Capital City Bank Group, Inc.
 
Reports First Quarter 2024
 
Results
TALLAHASSEE, Fla.
 
(April 22, 2024) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today
 
reported net income attributable
to common shareowners of $12.6 million, or $0.74 per diluted share, for the first
 
quarter of 2024
 
compared to $11.7 million, or $0.70
per diluted share, for the fourth quarter of 2023, and $13.7 million, or $0.
 
80 per diluted share, for the first quarter of 2023.
QUARTER HIGHLIGHTS (1
st
 
Quarter 2024
 
versus 4
th
 
Quarter 2023)
Income Statement
Tax-equivalent
 
net interest income totaled $38.4 million compared
 
to $39.3 million for the prior quarter reflective of one less
calendar day and higher deposit cost – total deposit cost increased
 
19 basis points to 85 basis points – net interest margin
decreased six basis points to 4.01%
Stable credit quality metrics and lower loan
 
growth drove a $1.1
 
million reduction in credit loss provision
 
- net loan charge-offs
were 22 basis points (annualized) of
 
average loans – allowance coverage ratio of 1.07%
Noninterest income increased
 
$0.9 million, or 5.5%, due to higher mortgage banking revenues
 
and wealth management fees
Noninterest expense was well controlled
 
with a $0.2 million, or 0.5%, increase for the quarter
 
Balance Sheet
Loan balances grew $17.4 million, or
 
0.6% (average), and declined $2.7 million, or 0.1% (end of period)
Deposit balances increased by $28.0 million,
 
or 0.8% (average), and decreased $47.0 million,
 
or 1.3% (end of period)
Tangible
 
book value per diluted share (non-GAAP financial measure)
 
increased $0.52, or 2.5% - accumulated other
comprehensive loss remained
 
stable
Repurchased 82,540 shares
 
of common stock
“Overall, we are pleased with the first quarter as we realized solid earnings
 
and capital growth,” said William G. Smith, Jr.,
Chairman, President, CEO of Capital City Bank Group.
 
“Credit quality remained stable, average deposits grew,
 
and the dividend
increased 5 percent. While the operating environment remains challenging, we
 
believe we are well positioned and have strategies in
place to achieve a solid year of performance.”
 
Discussion of Operating Results
Net Interest Income/Net Interest
 
Margin
Tax-equivalent net
 
interest income for the first quarter of 2024
 
totaled $38.4 million, compared to $39.3 million for the fourth
quarter of 2023, and $40.5 million for the first quarter of 2023.
 
Compared to both prior periods, the decline was primarily
attributable to an increase in deposit interest expense, partially offset
 
by higher loan interest income.
 
The increase in deposit interest
expense was primarily attributable to higher average money market
 
balances and to a lesser extent certificates
 
of deposit (“CD”)
balances and reflected a combination of re-mix from other deposit categories
 
and higher rates for these products.
 
The increase in
loan interest income reflected existing loans re-pricing at higher rates and
 
new loan volume at higher rates.
 
Further, the first quarter
of 2024 had one less calendar day compared to the fourth quarter of 2023
 
and one additional calendar day compared to the first
quarter of 2023.
 
Our net interest margin for the first quarter of 2024 was 4.01%, a decrease
 
of six basis points from the fourth quarter of 2023 and a
decrease of three basis points from the first quarter of 2023.
 
The decrease compared to both prior periods primarily reflected higher
deposit cost related to re-mix within the deposit base and higher rates
 
paid on deposits, partially offset by higher yields from new
loan volume and loan repricing at higher rates.
 
For the first quarter of 2024, our cost of funds was 88 basis points, an increase of 15
basis points over the fourth quarter of 2023 and an increase of 53 basis points
 
over the first quarter of 2023.
 
Our cost of deposits
(including noninterest bearing accounts) was 85 basis points, 66 basis points,
 
and 26 basis points, respectively,
 
for the same periods.
 
 
Provision for Credit Losses
 
We recorded
 
a provision for credit losses of $0.9 million for the first quarter of 2024
 
compared to $2.0 million for the fourth quarter
of 2023 and $3.1 million for the first quarter of 2023.
 
The decrease in the provision compared to both prior periods was primarily
attributable to a lower level of reserves required for new loans, favorable
 
loan grade migration, and lower loss rates.
 
We discuss the
allowance for credit losses further below.
Noninterest Income and Noninterest
 
Expense
Noninterest income for the first quarter of 2024 totaled $18.1 million compared
 
to $17.2 million for the fourth quarter of 2023 and
$17.8
 
million for the first quarter of 2023.
 
The $0.9 million increase over the fourth quarter of 2023 was due to a $0.5 million
increase in mortgage banking revenues and a $0.4 million increase in wealth
 
management fees.
 
Compared to the first quarter of
2023, the $0.3 million increase was primarily attributable to higher wealth management
 
fees of $0.7 million partially offset by lower
other income of $0.3 million.
 
For both prior period comparisons, the increase in mortgage banking revenues
 
reflected a higher
volume of rate locks and third-party loan sales.
 
A combination of higher trust fees, retail brokerage fees, and insurance
commissions drove the increase in wealth management fees over
 
the fourth quarter of 2023.
 
Higher retail brokerage fees of $0.4
million and trust fees of $0.2 million drove the increase over the first quarter
 
of 2023.
 
The decrease in other income was primarily
due to lower loan servicing income and miscellaneous income.
 
Noninterest expense for the first quarter of 2024 totaled $40.2 million compared
 
to $40.0 million for the fourth quarter of 2023 and
$37.7
 
million for the first quarter of 2023.
 
The $0.2 million increase over the fourth quarter of 2023 reflected a $0.6 million
increase in compensation expense that was partially offset
 
by decreases in occupancy expense of $0.1 million and other expense of
$0.3 million.
 
The increase in compensation expense was primarily attributable to higher
 
payroll taxes (annual re-set) and 401k plan
matching expense.
 
Compared to the first quarter of 2023, the $2.5
 
million increase reflected higher other expense as we realized a
$1.8 million gain from the sale of other real estate (banking offic
 
e) in the first quarter of 2023.
 
Further, compensation expense was
$0.9 million higher primarily due to a lower level of realized loan cost (credit
 
offset to salary expense) due to decreased new loan
production.
 
Income Taxes
We realized income
 
tax expense of $3.5 million (effective rate of 23.0%) for the
 
first quarter of 2024 compared to $2.9 million
(effective rate of 20.3%) for the fourth quarter of 2023
 
and $3.7 million (effective rate of 21.3%) for the first quarter of
 
2023.
 
The
increase in our effective tax rate for the first quarter of 202
 
4
 
compared to both prior periods was primarily due to a lower level of
tax benefit
 
accrued from an investment in a solar tax credit equity fund.
 
Absent discrete items or new tax credit investments, we
expect our annual effective tax rate to approximate 23%
 
for 2024.
3
Discussion of Financial Condition
Earning Assets
Average earning
 
assets totaled $3.850 billion for the first quarter of 2024, an increase of $25.6 million,
 
or 0.7%, over the fourth
quarter of 2023, and a decrease of $213.1 million, or 5.2%, from the first quarter
 
of 2023.
 
The variance for both prior period
comparisons was driven by change in deposit balances (see below –
Deposits
).
 
Compared to both prior periods, the mix of earning
assets improved as overnight funds were utilized to fund loan growth.
Average loans
 
held for investment (“HFI”) increased $17.4 million, or 0.6%, over the fourth quarter
 
of 2023 and $146.2 million, or
5.7%, over the first quarter of 2023.
 
Compared to both prior periods, the increase was primarily due to an increase in residential
loans partially offset by a decline in consumer loans (primarily
 
auto).
 
Period end loans decreased $2.7
 
million, or 0.1%, from the
fourth quarter of 2023 and increased $74.0 million, or 2.8%, over
 
the first quarter of 2023.
 
The decrease from the fourth quarter of
2023 was primarily due to lower consumer (auto) loan portfolio balances
 
partially offset by growth in residential loans.
 
Compared
to the first quarter of 2023, the increase reflected growth in residential loans and,
 
to a lesser extent,
 
commercial real estate loans
partially offset by lower consumer (auto) loan balances.
Allowance for Credit Losses
At March 31, 2024, the allowance for credit losses for HFI loans totaled $29.3
 
million compared to $29.9 million at December 31,
2023 and $26.8 million at March 31, 2023.
 
Activity within the allowance is provided on Page 9.
 
The decrease in the allowance
from December 31, 2023 was primarily due to favorable loan grade migration,
 
lower loss rates, and a combination of lower loan
balances and shift in mix within the portfolio.
 
Compared to March 31, 2023, the increase was primarily driven by loan growth.
 
At
March 31, 2024, the allowance represented 1.07% of HFI loans compared
 
to 1.10% at December 31, 2023, and 1.01% at March 31,
2023.
 
Credit Quality
Overall credit quality remained stable.
 
Nonperforming assets (nonaccrual loans and other real estate) totaled $6.8
 
million at March
31, 2024 compared to $6.2 million at December 31, 2023 and $4.6 million
 
at March 31, 2023.
 
At March 31, 2024, nonperforming
assets as a percent of total assets equaled 0.16%, compared to 0.15% at December 31,
 
2023 and 0.10% at March 31, 2023.
 
Nonaccrual loans totaled $6.8 million at March 31, 2024, a $0.6 million
 
increase over December 31, 2023 and a $2.2 million
increase over March 31, 2023.
 
Further, classified loans totaled $22.3 million
 
at March 31, 2024, a $0.1 million increase over
December 31, 2023 and a $10.1 million increase over March 31, 2023.
Deposits
Average total
 
deposits were $3.577 billion for the first quarter of 2024, an increase of $28.0 million,
 
or 0.8%, over the fourth quarter
of 2023 and a decrease of $240.8 million, or 6.3%, from the first quarter
 
of 2023.
 
Compared to the fourth quarter of 2023, the
increase reflected a higher average balance for public funds (municipal
 
clients - primarily NOW accounts) which typically peak late
in the fourth quarter.
 
Further, we realized growth in both our money market
 
and CD balances which reflected a combination of
balances migrating from noninterest bearing and savings accounts,
 
in addition to receiving new deposits from existing and new
clients.
 
Compared to the first quarter of 2023, the decrease was primarily attributable
 
to lower noninterest bearing and savings
accounts, partially offset by increases in money market
 
and CD balances.
 
The decrease in noninterest bearing and savings accounts
reflected a combination of consumer/business spend of pandemic related
 
stimulus funds and rate sensitive clients seeking higher
yields,
 
partially offset by the aforementioned migration
 
to higher rate deposit products (money market and CD).
 
We continue to
closely monitor our cost of deposits and deposit mix as we manage
 
through this higher interest rate environment.
 
Liquidity
The Bank maintained an average net overnight funds (deposits with banks plus
 
FED funds sold less FED funds purchased) sold
position of $140.5 million in the first quarter of 2024
 
compared to $99.8 million in the fourth quarter of 2023 and $361.0 million in
the first quarter of 2023.
 
Compared to the fourth quarter of 2023,
 
the increase was driven by average deposit growth and investment
portfolio run-off, partially offset by average
 
loan growth.
 
Compared to the first quarter of 2023, the decrease was attributable to
lower average deposit balances and growth in our loan portfolio, partially
 
offset by investment portfolio run-off.
 
 
At March 31, 2024, we had the ability to generate approximately $1.
 
542 billion (excludes overnight funds position of $231 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.
 
4
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, 2024, the weighted-average
maturity and duration of our portfolio were 2.76 and 2.39 years, respectively,
 
and the available-for-sale portfolio had a net
unrealized tax-effected loss of $26.0 million.
 
Capital
Shareowners’ equity was $448.3 million at March 31, 2024 compared
 
to $440.6 million at December 31, 2023 and $403.3 million at
March 31, 2023.
 
For the first three months of 2024, shareowners’ equity was positively impacted by net
 
income attributable to
shareowners of $12.6 million, net adjustments totaling $0.6 million
 
related to transactions under our stock compensation plans,
stock compensation accretion of $0.4 million, and a $0.3 million increase
 
in the fair value of the interest rate swap related to
subordinated debt.
 
Shareowners’ equity was reduced by a common stock dividend of $3.6 million
 
($0.21 per share), the repurchase
of stock of $2.3 million (82,540 shares), and a $0.3 million increase in
 
the net unrealized loss on available for sale securities.
At March 31, 2024, our total risk-based capital ratio was 16.84% compared
 
to 16.57% at December 31, 2023 and 15.29% at March
31, 2023.
 
Our common equity tier 1 capital ratio was 13.82%, 13.52%, and 12.40%, respectively,
 
on these dates.
 
Our leverage ratio
was 10.45%, 10.30%, and 9.09%, respectively,
 
on these dates.
 
At March 31, 2024, 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 8.53% at March 31, 2024 compared to 8.26% and
 
7.20% at December 31, 2023 and March 31,
2023,
 
respectively.
 
If our unrealized held-to-maturity securities losses of $21.6 million (after-tax)
 
were recognized in accumulated
other comprehensive loss, our adjusted tangible capital ratio would be
 
8.01%.
 
5
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest
 
publicly traded financial holding companies headquartered
in Florida and has approximately $4.3
 
billion in assets.
 
We provide
 
a full range of banking services, including traditional deposit
and credit services, mortgage banking, asset management, trust, merchant
 
services, bankcards,
 
securities brokerage services and
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 63 banking offices and 104 ATM
 
s/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: our ability to successfully
manage credit risk, interest rate risk, liquidity risk, and other risks inherent
 
to our industry; legislative or regulatory changes; adverse
developments in the financial services industry generally,
 
such as bank failures and any related impact on depositor behavior; the
effects of changes in the level of checking or savings account deposits
 
and the competition for deposits on our funding costs, net
interest margin and ability to replace maturing deposits and advances,
 
as necessary; inflation, interest rate, market and monetary
fluctuations; uncertainty in the pricing of residential mortgage loans
 
that we sell, as well as competition for the mortgage servicing
rights related to these loans and related interest rate risk or price risk resulting
 
from retaining mortgage servicing rights and the
potential effects of higher interest rates on our loan origination
 
volumes; the effects of actions taken by governmental agencies
 
to
stabilize the recent volatility in the financial system and the effectiveness
 
of such actions; changes in monetary and fiscal policies of
the U.S. Government; the effects of security breaches and computer
 
viruses that may affect our computer systems or fraud related
 
to
debit card products; the accuracy of our financial statement estimates and
 
assumptions, including the estimates used for our
allowance for credit losses, deferred tax asset valuation and pension plan;
 
changes in our liquidity position; changes in accounting
principles, policies, practices or guidelines; the frequency and magnitude
 
of foreclosure of our loans; the effects of our lack of a
diversified loan portfolio, including the risks of loan segments, geographic
 
and industry concentrations; the strength of the United
States economy in general and the strength of the local economies in which
 
we conduct operations; our ability to declare and pay
dividends, the payment of which is subject to our capital requirements; changes
 
in the securities and real estate markets; structural
changes in the markets for origination, sale and servicing of residential mortgages;
 
our ability to retain key personnel; the effect of
corporate restructuring, acquisitions or dispositions, including the actual
 
restructuring and other related charges and the failure to
achieve the expected gains, revenue growth or expense savings from such
 
corporate restructuring, acquisitions or dispositions; the
effects of natural disasters, harsh weather conditions (including
 
hurricanes), widespread health emergencies (including pandemics,
such as the COVID-19 pandemic), military conflict, terrorism, civil unrest
 
or other geopolitical events; our ability to comply with the
extensive laws and regulations to which we are subject, including the
 
laws for each jurisdiction where we operate; the impact of the
restatement of our previously issued consolidated statements of
 
cash flows for the years ended December 31, 2021 and 2022 and for
the each of the three month periods ended March 31, 2022 and 2023, six month periods
 
ended June 30, 2022 and 2023 and nine
month periods ended September 30, 2022 and 2023; any inability to implement
 
and maintain effective internal control over financial
reporting and/or disclosure control or inability to remediate our existing material
 
weaknesses in our internal controls deemed
ineffective; the willingness of clients to accept third-party
 
products and services rather than our products and services and vice versa;
increased competition and its effect on pricing; technological changes;
 
the cost and effects of cybersecurity incidents or other
failures, interruptions, or security breaches of our systems or those of our
 
customers or third-party providers; the outcomes of
litigation or regulatory proceedings; negative publicity and the impact on our
 
reputation; changes in consumer spending and saving
habits; growth and profitability of our noninterest income; the limited trading
 
activity of our common stock; the concentration of
ownership of our common stock; anti-takeover provisions under
 
federal and state law as well as our Articles of Incorporation and
our Bylaws; other risks described from time to time in our filings with the Securities and
 
Exchange Commission; 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, 2023, 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
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, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Shareowners' Equity (GAAP)
$
448,314
$
440,625
$
419,706
$
412,422
$
403,260
Less: Goodwill and Other Intangibles (GAAP)
92,893
92,933
92,973
93,013
93,053
Tangible Shareowners' Equity (non-GAAP)
A
355,421
347,692
326,733
319,409
310,207
Total Assets (GAAP)
4,259,922
4,304,477
4,138,287
4,391,206
4,401,762
Less: Goodwill and Other Intangibles (GAAP)
92,893
92,933
92,973
93,013
93,053
Tangible Assets (non-GAAP)
B
$
4,167,029
$
4,211,544
$
4,045,314
$
4,298,193
$
4,308,709
Tangible Common Equity Ratio (non-GAAP)
A/B
8.53%
8.26%
8.08%
7.43%
7.20%
Actual Diluted Shares Outstanding (GAAP)
C
16,947,204
17,000,758
16,997,886
17,025,023
17,049,913
Tangible Book Value
 
per Diluted Share (non-GAAP)
A/C
$
20.97
$
20.45
$
19.22
$
18.76
$
18.19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
CAPITAL CITY BANK
 
GROUP,
 
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
(Dollars in thousands, except per share data)
Mar 31, 2024
Dec 31, 2023
Mar 31, 2023
EARNINGS
Net Income Attributable to Common Shareowners
$
12,557
$
11,720
$
13,709
Diluted Net Income Per Share
$
0.74
$
0.70
$
0.80
PERFORMANCE
Return on Average Assets (annualized)
1.21
%
1.12
%
1.26
%
Return on Average Equity (annualized)
11.07
10.69
13.76
Net Interest Margin
4.01
4.07
4.04
Noninterest Income as % of Operating Revenue
32.06
30.46
30.53
Efficiency Ratio
71.06
%
70.82
%
64.67
%
CAPITAL ADEQUACY
Tier 1 Capital
 
15.67
%
15.37
%
14.23
%
Total Capital
 
16.84
16.57
15.29
Leverage
 
10.45
10.30
9.09
Common Equity Tier 1
13.82
13.52
12.40
Tangible Common Equity
(1)
8.53
8.26
7.20
Equity to Assets
10.52
%
10.24
%
9.16
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
431.46
%
479.70
%
584.18
%
Allowance as a % of Loans HFI
1.07
1.10
1.01
Net Charge-Offs as % of Average Loans HFI
0.22
0.23
0.24
Nonperforming Assets as % of Loans HFI and OREO
0.25
0.23
0.17
Nonperforming Assets as % of Total Assets
0.16
%
0.15
%
0.10
%
STOCK PERFORMANCE
High
 
$
31.34
$
32.56
$
36.86
Low
26.59
26.12
28.18
Close
$
27.70
$
29.43
$
29.31
Average Daily Trading Volume
31,023
33,297
41,737
(1)
 
Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP,
 
refer to Page 6.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
 
OF FINANCIAL CONDITION
Unaudited
2024
2023
(Dollars in thousands)
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
ASSETS
Cash and Due From Banks
$
73,642
$
83,118
$
72,379
$
83,679
$
84,549
Funds Sold and Interest Bearing Deposits
231,047
228,949
95,119
285,129
303,403
Total Cash and Cash Equivalents
304,689
312,067
167,498
368,808
387,952
Investment Securities Available for Sale
327,338
337,902
334,052
386,220
402,943
Investment Securities Held to Maturity
603,386
625,022
632,076
641,398
651,755
Other Equity Securities
3,445
3,450
3,585
1,703
1,883
 
Total Investment Securities
934,169
966,374
969,713
1,029,321
1,056,581
Loans Held for Sale
 
24,705
28,211
34,013
44,659
28,475
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
218,298
225,190
221,704
227,219
236,263
Real Estate - Construction
202,692
196,091
197,526
226,404
253,903
Real Estate - Commercial
823,690
825,456
828,234
831,285
798,438
Real Estate - Residential
1,012,791
1,001,257
966,512
893,384
847,697
Real Estate - Home Equity
214,617
210,920
203,606
203,142
206,931
Consumer
254,168
270,994
285,122
295,646
305,324
Other Loans
3,789
2,962
1,401
5,425
7,660
Overdrafts
1,127
1,048
1,076
1,007
931
Total Loans Held for Investment
2,731,172
2,733,918
2,705,181
2,683,512
2,657,147
Allowance for Credit Losses
(29,329)
(29,941)
(29,083)
(28,243)
(26,808)
Loans Held for Investment, Net
2,701,843
2,703,977
2,676,098
2,655,269
2,630,339
Premises and Equipment, Net
81,452
81,266
81,677
82,062
82,055
Goodwill and Other Intangibles
92,893
92,933
92,973
93,013
93,053
Other Real Estate Owned
1
1
1
1
13
Other Assets
120,170
119,648
116,314
118,073
123,294
Total Other Assets
294,516
293,848
290,965
293,149
298,415
Total Assets
$
4,259,922
$
4,304,477
$
4,138,287
$
4,391,206
$
4,401,762
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,361,939
$
1,377,934
$
1,472,165
$
1,520,134
$
1,601,388
NOW Accounts
1,212,452
1,327,420
1,092,996
1,269,839
1,242,721
Money Market Accounts
398,308
319,319
304,323
321,743
271,880
Savings Accounts
530,782
547,634
571,003
590,245
617,310
Certificates of Deposit
151,320
129,515
99,958
86,905
90,621
Total Deposits
3,654,801
3,701,822
3,540,445
3,788,866
3,823,920
Repurchase Agreements
23,477
26,957
22,910
22,619
4,429
Other Short-Term Borrowings
8,409
8,384
18,786
28,054
22,203
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
265
315
364
414
463
Other Liabilities
65,181
66,080
75,585
77,192
85,878
Total Liabilities
3,805,020
3,856,445
3,710,977
3,970,032
3,989,780
Temporary Equity
6,588
7,407
7,604
8,752
8,722
SHAREOWNERS' EQUITY
Common Stock
169
170
170
170
170
Additional Paid-In Capital
34,861
36,326
36,182
36,853
37,512
Retained Earnings
435,364
426,275
418,030
408,771
397,654
Accumulated Other Comprehensive Loss, Net of Tax
(22,080)
(22,146)
(34,676)
(33,372)
(32,076)
Total Shareowners' Equity
448,314
440,625
419,706
412,422
403,260
Total Liabilities, Temporary Equity and Shareowners' Equity
$
4,259,922
$
4,304,477
$
4,138,287
$
4,391,206
$
4,401,762
OTHER BALANCE SHEET DATA
Earning Assets
$
3,921,093
$
3,957,452
$
3,804,026
$
4,042,621
$
4,045,607
Interest Bearing Liabilities
2,377,900
2,412,431
2,163,227
2,372,706
2,302,514
Book Value Per Diluted Share
$
26.45
$
25.92
$
24.69
$
24.21
$
23.65
Tangible Book Value
 
Per Diluted Share
(1)
20.97
20.45
19.22
18.76
18.19
Actual Basic Shares Outstanding
16,929
16,950
16,958
16,992
17,022
Actual Diluted Shares Outstanding
16,947
17,001
16,998
17,025
17,050
(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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF OPERATIONS
Unaudited
2024
2023
(Dollars in thousands, except per share data)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
INTEREST INCOME
Loans, including Fees
$
40,683
$
40,407
$
39,344
$
37,608
$
34,891
Investment Securities
4,244
4,392
4,561
4,815
4,924
Federal Funds Sold and Interest Bearing Deposits
1,893
1,385
1,848
2,782
4,111
Total Interest Income
46,820
46,184
45,753
45,205
43,926
INTEREST EXPENSE
Deposits
7,594
5,872
5,214
4,008
2,488
Repurchase Agreements
201
199
190
115
9
Other Short-Term Borrowings
39
310
440
336
452
Subordinated Notes Payable
628
627
625
604
571
Other Long-Term Borrowings
3
5
4
5
6
Total Interest Expense
8,465
7,013
6,473
5,068
3,526
Net Interest Income
38,355
39,171
39,280
40,137
40,400
Provision for Credit Losses
920
2,025
2,393
2,197
3,099
Net Interest Income after Provision for Credit Losses
37,435
37,146
36,887
37,940
37,301
NONINTEREST INCOME
Deposit Fees
5,250
5,304
5,456
5,326
5,239
Bank Card Fees
3,620
3,713
3,684
3,795
3,726
Wealth Management Fees
4,682
4,276
3,984
4,149
3,928
Mortgage Banking Revenues
2,878
2,327
1,839
3,363
2,871
Other
 
1,667
1,537
1,765
3,334
1,994
Total Noninterest Income
18,097
17,157
16,728
19,967
17,758
NONINTEREST EXPENSE
Compensation
24,407
23,822
23,003
23,438
23,524
Occupancy, Net
6,994
7,098
6,980
6,820
6,762
Other
 
8,770
9,038
9,122
10,027
7,389
Total Noninterest Expense
40,171
39,958
39,105
40,285
37,675
OPERATING PROFIT
15,361
14,345
14,510
17,622
17,384
Income Tax Expense
3,536
2,909
3,004
3,417
3,710
Net Income
11,825
11,436
11,506
14,205
13,674
Pre-Tax Loss (Income) Attributable to Noncontrolling Interest
732
284
1,149
(31)
35
NET INCOME ATTRIBUTABLE
 
TO
 
COMMON SHAREOWNERS
$
12,557
$
11,720
$
12,655
$
14,174
$
13,709
PER COMMON SHARE
Basic Net Income
$
0.74
$
0.69
$
0.75
$
0.83
$
0.81
Diluted Net Income
0.74
0.70
0.74
0.83
0.80
Cash Dividend
 
$
0.21
$
0.20
$
0.20
$
0.18
$
0.18
AVERAGE
 
SHARES
Basic
 
16,951
16,947
16,985
17,002
17,016
Diluted
 
16,969
16,997
17,025
17,035
17,045
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
CAPITAL CITY BANK GROUP,
 
INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
2024
2023
(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
$
29,941
$
29,083
$
28,243
$
26,808
$
25,068
Transfer from Other (Assets) Liabilities
(50)
66
-
-
-
Provision for Credit Losses
932
2,354
1,993
1,922
3,260
Net Charge-Offs (Recoveries)
1,494
1,562
1,153
487
1,520
Balance at End of Period
$
29,329
$
29,941
$
29,083
$
28,243
$
26,808
As a % of Loans HFI
1.07%
1.10%
1.08%
1.05%
1.01%
As a % of Nonperforming Loans
431.46%
479.70%
619.58%
426.44%
584.18%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
3,191
$
3,502
$
3,120
$
2,833
$
2,989
Provision for Credit Losses
 
(70)
(311)
382
287
(156)
Balance at End of Period
(1)
3,121
3,191
3,502
3,120
2,833
ACL - DEBT SECURITIES
Provision for Credit Losses
 
$
58
$
(18)
$
18
$
(12)
$
(5)
CHARGE-OFFS
Commercial, Financial and Agricultural
$
282
$
217
$
76
$
54
$
164
Real Estate - Commercial
-
-
-
-
120
Real Estate - Residential
17
79
-
-
-
Real Estate - Home Equity
76
-
-
39
-
Consumer
1,550
1,689
1,340
993
1,732
Overdrafts
638
602
659
894
634
Total Charge-Offs
$
2,563
$
2,587
$
2,075
$
1,980
$
2,650
RECOVERIES
Commercial, Financial and Agricultural
$
41
$
83
$
28
$
71
$
95
Real Estate - Construction
-
-
-
1
1
Real Estate - Commercial
204
16
17
11
8
Real Estate - Residential
37
34
30
132
57
Real Estate - Home Equity
24
17
53
131
25
Consumer
410
433
418
514
571
Overdrafts
353
442
376
633
373
Total Recoveries
$
1,069
$
1,025
$
922
$
1,493
$
1,130
NET CHARGE-OFFS (RECOVERIES)
$
1,494
$
1,562
$
1,153
$
487
$
1,520
Net Charge-Offs as a % of Average Loans
 
HFI
(2)
0.22%
0.23%
0.17%
0.07%
0.24%
CREDIT QUALITY
Nonaccruing Loans
$
6,798
$
6,242
$
4,694
$
6,623
$
4,589
Other Real Estate Owned
1
1
1
1
13
Total Nonperforming Assets ("NPAs")
$
6,799
$
6,243
$
4,695
$
6,624
$
4,602
Past Due Loans 30-89 Days
 
$
5,392
$
6,854
$
5,577
$
4,207
$
5,061
Classified Loans
22,305
22,203
21,812
14,973
12,179
Nonperforming Loans as a % of Loans HFI
0.25%
0.23%
0.17%
0.25%
0.17%
NPAs as a % of Loans HFI and Other Real Estate
0.25%
0.23%
0.17%
0.25%
0.17%
NPAs as a % of
 
Total Assets
0.16%
0.15%
0.11%
0.15%
0.10%
(1)
 
Recorded in other liabilities
(2)
 
Annualized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11
CAPITAL CITY BANK GROUP,
 
INC.
AVERAGE
 
BALANCE AND INTEREST RATES
Unaudited
First Quarter 2024
Fourth Quarter 2023
Third Quarter 2023
Second Quarter 2023
First Quarter 2023
(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
$
27,314
$
563
5.99
%
$
49,790
$
817
6.50
%
$
62,768
$
971
6.14
%
$
54,350
800
5.90
%
$
55,110
$
644
4.74
%
Loans Held for Investment
(1)
2,728,629
40,196
5.95
2,711,243
39,679
5.81
2,672,653
38,455
5.71
2,657,693
36,890
5.55
2,582,395
34,342
5.39
Investment Securities
Taxable Investment Securities
952,328
4,239
1.78
962,322
4,389
1.81
1,002,547
4,549
1.80
1,041,202
4,803
1.84
1,061,372
4,911
1.86
Tax-Exempt Investment Securities
(1)
856
9
4.34
862
7
4.32
2,456
17
2.66
2,656
17
2.47
2,840
18
2.36
Total Investment Securities
953,184
4,248
1.78
963,184
4,396
1.82
1,005,003
4,566
1.81
1,043,858
4,820
1.84
1,064,212
4,929
1.86
Federal Funds Sold and Interest Bearing Deposits
140,488
1,893
5.42
99,763
1,385
5.51
136,556
1,848
5.37
218,902
2,782
5.10
360,971
4,111
4.62
Total Earning Assets
3,849,615
$
46,900
4.90
%
3,823,980
$
46,277
4.80
%
3,876,980
$
45,840
4.69
%
3,974,803
$
45,292
4.57
%
4,062,688
$
44,026
4.39
%
Cash and Due From Banks
75,763
76,681
75,941
75,854
74,639
Allowance for Credit Losses
(30,030)
(29,998)
(29,172)
(27,893)
(25,637)
Other Assets
295,275
296,114
295,106
297,837
300,175
Total Assets
$
4,190,623
$
4,166,777
$
4,218,855
$
4,320,601
$
4,411,865
LIABILITIES:
Noninterest Bearing Deposits
$
1,344,188
$
1,416,825
$
1,474,574
$
1,539,877
$
1,601,750
NOW Accounts
1,201,032
$
4,497
1.51
%
1,138,461
$
3,696
1.29
%
1,125,171
$
3,489
1.23
%
1,200,400
$
3,038
1.01
%
1,228,928
$
2,152
0.71
%
Money Market Accounts
353,591
1,985
2.26
318,844
1,421
1.77
322,623
1,294
1.59
288,466
747
1.04
267,573
208
0.31
Savings Accounts
539,374
188
0.14
557,579
202
0.14
579,245
200
0.14
602,848
120
0.08
629,388
76
0.05
Time Deposits
138,328
924
2.69
116,797
553
1.88
95,203
231
0.96
87,973
103
0.47
89,675
52
0.24
Total Interest Bearing Deposits
2,232,325
7,594
1.37
2,131,681
5,872
1.09
2,122,242
5,214
0.97
2,179,687
4,008
0.74
2,215,564
2,488
0.46
Total Deposits
3,576,513
7,594
0.85
3,548,506
5,872
0.66
3,596,816
5,214
0.58
3,719,564
4,008
0.43
3,817,314
2,488
0.26
Repurchase Agreements
25,725
201
3.14
26,831
199
2.94
25,356
190
2.98
17,888
115
2.58
9,343
9
0.37
Other Short-Term Borrowings
3,758
39
4.16
16,906
310
7.29
24,306
440
7.17
17,834
336
7.54
37,766
452
4.86
Subordinated Notes Payable
52,887
628
4.70
52,887
627
4.64
52,887
625
4.62
52,887
604
4.52
52,887
571
4.32
Other Long-Term Borrowings
281
3
4.80
336
5
4.72
387
4
4.73
431
5
4.80
480
6
4.80
Total Interest Bearing Liabilities
2,314,976
$
8,465
1.47
%
2,228,641
$
7,013
1.25
%
2,225,178
$
6,473
1.15
%
2,268,727
$
5,068
0.90
%
2,316,040
$
3,526
0.62
%
Other Liabilities
68,295
78,772
83,099
84,305
81,206
Total Liabilities
3,727,459
3,724,238
3,782,851
3,892,909
3,998,996
Temporary Equity
7,150
7,423
8,424
8,935
8,802
SHAREOWNERS' EQUITY:
456,014
435,116
427,580
418,757
404,067
Total Liabilities, Temporary
 
Equity and Shareowners' Equity
$
4,190,623
$
4,166,777
$
4,218,855
$
4,320,601
$
4,411,865
Interest Rate Spread
$
38,435
3.43
%
$
39,264
3.55
%
$
39,367
3.54
%
$
40,224
3.67
%
$
40,500
3.77
%
Interest Income and Rate Earned
(1)
46,900
4.90
46,277
4.80
45,840
4.69
45,292
4.57
44,026
4.39
Interest Expense and Rate Paid
(2)
8,465
0.88
7,013
0.73
6,473
0.66
5,068
0.51
3,526
0.35
Net Interest Margin
$
38,435
4.01
%
$
39,264
4.07
%
$
39,367
4.03
%
$
40,224
4.06
%
$
40,500
4.04
%
(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.