234  3,230,417  3,153,126  2,750,928  2,761,937 
               
    Temporary Equity 22,000  17,199  11,341  7,088  - 
               
    SHAREOWNERS' EQUITY          
    Common Stock 168  168  168  168  168 
    Additional Paid-In Capital 32,283  31,425  31,575  32,100  32,092 
    Retained Earnings 332,528  333,545  328,570  321,772  322,937 
    Accumulated Other Comprehensive Loss, Net of Tax (44,142) (25,713) (25,256) (25,533) (28,181)
    Total Shareowners' Equity 320,837  339,425  335,057  328,507  327,016 
    Total Liabilities, Temporary Equity and Shareowners' Equity$3,798,071 $3,587,041 $3,499,524 $3,086,523 $3,088,953 
               
    OTHER BALANCE SHEET DATA          
    Earning Assets$3,475,904 $3,271,672 $3,185,418 $2,776,228 $2,806,913 
    Interest Bearing Liabilities 2,024,349  1,780,223  1,700,391  1,614,277  1,666,560 
    Book Value Per Diluted Share$19.05 $20.20 $19.92 $19.50 $19.40 
    Tangible Book Value Per Diluted Share(1) 13.76  14.90  14.62  14.20  14.37 
    Actual Basic Shares Outstanding 16,791  16,761  16,780  16,812  16,772 
    Actual Diluted Shares Outstanding 16,845  16,801  16,822  16,845  16,855 
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6.


    CAPITAL CITY BANK GROUP, INC.              
    CONSOLIDATED STATEMENT OF OPERATIONS
    Unaudited              
                   
                Twelve Months Ended
      2020  2019  December 31,
    (Dollars in thousands, except per share data) Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		 2020  2019
                   
    INTEREST INCOME              
    Interest and Fees on Loans$23,878 $23,594 $23,687 $23,593 $23,842 $94,752 $94,215
    Investment Securities 2,096  2,426  2,737  3,015  3,221  10,274  13,434
    Funds Sold 180  146  88  757  945  1,171  5,187
    Total Interest Income 26,154  26,166  26,512  27,365  28,008  106,197  112,836
                   
    INTEREST EXPENSE              
    Deposits 201  190  218  939  1,157  1,548  6,840
    Short-Term Borrowings 639  498  421  132  16  1,690  109
    Subordinated Notes Payable 311  316  374  471  525  1,472  2,287
    Other Long-Term Borrowings 30  40  41  50  56  161  257
    Total Interest Expense 1,181  1,044  1,054  1,592  1,754  4,871  9,493
    Net Interest Income 24,973  25,122  25,458  25,773  26,254  101,326  103,343
    Provision for Credit Losses 1,342  1,308  2,005  4,990  (162) 9,645  2,027
    Net Interest Income after Provision for Credit Losses 23,631  23,814  23,453  20,783  26,416  91,681  101,316
                   
    NONINTEREST INCOME              
    Deposit Fees 4,713  4,316  3,756  5,015  4,980  17,800  19,472
    Bank Card Fees 3,462  3,389  3,142  3,051  3,131  13,044  11,994
    Wealth Management Fees 3,069  2,808  2,554  2,604  2,761  11,035  10,480
    Mortgage Banking Fees 17,711  22,983  19,397  3,253  1,542  63,344  5,321
    Other 1,568  1,469  1,350  1,555  1,414  5,942  5,786
    Total Noninterest Income 30,523  34,965  30,199  15,478  13,828  111,165  53,053
                   
    NONINTEREST EXPENSE              
    Compensation 26,722  26,164  23,658  19,736  17,363  96,280  66,352
    Occupancy, Net 5,976  5,906  5,798  4,979  4,680  22,659  18,436
    Other Real Estate, Net 567  219  116  (798) 102  104  546
    Other 8,083  8,053  7,731  7,052  6,997  30,919  28,275
    Total Noninterest Expense 41,348  40,342  37,303  30,969  29,142  149,962  113,609
                   
    OPERATING PROFIT 12,806  18,437  16,349  5,292  11,102  52,884  40,760
    Income Tax Expense 2,833  3,165  2,950  1,282  2,537  10,230  9,953
    Net Income 9,973  15,272  13,399  4,010  8,565  42,654  30,807
    Pre-Tax Income Attributable to Noncontrolling Interest(2,227) (4,875) (4,253) 277  -  (11,078) -
    NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS$7,746 $10,397 $9,146 $4,287 $8,565 $31,576 $30,807
                   
    PER COMMON SHARE              
    Basic Net Income$0.46 $0.62 $0.55 $0.25 $0.51 $1.88 $1.84
    Diluted Net Income 0.46  0.62  0.55  0.25  0.51  1.88  1.83
    Cash Dividend$0.15 $0.14 $0.14 $0.14 $0.13 $0.57 $0.48
    AVERAGE SHARES              
    Basic 16,763  16,771  16,797  16,808  16,750  16,785  16,770
    Diluted 16,817  16,810  16,839  16,842  16,834  16,822  16,827


    CAPITAL CITY BANK GROUP, INC.               
    ALLOWANCE FOR CREDIT LOSSES                
    AND RISK ELEMENT ASSETS               
    Unaudited               
                    
                 Twelve Months Ended
      2020  2019   December 31,
    (Dollars in thousands, except per share data) Fourth
    Quarter    		 Third
    Quarter    		 Second
    Quarter    		 First
    Quarter    		 Fourth
    Quarter    		  2020  2019 
                    
    ALLOWANCE FOR CREDIT LOSSES               
    Balance at Beginning of Period$23,137 $22,457 $21,083 $13,905 $14,319  $13,905 $14,210 
    Impact of Adopting ASC 326 (CECL) -  -  -  3,269  -   3,269  - 
    Provision for Credit Losses - HFI 1,165  1,265  1,615  4,990  (162)  9,035  2,027 
    Net Charge-Offs 486  585  241  1,081  252   2,393  2,332 
    Balance at End of Period(2)$23,816 $23,137 $22,457 $21,083 $13,905  $23,816 $13,905 
    As a % of Loans HFI 1.19% 1.16% 1.11% 1.13% 0.75%  1.19% 0.75%
    As a % of Nonperforming Loans 405.66% 420.30% 322.37% 432.61% 310.99%  405.66% 310.99%
                    
    CHARGE-OFFS               
    Commercial, Financial and Agricultural$104 $137 $186 $362 $149  $789 $768 
    Real Estate - Construction -  -  -  -  58   -  281 
    Real Estate - Commercial -  17  -  11  33   28  214 
    Real Estate - Residential 38  1  1  110  27   150  400 
    Real Estate - Home Equity 10  58  52  31  -   151  430 
    Consumer 668  619  634  864  819   2,785  2,878 
    Overdrafts(3) 564  450  541  702  -   2,257  - 
    Total Charge-Offs$1,384 $1,282 $1,414 $2,080 $1,086  $6,160 $4,971 
                    
    RECOVERIES               
    Commercial, Financial and Agricultural$64 $74 $74 $40 $127  $252 $345 
    Real Estate - Construction 50  -  -  -  -   50  - 
    Real Estate - Commercial 27  30  70  191  266   318  578 
    Real Estate - Residential 153  35  51  40  116   279  429 
    Real Estate - Home Equity 40  41  64  33  25   178  175 
    Consumer 306  280  365  268  300   1,219  1,112 
    Overdrafts(3) 258  237  549  427  -   1,471  - 
    Total Recoveries$898 $697 $1,173 $999 $834  $3,767 $2,639 
                    
    NET CHARGE-OFFS$486 $585 $241 $1,081 $252  $2,393 $2,332 
                    
    Net Charge-Offs as a % of Average Loans HFI(1) 0.09% 0.11% 0.05% 0.23% 0.05%  0.12% 0.13%
                    
    RISK ELEMENT ASSETS               
    Nonaccruing Loans$5,871 $5,505 $6,966 $4,874 $4,472      
    Other Real Estate Owned 808  1,227  1,059  1,463  953      
    Total Nonperforming Assets ("NPAs")$6,679 $6,732 $8,025 $6,337 $5,425      
                    
    Past Due Loans 30-89 Days$4,594 $3,191 $2,948 $5,077 $4,871      
    Past Due Loans 90 Days or More -  -  -  -  -      
    Classified Loans 17,631  16,772  17,091  16,548  20,847      
    Performing Troubled Debt Restructuring's$13,887 $14,693 $15,133 $15,934 $16,888      
                    
    Nonperforming Loans as a % of Loans HFI 0.29% 0.28% 0.34% 0.26% 0.24%     
    NPAs as a % of Loans HFI and Other Real Estate0.33% 0.34% 0.40% 0.34% 0.29%     
    NPAs as a % of Total Assets 0.18% 0.19% 0.23% 0.21% 0.18%     
                    
    (1) Annualized               
    (2) Does not include $1.6 million for unfunded commitments recorded in other liabilities at 12/31/2020.       
    (3) Prior to the first quarter 2020, overdraft losses were reflected in noninterest income (deposit fees).     


    CAPITAL CITY BANK GROUP, INC.               
    AVERAGE BALANCE AND INTEREST RATES(1)                      
    Unaudited                                                 
                                                      
      Fourth Quarter 2020  Third Quarter 2020  Second Quarter 2020  First Quarter 2020  Fourth Quarter 2019  Dec 2020 YTD  Dec 2019 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 HFI and HFS$2,114,522 $23,981 4.52%$2,097,700 $23,698 4.50%$2,057,925 $23,785 4.65%$1,882,703  23,692 5.06%$1,846,190 $23,958 5.15%$2,038,701 $95,156 4.67%$1,822,087 $94,662 5.20%
                                                      
    Investment Securities                                                 
    Taxable Investment Securities 513,277  2,072 1.61  553,395  2,401 1.73  601,509  2,708 1.80  629,512  2,995 1.91  610,046  3,186 2.08  574,199  10,176 1.77  612,541  13,123 2.14 
    Tax-Exempt Investment Securities 4,485  30 2.71  4,860  32 2.66  5,865  37 2.51  5,293  25 1.86  10,327  43 1.67  5,123  124 2.42  24,471  390 1.60 
                                                      
    Total Investment Securities 517,762  2,102 1.62  558,255  2,433 1.74  607,374  2,745 1.81  634,805  3,020 1.91  620,373  3,229 2.08  579,322  10,300 1.78  637,012  13,513 2.12 
                                                      
    Funds Sold 705,125  180 0.10  567,883  146 0.10  351,473  88 0.10  234,372  757 1.30  228,137  945 1.64  465,652  1,171 0.25  237,999  5,187 2.18 
                                                      
    Total Earning Assets 3,337,409 $26,263 3.14% 3,223,838 $26,277 3.25% 3,016,772 $26,618 3.55% 2,751,880 $27,469 4.01% 2,694,700 $28,132 4.14% 3,083,675 $106,627 3.46% 2,697,098 $113,362 4.20%
                                                      
    Cash and Due From Banks 73,968       69,893       72,647       56,958       53,174       68,386       52,453      
    Allowance for Loan Losses (23,725)      (22,948)      (21,642)      (14,389)      (14,759)      (20,690)      (14,622)     
    Other Assets 264,784       268,549       261,449       244,339       249,089       259,700       252,127      
                                                      
    Total Assets$3,652,436      $3,539,332      $3,329,226      $3,038,788      $2,982,204      $3,391,071      $2,987,056      
                                                      
    LIABILITIES:                                                 
    Interest Bearing Deposits                                                 
    NOW Accounts$879,564 $66 0.03%$826,776 $61 0.03%$789,378 $78 0.04%$808,811 $725 0.36%$755,625 $889 0.47%$826,280 $930 0.11%$805,134 $5,502 0.68%
    Money Market Accounts 261,543  34 0.05  247,185  32 0.05  222,377  40 0.07  212,211  117 0.22  227,479  170 0.30  235,931  223 0.09  235,845  946 0.40 
    Savings Accounts 466,116  57 0.05  438,762  54 0.05  409,366  50 0.05  379,237  46 0.05  372,518  46 0.05  423,529  207 0.05  370,430  182 0.05 
    Time Deposits 102,809  44 0.17  104,522  43 0.16  104,718  50 0.19  105,542  51 0.19  108,407  52 0.19  104,393  188 0.18  113,499  210 0.19 
    Total Interest Bearing Deposits 1,710,032  201 0.05% 1,617,245  190 0.05% 1,525,839  218 0.06% 1,505,801  939 0.25% 1,464,029  1,157 0.31% 1,590,133  1,548 0.10% 1,524,908  6,840 0.45%
                                                      
    Short-Term Borrowings 95,280  639 2.67% 74,557  498 2.66% 73,377  421 2.31% 32,915  132 1.61% 7,448  16 0.87% 69,119  1,690 2.44% 9,275  109 1.19%
    Subordinated Notes Payable 52,887  311 2.30  52,887  316 2.34  52,887  374 2.80  52,887  471 3.52  52,887  525 3.88  52,887  1,472 2.74  52,887  2,287 4.26 
    Other Long-Term Borrowings 3,700  30 3.18  5,453  40 2.91  5,766  41 2.84  6,312  50 3.21  6,723  56 3.33  5,304  161 3.03  7,393  257 3.48 
                                                      
    Total Interest Bearing Liabilities 1,861,899 $1,181 0.25% 1,750,142 $1,044 0.24% 1,657,869 $1,054 0.26% 1,597,915 $1,592 0.40% 1,531,087 $1,754 0.45% 1,717,443 $4,871 0.28% 1,594,463 $9,493 0.60%
                                                      
    Noninterest Bearing Deposits 1,356,104       1,354,032       1,257,614       1,046,889       1,060,922       1,254,214       1,012,581      
    Other Liabilities 74,605       83,192       72,073       59,587       63,291       72,400       62,940      
                                                      
    Total Liabilities 3,292,608       3,187,366       2,987,556       2,704,391       2,655,300       3,044,057       2,669,984      
    Temporary Equity 16,154       11,893       8,155       2,506.00       -       9,701       -      
                                                      
    SHAREOWNERS' EQUITY: 343,674       340,073       333,515       331,891       326,904       337,313       317,072      
                                                      
    Total Liabilities, Temporary Equity and Shareowners' Equity$3,652,436      $3,539,332      $3,329,226      $3,038,788      $2,982,204      $3,391,071      $2,987,056      
                                                      
    Interest Rate Spread  $25,082 2.88%  $25,233 3.01%  $25,564 3.30%  $25,877 3.61%  $26,378 3.69%  $101,756 3.18%  $103,869 3.61%
                                                      
    Interest Income and Rate Earned(1)   26,263 3.14    26,277 3.25    26,618 3.55    27,469 4.01    28,132 4.14    106,627 3.46    113,362 4.20 
    Interest Expense and Rate Paid(2)   1,181 0.14    1,044 0.13    1,054 0.14    1,592 0.23    1,754 0.26    4,871 0.16    9,493 0.35 
                                                      
    Net Interest Margin  $25,082 3.00%  $25,233 3.12%  $25,564 3.41%  $25,877 3.78%  $26,378 3.89%  $101,756 3.30%  $103,869 3.85%
                                                      
    (1) Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate. 
    (2) Rate calculated based on average earning assets.                                
     

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


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