Capital City Bank Group, Inc.
 
Reports Fourth Quarter 2022 Results
TALLAHASSEE, Fla.
 
(January 24, 2023) – Capital City Bank Group, Inc. (NASDAQ:
 
CCBG) today reported net income
attributable to common shareowners
 
of $11.7
 
million, or $0.68 per diluted share, for the fourth quarter of 2022 compared to net
income of $11.3 million, or $0.67 per diluted
 
share, for the third quarter of 2022, and $6.4 million, or $0.38 per diluted share, for the
fourth quarter of 2021.
 
For the full year of 2022, net income attributable to common shareowners totaled
 
$40.1 million, or $2.36 per diluted share, compared
to net income of $33.4 million, or $1.98 per diluted share, for the same period
 
of 2021.
 
QUARTER HIGHLIGHTS (4th Quarter 2022 versus 3rd Quarter 2022)
Continued strong growth
 
in net interest income of 14% - net interest
 
margin percentage
 
grew 45 basis points to 3.76% - deposit
cost well controlled at 20 basis points (total
 
deposits) and 35 basis points (interest bearing deposits)
 
Loan growth of $179 million, or 7.6% (end of
 
period) and $175 million, or 7.7% (average)
Continued strong credit
 
quality metrics – higher credit loss provision
 
primarily driven by loan growth
 
Noninterest income decreased
 
$1.9 million, or 8.5%, primarily due to lower mortgage banking revenues
 
at CCHL – strong
adjustable rate portfolio production by
 
CCHL contributed to loan growth for the quarter
 
Noninterest expense included a pension
 
settlement charge of $1.8 million, or $0.08 per share
Tangible
 
book value per share increased
 
$1.19, or 7.2%, primarily due to strong earnings and
 
a favorable re-measurement
adjustment for pension plan
 
Full Year
 
2022 HIGHLIGHTS
Strong growth
 
in net interest income of 21% reflected
 
improved earning asset mix and strength
 
of deposit franchise
 
Loan growth of $594 million, or 30.7% (end
 
of period) and $189 million, or 9.4% (year-to-date average)
Average Deposits grew
 
$356 million, or 10.5%
 
CCHL contribution decreased $0.24 per share
 
due to slower secondary market loan sales, but was more
 
than offset by strong
adjustable rate production for our loan portfolio
 
,
 
and higher wealth and deposit fees
 
Noninterest expense included pension
 
settlement charges totaling $2.3 million or $0.11
 
per share
Tangible
 
book value per share increased
 
$0.54, or 3.2%, primarily due to strong earnings and
 
a favorable re-measurement
adjustment for pension plan, partially offset by higher unreal
 
ized investment security losses
“Capital City finished out the year with another solid quarter highlighted by continued
 
net interest margin expansion and nice
tangible book value growth,” said William G. Smith,
 
Jr., Chairman, President,
 
and CEO of Capital City Bank Group.
 
“I am proud
of our associates who produced another record year of earnings. For the quarter
 
and year, we realized strong loan growth, stable
deposit growth, maintained good control of our deposit cost, and credit quality
 
was strong.
 
Still, we remain vigilant in the face of
economic uncertainty.
 
As we begin 2023, I am confident in our positioning, markets and strategic initiatives.
 
Thank you to our
associates for their tireless efforts serving our clients with excellence
 
and to our shareowners for their continued support.”
Discussion of Operating Results
Net Interest Income/Net Interest
 
Margin
Tax-equivalent net
 
interest income for the fourth quarter of 2022 totaled $38.2 million, compared
 
to $33.4 million for the third
quarter of 2022, and $24.8 million for the fourth quarter of 2021.
 
For the full year of 2022, tax-equivalent net interest income totaled
$124.8 million compared to $103.2 million for the same period of 2021.
 
Compared to the third quarter of 2022, the increase
primarily reflected strong loan growth and higher interest rates across a majority
 
of our earning assets.
 
Compared to both prior year
periods, the increase reflected strong loan growth, higher interest rates, and
 
growth in the investment portfolio.
 
Our net interest margin for the fourth quarter of 2022 was 3.76%,
 
an increase of 45 basis points over the third quarter of 2022 and
116 basis points over the fourth quarter
 
of 2021, both driven by higher interest rates and an overall improved earning
 
asset mix.
 
For
the fourth quarter of 2022, our cost of funds was 31 basis points, an increase
 
of 11 basis points over the third quarter of 2022
 
and 22
basis points over the fourth quarter of 2021.
 
Our cost of interest bearing deposits was 35 basis points, 20 basis points, and 4 basis
points for the same aforementioned periods.
 
For the month of December 2022, our net interest margin was 3.86%.
 
Compared to the
full year of 2021, the net interest margin increased by 30 basis points to 3.13%
 
as the favorable impact of higher interest rates and an
improved earning asset mix offset the favorable impact
 
in 2021 from a significant level of SBA Paycheck Protection Program fee
income.
2
 
Provision for Credit Losses
 
We recorded
 
a provision for credit losses of $3.5 million for the fourth quarter of 2022 compared to $2.1
 
million in the third quarter
of 2022 and no provision for the fourth quarter of 2021.
 
For the full year of 2022, the provision was $7.2 million compared to a
benefit of $1.6 million for the same period of 2021.
 
The higher level of provision compared to all prior periods was primarily
attributable to strong loan growth and weaker projected economic
 
conditions, primarily a higher
 
rate of unemployment.
 
The credit
loss provision in 2021 was favorably impacted by strong loan recoveries.
 
We discuss the allowance
 
for credit losses further below.
 
Noninterest Income and Noninterest
 
Expense
Noninterest income for the fourth quarter of 2022 totaled $21.0 million
 
compared to $22.9 million for the third quarter of 2022
 
and
$24.7 million for the fourth quarter of 2021.
 
The $1.9 million decrease from the third quarter of 2022 was attributable to lower
mortgage banking revenues of $1.6
 
million, wealth management fees of $0.3
 
million, deposit fees of $0.4
 
million, and bank card
fees of $0.1 million, partially offset by higher other
 
income of $0.5 million.
 
The decrease in deposit fees was partially attributable
to three less processing days in the fourth quarter.
 
Compared to the fourth quarter of 2021, the $3.7 million decrease was
attributable to lower mortgage banking revenues of $4.3 million, wealth management
 
fees of $0.1 million, and bank card fees of
$0.1 million, partially offset by higher other income
 
of $0.6
 
million and deposit fees of $0.2 million.
 
For the full year of 2022, noninterest income totaled $94.6 million
 
compared to $107.5 million for the same period of 2021 and
reflected lower mortgage banking revenues of $21.8 million, partially
 
offset by higher wealth management fees of $4.4
 
million,
deposit fees of $3.2 million, other income of $1.2 million, and bank card fees
 
of $0.1 million.
 
Lower mortgage banking revenues at
Capital City Home Loans (“CCHL”) 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 were pressured due
 
to a lower
level of governmental loan originations and mandatory delivery loan
 
sales (both of which provide a higher gain on sale percentage).
 
Throughout 2022, strong best efforts origination
 
volume allowed us to book a steady flow of adjustable rate residential loans in
 
our
portfolio which contributed to loan growth and earnings.
 
In addition, continued stability in our construction/permanent loan
program partially offset the slowdown in secondary
 
market originations.
 
For 2022, CCHL realized a $0.2 million net loss ($0.01
per diluted share) versus $3.9 million net income ($0.23 per diluted
 
share) in 2021.
Noninterest expense for the fourth quarter of 2022 totaled $42.3 million
 
compared to $39.8 million for the third quarter of 2022
 
and
$40.2 million for the fourth quarter of 2021.
 
The $2.5 million increase over the third quarter of 2022 was primarily attributable to
higher other expense of $1.6 million and compensation expense of
 
$0.8 million.
 
Higher pension plan settlement expense of $1.7
million drove the increase in other expense.
 
The increase in compensation expense was primarily due to higher
variable/performance-based compensation of $0.3 million
 
and lower realized loan cost of $0.3 million (credit offset to salary
expense).
 
Compared to the fourth quarter of 2021, the $2.1 million increase reflected higher other
 
expense of $1.0 million,
compensation expense of $0.8 million, and occupancy expense of $0.3 million.
 
The increase in other expense reflected higher
expense for legal, travel/entertainment, FDIC insurance fees, mortgage servicing
 
right amortization, and loan servicing costs.
 
The
higher level of compensation expense was due to higher base salary expense
 
reflective of annual merit raises and staffing additions
related to new market expansion during 2022 and stock based compensation
 
expense related to improved company performance for
2022.
 
For the full year 2022, noninterest expense totaled $161.8 million compared
 
to $162.5 million for the same period of 2021 and
reflected lower compensation expense of $0.9 million and
 
other expense of $0.4
 
million, partially offset by higher occupancy
expense of $0.6
 
million.
 
The reduction in compensation expense was primarily due to lower variable/performance
 
-based
compensation of $7.7 million and base salaries of $1.3 million at CCHL, partially
 
offset by higher compensation at Capital City
Bank, including variable/performance-based compensation totaling
 
$2.5 million, base salaries (merit and new market staffing
additions) of $3.1 million, lower realized loan cost of $1.4 million (credit
 
offset to salary expense), associate insurance expense
(utilized self-insurance reserves in 2021)
 
of $0.6 million and stock compensation expense of $0.7 million.
 
The decrease in other
expense was primarily due to a decrease in pension related costs, including
 
$4.9 million for the non-service related component and
$0.8 million for pension plan settlement expense, partially offset
 
by higher expense for other real estate expense of $1.2
 
million,
travel/entertainment and advertising costs totaling $1.3
 
million (return to pre-pandemic levels and market expansion), other losses
of $0.9 million (primarily debit card and check fraud),
 
mortgage servicing right amortization of $0.6
 
million, VISA Class B share
swap conversion ratio payments of $0.4 million, FDIC insurance fees of
 
$0.3 million, and other miscellaneous costs for training,
hiring, and variable expenses related to loan production.
 
Gains from the sale of two banking offices in 2021 drove the increase in
other real estate expense.
 
The increase in occupancy expense is related to lease expense for four new
 
banking offices added in 2022
and various software purchases, including network security and end of
 
life upgrades.
3
Income Taxes
We realized income
 
tax expense of $2.6 million (effective rate of 19.6%) for the
 
fourth quarter of 2022
 
compared to $3.1 million
(effective rate of 21.4%) for the third quarter of 2022
 
and $2.0
 
million (effective rate of 22.2%) for the fourth quarter of 2021.
 
The
decrease in the effective tax rate for the fourth quarter of 2022 was due
 
to a favorable $0.4 million discrete tax item related to our
SERP plan.
 
For the full year of 2022, we realized income tax expense of $10.1 million
 
(effective rate of 20.1%) compared to $9.8
million (effective rate of 19.9%) for the same period of 2021.
 
Absent discrete items, we expect our annual effective tax rate to
approximate 21%-22% in 2023.
Discussion of Financial Condition
Earning Assets
Average earning
 
assets totaled $4.033 billion for the fourth quarter of 2022, an increase of $22.8 million, or
 
0.6%, over the third
quarter of 2022, and an increase of $241.4 million, or 6.4%, 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.
We maintained
 
an average net overnight funds (interest bearing deposits with banks plus FED funds
 
sold less FED funds purchased)
sold position of $469.4 million in the fourth quarter of 2022 compared
 
to $570.0 million in the third quarter of 2022 and $789.1
million in the fourth quarter of 2021. The declining overnight funds
 
position reflects growth in average loans.
 
Average loans
 
held for investment (“HFI”) increased $175.3 million, or 7.7%, over the third quarter of 2022
 
and $491.1 million, or
25.2%, over the fourth quarter of 2021.
 
Period end loans increased $179.0 million, or 7.6%, over the third quarter of 2022 and
$593.7 million, or 30.7%, over the fourth quarter of 2021.
 
The growth in 2022 was broad based with increases realized in all loan
categories, more significantly,
 
in the residential real estate, construction,
 
and commercial real estate categories.
 
Allowance for Credit Losses
At December 31, 2022, the allowance for credit losses for HFI loans totaled
 
$24.7 million compared to $22.5 million at September
30, 2022 and $21.6 million at December 31, 2021.
 
Activity within the allowance is provided on Page 9.
 
Incremental allowance
related to loan growth, a higher projected rate of unemployment and
 
its effect on rates of default, and slower prepayment speeds
(due to higher interest rates) were all contributing factors driving
 
the increase in the allowance during 2022.
 
At December 31, 2022,
the allowance represented 0.98% of HFI loans compared to 0.96% at September
 
30, 2022, and 1.12% at December 31, 2021.
Credit Quality
Overall credit quality remains strong.
 
Nonperforming assets (nonaccrual loans and other real estate) totaled $2.7
 
million at
December 31, 2022 compared to $2.4 million at September 30, 2022
 
and $4.3 million at December 31, 2021.
 
At December 31,
2022, nonperforming assets as a percent of total assets equaled 0.06%,
 
compared to 0.06% at September 30, 2022 and 0.10% at
December 31, 2021.
 
Nonaccrual loans totaled $2.2 million at December 31, 2022, a $0.2 million decrease
 
from September 30, 2022
and a $2.1 million decrease from December 31, 2021.
 
Further, classified loans totaled $19.3 million at December
 
31, 2022, a $1.6
million decrease from September 30, 2022 and a $1.4 million increase
 
over December 31, 2021.
 
Funding (Deposits/Debt)
Average total
 
deposits were $3.803 billion for the fourth quarter of 2022, an increase of $33.2 million, or 0.9%, over
 
the third
quarter of 2022 and $253.9 million, or 7.2%, over the fourth quarter
 
of 2021.
 
Compared to the third quarter of 2022, the increase
reflected higher NOW account balances, primarily due to a seasonal increase
 
in our public fund deposits.
 
Compared to the fourth
quarter of 2021, we have had strong growth in our noninterest bearing,
 
NOW, and
 
savings account balances.
 
We continue to
closely monitor our cost of deposits and deposit mix as we manage through
 
this rising rate environment.
4
Capital
Shareowners’ equity was $394.0 million at December 31, 2022
 
compared to $373.2 million at September 30, 2022 and $383.2
million at December 31, 2021.
 
For the full year 2022, shareowners’ equity was positively impacted by net
 
income attributable to
common shareowners of $40.1 million, a $3.1 million increase in the
 
fair value of the interest rate swap related to subordinated debt,
stock compensation accretion of $1.3 million, net adjustments totaling
 
$1.6 million related to transactions under our stock
compensation plans, and an $8.7 million decrease in the accumulated
 
other comprehensive loss for our pension plan.
 
Shareowners’
equity was reduced by common stock dividends
 
of $11.2 million ($0.66 per share) and a $32.8 million
 
increase in the unrealized
loss on investment securities.
 
At December 31, 2022, our total risk-based capital ratio was 15.52%
 
compared to 15.75% at September 30, 2022 and 17.15% at
December 31, 2021.
 
Our common equity tier 1 capital ratio was 12.64%, 12.83%, and 13.86%,
 
respectively, on these
 
dates.
 
Our
leverage ratio was 9.06%, 8.91%, and 8.95%, respectively,
 
on these dates.
 
Further, our tangible common equity ratio was 6.79%
 
at
December 31, 2022 compared to 6.61% and 6.95% at September 30, 2022
 
and December 31, 2021, respectively.
 
The decline in our
regulatory capital ratios compared to 2021 was attributable to strong loan growth
 
during 2022.
 
At December 31, 2022, all of our
regulatory capital ratios exceeded the threshold to be designated as “well-capitalized”
 
under the Basel III capital standards.
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest
 
publicly traded financial holding companies headquartered
in Florida and has approximately $4.5 billion in assets.
 
We provide
 
a full range of banking services, including traditional deposit
and credit services,
 
mortgage banking, asset management, trust, merchant services, bankcards,
 
securities brokerage services and
financial advisory services, including the sale of life insurance, risk management
 
and asset protection services.
 
Our bank
subsidiary, Capital City Bank,
 
was founded in 1895 and now has 58 banking offices and 89 ATMs/ITMs
 
in Florida, Georgia and
Alabama.
 
For more information about Capital City Bank Group, Inc., visit www.ccbg.com
 
.
FORWARD
 
-LOOKING STATEMENTS
Forward-looking statements in this Press Release are based on current plans
 
and expectations that are subject to uncertainties and
risks, which could cause our future results to differ materially.
 
The words “may,” “could,” “should,”
 
“would,” “believe,”
“anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,”
 
“goal,” and similar expressions are intended to identify
forward-looking statements. The following factors, among others, could cause our actual
 
results to differ: our ability to successfully
manage credit risk, interest rate risk, liquidity risk, and other risks inherent
 
to our industry; legislative or regulatory changes;
fluctuations in inflation, interest rates, or monetary and fiscal policies; the effects
 
of security breaches and computer viruses that may
affect our computer systems; the accuracy of our financial
 
statement estimates and assumptions; fraud related to debit card products;
changes in accounting principles, policies, practices, or guidelines; the frequency
 
and magnitude of foreclosure on our loans; the
effects of a non-diversified loan portfolio, including the
 
risks of geographic and industry concentrations; the strength of the U.S.
economy and the local economies where we conduct operations; our
 
ability to declare and pay dividends, the payment of which is
subject to our capital requirements; changes in the stock market and other
 
capital and real estate markets; structural changes in the
markets for origination, sale and servicing of residential mortgages; 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 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 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 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, 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
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)
Dec 31, 2022
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Shareowners' Equity (GAAP)
$
394,016
$
373,165
$
371,675
$
372,145
$
383,166
Less: Goodwill and Other Intangibles (GAAP)
93,093
93,133
93,173
93,213
93,253
Tangible Shareowners' Equity (non-GAAP)
A
300,923
280,032
278,502
278,932
289,913
Total Assets (GAAP)
4,525,958
4,332,671
4,354,297
4,310,045
4,263,849
Less: Goodwill and Other Intangibles (GAAP)
93,093
93,133
93,173
93,213
93,253
Tangible Assets (non-GAAP)
B
$
4,432,865
$
4,239,538
$
4,261,124
$
4,216,832
$
4,170,596
Tangible Common Equity Ratio (non-GAAP)
A/B
6.79%
6.61%
6.54%
6.61%
6.95%
Actual Diluted Shares Outstanding (GAAP)
C
17,039,401
16,998,177
16,981,614
16,962,362
16,935,389
Tangible
 
Book Value per Diluted Share (non-GAAP)
A/C
$
17.66
$
16.47
$
16.40
$
16.44
$
17.12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
CAPITAL CITY BANK
 
GROUP,
 
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
Twelve Months Ended
(Dollars in thousands, except per share data)
Dec 31, 2022
Sep 30, 2022
Dec 31, 2021
Dec 31, 2022
Dec 31, 2021
EARNINGS
Net Income Attributable to Common Shareowners
$
11,664
$
11,315
$
6,372
$
40,147
$
33,396
Diluted Net Income Per Share
$
0.68
$
0.67
$
0.38
$
2.36
$
1.98
PERFORMANCE
Return on Average Assets
1.06
%
1.03
%
0.61
%
0.93
%
0.84
%
Return on Average Equity
12.16
11.83
7.22
10.58
9.92
Net Interest Margin
3.76
3.31
2.60
3.13
2.83
Noninterest Income as % of Operating Revenue
35.50
40.76
49.96
43.19
51.11
Efficiency Ratio
71.47
%
70.66
%
81.29
%
73.76
%
77.11
%
CAPITAL ADEQUACY
Tier 1 Capital
 
14.53
%
14.80
%
16.14
%
14.53
%
16.14
%
Total Capital
 
15.52
15.75
17.15
15.52
17.15
Leverage
 
9.06
8.91
8.95
9.06
8.95
Common Equity Tier 1
12.64
12.83
13.86
12.64
13.86
Tangible Common Equity
(1)
6.79
6.61
6.95
6.79
6.95
Equity to Assets
8.71
%
8.61
%
8.99
%
8.71
%
8.99
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
1,076.89
%
934.53
%
499.93
%
1,076.89
%
499.93
%
Allowance as a % of Loans HFI
0.98
0.96
1.12
0.98
1.12
Net Charge-Offs as % of Average Loans HFI
0.21
0.12
0.02
0.18
(0.03)
Nonperforming Assets as % of Loans HFI and OREO
0.11
0.10
0.22
0.11
0.22
Nonperforming Assets as % of Total Assets
0.06
%
0.06
%
0.10
%
0.06
%
0.10
%
STOCK PERFORMANCE
High
 
$
36.23
$
33.93
$
29.00
$
36.23
$
29.00
Low
31.14
27.41
24.77
24.43
21.42
Close
$
32.50
$
31.11
$
26.40
$
32.50
$
26.40
Average Daily Trading Volume
31,894
30,546
29,900
27,987
29,919
(1)
 
Tangible common equity ratio is a non-GAAP financial measure.
 
For additional information, including a
reconciliation to GAAP, refer to Page 5.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT
 
OF FINANCIAL CONDITION
Unaudited
2022
2021
(Dollars in thousands)
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
ASSETS
Cash and Due From Banks
$
72,114
$
72,686
$
91,209
$
77,963
$
65,313
Funds Sold and Interest Bearing Deposits
528,536
497,679
603,315
790,465
970,041
Total Cash and Cash Equivalents
600,650
570,365
694,524
868,428
1,035,354
Investment Securities Available for Sale
413,294
416,745
601,405
624,361
654,611
Investment Securities Held to Maturity
660,744
676,178
528,258
518,678
339,601
Other Equity Securities
10
1,349
900
855
861
 
Total Investment Securities
1,074,048
1,094,272
1,130,563
1,143,894
995,073
Loans Held for Sale
 
54,635
50,304
48,708
50,815
52,532
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
247,362
246,304
247,902
230,213
223,086
Real Estate - Construction
234,519
237,718
225,664
174,293
174,394
Real Estate - Commercial
782,557
715,870
699,093
669,110
663,550
Real Estate - Residential
721,759
573,963
478,121
368,020
346,756
Real Estate - Home Equity
208,120
202,512
194,658
188,174
187,821
Consumer
324,450
347,949
359,906
347,785
321,511
Other Loans
5,346
20,822
6,854
6,692
13,265
Overdrafts
1,067
1,047
1,455
1,222
1,082
Total Loans Held for Investment
2,525,180
2,346,185
2,213,653
1,985,509
1,931,465
Allowance for Credit Losses
(24,736)
(22,510)
(21,281)
(20,756)
(21,606)
Loans Held for Investment, Net
2,500,444
2,323,675
2,192,372
1,964,753
1,909,859
Premises and Equipment, Net
82,138
81,736
82,932
82,518
83,412
Goodwill and Other Intangibles
93,093
93,133
93,173
93,213
93,253
Other Real Estate Owned
431
13
90
17
17
Other Assets
120,519
119,173
111,935
106,407
94,349
Total Other Assets
296,181
294,055
288,130
282,155
271,031
Total Assets
$
4,525,958
$
4,332,671
$
4,354,297
$
4,310,045
$
4,263,849
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,653,620
$
1,737,046
$
1,724,671
$
1,704,329
$
1,668,912
NOW Accounts
1,290,494
990,021
1,036,757
1,062,498
1,070,154
Money Market Accounts
267,383
292,932
289,337
288,877
274,611
Savings Accounts
637,374
646,526
639,594
614,599
599,811
Certificates of Deposit
90,446
92,853
95,899
95,204
99,374
Total Deposits
3,939,317
3,759,378
3,786,258
3,765,507
3,712,862
Short-Term Borrowings
56,793
52,271
39,463
30,865
34,557
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
513
562
612
806
884
Other Liabilities
73,675
84,657
93,319
77,323
67,735
Total Liabilities
4,123,185
3,949,755
3,972,539
3,927,388
3,868,925
Temporary Equity
8,757
9,751
10,083
10,512
11,758
SHAREOWNERS' EQUITY
Common Stock
170
170
170
169
169
Additional Paid-In Capital
37,331
36,234
35,738
35,188
34,423
Retained Earnings
393,744
384,964
376,532
370,531
364,788
Accumulated Other Comprehensive Loss, Net of Tax
(37,229)
(48,203)
(40,765)
(33,743)
(16,214)
Total Shareowners' Equity
394,016
373,165
371,675
372,145
383,166
Total Liabilities, Temporary Equity and Shareowners' Equity
$
4,525,958
$
4,332,671
$
4,354,297
$
4,310,045
$
4,263,849
OTHER BALANCE SHEET DATA
Earning Assets
$
4,182,399
$
3,988,440
$
3,996,238
$
3,970,684
$
3,949,111
Interest Bearing Liabilities
2,395,890
2,128,052
2,154,549
2,145,736
2,132,278
Book Value Per Diluted Share
$
23.12
$
21.95
$
21.89
$
21.94
$
22.63
Tangible Book Value
 
Per Diluted Share
(1)
17.66
16.47
16.40
16.44
17.12
Actual Basic Shares Outstanding
16,987
16,962
16,959
16,948
16,892
Actual Diluted Shares Outstanding
17,039
16,998
16,982
16,962
16,935
(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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF OPERATIONS
Unaudited
2022
2021
December 31,
(Dollars in thousands, except per share data)
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
2022
2021
INTEREST INCOME
Loans, including Fees
$
31,916
$
27,761
$
24,072
$
22,133
$
22,744
$
105,882
$
96,561
Investment Securities
4,847
4,372
3,840
2,896
2,505
15,955
8,792
Federal Funds Sold and Interest Bearing Deposits
4,463
3,231
1,408
409
300
9,511
998
Total Interest Income
41,226
35,364
29,320
25,438
25,549
131,348
106,351
INTEREST EXPENSE
Deposits
1,902
1,052
266
224
213
3,444
839
Short-Term Borrowings
690
536
343
192
307
1,761
1,360
Subordinated Notes Payable
522
443
370
317
306
1,652
1,228
Other Long-Term Borrowings
8
6
8
9
12
31
63
Total Interest Expense
3,122
2,037
987
742
838
6,888
3,490
Net Interest Income
38,104
33,327
28,333
24,696
24,711
124,460
102,861
Provision for Credit Losses
3,521
2,099
1,542
-
-
7,162
(1,553)
Net Interest Income after Provision for Credit Losses
34,583
31,228
26,791
24,696
24,711
117,298
104,414
NONINTEREST INCOME
Deposit Fees
5,536
5,947
5,447
5,191
5,300
22,121
18,882
Bank Card Fees
3,744
3,860
4,034
3,763
3,872
15,401
15,274
Wealth Management Fees
3,649
3,937
4,403
6,070
3,706
18,059
13,693
Mortgage Banking Revenues
5,497
7,116
9,065
8,946
9,800
30,624
52,425
Other
 
2,546
2,074
1,954
1,848
1,994
8,422
7,271
Total Noninterest Income
20,972
22,934
24,903
25,818
24,672
94,627
107,545
NONINTEREST EXPENSE
Compensation
25,565
24,738
25,383
24,856
24,783
100,542
101,470
Occupancy, Net
6,253
6,153
6,075
6,093
5,960
24,574
23,932
Other
 
10,469
8,919
9,040
8,284
9,464
36,712
37,106
Total Noninterest Expense
42,287
39,810
40,498
39,233
40,207
161,828
162,508
OPERATING PROFIT
13,268
14,352
11,196
11,281
9,176
50,097
49,451
Income Tax Expense
2,599
3,074
2,177
2,235
2,040
10,085
9,835
Net Income
10,669
11,278
9,019
9,046
7,136
40,012
39,616
Pre-Tax Loss (Income) Attributable to Noncontrolling Interest
995
37
(306)
(591)
(764)
135
(6,220)
NET INCOME ATTRIBUTABLE
 
TO
 
COMMON SHAREOWNERS
$
11,664
$
11,315
$
8,713
$
8,455
$
6,372
$
40,147
$
33,396
PER COMMON SHARE
Basic Net Income
$
0.69
$
0.67
$
0.51
$
0.50
$
0.38
$
2.37
$
1.98
Diluted Net Income
0.68
0.67
0.51
0.50
0.38
2.36
1.98
Cash Dividend
 
$
0.17
$
0.17
$
0.16
$
0.16
$
0.16
$
0.66
$
0.62
AVERAGE
 
SHARES
Basic
 
16,963
16,960
16,949
16,931
16,880
16,951
16,863
Diluted
 
17,016
16,996
16,971
16,946
16,923
16,985
16,893
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
CAPITAL CITY BANK GROUP,
 
INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
2022
2021
December 31,
(Dollars in thousands, except per share data)
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Fourth
Quarter
2022
2021
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period
$
22,510
$
21,281
$
20,756
$
21,606
$
21,500
$
21,606
$
23,816
Provision for Credit Losses
3,543
1,931
1,670
(79)
200
7,065
(2,842)
Net Charge-Offs (Recoveries)
1,317
702
1,145
771
94
3,935
(632)
Balance at End of Period
$
24,736
$
22,510
$
21,281
$
20,756
$
21,606
$
24,736
$
21,606
As a % of Loans HFI
0.98%
0.96%
0.96%
1.05%
1.12%
0.98%
1.12%
As a % of Nonperforming Loans
1,076.89%
934.53%
677.57%
760.83%
499.93%
1,076.89%
499.93%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
3,012
$
2,853
$
2,976
$
2,897
$
3,117
$
2,897
$
1,644
Provision for Credit Losses
 
(23)
159
(123)
79
(220)
92
1,253
Balance at End of Period
(1)
2,989
3,012
2,853
2,976
2,897
2,989
2,897
ACL - DEBT SECURITIES
Provision for Credit Losses
 
$
1
$
9
$
(5)
$
-
$
20
$
5
$
36
CHARGE-OFFS
Commercial, Financial and Agricultural
$
129
$
2
$
1,104
$
73
$
101
$
1,308
$
239
Real Estate - Construction
-
-
-
-
-
-
-
Real Estate - Commercial
88
1
-
266
-
355
405
Real Estate - Residential
-
-
-
-
20
-
108
Real Estate - Home Equity
160
-
-
33
9
193
103
Consumer
976
770
533
622
254
2,901
1,269
Overdrafts
720
989
660
780
678
3,149
2,703
Total Charge-Offs
$
2,073
$
1,762
$
2,297
$
1,774
$
1,062
$
7,906
$
4,827
RECOVERIES
Commercial, Financial and Agricultural
$
25
$
58
$
59
$
165
$
148
$
307
$
453
Real Estate - Construction
-
2
-
8
-
10
10
Real Estate - Commercial
13
8
56
29
25
106
865
Real Estate - Residential
98
44
115
27
33
284
753
Real Estate - Home Equity
36
22
67
58
173
183
413
Consumer
175
260
453
183
214
1,071
1,191
Overdrafts
409
666
402
533
375
2,010
1,774
Total Recoveries
$
756
$
1,060
$
1,152
$
1,003
$
968
$
3,971
$
5,459
NET CHARGE-OFFS (RECOVERIES)
$
1,317
$
702
$
1,145
$
771
$
94
$
3,935
$
(632)
Net Charge-Offs as a % of Average Loans
 
HFI
(2)
0.21%
0.12%
0.22%
0.16%
0.02%
0.18%
(0.03)%
CREDIT QUALITY
Nonaccruing Loans
$
2,297
$
2,409
$
3,141
$
2,728
$
4,322
Other Real Estate Owned
431
13
90
17
17
Total Nonperforming Assets ("NPAs")
$
2,728
$
2,422
$
3,231
$
2,745
$
4,339
Past Due Loans 30-89 Days
 
$
7,829
$
6,263
$
3,554
$
3,120
$
3,600
Past Due Loans 90 Days or More
-
-
-
-
-
Classified Loans
19,342
20,988
19,620
22,348
17,912
Performing Troubled Debt Restructurings
$
5,913
$
6,261
$
6,728
$
7,304
$
7,643
Nonperforming Loans as a % of Loans HFI
0.09%
0.10%
0.14%
0.14%
0.22%
NPAs as a % of Loans HFI and Other Real Estate
0.11%
0.10%
0.15%
0.14%
0.22%
NPAs as a % of
 
Total Assets
0.06%
0.06%
0.07%
0.06%
0.10%
(1)
 
Recorded in other liabilities
(2)
 
Annualized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
CAPITAL CITY BANK GROUP,
 
INC.
AVERAGE
 
BALANCE AND INTEREST RATES
Unaudited
Fourth Quarter 2022
Third Quarter 2022
Second Quarter 2022
First Quarter 2022
Fourth Quarter 2021
Dec 2022 YTD
Dec 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
$
42,910
$
581
5.38
%
$
55,164
$
486
4.82
%
$
52,860
$
711
4.44
%
$
43,004
397
3.19
%
$
62,809
$
522
3.29
%
$
48,502
$
2,175
4.49
%
$
78,328
$
2,555
3.24
%
Loans Held for Investment
(1)
2,439,379
31,418
5.11
2,264,075
27,354
4.76
2,084,679
23,433
4.53
1,963,578
21,811
4.52
1,948,324
22,296
4.54
2,189,440
104,016
4.75
2,000,563
94,332
4.76
Investment Securities
Taxable Investment Securities
1,078,265
4,835
1.78
1,117,789
4,359
1.55
1,142,269
3,834
1.34
1,056,736
2,889
1.10
987,700
2,493
1.00
1,098,876
15,917
1.45
778,953
8,724
1.12
Tax-Exempt Investment Securities
(1)
2,827
17
2.36
2,939
17
2.30
2,488
10
1.73
2,409
10
1.60
3,380
17
2.07
2,668
54
2.03
3,772
91
2.39
Total Investment Securities
1,081,092
4,852
1.78
1,120,728
4,376
1.55
1,144,757
3,844
1.34
1,059,145
2,899
1.10
991,080
2,510
1.01
1,101,544
15,971
1.45
782,725
8,815
1.12
Federal Funds Sold and Interest Bearing
Deposits
469,352
4,463
3.77
569,984
3,231
2.25
691,925
1,408
0.82
873,097
409
0.19
789,100
300
0.15
649,762
9,511
1.46
790,870
998
0.13
Total Earning Assets
4,032,733
$
41,314
4.07
%
4,009,951
$
35,447
3.51
%
3,974,221
$
29,396
2.97
%
3,938,824
$
25,516
2.63
%
3,791,313
$
25,628
2.68
%
3,989,248
$
131,673
3.30
%
3,652,486
$
106,700
2.92
%
Cash and Due From Banks
74,178
79,527
79,730
74,253
73,752
76,929
72,409
Allowance for Credit Losses
(22,596)
(21,509)
(20,984)
(21,655)
(22,127)
(21,688)
(22,960)
Other Assets
297,510
289,709
288,421
275,353
284,999
287,813
282,129
Total Assets
$
4,381,825
$
4,357,678
$
4,321,388
$
4,266,775
$
4,127,937
$
4,332,302
$
3,984,064
LIABILITIES:
Interest Bearing Deposits
NOW Accounts
$
1,133,733
$
1,725
0.60
%
$
1,016,475
$
868
0.34
%
$
1,033,190
$
120
0.05
%
$
1,079,906
$
86
0.03
%
$
963,778
$
72
0.03
%
$
1,065,838
$
2,799
0.26
%
$
965,320
$
294
0.03
%
Money Market Accounts
273,328
63
0.09
288,758
71
0.10
286,210
36
0.05
285,406
33
0.05
289,335
34
0.05
283,407
203
0.07
278,606
134
0.05
Savings Accounts
641,153
80
0.05
643,640
80
0.05
628,472
77
0.05
599,359
72
0.05
573,563
71
0.05
628,313
309
0.05
537,023
263
0.05
Time Deposits
92,385
34
0.15
94,073
33
0.14
95,132
33
0.14
97,054
33
0.14
101,037
36
0.14
94,646
133
0.14
102,220
148
0.14
Total Interest Bearing Deposits
2,140,599
1,902
0.35
%
2,042,946
1,052
0.20
%
2,043,004
266
0.05
%
2,061,725
224
0.04
%
1,927,713
213
0.04
%
2,072,204
3,444
0.17
%
1,883,169
839
0.04
%
Short-Term Borrowings
50,844
690
5.38
%
46,679
536
4.56
%
31,782
343
4.33
%
32,353
192
2.40
%
46,355
307
2.63
%
40,483
1,761
4.35
%
53,511
1,360
2.54
%
Subordinated Notes Payable
52,887
522
3.86
52,887
443
3.28
52,887
370
2.76
52,887
317
2.40
52,887
306
2.26
52,887
1,652
3.08
52,887
1,228
2.29
Other Long-Term Borrowings
530
8
4.80
580
6
4.74
722
8
4.54
833
9
4.49
1,414
12
3.50
665
31
4.62
1,887
63
3.33
Total Interest Bearing Liabilities
2,244,860
$
3,122
0.55
%
2,143,092
$
2,037
0.38
%
2,128,395
$
987
0.19
%
2,147,798
$
742
0.14
%
2,028,369
$
838
0.16
%
2,166,239
$
6,888
0.32
%
1,991,454
$
3,490
0.18
%
Noninterest Bearing Deposits
1,662,443
1,726,918
1,722,325
1,652,337
1,621,432
1,691,132
1,523,717
Other Liabilities
84,585
98,501
87,207
72,166
114,657
85,684
111,567
Total Liabilities
3,991,888
3,968,511
3,937,927
3,872,301
3,764,458
3,943,055
3,626,738
Temporary Equity
9,367
9,862
10,096
10,518
13,339
9,957
20,505
SHAREOWNERS' EQUITY:
380,570
379,305
373,365
383,956
350,140
379,290
336,821
Total Liabilities, Temporary
 
Equity and
Shareowners' Equity
$
4,381,825
$
4,357,678
$
4,321,388
$
4,266,775
$
4,127,937
$
4,332,302
$
3,984,064
Interest Rate Spread
$
38,192
3.52
%
$
33,410
3.13
%
$
28,409
2.78
%
$
24,774
2.49
%
$
24,790
2.52
%
$
124,785
2.98
%
$
103,210
2.75
%
Interest Income and Rate Earned
(1)
41,314
4.07
35,447
3.51
29,396
2.97
25,516
2.63
25,628
2.68
131,673
3.30
106,700
2.92
Interest Expense and Rate Paid
(2)
3,122
0.31
2,037
0.20
987
0.10
742
0.08
838
0.09
6,888
0.17
3,490
0.10
Net Interest Margin
$
38,192
3.76
%
$
33,410
3.31
%
$
28,409
2.87
%
$
24,774
2.55
%
$
24,790
2.60
%
$
124,785
3.13
%
$
103,210
2.83
%
(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.