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Capital City Bank Group, Inc. Reports Third Quarter 2021 Results

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

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

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

QUARTER HIGHLIGHTS

  • Net interest income grew $1.7 million, or 6.5% sequentially, driven by higher loan fees of $1.3 million (primarily SBA PPP fees of $1.0 million) and a better earning asset mix

  • Average loans, excluding PPP loans, grew $35 million and average investment securities increased $218 million

  • Strong credit quality metrics resulted in no loan loss provision for the quarter

  • Noninterest expense decreased $2.4 million due to lower pension settlement charges of $1.5 million and a $1.0 million gain from the sale of a banking office

  • Capital City Home Loans (“CCHL”) contributed $0.06 per share

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

Discussion of Operating Results

Net Interest Income/Net Interest Margin

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

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

Provision for Credit Loss

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

Noninterest Income and Noninterest Expense

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

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

Income Taxes

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

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.693 billion for the third quarter of 2021, an increase of $69.2 million, or 1.9%, over the second quarter of 2021, and an increase of $355.7 million, or 10.7%, over the fourth quarter of 2020. The increase over both prior periods was primarily driven by higher deposit balances, which funded growth in the investment portfolio. Deposit balances increased as a result of strong core deposit growth, SBA PPP loan proceeds deposited in client accounts, and various other stimulus programs.

We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $741.9 million in the third quarter of 2021 compared to an average net overnight funds sold position of $818.6 million in the second quarter of 2021 and $705.1 million in the fourth quarter of 2020. The decrease compared to the second quarter of 2021 was primarily due to growth in the investment portfolio. The increase compared to the fourth quarter 2020 was driven by strong core deposit growth, in addition to pandemic related stimulus programs (see below – Funding).

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

Allowance for Credit Losses

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

Credit Quality

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

Funding (Deposits/Debt)

Average total deposits were $3.448 billion for the third quarter of 2021, an increase of $60.3 million, or 1.8%, over the second quarter of 2021 and $381.6 million, or 12.4%, over the fourth quarter of 2020. The strongest growth over both comparable periods occurred in our noninterest bearing deposits and savings account balances. Average public deposits in the third quarter 2021 decreased slightly compared to the second quarter of 2021, but increased compared to the fourth quarter of 2020. Over the past 12 months, multiple government stimulus programs have been implemented, including those under the CARES Act and the American Rescue Plan Act, which are responsible for a large part of the growth in average deposits. Given these increases, the potential exists for our deposit levels to be volatile for the remainder of 2021 and into 2022 due to the uncertain timing of the outflows of the stimulus related balances and the economic recovery. It is anticipated that current liquidity levels will remain robust due to our strong overnight funds sold position. The Bank continues to strategically consider ways to safely deploy a portion of this liquidity.

Average short-term borrowings decreased $1.4 million over the second quarter of 2021 and declined $45.5 million from the fourth quarter of 2020, both of which reflected a seasonal fluctuation in warehouse line borrowing needs to support CCHL’s loans held for sale.

Capital

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

At September 30, 2021, our total risk-based capital ratio was 16.70% compared to 16.48% at June 30, 2021 and 17.30% at December 31, 2020. Our common equity tier 1 capital ratio was 13.45%, 13.14%, and 13.71%, respectively, on these dates. Our leverage ratio was 9.05%, 8.84%, and 9.33%, respectively, on these dates. All of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio was 6.46% at September 30, 2021 compared to 6.19% and 6.25% at June 30, 2021 and December 31, 2020, respectively.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.0 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and life insurance. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 86 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: the magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations and financial condition, including the impact of our participation in government programs related to COVID-19; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; fluctuations in inflation, interest rates, or monetary policies; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; natural disasters, widespread health emergencies, military conflict, terrorism or other geopolitical events; changes in the stock market and other capital and real estate markets; customer acceptance of third-party products and services; increased competition and its effect on pricing; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and our other filings with the SEC, which are available at the 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)

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Shareowners' Equity (GAAP)

$

348,868

$

335,880

$

324,426

$

320,837

$

339,425

Less: Goodwill and Other Intangibles (GAAP)

93,293

93,333

89,095

89,095

89,095

Tangible Shareowners' Equity (non-GAAP)

A

255,575

242,547

235,331

231,742

250,330

Total Assets (GAAP)

4,048,733

4,011,459

3,929,884

3,798,071

3,587,041

Less: Goodwill and Other Intangibles (GAAP)

93,293

93,333

89,095

89,095

89,095

Tangible Assets (non-GAAP)

B

$

3,955,440

$

3,918,126

$

3,840,789

$

3,708,976

$

3,497,946

Tangible Common Equity Ratio (non-GAAP)

A/B

6.46

%

6.19

%

6.13

%

6.25

%

7.16

%

Actual Diluted Shares Outstanding (GAAP)

C

16,911,715

16,901,375

16,875,719

16,844,997

16,800,563

Tangible Book Value per Diluted Share (non-GAAP)

A/C

$

15.11

$

14.35

$

13.94

$

13.76

$

14.90


CAPITAL CITY BANK GROUP, INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

Nine Months Ended

(Dollars in thousands, except per share data)

Sep 30, 2021

Jun 30, 2021

Sep 30, 2020

Sep 30, 2021

Sep 30, 2020

EARNINGS

Net Income Attributable to Common Shareowners

$

10,091

$

7,427

$

10,397

$

27,024

$

23,830

Diluted Net Income Per Share

$

0.60

$

0.44

$

0.62

$

1.60

$

1.42

PERFORMANCE

Return on Average Assets

0.99

%

0.75

%

1.17

%

0.92

%

0.96

%

Return on Average Equity

11.72

9.05

12.16

10.87

9.50

Net Interest Margin

2.98

2.89

3.12

2.91

3.42

Noninterest Income as % of Operating Revenue

48.99

50.47

58.19

51.47

51.37

Efficiency Ratio

73.09

%

80.18

%

67.01

%

75.83

%

69.04

%

CAPITAL ADEQUACY

Tier 1 Capital

15.69

%

15.44

%

16.77

%

15.69

%

16.77

%

Total Capital

16.70

16.48

17.88

16.70

17.88

Leverage

9.05

8.84

9.64

9.05

9.64

Common Equity Tier 1

13.45

13.14

14.20

13.45

14.20

Tangible Common Equity (1)

6.46

6.19

7.16

6.46

7.16

Equity to Assets

8.62

%

8.37

%

9.46

%

8.62

%

9.46

%

ASSET QUALITY

Allowance as % of Non-Performing Loans

710.39

%

433.93

%

420.30

%

710.39

%

420.30

%

Allowance as a % of Loans HFI

1.11

1.10

1.16

1.11

1.16

Net Charge-Offs as % of Average Loans HFI

0.03

(0.07

)

0.11

(0.05

)

0.13

Nonperforming Assets as % of Loans HFI and OREO

0.17

0.31

0.34

0.17

0.34

Nonperforming Assets as % of Total Assets

0.08

%

0.16

%

0.19

%

0.08

%

0.19

%

STOCK PERFORMANCE

High

$

26.10

$

27.39

$

21.71

$

28.98

$

30.62

Low

22.02

24.55

17.55

21.42

15.61

Close

$

24.74

$

25.79

$

18.79

$

24.74

$

18.79

Average Daily Trading Volume

30,515

28,958

28,517

29,925

39,477

(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)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

ASSETS

Cash and Due From Banks

$

73,132

$

78,894

$

73,973

$

67,919

$

76,509

Funds Sold and Interest Bearing Deposits

708,988

766,920

851,910

860,630

626,104

Total Cash and Cash Equivalents

782,120

845,814

925,883

928,549

702,613

Investment Securities Available for Sale

645,844

480,890

406,245

324,870

328,253

Investment Securities Held to Maturity

341,228

325,559

199,109

169,939

202,593

Total Investment Securities

987,072

806,449

605,354

494,809

530,846

Loans Held for Sale

77,036

80,821

82,081

114,039

116,561

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

218,929

292,953

413,819

393,930

402,997

Real Estate - Construction

177,443

149,884

138,104

135,831

125,804

Real Estate - Commercial

683,379

707,599

669,158

648,393

656,064

Real Estate - Residential

355,958

362,018

358,849

342,664

335,713

Real Estate - Home Equity

187,642

190,078

202,099

205,479

197,363

Consumer

309,983

298,464

267,666

269,520

268,393

Other Loans

6,792

6,439

7,082

9,879

10,488

Overdrafts

1,299

1,227

950

730

1,339

Total Loans Held for Investment

1,941,425

2,008,662

2,057,727

2,006,426

1,998,161

Allowance for Credit Losses

(21,500

)

(22,175

)

(22,026

)

(23,816

)

(23,137

)

Loans Held for Investment, Net

1,919,925

1,986,487

2,035,701

1,982,610

1,975,024

Premises and Equipment, Net

84,750

85,745

86,370

86,791

87,192

Goodwill and Other Intangibles

93,293

93,333

89,095

89,095

89,095

Other Real Estate Owned

192

1,192

110

808

1,227

Other Assets

104,345

111,618

105,290

101,370

84,483

Total Other Assets

282,580

291,888

280,865

278,064

261,997

Total Assets

$

4,048,733

$

4,011,459

$

3,929,884

$

3,798,071

$

3,587,041

LIABILITIES

Deposits:

Noninterest Bearing Deposits

$

1,592,345

$

1,552,864

$

1,473,891

$

1,328,809

$

1,378,314

NOW Accounts

926,201

970,705

993,571

1,046,408

827,506

Money Market Accounts

286,065

280,805

269,041

266,649

247,823

Regular Savings Accounts

559,714

539,477

518,373

474,100

451,944

Certificates of Deposit

101,637

103,070

103,232

101,594

103,859

Total Deposits

3,465,962

3,446,921

3,358,108

3,217,560

3,009,446

Short-Term Borrowings

51,410

47,200

55,687

79,654

90,936

Subordinated Notes Payable

52,887

52,887

52,887

52,887

52,887

Other Long-Term Borrowings

1,610

1,720

1,829

3,057

5,268

Other Liabilities

113,720

105,534

109,487

102,076

71,880

Total Liabilities

3,685,589

3,654,262

3,577,998

3,455,234

3,230,417

Temporary Equity

14,276

21,317

27,460

22,000

17,199

SHAREOWNERS' EQUITY

Common Stock

169

169

169

168

168

Additional Paid-In Capital

33,876

33,560

32,804

32,283

31,425

Retained Earnings

359,550

345,574

335,324

332,528

333,545

Accumulated Other Comprehensive Loss, Net of Tax

(44,727

)

(43,423

)

(43,871

)

(44,142

)

(25,713

)

Total Shareowners' Equity

348,868

335,880

324,426

320,837

339,425

Total Liabilities, Temporary Equity and Shareowners' Equity

$

4,048,733

$

4,011,459

$

3,929,884

$

3,798,071

$

3,587,041

OTHER BALANCE SHEET DATA

Earning Assets

$

3,714,521

$

3,662,852

$

3,597,071

$

3,475,904

$

3,271,672

Interest Bearing Liabilities

1,979,524

1,995,864

1,994,620

2,024,349

1,780,223

Book Value Per Diluted Share

$

20.63

$

19.87

$

19.22

$

19.05

$

20.20

Tangible Book Value Per Diluted Share(1)

15.11

14.35

13.94

13.76

14.90

Actual Basic Shares Outstanding

16,878

16,874

16,852

16,791

16,761

Actual Diluted Shares Outstanding

16,912

16,901

16,876

16,845

16,801

(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

September 30,

(Dollars in thousands, except per share data)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

2021

2020

INTEREST INCOME

Interest and Fees on Loans

$

25,885

$

24,582

$

23,350

$

23,878

$

23,594

$

73,817

$

70,874

Investment Securities

2,350

2,054

1,883

2,096

2,426

6,287

8,178

Funds Sold

285

200

213

180

146

698

991

Total Interest Income

28,520

26,836

25,446

26,154

26,166

80,802

80,043

INTEREST EXPENSE

Deposits

210

208

208

201

190

626

1,347

Short-Term Borrowings

317

324

412

639

498

1,053

1,051

Subordinated Notes Payable

307

308

307

311

316

922

1,161

Other Long-Term Borrowings

14

16

21

30

40

51

131

Total Interest Expense

848

856

948

1,181

1,044

2,652

3,690

Net Interest Income

27,672

25,980

24,498

24,973

25,122

78,150

76,353

Provision for Credit Losses

-

(571

)

(982

)

1,342

1,308

(1,553

)

8,303

Net Interest Income after Provision for Credit Losses

27,672

26,551

25,480

23,631

23,814

79,703

68,050

NONINTEREST INCOME

Deposit Fees

5,075

4,236

4,271

4,713

4,316

13,582

13,087

Bank Card Fees

3,786

3,998

3,618

3,462

3,389

11,402

9,582

Wealth Management Fees

3,623

3,274

3,090

3,069

2,808

9,987

7,966

Mortgage Banking Revenues

12,283

13,217

17,125

17,711

22,983

42,625

45,633

Other

1,807

1,748

1,722

1,568

1,469

5,277

4,374

Total Noninterest Income

26,574

26,473

29,826

30,523

34,965

82,873

80,642

NONINTEREST EXPENSE

Compensation

25,245

25,378

26,064

26,722

26,164

76,687

69,558

Occupancy, Net

6,032

5,973

5,967

5,976

5,906

17,972

16,683

Other Real Estate, Net

(1,126

)

(270

)

(118

)

567

219

(1,514

)

(463

)

Pension Adjustment

500

2,000

-

-

-

2,500

-

Other

9,051

9,042

8,563

8,083

8,053

26,656

22,836

Total Noninterest Expense

39,702

42,123

40,476

41,348

40,342

122,301

108,614

OPERATING PROFIT

14,544

10,901

14,830

12,806

18,437

40,275

40,078

Income Tax Expense

2,949

2,059

2,787

2,833

3,165

7,795

7,397

Net Income

11,595

8,842

12,043

9,973

15,272

32,480

32,681

Pre-Tax Income Attributable to Noncontrolling Interest

(1,504

)

(1,415

)

(2,537

)

(2,227

)

(4,875

)

(5,456

)

(8,851

)

NET INCOME ATTRIBUTABLE TO
COMMON SHAREOWNERS

$

10,091

$

7,427

$

9,506

$

7,746

$

10,397

$

27,024

$

23,830

PER COMMON SHARE

Basic Net Income

$

0.60

$

0.44

$

0.56

$

0.46

$

0.62

$

1.60

$

1.42

Diluted Net Income

0.60

0.44

0.56

0.46

0.62

1.60

1.42

Cash Dividend

$

0.16

$

0.15

$

0.15

$

0.15

$

0.14

$

0.46

$

0.42

AVERAGE SHARES

Basic

16,875

16,858

16,838

16,763

16,771

16,857

16,792

Diluted

16,909

16,885

16,862

16,817

16,810

16,886

16,823


CAPITAL CITY BANK GROUP, INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND RISK ELEMENT ASSETS

Unaudited

2021

2020

September 30,

(Dollars in thousands, except per share data)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

2021

2020

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

$

22,175

$

22,026

$

23,816

$

23,137

$

22,457

$

23,816

$

13,905

Impact of Adopting ASC 326 (CECL)

-

-

-

-

-

-

3,269

Provision for Credit Losses

(546

)

(184

)

(2,312

)

1,165

1,265

(3,042

)

7,870

Net Charge-Offs (Recoveries)

129

(333

)

(522

)

486

585

(726

)

1,907

Balance at End of Period

$

21,500

$

22,175

$

22,026

$

23,816

$

23,137

$

21,500

$

23,137

As a % of Loans HFI

1.11

%

1.10

%

1.07

%

1.19

%

1.16

%

1.11

%

1.16

%

As a % of Nonperforming Loans

710.39

%

433.93

%

410.78

%

405.66

%

420.30

%

710.39

%

420.30

%

ACL - DEBT SECURITIES

Provision for Credit Losses

$

16

$

-

$

-

$

-

$

-

$

16

$

-

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

2,587

$

2,974

$

1,644

$

1,467

$

1,424

$

1,644

$

157

Impact of Adopting ASC 326 (CECL)

-

-

-

-

-

-

876

Provision for Credit Losses

530

(387

)

1,330

177

43

1,473

434

Balance at End of Period(1)

3,117

2,587

2,974

1,644

1,467

3,117

1,467

CHARGE-OFFS

Commercial, Financial and Agricultural

$

37

$

32

$

69

$

104

$

137

$

138

$

685

Real Estate - Construction

-

-

-

-

-

-

-

Real Estate - Commercial

405

-

-

-

17

405

28

Real Estate - Residential

17

65

6

38

1

88

112

Real Estate - Home Equity

15

74

5

10

58

94

141

Consumer

221

230

564

668

619

1,015

2,117

Overdrafts

1,093

440

492

564

450