Capital City Bank Group, Inc. Reports First Quarter 2025 Results

/EIN News/ -- TALLAHASSEE, Fla., April 21, 2025 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $16.9 million, or $0.99 per diluted share, for the first quarter of 2025 compared to $13.1 million, or $0.77 per diluted share, for the fourth quarter of 2024, and $12.6 million, or $0.74 per diluted share, for the first quarter of 2024.

QUARTER HIGHLIGHTS (1^st Quarter 2025 versus 4^th Quarter 2024)

Income Statement

• Tax-equivalent net interest income totaled $41.6 million compared to $41.2 million for the prior quarter
  • Net interest margin increased five basis points to 4.22% (earning asset yield up one basis point and total deposit cost down four basis points to 82 basis points)
• Improved credit quality metrics - net loan charge-offs were nine basis points (annualized) of average loans – allowance coverage ratio increased to 1.12% at March 31, 2025
• Noninterest income increased $1.1 million, or 6.1%, and reflected a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees
• Noninterest expense decreased $3.1 million, or 7.4%, primarily due to a $3.1 million decrease in other expense which included a higher level of gains from the sale of banking facilities, namely the sale of our operations center building in the first quarter
  

Balance Sheet

• Loan balances decreased $11.5 million, or 0.4% (average), and increased $9.2 million, or 0.4% (end of period)
• Deposit balances increased by $65.1 million, or 1.8% (average), and increased $111.9 million, or 3.0% (end of period), largely due to the seasonal increase in our public fund balances
• Tangible book value per diluted share (non-GAAP financial measure) increased $0.94, or 4.0%
  

"I am pleased with our first quarter performance, which reflects strong core fundamentals and strategic execution driven by a 2.6% increase in revenues, solid growth in deposit balances, and improvement in credit quality metrics,” said William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO. “First quarter earnings also included a $0.17 per diluted share gain from the sale of our operations center building. Our strong balance sheet and revenue diversification provides us with the flexibility to navigate ongoing uncertainty in market and economic conditions."

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2025 totaled $41.6 million, compared to $41.2 million for the fourth quarter of 2024, and $38.4 million for the first quarter of 2024. Compared to both prior periods, the increase was driven by higher investment securities interest due to new investment purchases at higher yields, in addition to lower deposit interest expense, partially offset by lower loan interest due to lower average loan balances and interest rates. Two less calendar days also contributed to the decline in loan interest compared to the fourth quarter of 2024. Higher overnight funds interest also contributed to the increase over the first quarter of 2024 reflective of a higher level of average earning assets.

Our net interest margin for the first quarter of 2025 was 4.22%, an increase of five basis points over the fourth quarter of 2024 and an increase of 21 basis points over the first quarter of 2024. For the month of March 2025, our net interest margin was 4.22%. The increase in net interest margin over the fourth quarter of 2024 reflected a higher yield in the investment portfolio driven by new purchases during the quarter and a lower cost of deposits, partially offset by a lower overnight funds rate. The increase over the first quarter of 2024 reflected favorable investment repricing, a lower cost of deposits, and a higher overnight funds rate, partially offset by lower average loan balances for both prior periods.   For the first quarter of 2025, our cost of funds was 84 basis points, a decrease of four basis points from the fourth quarter of 2024 and the first quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 82 basis points, 86 basis points, and 85 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $0.8 million for the first quarter of 2025 compared to $0.7 million for the fourth quarter of 2024 and $0.9 million for the first quarter of 2024. For the first quarter of 2025, we recorded a provision expense of $1.1 million for loans held for investment (“HFI”) and a provision benefit of $0.3 million for unfunded loan commitments, which was comparable to the fourth quarter of 2024. We discuss the various factors that impacted our provision expense in detail below under the heading Allowance for Credit Losses.  

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2025 totaled $19.9 million compared to $18.8 million for the fourth quarter of 2024 and $18.1 million for the first quarter of 2024. The $1.1 million, or 6.1%, increase over the fourth quarter of 2024 was primarily due to a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees, partially offset by a $0.1 million decrease in deposits fees.   The increase in mortgage revenues was driven by an increase in rate locks and a higher gain on sale margin. The increase in wealth management fees was attributable to a $0.5 million increase in insurance commission revenue.   Compared to the first quarter of 2024, the $1.8 million, or 10.0%, increase was driven by a $1.1 million increase in wealth management fees and a $0.9 million increase in mortgage banking revenues, partially offset by a $0.2 million decrease in deposit fees.   The increase in wealth management fees reflected higher retail brokerage fees of $0.6 million, insurance commission revenue of $0.3 million, and trust fees of $0.2 million. The increase in mortgage revenues was driven by an increase in loan fundings and a higher gain on sale margin.     

Noninterest expense for the first quarter of 2025 totaled $38.7 million compared to $41.8 million for the fourth quarter of 2024 and $40.2 million for the first quarter of 2024.   The $3.1 million, or 7.4%, decrease from the fourth quarter of 2024, reflected a $3.1 million decrease in other expense, a $0.1 million decrease in occupancy expense, and a $0.1 million increase in compensation expense. The decrease in other expense was driven by a $3.5 million decrease in other real estate expense which reflected higher gains from the sale of banking facilities, primarily the sale of our operations center building in the first quarter of 2025, partially offset by a $0.5 million increase in charitable contribution expense. The slight decrease in occupancy expense was due to lower maintenance/repairs for buildings and furniture/fixtures. The slight net decrease in compensation expense reflected a $0.2 million increase in salary expense offset by a $0.1 million decrease in associate benefit expense.

Income Taxes

We realized income tax expense of $5.1 million (effective rate of 23.3%) for the first quarter of 2025 compared to $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024 and $3.5 million (effective rate of 23.0%) for the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease in our effective tax rate was primarily due to a discrete item in the first quarter of 2025 related to an excess tax benefit for stock compensation.   Absent discrete items, we expect our annual effective tax rate to approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.994 billion for the first quarter of 2025, an increase of $72.0 million, or 1.8%, over the fourth quarter of 2024, and an increase of $144.3 million, or 3.7%, over the first quarter of 2024. The increase over both prior periods was driven by higher deposit balances (see below – Deposits).   Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $67.1 million increase in investment securities and a $22.7 million increase in overnight funds sold partially offset by a $11.5 million decrease in loans HFI and a $6.3 million decrease in loans held for sale (“HFS”).   Compared to the first quarter of 2024, the change in the earning asset mix reflected a $180.5 million increase in overnight funds and a $29.1 million increase in investment securities that was partially offset by a $62.7 million decrease in loans HFI and a $2.6 million decrease in HFS.

Average loans HFI decreased $11.5 million, or 0.4%, from the fourth quarter of 2024 and decreased $62.7 million, or 2.3%, from the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease was primarily attributable to declines in construction loans of $8.6 million, commercial loans of $5.7 million, and consumer loans of $2.1 million, partially offset by a $6.6 million increase in home equity loans.   Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $58.8 million, commercial loans of $32.9 million, and commercial real estate mortgage loans of $23.1 million, partially offset by increases in residential real estate loans of $28.9 million, construction loans of $11.5 million, and home equity loans of $10.4 million.

Loans HFI at March 31, 2025 increased $9.2 million, or 0.3%, over December 31, 2024 and decreased $70.4 million, or 2.6%, from March 31, 2024. Compared to December 31, 2024, the increase was primarily attributable to increases in commercial real estate mortgage loans of $27.8 million and residential real estate loans of $12.1 million, consumer loans (primarily indirect auto) of $6.7 million, and home equity loans of $5.9 million, partially offset by decreases in construction loans of $27.7 million, commercial loans of $4.8 million, and other loans of $10.8 million.   Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $48.0 million, commercial loans of $33.9 million, commercial real estate mortgage loans of $16.7 million, and construction loans of $10.4 million, partially offset by increases in residential real estate loans of $27.8 million and home equity loans of $11.4 million.

Allowance for Credit Losses

At March 31, 2025, the allowance for credit losses for loans HFI totaled $29.7 million compared to $29.3 million at December 31, 2024 and $29.3 million at March 31, 2024. Activity within the allowance is provided on Page 9. The increase in the allowance over December 31, 2024 reflected higher loan balances and higher loan loss rates, partially offset by a lower level of net loan charge-offs.   The increase in the allowance over March 31, 2024 was primarily due to higher loss rates. Net loan charge-offs were nine basis points of average loans for the first quarter of 2025 versus 25 basis points for the fourth quarter of 2024 and 22 basis points for the first quarter of 2024. At March 31, 2025, the allowance represented 1.12% of loans HFI compared to 1.10% at December 31, 2024, and 1.07% at March 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $4.4 million at March 31, 2025 compared to $6.7 million at December 31, 2024 and $6.8 million at March 31, 2024. At March 31, 2025, nonperforming assets as a percent of total assets was 0.10%, compared to 0.15% at December 31, 2024 and 0.16% at March 31, 2024. Nonaccrual loans totaled $4.3 million at March 31, 2025, a $2.0 million decrease from December 31, 2024 and a $2.5 million decrease from March 31, 2024. Further, classified loans totaled $19.2 million at March 31, 2025, a $0.7 million decrease from December 31, 2024 and a $3.1 million decrease from March 31, 2024.

Deposits

Average total deposits were $3.665 billion for the first quarter of 2025, an increase of $65.1 million, or 1.8%, over the fourth quarter of 2024 and an increase of $89.0 million, or 2.5%, over the first quarter of 2024.   Compared to the fourth quarter of 2024, the increase was primarily attributable to higher NOW account balances largely due to the seasonal increase in our public fund balances.   The increase over the first quarter of 2024 reflected growth in NOW, money market and certificate of deposit account balances which was mainly due to a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.     

At March 31, 2025, total deposits were $3.784 billion, an increase of $111.9 million, or 3.0%, over December 31, 2024, and an increase of $129.1 million, or 3.5%, over March 31, 2024.   The increase over December 31, 2024 was due to higher balances in all deposit categories. The increase over March 31, 2024 was primarily due to higher NOW account balances, largely due to the seasonal increase in public funds and increases in money market and certificates of deposit, partially offset by lower savings account balances. Total public funds balances were $648.0 million at March 31, 2025, $660.9 million at December 31, 2024, and $615.0 million at March 31, 2024.

Liquidity

The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $320.9 million in the first quarter of 2025 compared to $298.3 million in the fourth quarter of 2024 and $140.5 million in the first quarter of 2024. Compared to both prior periods, the increase reflected higher average deposits (primarily seasonal public funds) and lower average loans.
    
At March 31, 2025, we had the ability to generate approximately $1.540 billion (excludes overnight funds position of $446 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.  

We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio.  Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities.  At March 31, 2025, the weighted-average maturity and duration of our portfolio were 2.64 years and 2.10 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.4 million.    

Capital

Shareowners’ equity was $512.6 million at March 31, 2025 compared to $495.3 million at December 31, 2024 and $448.3 million at March 31, 2024. For the first three months of 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $16.9 million, a net $3.6 million decrease in the accumulated other comprehensive loss, the issuance of stock of $2.4 million, and stock compensation accretion of $0.4 million. The net favorable change in accumulated other comprehensive loss reflected a $4.1 million decrease in the investment securities loss that was partially offset by a $0.5 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by a common stock dividend of $4.1 million ($0.24 per share) and net adjustments totaling $1.9 million related to transactions under our stock compensation plans.

At March 31, 2025, our total risk-based capital ratio was 19.20% compared to 18.64% at December 31, 2024 and 16.84% at March 31, 2024. Our common equity tier 1 capital ratio was 16.08%, 15.54%, and 13.82%, respectively, on these dates. Our leverage ratio was 11.17%, 11.05%, and 10.45%, respectively, on these dates. At March 31, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 9.61% at March 31, 2025 compared to 9.51% and 8.53% at December 31, 2024 and March 31, 2024, respectively. If our unrealized held-to-maturity securities losses of $12.1 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.33%.

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 $4.5 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 financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 62 banking offices and 105 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 words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes; the cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; government intervention in the U.S. financial system; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 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, except as may be required by law.

For Information Contact:

Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

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)		Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Shareowners' Equity (GAAP)		$	512,575		$	495,317		$	476,499		$	460,999		$	448,314
Less: Goodwill and Other Intangibles (GAAP)			92,733			92,773			92,813			92,853			92,893
Tangible Shareowners' Equity (non-GAAP)	A		419,842			402,544			383,686			368,146			355,421
Total Assets (GAAP)			4,461,233			4,324,932			4,225,316			4,225,695			4,259,922
Less: Goodwill and Other Intangibles (GAAP)			92,733			92,773			92,813			92,853			92,893
Tangible Assets (non-GAAP)	B	$	4,368,500		$	4,232,159		$	4,132,503		$	4,132,842		$	4,167,029
Tangible Common Equity Ratio (non-GAAP)	A/B		9.61%			9.51%			9.28%			8.91%			8.53%
Actual Diluted Shares Outstanding (GAAP)	C		17,072,330			17,018,122			16,980,686			16,970,228			16,947,204
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	24.59		$	23.65		$	22.60		$	21.69		$	20.97

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
		Three Months Ended
(Dollars in thousands, except per share data)		Mar 31, 2025		Dec 31, 2024		Mar 31, 2024
EARNINGS
Net Income Attributable to Common Shareowners	$	16,858	$	13,090	$	12,557	$
Diluted Net Income Per Share	$	0.99	$	0.77	$	0.74	$
PERFORMANCE
Return on Average Assets (annualized)		1.58	%	1.22	%	1.21	%
Return on Average Equity (annualized)		13.32		10.60		11.07
Net Interest Margin		4.22		4.17		4.01
Noninterest Income as % of Operating Revenue		32.39		31.34		32.06
Efficiency Ratio		62.93	%	69.74	%	71.06	%
CAPITAL ADEQUACY
Tier 1 Capital		18.01	%	17.46	%	15.67	%
Total Capital		19.20		18.64		16.84
Leverage		11.17		11.05		10.45
Common Equity Tier 1		16.08		15.54		13.82
Tangible Common Equity (1)		9.61		9.51		8.53
Equity to Assets		11.49	%	11.45	%	10.52	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		692.10	%	464.14	%	431.46	%
Allowance as a % of Loans HFI		1.12		1.10		1.07
Net Charge-Offs as % of Average Loans HFI		0.09		0.25		0.22
Nonperforming Assets as % of Loans HFI and OREO		0.17		0.25		0.25
Nonperforming Assets as % of Total Assets		0.10	%	0.15	%	0.16	%
STOCK PERFORMANCE
High	$	38.27	$	40.86	$	31.34	$
Low		33.00		33.00		26.59
Close	$	35.96	$	36.65	$	27.70	$
Average Daily Trading Volume		24,486		27,484		31,023
(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
	2025				2024
(Dollars in thousands)	First Quarter				Fourth Quarter			Third Quarter			Second Quarter			First Quarter
ASSETS
Cash and Due From Banks	$	78,521		$	70,543		$	83,431		$	75,304		$	73,642
Funds Sold and Interest Bearing Deposits		446,042			321,311			261,779			272,675			231,047
Total Cash and Cash Equivalents		524,563			391,854			345,210			347,979			304,689
Investment Securities Available for Sale		461,224			403,345			336,187			310,941			327,338
Investment Securities Held to Maturity		517,176			567,155			561,480			582,984			603,386
Other Equity Securities		2,315			2,399			6,976			2,537			3,445
Total Investment Securities		980,715			972,899			904,643			896,462			934,169
Loans Held for Sale ("HFS"):		21,441			28,672			31,251			24,022			24,705
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural		184,393			189,208			194,625			204,990			218,298
Real Estate - Construction		192,282			219,994			218,899			200,754			202,692
Real Estate - Commercial		806,942			779,095			819,955			823,122			823,690
Real Estate - Residential		1,040,594			1,028,498			1,023,485			1,012,541			1,012,791
Real Estate - Home Equity		225,987			220,064			210,988			211,126			214,617
Consumer		206,191			199,479			213,305			234,212			254,168
Other Loans		3,227			14,006			461			2,286			3,789
Overdrafts		1,154			1,206			1,378			1,192			1,127
Total Loans Held for Investment		2,660,770			2,651,550			2,683,096			2,690,223			2,731,172
Allowance for Credit Losses		(29,734	)		(29,251	)		(29,836	)		(29,219	)		(29,329	)
Loans Held for Investment, Net		2,631,036			2,622,299			2,653,260			2,661,004			2,701,843
Premises and Equipment, Net		80,043			81,952			81,876			81,414			81,452
Goodwill and Other Intangibles		92,733			92,773			92,813			92,853			92,893
Other Real Estate Owned		132			367			650			650			1
Other Assets		130,570			134,116			115,613			121,311			120,170
Total Other Assets		303,478			309,208			290,952			296,228			294,516
Total Assets	$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695		$	4,259,922
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,363,739		$	1,306,254		$	1,330,715		$	1,343,606		$	1,361,939
NOW Accounts		1,292,654			1,285,281			1,174,585			1,177,180			1,212,452
Money Market Accounts		445,999			404,396			401,272			413,594			398,308
Savings Accounts		511,265			506,766			507,604			514,560			530,782
Certificates of Deposit		170,233			169,280			164,901			159,624			151,320
Total Deposits		3,783,890			3,671,977			3,579,077			3,608,564			3,654,801
Repurchase Agreements		22,799			26,240			29,339			22,463			23,477
Other Short-Term Borrowings		14,401			2,064			7,929			3,307			8,409
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		794			794			794			1,009			265
Other Liabilities		73,887			75,653			71,974			69,987			65,181
Total Liabilities		3,948,658			3,829,615			3,742,000			3,758,217			3,805,020
Temporary Equity		-			-			6,817			6,479			6,588
SHAREOWNERS' EQUITY
Common Stock		171			170			169			169			169
Additional Paid-In Capital		38,576			37,684			36,070			35,547			34,861
Retained Earnings		476,715			463,949			454,342			445,959			435,364
Accumulated Other Comprehensive Loss, Net of Tax		(2,887	)		(6,486	)		(14,082	)		(20,676	)		(22,080	)
Total Shareowners' Equity		512,575			495,317			476,499			460,999			448,314
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695		$	4,259,922
OTHER BALANCE SHEET DATA
Earning Assets	$	4,108,969		$	3,974,431		$	3,880,769		$	3,883,382		$	3,921,093
Interest Bearing Liabilities		2,511,032			2,447,708			2,339,311			2,344,624			2,377,900
Book Value Per Diluted Share	$	30.02		$	29.11		$	28.06		$	27.17		$	26.45
Tangible Book Value Per Diluted Share(1)		24.59			23.65			22.60			21.69			20.97
Actual Basic Shares Outstanding		17,055			16,975			16,944			16,942			16,929
Actual Diluted Shares Outstanding		17,072			17,018			16,981			16,970			16,947
(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
		2025		2024
(Dollars in thousands, except per share data)		First Quarter		Fourth Quarter			Third Quarter		Second Quarter		First Quarter
INTEREST INCOME
Loans, including Fees	$	40,478	$	41,453		$	41,659	$	41,138	$	40,683
Investment Securities		5,808		4,694			4,155		4,004		4,244
Federal Funds Sold and Interest Bearing Deposits		3,496		3,596			3,514		3,624		1,893
Total Interest Income		49,782		49,743			49,328		48,766		46,820
INTEREST EXPENSE
Deposits		7,383		7,766			8,223		8,579		7,594
Repurchase Agreements		164		199			221		217		201
Other Short-Term Borrowings		117		83			52		68		39
Subordinated Notes Payable		560		581			610		630		628
Other Long-Term Borrowings		11		11			11		3		3
Total Interest Expense		8,235		8,640			9,117		9,497		8,465
Net Interest Income		41,547		41,103			40,211		39,269		38,355
Provision for Credit Losses		768		701			1,206		1,204		920
Net Interest Income after Provision for Credit Losses		40,779		40,402			39,005		38,065		37,435
NONINTEREST INCOME
Deposit Fees		5,061		5,207			5,512		5,377		5,250
Bank Card Fees		3,514		3,697			3,624		3,766		3,620
Wealth Management Fees		5,763		5,222			4,770		4,439		4,682
Mortgage Banking Revenues		3,820		3,118			3,966		4,381		2,878
Other		1,749		1,516			1,641		1,643		1,667
Total Noninterest Income		19,907		18,760			19,513		19,606		18,097
NONINTEREST EXPENSE
Compensation		26,248		26,108			25,800		24,406		24,407
Occupancy, Net		6,793		6,893			7,098		6,997		6,994
Other		5,660		8,781			10,023		9,038		8,770
Total Noninterest Expense		38,701		41,782			42,921		40,441		40,171
OPERATING PROFIT		21,985		17,380			15,597		17,230		15,361
Income Tax Expense		5,127		4,219			2,980		3,189		3,536
Net Income		16,858		13,161			12,617		14,041		11,825
Pre-Tax (Income) Loss Attributable to Noncontrolling Interest		-		(71	)		501		109		732
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	16,858	$	13,090		$	13,118	$	14,150	$	12,557
PER COMMON SHARE
Basic Net Income	$	0.99	$	0.77		$	0.77	$	0.84	$	0.74
Diluted Net Income		0.99		0.77			0.77		0.83		0.74
Cash Dividend	$	0.24	$	0.23		$	0.23	$	0.21	$	0.21
AVERAGE SHARES
Basic		17,027		16,946			16,943		16,931		16,951
Diluted		17,044		16,990			16,979		16,960		16,969

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
		2025			2024
(Dollars in thousands, except per share data)		First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,251		$	29,836		$	29,219		$	29,329		$	29,941
Transfer from Other (Assets) Liabilities		-			-			-			-			(50	)
Provision for Credit Losses		1,083			1,085			1,879			1,129			932
Net Charge-Offs (Recoveries)		600			1,670			1,262			1,239			1,494
Balance at End of Period	$	29,734		$	29,251		$	29,836		$	29,219		$	29,329
As a % of Loans HFI		1.12	%		1.10	%		1.11	%		1.09	%		1.07	%
As a % of Nonperforming Loans		692.10	%		464.14	%		452.64	%		529.79	%		431.46	%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period		2,155		$	2,522		$	3,139		$	3,121		$	3,191
Provision for Credit Losses		(323	)		(367	)		(617	)		18			(70	)
Balance at End of Period(1)		1,832			2,155			2,522			3,139			3,121
ACL - DEBT SECURITIES
Provision for Credit Losses	$	8		$	(17	)	$	(56	)	$	57		$	58
CHARGE-OFFS
Commercial, Financial and Agricultural	$	168		$	499		$	331		$	400		$	282
Real Estate - Construction		-			47			-			-			-
Real Estate - Commercial		-			-			3			-			-
Real Estate - Residential		8			44			-			-			17
Real Estate - Home Equity		-			33			23			-			76
Consumer		865			1,307			1,315			1,061			1,550
Overdrafts		570			574			611			571			638
Total Charge-Offs	$	1,611		$	2,504		$	2,283		$	2,032		$	2,563
RECOVERIES
Commercial, Financial and Agricultural	$	75		$	103		$	176		$	59		$	41
Real Estate - Construction		-			3			-			-			-
Real Estate - Commercial		3			33			5			19			204
Real Estate - Residential		119			28			88			23			37
Real Estate - Home Equity		9			17			59			37			24
Consumer		481			352			405			313			410
Overdrafts		324			298			288			342			353
Total Recoveries	$	1,011		$	834		$	1,021		$	793		$	1,069
NET CHARGE-OFFS (RECOVERIES)	$	600		$	1,670		$	1,262		$	1,239		$	1,494
Net Charge-Offs as a % of Average Loans HFI(2)		0.09	%		0.25	%		0.19	%		0.18	%		0.22	%
CREDIT QUALITY
Nonaccruing Loans	$	4,296		$	6,302		$	6,592		$	5,515		$	6,798
Other Real Estate Owned		132			367			650			650			1
Total Nonperforming Assets ("NPAs")	$	4,428		$	6,669		$	7,242		$	6,165		$	6,799
Past Due Loans 30-89 Days	$	3,735		$	4,311		$	9,388		$	5,672		$	5,392
Classified Loans		19,194			19,896			25,501			25,566			22,305
Nonperforming Loans as a % of Loans HFI		0.16	%		0.24	%		0.25	%		0.21	%		0.25	%
NPAs as a % of Loans HFI and Other Real Estate		0.17	%		0.25	%		0.27	%		0.23	%		0.25	%
NPAs as a % of Total Assets		0.10	%		0.15	%		0.17	%		0.15	%		0.16	%
(1) Recorded in other liabilities
(2) Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
		First Quarter 2025								Fourth Quarter 2024								Third Quarter 2024								Second Quarter 2024								First Quarter 2024
(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
ASSETS:
Loans Held for Sale	$	24,726		$	490		8.04	%	$	31,047		$	976		7.89	%	$	24,570		$	720		7.49	%	$	26,281			517		5.26	%	$	27,314		$	563		5.99	%
Loans Held for Investment(1)		2,665,910			40,029		6.09			2,677,396			40,521		6.07			2,693,533			40,985		6.09			2,726,748			40,683		6.03			2,728,629			40,196		5.95
Investment Securities
Taxable Investment Securities		981,485			5,802		2.38			914,353			4,688		2.04			907,610			4,148		1.82			918,989			3,998		1.74			952,328			4,238		1.78
Tax-Exempt Investment Securities(1)		845			9		4.32			849			9		4.31			846			10		4.33			843			9		4.36			856			10		4.34
Total Investment Securities		982,330			5,811		2.38			915,202			4,697		2.04			908,456			4,158		1.82			919,832			4,007		1.74			953,184			4,248		1.78
Federal Funds Sold and Interest Bearing Deposits		320,948			3,496		4.42			298,255			3,596		4.80			256,855			3,514		5.44			262,419			3,624		5.56			140,488			1,893		5.42
Total Earning Assets		3,993,914		$	49,826		5.06	%		3,921,900		$	49,790		5.05	%		3,883,414		$	49,377		5.06	%		3,935,280		$	48,831		4.99	%		3,849,615		$	46,900		4.90	%
Cash and Due From Banks		73,467								73,992								70,994								74,803								75,763
Allowance for Credit Losses		(30,008	)							(30,107	)							(29,905	)							(29,564	)							(30,030	)
Other Assets		297,660								293,884								291,359								291,669								295,275
Total Assets	$	4,335,033							$	4,259,669							$	4,215,862							$	4,272,188							$	4,190,623
LIABILITIES:
Noninterest Bearing Deposits	$	1,317,425							$	1,323,556							$	1,332,305							$	1,346,546							$	1,344,188
NOW Accounts		1,249,955		$	3,854		1.25	%		1,182,073		$	3,826		1.29	%		1,145,544		$	4,087		1.42	%		1,207,643		$	4,425		1.47	%		1,201,032		$	4,497		1.51	%
Money Market Accounts		420,059			2,187		2.11			422,615			2,526		2.38			418,625			2,694		2.56			407,387			2,752		2.72			353,591			1,985		2.26
Savings Accounts		507,676			176		0.14			504,859			179		0.14			512,098			180		0.14			519,374			176		0.14			539,374			188		0.14
Time Deposits		170,367			1,166		2.78			167,321			1,235		2.94			163,462			1,262		3.07			160,078			1,226		3.08			138,328			924		2.69
Total Interest Bearing Deposits		2,348,057			7,383		1.28			2,276,868			7,766		1.36			2,239,729			8,223		1.46			2,294,482			8,579		1.50			2,232,325			7,594		1.37
Total Deposits		3,665,482			7,383		0.82			3,600,424			7,766		0.86			3,572,034			8,223		0.92			3,641,028			8,579		0.95			3,576,513			7,594		0.85
Repurchase Agreements		29,821			164		2.23			28,018			199		2.82			27,126			221		3.24			26,999			217		3.24			25,725			201		3.14
Other Short-Term Borrowings		7,437			117		6.39			6,510			83		5.06			2,673			52		7.63			6,592			68		4.16			3,758			39		4.16
Subordinated Notes Payable		52,887			560		4.23			52,887			581		4.30			52,887			610		4.52			52,887			630		4.71			52,887			628		4.70
Other Long-Term Borrowings		794			11		5.68			794			11		5.57			795			11		5.55			258			3		4.31			281			3		4.80
Total Interest Bearing Liabilities		2,438,996		$	8,235		1.37	%		2,365,077		$	8,640		1.45	%		2,323,210		$	9,117		1.56	%		2,381,218		$	9,497		1.60	%		2,314,976		$	8,465		1.47	%
Other Liabilities		65,211								73,130								73,767								72,634								68,295
Total Liabilities		3,821,632								3,761,763								3,729,282								3,800,398								3,727,459
Temporary Equity		-								6,763								6,443								6,493								7,150
SHAREOWNERS' EQUITY:		513,401								491,143								480,137								465,297								456,014
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,335,033							$	4,259,669							$	4,215,862							$	4,272,188							$	4,190,623
Interest Rate Spread				$	41,591		3.69	%				$	41,150		3.59	%				$	40,260		3.49	%				$	39,334		3.38	%				$	38,435		3.43	%
Interest Income and Rate Earned(1)					49,826		5.06						49,790		5.05						49,377		5.06						48,831		4.99						46,900		4.90
Interest Expense and Rate Paid(2)					8,235		0.84						8,640		0.88						9,117		0.93						9,497		0.97						8,465		0.88
Net Interest Margin				$	41,591		4.22	%				$	41,150		4.17	%				$	40,260		4.12	%				$	39,334		4.02	%				$	38,435		4.01	%
(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.