ex991

Capital City Bank Group, Inc.

Reports Second Quarter 2022 Results

TALLAHASSEE, Fla.

(July 26, 2022) – Capital City Bank Group, Inc. (NASDAQ: CCBG)

today reported net income attributable to

common shareowners of $8.7 million, or $0.51 per diluted share,

for the second quarter of 2022 compared to net income of $8.5

million, or $0.50 per diluted share, for the first quarter of 2022, and $7.4 million,

or $0.44 per diluted share, for the second quarter of

2021.

For the first six months of 2022, net income attributable to common shareowners

totaled $17.2 million, or $1.01 per diluted share,

compared to net income of $16.9 million, or $1.00 per diluted share, for the same period

of 2021.

QUARTER HIGHLIGHTS (2

Quarter 2022 versus 1

Quarter 2022)

●

Net interest income grew

14.7% driven by strong loan growth

and higher interest rates

●

Period end loan balances grew $228.1 million,

or 11.5%, with residential

loan purchases from Capital

City Home Loans

(CCHL) contributing $132 million and solid growth

from residential construction

and commercial mortgage

●

Provision for credit losses increased

$1.5 million driven by strong loan growth

– overall credit quality remained

strong

●

Average deposit balances

grew

$51.3 million, or 1.4%,

driven by higher noninterest bearing and

savings balances

●

Noninterest income decreased

$0.9 million, or 3.5%, due to lower insurance commission revenues

at Capital City Strategic

Wealth

(CCSW), which had a very strong first quarter – deposit,

bank card, and retail

brokerage fees all realized

solid

improvement

●

Noninterest expense increased

$1.3 million, or 3.2%, primarily due to higher performance-based compensation

and to a lesser

extent annual merit raises and staffing additions in new markets

●

Tangible

book value per share declined $0.04, or 0.2%, buoyed by strong

earnings that significantly mitigated the impact of

rapidly increasing interest

rates and the related impact on our unrealized

loss on investment securities

“Strong loan growth and higher rates produced another quarter of solid

financial performance,” said William G. Smith, Jr.,

Chairman, President and CEO of Capital City Bank Group.

“The quality of our core deposit base, deployment of liquidity into the

loan portfolio and higher interest rates all contributed to an increase in our net interest

margin percentage of 32 basis points during

the second quarter.

The $1.5 million loan loss provision recorded in this quarter was primarily driven

by loan growth as our credit

quality metrics remain very favorable.

From a macro-economic perspective, we continue to face a high level of uncertainty.

While

much of this is out of our control, we believe we are well positioned to navigate

through this year and beyond.

Although higher

rates will generate unrealized losses in our available-for-sale

investment portfolio, our asset-sensitive balance sheet and pension

liability should respond well to rising rates.

Additionally, our expansion

efforts in west Florida and the northern arc of Atlanta are

producing favorable results.

While challenges remain, we continue to focus on identifying opportuniti

es and executing strategies

we believe are sustainable and add long-term value for our shareowners.”

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net

interest income for the second quarter of 2022 totaled $28.4 million, compared

to $24.8 million for the first

quarter of 2022, and $26.1 million for the second quarter of 2021.

For the first six months of 2022, tax-equivalent net interest

income totaled $53.2 million compared to $50.7 million for the same period

of 2021.

Compared to the referenced prior periods, the

increase reflected higher interest rates, strong loan growth, and

higher investment balances.

Our net interest margin for the second quarter of 2022 was 2.87%,

an increase of 32 basis points over the first quarter of 2022

primarily attributable to higher interest rates and an overall improved

earning asset mix.

For the month of June 2022, our net interest

margin was 3.05%.

Excluding the impact of overnight funds in excess of $200 million, our net interest margin

for the second quarter

of 2022 was 3.24%.

Compared to the three and six month periods of 2021, the net interest margin

decreased two and 16 basis

points, respectively, primarily

due to growth in earning assets (driven by higher deposit balances), which

drove net interest income

dollars higher, but negatively impacted

the margin percentage.

Provision for Credit Loss

We recorded

a provision for credit losses of $1.5 million for the second quarter of 2022 compared

to no provision in the first quarter

of 2022 and a provision benefit of $0.6 million for the second quarter of 2021.

Compared to the first quarter of 2022, the higher

level of provision was primarily attributable to strong loan growth.

For the first six months of 2022, the provision was $1.5 million

compared to a benefit of $1.6 million for the same period of 2021.

Improvement in credit quality and the release of reserves held

for pandemic related losses favorably impacted our provision for

credit losses in 2022.

We discuss the allowance

for credit losses

further below.

Noninterest Income and Noninterest

Expense

Noninterest income for the second quarter of 2022 totaled $24.9 million

compared to $25.8 million for the first quarter of 2022

and

$26.5 million for the second quarter of 2021.

The $0.9 million decrease from the first quarter of 2022 was primarily attributable

lower wealth management fees of $1.7 million, which reflected lower

insurance revenues at CCSW of $1.9 million that were

partially offset by higher retail brokerage fees of $0.3 million.

Combined deposit and bank card fees increased $0.5 million and

mortgage banking fees increased $0.1 million.

Compared to the second quarter of 2021, the $1.6 million decrease was primarily

attributable to lower mortgage banking revenues of $4.2 million that were

partially offset by higher deposit fees of $1.2 million and

wealth management fees of $1.1 million (insurance revenues of $0.7

million and retail brokerage fees of $0.4 million).

For the first

six months of 2022, noninterest income totaled $50.7 million compared

to $56.3 million for the same period of 2021 with the $5.6

million decrease largely driven by lower mortgage banking

fees of $12.3 million partially offset by higher deposit

fees of $2.1

million and wealth management fees of $4.1 million (insurance revenues

of $3.4 million and retail brokerage fees of $0.7 million).

Lower mortgage banking revenues for 2022 reflected a reduction in refinancing

activity, and to a lesser degree

lower purchase

mortgage originations, primarily driven by higher interest rates.

In addition, gain on sale margins have been pressured

due to a

lower level of both governmental loan product originations and

mandatory delivery loan sales (both of which provide a higher gain

percentage).

Strong best efforts (portfolio product) origination volume and continued

stability in our construction/permanent loan

program have partially offset the slowdown in secondary

market originations.

For 2022, CCHL contributed $0.6 million ($0.03 per

diluted share) to earnings versus $2.5 million ($0.14 per diluted share) in 2021,

which has largely been offset by a $1.2 million

($0.07 per diluted share) contribution to earnings by CCSW and improvement

in both retail brokerage fees and deposit fees which

reflects our continued focus on and commitment to revenue diversification.

Noninterest expense for the second quarter of 2022 totaled $40.5

million compared to $39.2 million for the first quarter of 2022

and

$42.1 million for the second quarter of 2021.

The $1.3 million increase over the first quarter of 2022 was driven by

a $0.9

million

increase in other expense and higher compensation of $0.5 million.

Higher expense for advertising ($0.2 million),

processing ($0.1

million),

and travel/entertainment ($0.1 million) drove the increase in other

expense.

Other expense also reflects a $0.2 million

expense for our VISA share swap agreement,

which is triggered when VISA funds their merchant litigation reserve which happens

infrequently.

The $0.5 million increase in compensation was driven by higher salary expense of $0.8

million (CCHL commissions,

annual merit, and staffing additions in new markets) that

was partially offset by lower associate benefit expense of $0.3 million.

Compared to the second quarter of 2021, the $1.6 million decrease was primarily

attributable to lower pension settlement expense

of $1.8 million.

Other expense decreased $0.1 million and reflected lower base pension plan expense of

$0.8 million partially offset

by higher expense for advertising and miscellaneous (includes $0.2

million VISA share swap expense).

For the first six months of

2022, noninterest expense totaled $79.7 million compared to $82.6

million for the same period of 2021 with the $2.9 million

decrease primarily attributable to lower pension settlement expense

of $1.6 million and lower compensation expense of $1.2

million.

The decrease in compensation expense reflected lower salary expense

of $1.4 million partially offset by higher associate

benefit expense of $0.2 million.

Lower performance-based compensation (commissions/incentives)

at CCHL partially offset by

higher performance based compensation at CCSW and lower realized

loan cost (credit offset by salary expense) at the Bank drove

the variance in salary expense.

To date, the impact of

inflation and higher prices on our cost structure has not been significant.

While operating in a very tight labor market, we have mitigated the impact

of salary pressures by not replacing certain positions that

became vacant.

Further, we have realized higher than historical increases

in certain premises and processing contracts reflective of

inflationary pressures and will continue to focus on opportunities to re-negotiate

or replace vendors

at periodic renewals.

Income Taxes

We realized income

tax expense of $2.2

million (effective rate of 19.4%) for the second quarter of 2022

comparable to the first

quarter of 2022 and $2.1 million (effective rate of 18.9%)

for the second quarter of 2021.

For the first six months of 2022, we

realized income tax expense of $4.4 million (effective

rate of 19.6%) compared to $4.8 million (effective rate of 18.8%) for

the

same period of 2021.

For the second quarter of 2022, we realized a favorable discrete tax item for

$0.3 million related to state of

Florida tax refunds.

Absent discrete items, we expect our annual effective tax rate to approximate 20-21%

in 2022.

Discussion of Financial Condition

Earning Assets

Average earning

assets totaled $3.974 billion for the second quarter of 2022, an increase of $35.4 million, or

0.9%, over the first

quarter of 2022, and an increase of $182.9 million, or 4.8%, over

the fourth quarter of 2021.

The increase over both prior periods

was primarily driven by higher deposit balances (see below –

Funding

The mix of earning assets continues to improve driven by

strong loan growth and further deployment of liquidity into the investment

portfolio, which has increased $135 million in 2022.

We maintained

an average net overnight funds (deposits with banks plus FED funds sold less FED funds

purchased) sold position of

$691.9 million in the second quarter of 2022 compared to $873.1 million in

the first quarter of 2022 and $789.1 million in the fourth

quarter of 2021.

Average loans

held for investment (“HFI”) increased $121.1 million, or 6.2%, over the first quarter

of 2022 and increased $136.4

million, or 7.0%, over the fourth quarter of 2021.

Period end loans increased $228.1 million, or 11.5%, over

the first quarter of

2022 and $282.2 million, or 14.6%, over the fourth quarter of 2022.

The growth in 2022 has been broad based with increases

realized in all loan categories, more significantly,

residential mortgage, residential construction, and consumer (indirect auto)

with

strong growth in commercial mortgage in the second quarter.

The increase in residential mortgage reflected a higher level of loan

purchases (second quarter - $132 million, first quarter - $26 million)

from CCHL driven by higher demand for portfolio/adjustable

rate product.

In addition, the increase in commercial mortgage reflected a loan pool purchase (7

loans for $15 million).

Allowance for Credit Losses

At June 30, 2022, the allowance for credit losses for HFI loans totaled $21.3

million compared to $20.8 million at March 31, 2022

and $21.6 million at December 31, 2021.

Activity within the allowance is provided on Page 9.

The $0.5 million increase in the

allowance for the second quarter was driven by growth in reserves for

strong new loan origination volume that was partially offset

by the release of reserves held for pandemic related losses that have

not materialized to the extent projected.

Further, net charge-

offs increased

$0.4 million to $1.1 million for the second quarter and reflected one large

commercial charge-off for $0.8 million

related to a work-out resolved during the quarter.

At June 30, 2022, the allowance represented 0.96% of HFI loans and provided

coverage of 678% of nonperforming loans compared to 1.05% and

761%, respectively, at March

31, 2022, and 1.12% and 500%,

respectively, at December

31, 2021.

Credit Quality

Overall credit quality remains strong.

Nonperforming assets (nonaccrual loans and other real estate) totaled $3.2

million at June 30,

2022 compared to $2.8 million at March 31, 2022 and $4.3 million at December

31, 2021.

At June 30, 2022, nonperforming assets

as a percentage of total assets totaled 0.07% compared to 0.06% at March

31, 2022 and 0.10% at December 31, 2021.

Nonaccrual

loans totaled $3.1 million at June 30, 2022, a $0.4 million increase over

March 31, 2022 and a $1.2 million decrease from December

31, 2021.

Further, classified loans decreased $2.7 million

from the first quarter of 2022 to $19.6 million.

Funding (Deposits/Debt)

Average total

deposits were $3.765 billion for the second quarter of 2022, an increase of $51.3

million, or 1.4%, over the first

quarter of 2022 and $216.2 million, or 6.1%, over the fourth quarter

of 2021.

Compared to the first quarter of 2022, the increase

reflected higher noninterest bearing and savings balances, partially offset

by a decline in seasonal public fund balances.

Compared

to the fourth quarter of 2021, strong growth occurred in our noninterest

bearing deposits, NOW accounts, and savings account

balances.

Over the past few years, we have experienced strong core deposit growth, in addition to

growth related to multiple

government stimulus programs in response to the Covid-19 pandemic

such as those under the CARES Act and the American

Rescue Plan Act.

Given these increases,

the potential exists for our deposit levels to be volatile for the remainder of 2022

due to the

uncertain timing of the outflows of the stimulus related balances, in addition to

the frequency and degree to which the Federal Open

Market Committee (FOMC) raises the overnight funds rate. It is anticipated

that liquidity levels will remain strong given our current

level of overnight funds.

Average borrowings

decreased $0.7 million from the first quarter of 2022 primarily due to a decrease in

short-term repurchase

agreements and declined $15.3 million from the fourth quarter of 2021, reflect

ing lower warehouse line borrowing needs to support

CCHL’s

loans held for sale.

Capital

Shareowners’ equity was $371.7 million at June 30, 2022 compared

to $372.1 million at March 31, 2022 and $383.2 million at

December 31, 2021.

For the first six months of 2022, shareowners’ equity was positively impacted by net

income attributable to

common shareowners of $17.2 million, a $2.2 million increase in the

fair value of the interest rate swap related to subordinated debt,

net adjustments totaling $0.8 million related to transactions under

our stock compensation plans,

stock compensation accretion of

$0.5 million, and a $0.3 million decrease in the accumulated other comprehensive

loss for our pension plan. Shareowners’ equity

was reduced by common stock dividends

of $5.4 million ($0.32 per share) and a $27.1 million increase in the unrealized loss on

investment securities.

At June 30, 2022, our total risk-based capital ratio was 16.07% compared

to 16.98% at March 31, 2022 and 17.15% at December

31, 2021.

Our common equity tier 1 capital ratio was 13.07%, 13.77%, and 13.86%, respectively,

on these dates.

Our leverage ratio

was 8.77%, 8.78%, and 8.95%, 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 6.54% at

June

30, 2022 compared to 6.61% and 6.95% at March 31, 2022 and December

31, 2021, respectively.

The decline in our regulatory

capital ratios was attributable to strong loan growth and higher asset levels.

The decline in our tangible capital ratio from the first

quarter of 2022 was driven by an $8.0 million increase in the unrealized

loss on investment securities which totaled $31.7 million,

or 5.3% of available for sale securities at June 30, 2022.

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 $4.4 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 57 banking offices and 88 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: fluctuations in inflation, interest rates, or monetary policies; the

accuracy of the our financial statement estimates and

assumptions; legislative or regulatory changes; 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; the magnitude and

duration of the ongoing COVID-19 pandemic and its impact on the global

economy and financial market conditions and our

business; 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, 2021, and our other filings with the SEC,

which are available at the SEC’s internet

site (http://www.sec.gov).

Forward-looking statements in this Press Release speak only as

of the date of the Press Release, and we assume no obligation to update forward-looking

statements or the reasons why actual results

could differ.

USE OF NON-GAAP FINANCIAL MEASURES

We present a

tangible common equity ratio and a tangible book value per diluted share that removes

the effect of goodwill and other

intangibles resulting from merger and acquisition activity.

We believe these

measures are useful to investors because it allows

investors to more easily compare our capital adequacy to other companies

in the industry.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Shareowners' Equity (GAAP)

371,675

372,145

383,166

348,868

335,880

Less: Goodwill and Other Intangibles (GAAP)

93,173

93,213

93,253

93,293

93,333

Tangible Shareowners' Equity (non-GAAP)

278,502

278,932

289,913

255,575

242,547

Total Assets (GAAP)

4,354,297

4,310,045

4,263,849

4,048,733

4,011,459

Less: Goodwill and Other Intangibles (GAAP)

93,173

93,213

93,253

93,293

93,333

Tangible Assets (non-GAAP)

4,261,124

4,216,832

4,170,596

3,955,440

3,918,126

Tangible Common Equity Ratio (non-GAAP)

A/B

6.54%

6.61%

6.95%

6.46%

6.19%

Actual Diluted Shares Outstanding (GAAP)

16,981,614

16,962,362

16,935,389

16,911,715

16,901,375

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

16.40

16.44

17.12

15.11

14.35

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

Jun 30, 2022

Mar 31, 2022

Jun 30, 2021

Jun 30, 2022

Jun 30, 2021

EARNINGS

Net Income Attributable to Common Shareowners

8,713

8,455

7,427

17,168

16,933

Diluted Net Income Per Share

0.51

0.50

0.44

1.01

1.00

PERFORMANCE

Return on Average Assets

0.81

0.80

0.75

0.81

0.88

Return on Average Equity

9.36

8.93

9.05

9.14

10.42

Net Interest Margin

2.87

2.55

2.89

2.71

2.87

Noninterest Income as % of Operating Revenue

46.78

51.11

50.47

48.89

52.73

Efficiency Ratio

75.96

77.55

80.18

76.73

77.22

CAPITAL ADEQUACY

Tier 1 Capital

15.13

15.98

15.44

15.13

15.44

Total Capital

16.07

16.98

16.48

16.07

16.48

Leverage

8.77

8.78

8.84

8.77

8.84

Common Equity Tier 1

13.07

13.77

13.14

13.07

13.14

Tangible Common Equity

(1)

6.54

6.61

6.19

6.54

6.19

Equity to Assets

8.54

8.63

8.37

8.54

8.37

ASSET QUALITY

Allowance as % of Non-Performing Loans

677.57

760.83

433.93

677.57

433.93

Allowance as a % of Loans HFI

0.96

1.05

1.10

0.96

1.10

Net Charge-Offs as % of Average Loans HFI

0.22

0.16

(0.07)

0.19

(0.08)

Nonperforming Assets as % of Loans HFI and OREO

0.15

0.14

0.31

0.15

0.31

Nonperforming Assets as % of Total Assets

0.07

0.06

0.16

0.07

0.16

STOCK PERFORMANCE

High

28.55

28.88

27.39

28.88

28.98

Low

24.43

25.96

24.55

24.43

21.42

27.89

26.36

25.79

27.89

25.79

Average Daily Trading Volume

25,342

24,019

28,958

24,681

29,620

(1)

Tangible common equity ratio is a non-GAAP financial measure.

For additional information, including a

reconciliation to GAAP, refer to Page 4.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT

OF FINANCIAL CONDITION

Unaudited

2022

2021

(Dollars in thousands)

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

ASSETS

Cash and Due From Banks

91,209

77,963

65,313

73,132

78,894

Funds Sold and Interest Bearing Deposits

603,315

790,465

970,041

708,988

766,920

Total Cash and Cash Equivalents

694,524

868,428

1,035,354

782,120

845,814

Investment Securities Available for Sale

601,405

624,361

654,611

645,844

480,890

Investment Securities Held to Maturity

528,258

518,678

339,601

341,228

325,559

Other Equity Securities

900

855

861

Total Investment Securities

1,130,563

1,143,894

995,073

987,072

806,449

Loans Held for Sale

48,708

50,815

52,532

77,036

80,821

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

247,902

230,213

223,086

218,929

292,953

Real Estate - Construction

225,664

174,293

174,394

177,443

149,884

Real Estate - Commercial

699,093

669,110

663,550

683,379

707,599

Real Estate - Residential

478,121

368,020

346,756

355,958

362,018

Real Estate - Home Equity

194,658

188,174

187,821

187,642

190,078

Consumer

359,906

347,785

321,511

309,983

298,464

Other Loans

6,854

6,692

13,265

6,792

6,439

Overdrafts

1,455

1,222

1,082

1,299

1,227

Total Loans Held for Investment

2,213,653

1,985,509

1,931,465

1,941,425

2,008,662

Allowance for Credit Losses

(21,281)

(20,756)

(21,606)

(21,500)

(22,175)

Loans Held for Investment, Net

2,192,372

1,964,753

1,909,859

1,919,925

1,986,487

Premises and Equipment, Net

82,932

82,518

83,412

84,750

85,745

Goodwill and Other Intangibles

93,173

93,213

93,253

93,293

93,333

Other Real Estate Owned

192

1,192

Other Assets

111,935

106,407

94,349

104,345

111,618

Total Other Assets

288,130

282,155

271,031

282,580

291,888

Total Assets

4,354,297

4,310,045

4,263,849

4,048,733

4,011,459

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,724,671

1,704,329

1,668,912

1,592,345

1,552,864

NOW Accounts

1,036,757

1,062,498

1,070,154

926,201

970,705

Money Market Accounts

289,337

288,877

274,611

286,065

280,805

Regular Savings Accounts

639,594

614,599

599,811

559,714

539,477

Certificates of Deposit

95,899

95,204

99,374

101,637

103,070

Total Deposits

3,786,258

3,765,507

3,712,862

3,465,962

3,446,921

Short-Term Borrowings

39,463

30,865

34,557

51,410

47,200

Subordinated Notes Payable

52,887

Other Long-Term Borrowings

612

806

884

1,610

1,720

Other Liabilities

93,319

77,323

67,735

113,720

105,534

Total Liabilities

3,972,539

3,927,388

3,868,925

3,685,589

3,654,262

Temporary Equity

10,083

10,512

11,758

14,276

21,317

SHAREOWNERS' EQUITY

Common Stock

170

169

Additional Paid-In Capital

35,738

35,188

34,423

33,876

33,560

Retained Earnings

376,532

370,531

364,788

359,550

345,574

Accumulated Other Comprehensive Loss, Net of Tax

(40,765)

(33,743)

(16,214)

(44,727)

(43,423)

Total Shareowners' Equity

371,675

372,145

383,166

348,868

335,880

Total Liabilities, Temporary Equity and Shareowners' Equity

4,354,297

4,310,045

4,263,849

4,048,733

4,011,459

OTHER BALANCE SHEET DATA

Earning Assets

3,996,238

3,970,684

3,949,111

3,714,521

3,662,852

Interest Bearing Liabilities

2,154,549

2,145,736

2,132,278

1,979,524

1,995,864

Book Value Per Diluted Share

21.89

21.94

22.63

20.63

19.87

Tangible Book Value

Per Diluted Share

(1)

16.40

16.44

17.12

15.11

14.35

Actual Basic Shares Outstanding

16,959

16,948

16,892

16,878

16,874

Actual Diluted Shares Outstanding

16,982

16,962

16,935

16,912

16,901

(1)

Tangible book value per diluted share is a non-GAAP financial measure.

For additional information, including a reconciliation to GAAP, refer to Page 4.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENT

OF OPERATIONS

Unaudited

2022

2021

June 30,

(Dollars in thousands, except per share data)

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

2022

2021

INTEREST INCOME

Loans, including Fees

24,072

22,133

22,744

25,885

24,582

46,205

47,932

Investment Securities

3,840

2,896

2,505

2,350

2,054

6,736

3,937

Federal Funds Sold and Interest Bearing Deposits

1,408

409

300

285

200

1,817

413

Total Interest Income

29,320

25,438

25,549

28,520

26,836

54,758

52,282

INTEREST EXPENSE

Deposits

266

224

213

210

208

490

416

Short-Term Borrowings

343

192

307

317

324

535

736

Subordinated Notes Payable

370

317

306

307

308

687

615

Other Long-Term Borrowings

Total Interest Expense

987

742

838

848

856

1,729

1,804

Net Interest Income

28,333

24,696

24,711

27,672

25,980

53,029

50,478

Provision for Credit Losses

1,542

(571)

1,542

(1,553)

Net Interest Income after Provision for Credit Losses

26,791

24,696

24,711

27,672

26,551

51,487

52,031

NONINTEREST INCOME

Deposit Fees

5,447

5,191

5,300

5,075

4,236

10,638

8,507

Bank Card Fees

4,034

3,763

3,872

3,786

3,998

7,797

7,616

Wealth Management Fees

4,403

6,070

3,706

3,623

3,274

10,473

6,364

Mortgage Banking Revenues

9,065

8,946

9,800

12,283

13,217

18,011

30,342

Other

1,954

1,848

1,994

1,807

1,748

3,802

3,470

Total Noninterest Income

24,903

25,818

24,672

26,574

26,473

50,721

56,299

NONINTEREST EXPENSE

Compensation

25,383

24,856

24,783

25,245

25,378

50,239

51,442

Occupancy, Net

6,075

6,093

5,960

6,032

5,973

12,168

11,940

Other Real Estate, Net

(29)

(1,126)

(270)

(4)

(388)

Pension Settlement

169

209

572

500

2,000

378

2,000

Other

8,900

8,050

8,866

9,051

9,042

16,950

17,605

Total Noninterest Expense

40,498

39,233

40,207

39,702

42,123

79,731

82,599

OPERATING PROFIT

11,196

11,281

9,176

14,544

10,901

22,477

25,731

Income Tax Expense

2,177

2,235

2,040

2,949

2,059

4,412

4,846

Net Income

9,019

9,046

7,136

11,595

8,842

18,065

20,885

Pre-Tax Income Attributable to Noncontrolling Interest

(306)

(591)

(764)

(1,504)

(1,415)

(897)

(3,952)

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

8,713

8,455

6,372

10,091

7,427

17,168

16,933

PER COMMON SHARE

Basic Net Income

0.51

0.50

0.38

0.60

0.44

1.01

1.00

Diluted Net Income

0.51

0.50

0.38

0.60

0.44

1.01

1.00

Cash Dividend

0.16

0.15

0.32

0.30

AVERAGE

Basic

16,949

16,931

16,880

16,875

16,858

16,940

16,848

Diluted

16,971

16,946

16,923

16,909

16,885

16,958

16,874

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND CREDIT QUALITY

Unaudited

2022

2021

June 30,

(Dollars in thousands, except per share data)

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

2022

2021

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

20,756

21,606

21,500

22,175

22,026

21,606

23,816

Provision for Credit Losses

1,670

(79)

200

(546)

(184)

1,591

(2,496)

Net Charge-Offs (Recoveries)

1,145

771

129

(333)

1,916

(855)

Balance at End of Period

21,281

20,756

21,606

21,500

22,175

21,281

22,175

As a % of Loans HFI

0.96%

1.05%

1.12%

1.11%

1.10%

0.96%

1.10%

As a % of Nonperforming Loans

677.57%

760.83%

499.93%

710.39%

433.93%

677.57%

433.93%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

2,976

2,897

3,117

2,587

2,974

2,897

1,644

Provision for Credit Losses

(123)

(220)

530

(387)

(44)

943

Balance at End of Period

(1)

2,853

2,976

2,897

3,117

2,587

2,853

2,587

ACL - DEBT SECURITIES

Provision for Credit Losses

(5)

CHARGE-OFFS

Commercial, Financial and Agricultural

1,104

101

1,177

101

Real Estate - Construction

Real Estate - Commercial

266

405

266

Real Estate - Residential

Real Estate - Home Equity

Consumer

533

622

254

221

230

1,155

794

Overdrafts

660

780

678

1,093

440

1,440

932

Total Charge-Offs

2,297

1,774

1,062

1,788

841

4,071

1,977

RECOVERIES

Commercial, Financial and Agricultural

165

148

103

224

239

Real Estate - Construction

Real Estate - Commercial

169

671

Real Estate - Residential

115

401

244

142

319

Real Estate - Home Equity

173

125

194

Consumer

453

183

214

334

332

636

643

Overdrafts

402

533

375

633

399

935

766

Total Recoveries

1,152

1,003

968

1,659

1,174

2,155

2,832

NET CHARGE-OFFS (RECOVERIES)

1,145

771

129

(333)

1,916

(855)

Net Charge-Offs as a % of Average Loans

HFI

(2)

0.22%

0.16%

0.02%

0.03%

(0.07)%

0.19%

(0.08)%

CREDIT QUALITY

Nonaccruing Loans

3,141

2,728

4,322

3,026

5,110

Other Real Estate Owned

192

1,192

Total Nonperforming Assets ("NPAs")

3,231

2,745

4,339

3,218

6,302

Past Due Loans 30-89 Days

3,554

3,120

3,600

3,360

3,745

Past Due Loans 90 Days or More

Classified Loans

19,620

22,348

17,912

16,310

19,397

Performing Troubled Debt Restructurings

6,728

7,304

7,643

7,919

8,992

Nonperforming Loans as a % of Loans HFI

0.14%

0.22%

0.16%

0.25%

NPAs as a % of Loans HFI and Other Real Estate

0.15%

0.14%

0.22%

0.17%

0.31%

NPAs as a % of

Total Assets

0.07%

0.06%

0.10%

0.08%

0.16%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

Second Quarter 2022

First Quarter 2022

Fourth Quarter 2021

Third Quarter 2021

Second Quarter 2021

Jun 2022 YTD

Jun 2021 YTD

(Dollars in thousands)

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

ASSETS:

Loans Held for Sale

52,860

711

5.39

43,004

397

3.75

62,809

522

3.29

67,753

497

2.91

77,101

566

2.94

47,959

1,108

4.66

91,591

1,536

3.38

Loans Held for Investment

(1)

2,084,679

23,433

4.51

1,963,578

21,811

4.50

1,948,324

22,296

4.54

1,974,132

25,458

5.12

2,036,781

24,095

4.74

2,024,463

45,244

4.51

2,040,551

46,578

4.71

Investment Securities

Taxable Investment Securities

1,142,269

3,834

1.34

1,056,736

2,889

1.10

987,700

2,493

1.00

904,962

2,333

1.03

687,882

2,036

1.18

1,099,739

6,723

1.22

608,801

3,899

1.28

Tax-Exempt Investment Securities

(1)

2,488

1.73

2,409

1.60

3,380

2.07

4,332

2.31

3,530

2.58

2,449

1.67

3,686

2.60

Total Investment Securities

1,144,757

3,844

1.34

1,059,145

2,899

1.10

991,080

2,510

1.01

909,294

2,358

1.03

691,412

2,059

1.19

1,102,188

6,743

1.23

612,487

3,947

1.29

Federal Funds Sold and Interest Bearing

Deposits

691,925

1,408

0.82

873,097

409

0.19

789,100

300

0.15

741,944

285

0.15

818,616

200

0.10

782,011

1,817

0.47

816,638

414

0.10

Total Earning Assets

3,974,221

29,396

2.97

3,938,824

25,516

2.63

3,791,313

25,628

2.68

3,693,123

28,598

3.07

3,623,910

26,920

2.98

3,956,621

54,912

2.80

3,561,267

52,475

2.97

Cash and Due From Banks

79,730

74,253

73,752

72,773

74,076

77,007

71,541

Allowance for Loan Losses

(20,984)

(21,655)

(22,127)

(22,817)

(22,794)

(21,318)

(23,457)

Other Assets

288,421

275,353

284,999

283,534

281,157

281,922

279,956

Total Assets

4,321,388

4,266,775

4,127,937

4,026,613

3,956,349

4,294,232

3,889,307

LIABILITIES:

Interest Bearing Deposits

NOW Accounts

1,033,190

120

0.05

1,079,906

0.03

963,778

0.03

945,788

0.03

966,649

0.03

1,056,419

206

0.04

976,031

150

0.03

Money Market Accounts

286,210

0.05

285,406

0.05

289,335

0.05

282,860

0.05

272,138

0.05

285,810

0.05

270,990

0.05

Savings Accounts

628,472

0.05

599,359

0.05

573,563

0.05

551,383

0.05

529,844

0.05

613,996

149

0.05

511,152

124

0.05

Time Deposits

95,132

0.14

97,054

0.14

101,037

0.14

102,765

0.14

102,995

0.15

96,088

0.14

102,544

0.15

Total Interest Bearing Deposits

2,043,004

266

0.05

2,061,725

224

0.04

1,927,713

213

0.04

1,882,796

210

0.04

1,871,626

208

0.04

2,052,313

490

0.05

1,860,717

416

0.05

Short-Term Borrowings

31,782

343

4.33

32,353

192

2.40

46,355

307

2.63

49,773

317

2.53

51,152

324

2.54

32,066

535

3.36

59,049

736

2.51

Subordinated Notes Payable

52,887

370

2.76

52,887

317

2.40

52,887

306

2.26

52,887

307

2.27

52,887

308

2.30

52,887

687

2.58

52,887

615

2.31

Other Long-Term Borrowings

722

4.54

833

4.49

1,414

3.50

1,652

3.37

1,762

3.38

777

4.51

2,246

3.26

Total Interest Bearing Liabilities

2,128,395

987

0.19

2,147,798

742

0.14

2,028,369

838

0.16

1,987,108

848

0.17

1,977,427

856

0.17

2,138,043

1,729

0.16

1,974,899

1,804

0.18

Noninterest Bearing Deposits

1,722,325

1,652,337

1,621,432

1,564,892

1,515,726

1,687,524

1,453,121

Other Liabilities

87,207

72,166

114,657

112,707

107,801

79,728

109,417

Total Liabilities

3,937,927

3,872,301

3,764,458

3,664,707

3,600,954

3,905,295

3,537,437

Temporary Equity

10,096

10,518

13,339

20,446

26,355

10,306

24,178

SHAREOWNERS' EQUITY:

373,365

383,956

350,140

341,460

329,040

378,631

327,692

Total Liabilities, Temporary

Equity and

Shareowners' Equity

4,321,388

4,266,775

4,127,937

4,026,613

3,956,349

4,294,232

3,889,307

Interest Rate Spread

28,409

2.78

24,774

2.49

24,790

2.52

27,750

2.91

26,064

2.81

53,183

2.64

50,671

2.79

Interest Income and Rate Earned

(1)

29,396

2.97

25,516

2.63

25,628

2.68

28,598

3.07

26,920

2.98

54,912

2.80

52,475

2.97

Interest Expense and Rate Paid

(2)

987

0.10

742

0.08

838

0.09

848

0.09

856

0.09

1,729

0.09

1,804

0.10

Net Interest Margin

28,409

2.87

24,774

2.55

24,790

2.60

27,750

2.98

26,064

2.89

53,183

2.71

50,671

2.87

(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.