Capital City Bank Group, Inc.
 
Reports First Quarter 2023
 
Results
TALLAHASSEE, Fla.
 
(April 24, 2023) – Capital City Bank Group, Inc. (NASDAQ: CCBG) today
 
reported net income attributable
to common shareowners
 
of $15.0 million, or $0.88 per diluted share, for the first quarter of 2023
 
compared to $11.7
 
million, or $0.68
per diluted share, for the fourth quarter of 2022, and $8.5 million, or
 
$0.50 per diluted share, for the first quarter of 2022.
 
QUARTER HIGHLIGHTS (1
st
 
Quarter 2023 versus 4th Quarter 2022)
Strong growth
 
in net interest income of 6% - net interest
 
margin percentage
 
grew 28 basis points to 4.04% - deposit interest
expense was well controlled at 26 basis points (total
 
deposits) and 46 basis points (interest bearing deposits)
 
Loan growth of $143 million, or 5.9% (average)
 
and $112 million, or 4.4%
 
(end of period)
Average quarterly deposit growth
 
of $14 million, or 0.4%,
 
and a decline of $115
 
million, or 2.9%,
 
in period end balance, which
reflected a normal seasonal reduction
 
of $88 million in public fund balances
 
Continued strong credit
 
quality metrics – allowance coverage ratio increased
 
to 1.01%
 
Noninterest income increased
 
$1.3
 
million, or 6.1%, due to higher mortgage banking revenues at Capital
 
City Home Loans
(“CCHL”)
 
Noninterest expense decreased
 
$1.8 million, or 4.3%, and reflected no pension settlement expense
 
for the quarter compared to
$1.8 million for the prior quarter – expenses
 
(excluding pension settlement expense) were favorably
 
impacted by a $1.8 million
gain from the sale of a banking office that
 
was offset by higher payroll taxes (annual re
 
-set), performance-based compensation,
and the addition of two new offices during the first quarter
Tangible
 
book value per share increased
 
$1.00, or 5.7%, primarily due to strong
 
earnings and a favorable valuation adjustment
for available for sale securities
 
“The strength and flexibility of our balance sheet – particularly the diversity
 
and granularity of our core deposit franchise – was
evident during a volatile quarter for the industry,”
 
said William G. Smith, Jr.,
 
Chairman, President, and CEO of Capital City Bank
Group. “Continued margin expansion and loan growth
 
were the primary drivers of our strong performance, which resulted in
tangible book value per share growth of 5.7%. While there remains uncertainty
 
around the possibility of a near-term recession or
economic slowing, I feel good about our positioning and optimistic about our
 
full-year performance.”
 
Discussion of Operating Results
Net Interest Income/Net Interest
 
Margin
Tax-equivalent net
 
interest income for the first quarter of 2023 totaled $40.5 million, compared to $38.2
 
million for the fourth
quarter of 2022, and $24.8 million for the first quarter of 2022.
 
Compared to both prior periods, the increase reflected strong loan
growth and higher interest rates across a majority of our earning assets, partially
 
offset by higher deposit costs.
 
Our net interest margin for the first quarter of 2023 was 4.04%, an
 
increase of 28 basis points over the fourth quarter of 2022 and
149 basis points over the first quarter of 2022, both driven by higher interest
 
rates and an overall improved earning asset mix.
 
For
the first quarter of 2023, our cost of funds was 35 basis points, an increase of
 
four basis points over the fourth quarter of 2022 and 27
basis points over the first quarter of 2022.
 
Our cost of interest-bearing deposits was 46 basis points, 35 basis points, and 4 basis
points,
 
respectively, for the same periods.
 
Our total cost of deposits (including noninterest bearing accounts) was
 
26 basis points, 20
basis points, and 2 basis points, respectively,
 
for the same periods.
 
 
Provision for Credit Losses
 
We recorded
 
a provision for credit losses of $3.1 million for the first quarter of 2023
 
compared to $3.5 million for the fourth quarter
of 2022 and no provision for the first quarter of 2022.
 
The decrease in the provision compared to the fourth quarter of 2022 was
primarily attributable to a lower level of loan growth.
 
The credit loss provision for the first quarter of 2022 generally reflected
lower required reserves needed post-pandemic.
 
We discuss the allowance
 
for credit losses further below.
 
2
Noninterest Income and Noninterest
 
Expense
Noninterest income for the first quarter of 2023
 
totaled $22.2 million compared to $21.0 million for the fourth quarter of
 
2022 and
$25.8 million for the first quarter of 2022.
 
The $1.2 million increase over the fourth quarter of 2022 was primarily attributable
 
to
higher mortgage banking revenues at CCHL of $1.5
 
million partially offset by lower deposit fees $0.3
 
million.
 
The increase in
mortgage banking revenues reflected a higher level of rate locks and
 
gain on sale margin.
 
The decrease in deposit fees was partially
attributable to two less processing days in the first quarter.
 
Compared to the first quarter of 2022, the $3.6 million decrease
reflected lower wealth management fees of $2.1 million and mortgage banking
 
revenues of $1.9 million, partially offset by higher
other income of $0.5 million.
 
The decrease in wealth management fees was due to lower insurance commission
 
revenues which
reflected higher than normal revenues in the first quarter of 2022
 
related to the closing of several large insurance policies.
 
The
decline in mortgage banking revenues was attributable to a
 
lower level of rate locks and gain on sale margin.
 
Additional
information on our mortgage banking operation is provided in our first quarter
 
investor presentation.
 
The increase in other income
was primarily due to higher loan servicing income and miscellaneous
 
income.
 
Noninterest expense for the first quarter of 2023
 
totaled $40.5 million compared to $42.3 million for the fourth quarter of 2022
 
and
$39.2 million for the first quarter of 2022.
 
Compared to the fourth quarter of 2022, the $1.8 million decrease reflected
 
lower other
expense of $2.4 million that was partially offset by
 
an increase in occupancy expense of $0.5 million and compensation expense
 
of
$0.1 million.
 
The reduction in other expense reflected lower other real estate expense of $1.6 million
 
which was due to a $1.8
million gain from the sale of a banking office.
 
Further, pension expense (non-service-related
 
component)
 
for the first quarter of
2023 totaled $0.2 million compared to $1.1 million for the fourth quarter of 2022
 
which included a $1.8 million pension settlement
charge.
 
The increase in occupancy expense reflected higher expenses related to three recently
 
opened full-service offices and the
re-location of one office.
 
The slight increase in compensation expense reflected an increase in salary expense
 
of $0.5 million due to
higher payroll taxes (annual re-set) that was partially offset
 
by a decrease in associate benefit expense of $0.4 million due to lower
pension plan service cost.
 
Compared to the first quarter of 2022, the $1.3 million increase reflected increases
 
in compensation
expense of $0.8 million and occupancy expense of $0.7 million that
 
were partially off by a decrease in other expense of $0.2
million.
 
The increase in compensation expense reflected an increase of $1.0 million in
 
salary expense that was partially offset by a
$0.2 million decrease in associate benefit expense.
 
The addition of banking offices and staffing in new markets drove
 
the variance
in salary and occupancy expenses.
 
The decrease in associate benefit expense was primarily due to a decrease
 
in pension service
cost of $0.7 million that was partially offset by an increase
 
in stock-based compensation expense of $0.4 million.
Income Taxes
We realized income
 
tax expense of $4.1 million (effective rate of 21.7%) for the
 
first quarter of 2023 compared to $2.6 million
(effective rate of 19.6%) for the fourth quarter of 2022
 
and $2.2 million (effective rate of 19.8%) for the first quarter of
 
2022.
 
A
discrete tax item of $0.4 million related our SERP plan favorably impacted
 
the effective tax rate for the fourth quarter of 2022.
 
Absent discrete items, we expect our annual effective tax rate to approx
 
imate 21%-22% in 2023.
 
The increase in the effective tax
rate for 2023 reflects a lower level of pre-tax income from CCHL in relation to our
 
consolidated income as the non-controlling
interest adjustment for CCHL is accounted for as a permanent tax adjustment.
 
Discussion of Financial Condition
Earning Assets
Average earning
 
assets totaled $4.063 billion for the first quarter of 2023, an increase of $30.0 million,
 
or 0.7%, over the fourth
quarter of 2022, and an increase of $123.9 million, or 3.1%, over
 
the first quarter of 2022.
 
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.
Average loans
 
held for investment (“HFI”) increased $143.0 million, or 5.9%, over the fourth quarter of 2022
 
and $618.8 million, or
31.5%, over the first quarter of 2022.
 
Period end loans increased $111.7
 
million, or 4.4%, over the fourth quarter of 2022 and
$651.4 million, or 32.8%, over the first quarter of 2022.
 
Compared to the fourth quarter of 2022, a majority of the increase was
realized in the residential real estate category,
 
and to a lesser extent, the construction and commercial real estate mortgage
categories.
 
Compared to the first quarter of 2022, loan growth was broad based, with increases realized
 
in all categories except
consumer loans.
 
Allowance for Credit Losses
At March 31, 2023, the allowance for credit losses for HFI loans totaled
 
$26.5 million compared to $24.7 million at December 31,
2022 and $20.8 million at March 31, 2022.
 
Activity within the allowance is provided on Page 9.
 
The increase in the allowance was
driven primarily by loan growth.
 
At March 31, 2023, the allowance represented 1.01% of HFI loans compared
 
to 0.98% at
December 31, 2022, and 1.05% at March 31, 2022.
3
Credit Quality
Overall credit quality remains stable.
 
Nonperforming assets (nonaccrual loans and other real estate) totaled $4.6
 
million at March
31, 2023 compared to $2.7 million at December 31, 2022 and $2.7 million
 
at March 31, 2022.
 
At March 31, 2023, the increase was
primarily due to the addition of one large business loan relationship
 
totaling $1.8 million to nonaccrual status – it is in the process of
collection and is adequately secured and reserved for.
 
At March 31, 2023, nonperforming assets as a percent of total assets equaled
0.10%, compared to 0.06% at December 31, 2022 and 0.06% at March 31,
 
2022.
 
Nonaccrual loans totaled $4.6 million at March
31, 2023, a $2.3 million increase over December 31, 2022 and a $1.9 million
 
increase over March 31, 2022.
 
Further, classified
loans totaled $12.2 million at March 31, 2023, a $7.2 million decrease from
 
December 31, 2022 and a $10.2 million decrease from
March 31, 2022.
 
Deposits
Average total
 
deposits were $3.817 billion for the first quarter of 2023, an increase of $14.3 million,
 
or 0.4%, over the fourth quarter
of 2022 and $103.3 million, or 2.8%,
 
over the first quarter of 2022.
 
Compared to the fourth quarter of 2022, the increase reflected
higher NOW account balances, primarily due to a seasonal increase in our
 
public fund deposits that occurred late in the fourth
quarter of 2022.
 
Compared to the first quarter of 2022, we experienced strong growth
 
in our NOW accounts, and to a lesser degree,
our savings accounts.
 
Period end total deposits declined $115.4
 
million from the fourth quarter of 2022, and reflected lower balances in noninterest
bearing accounts, NOW accounts, and savings accounts, partially offset
 
by slight growth in money market accounts and certificates
of deposit.
 
The $52.2 million decline in noninterest bearing accounts
 
was largely due to the migration of two large
 
commercial
clients to an interest-bearing NOW account,
 
in addition to clients seeking a higher yielding investment account at Capital
 
City
Investments (approximately $30 million, predominantly higher
 
balance clients).
 
The $47.8 million decline in the NOW account
balance was largely driven by an anticipated seasonal
 
decline in public fund balances of $66 million, partially offset by
 
the
previously mentioned migration of two clients from noninterest bearing
 
accounts.
 
The $20.1 million decline in the savings account
balance was primarily attributable to clients seeking higher yielding
 
investment products outside the Bank.
 
The $4.5 million
increase in the money market account balance occurred also due
 
to some migration from noninterest bearing accounts, in addition to
growth in our new markets which offered a promotional
 
rate.
 
We continue
 
to closely monitor our cost of deposits and deposit mix
as we manage through this rising rate environment.
 
Additional information on the profile of our deposit base is provided in a
supplement (Exhibit 99.2) to this release.
Liquidity
The Bank maintained an average net overnight funds (deposits with banks plus
 
FED funds sold less FED funds purchased) sold
position of $361.0 million in the first quarter of 2023 compared to $469.4
 
million in the fourth quarter of 2022.
 
The declining
overnight funds position reflected growth in average loans.
 
 
At March 31, 2023, we had the ability to generate approximately $1.
 
428 billion (excludes overnight funds position of $303 million)
in additional liquidity through various sources including various federal
 
funds purchased lines, Federal Home Loan Bank
borrowings, the Federal Reserve Discount Window,
 
and through brokered deposits.
 
We also view our
 
investment portfolio as a liquidity source and have the option to pledge securities in our
 
portfolio as collateral for
borrowings or deposits, and/or to sell selected securities.
 
Our portfolio consists of debt issued by the U.S. Treasury,
 
U.S.
governmental agencies, municipal governments, and corporate entities.
 
At March 31, 2023, the weighted-average maturity and
duration of our portfolio were 3.34 years and 2.99 years
 
,
 
respectively, and the
 
available-for-sale portfolio had a net unrealized pre-
tax loss of $35.0 million.
Additional information on our liquidity and investment portfolio
 
is included in a supplement (Exhibit 99.2) to this release.
Capital
Shareowners’ equity was $411.2 million
 
at March 31, 2023 compared to $394.0 million at December 31, 2022 and $372.1 million
 
at
March 31, 2022.
 
For the first three months of 2023, shareowners’ equity was positively impacted by net
 
income attributable to
common shareowners of $15.0 million, a $5.6 million decrease in the unrealized
 
loss on investment securities, the issuance of stock
of $1.8 million, and stock compensation accretion of $0.5 million.
 
Shareowners’ equity was reduced by common stock dividends of
$3.1 million ($0.18 per share), the repurchase of stock of $0.8 million (25,000
 
shares), net adjustments totaling $1.2 million related
to transactions under our stock compensation plans,
 
and a $0.6 million decrease in the fair value of the interest rate swap related to
subordinated debt.
4
At March 31, 2023, our total risk-based capital ratio was 15.53% compared
 
to 15.52% at December 31, 2022 and 16.98% at March
31, 2022.
 
Our common equity tier 1 capital ratio was 12.68%, 12.64%, and 13.77%, respectively,
 
on these dates.
 
Our leverage ratio
was 9.28%, 9.06%, and 8.78%, respectively,
 
on these dates.
 
At March 31, 2023, all 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 7.37% at March 31, 2023 compared to 6.79% and 6.61% at December 31,
 
2022 and March 31, 2022, respectively.
 
If our
unrealized HTM securities losses of $29.5 million (after-tax)
 
were recognized in accumulated other comprehensive loss, our
adjusted tangible capital ratio would be 6.69%.
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 58 banking offices and 101 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 the recent 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; the effects of actions taken
 
by
governmental agencies to stabilize the financial system and the effectiveness
 
of such actions; changes in monetary and fiscal policies
of the U.S. Government; inflation, interest rate, market and monetary fluctuations;
 
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; 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, 2022, 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
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, 2023
Dec 31, 2022
Sep 30, 2022
Jun 30, 2022
Mar 31, 2022
Shareowners' Equity (GAAP)
$
411,240
$
394,016
$
373,165
$
371,675
$
372,145
Less: Goodwill and Other Intangibles (GAAP)
93,053
93,093
93,133
93,173
93,213
Tangible Shareowners' Equity (non-GAAP)
A
318,187
300,923
280,032
278,502
278,932
Total Assets (GAAP)
4,409,742
4,525,958
4,332,671
4,354,297
4,310,045
Less: Goodwill and Other Intangibles (GAAP)
93,053
93,093
93,133
93,173
93,213
Tangible Assets (non-GAAP)
B
$
4,316,689
$
4,432,865
$
4,239,538
$
4,261,124
$
4,216,832
Tangible Common Equity Ratio (non-GAAP)
A/B
7.37%
6.79%
6.61%
6.54%
6.61%
Actual Diluted Shares Outstanding (GAAP)
C
17,049,913
17,039,401
16,998,177
16,981,614
16,962,362
Tangible Book Value
 
per Diluted Share (non-GAAP)
A/C
$
18.66
$
17.66
$
16.47
$
16.40
$
16.44
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
CAPITAL CITY BANK
 
GROUP,
 
INC.
EARNINGS HIGHLIGHTS
Unaudited
Three Months Ended
(Dollars in thousands, except per share data)
Mar 31, 2023
Dec 31, 2022
Mar 31, 2022
EARNINGS
Net Income Attributable to Common Shareowners
$
14,954
$
11,664
$
8,455
Diluted Net Income Per Share
$
0.88
$
0.68
$
0.50
PERFORMANCE
Return on Average Assets
1.37
%
1.06
%
0.80
%
Return on Average Equity
15.01
12.16
8.93
Net Interest Margin
4.04
3.76
2.55
Noninterest Income as % of Operating Revenue
35.52
35.50
51.11
Efficiency Ratio
64.48
%
71.47
%
77.55
%
CAPITAL ADEQUACY
Tier 1 Capital
 
14.51
%
14.53
%
15.98
%
Total Capital
 
15.53
15.52
16.98
Leverage
 
9.28
9.06
8.78
Common Equity Tier 1
12.68
12.64
13.77
Tangible Common Equity
(1)
7.37
6.79
6.61
Equity to Assets
9.33
%
8.71
%
8.63
%
ASSET QUALITY
Allowance as % of Non-Performing Loans
577.63
%
1,076.89
%
760.83
%
Allowance as a % of Loans HFI
1.01
0.98
1.05
Net Charge-Offs as % of Average Loans HFI
0.24
0.21
0.16
Nonperforming Assets as % of Loans HFI and OREO
0.17
0.11
0.14
Nonperforming Assets as % of Total Assets
0.10
%
0.06
%
0.06
%
STOCK PERFORMANCE
High
 
$
36.86
$
36.23
$
28.88
Low
28.18
31.14
25.96
Close
$
29.31
$
32.50
$
26.36
Average Daily Trading Volume
41,737
31,894
24,019
(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
2023
2022
(Dollars in thousands)
First Quarter
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
ASSETS
Cash and Due From Banks
$
84,549
$
72,114
$
72,686
$
91,209
$
77,963
Funds Sold and Interest Bearing Deposits
303,403
528,536
497,679
603,315
790,465
Total Cash and Cash Equivalents
387,952
600,650
570,365
694,524
868,428
Investment Securities Available for Sale
402,943
413,294
416,745
601,405
624,361
Investment Securities Held to Maturity
651,755
660,744
676,178
528,258
518,678
Other Equity Securities
1,883
10
1,349
900
855
 
Total Investment Securities
1,056,581
1,074,048
1,094,272
1,130,563
1,143,894
Loans Held for Sale
 
55,118
54,635
50,304
48,708
50,815
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural
236,263
247,362
246,304
247,902
230,213
Real Estate - Construction
253,903
234,519
237,718
225,664
174,293
Real Estate - Commercial
798,438
782,557
715,870
699,093
669,110
Real Estate - Residential
827,124
721,759
573,963
478,121
368,020
Real Estate - Home Equity
207,241
208,120
202,512
194,658
188,174
Consumer
305,324
324,450
347,949
359,906
347,785
Other Loans
7,660
5,346
20,822
6,854
6,692
Overdrafts
931
1,067
1,047
1,455
1,222
Total Loans Held for Investment
2,636,884
2,525,180
2,346,185
2,213,653
1,985,509
Allowance for Credit Losses
(26,507)
(24,736)
(22,510)
(21,281)
(20,756)
Loans Held for Investment, Net
2,610,377
2,500,444
2,323,675
2,192,372
1,964,753
Premises and Equipment, Net
82,055
82,138
81,736
82,932
82,518
Goodwill and Other Intangibles
93,053
93,093
93,133
93,173
93,213
Other Real Estate Owned
13
431
13
90
17
Other Assets
124,593
120,519
119,173
111,935
106,407
Total Other Assets
299,714
296,181
294,055
288,130
282,155
Total Assets
$
4,409,742
$
4,525,958
$
4,332,671
$
4,354,297
$
4,310,045
LIABILITIES
Deposits:
Noninterest Bearing Deposits
$
1,601,388
$
1,653,620
$
1,737,046
$
1,724,671
$
1,704,329
NOW Accounts
1,242,721
1,290,494
990,021
1,036,757
1,062,498
Money Market Accounts
271,880
267,383
292,932
289,337
288,877
Savings Accounts
617,310
637,374
646,526
639,594
614,599
Certificates of Deposit
90,621
90,446
92,853
95,899
95,204
Total Deposits
3,823,920
3,939,317
3,759,378
3,786,258
3,765,507
Short-Term Borrowings
26,632
56,793
52,271
39,463
30,865
Subordinated Notes Payable
52,887
52,887
52,887
52,887
52,887
Other Long-Term Borrowings
463
513
562
612
806
Other Liabilities
85,878
73,675
84,657
93,319
77,323
Total Liabilities
3,989,780
4,123,185
3,949,755
3,972,539
3,927,388
Temporary Equity
8,722
8,757
9,751
10,083
10,512
SHAREOWNERS' EQUITY
Common Stock
170
170
170
170
169
Additional Paid-In Capital
37,512
37,331
36,234
35,738
35,188
Retained Earnings
405,634
393,744
384,964
376,532
370,531
Accumulated Other Comprehensive Loss, Net of Tax
(32,076)
(37,229)
(48,203)
(40,765)
(33,743)
Total Shareowners' Equity
411,240
394,016
373,165
371,675
372,145
Total Liabilities, Temporary Equity and Shareowners' Equity
$
4,409,742
$
4,525,958
$
4,332,671
$
4,354,297
$
4,310,045
OTHER BALANCE SHEET DATA
Earning Assets
$
4,051,987
$
4,182,399
$
3,988,440
$
3,996,238
$
3,970,684
Interest Bearing Liabilities
2,302,514
2,395,890
2,128,052
2,154,549
2,145,736
Book Value Per Diluted Share
$
24.12
$
23.12
$
21.95
$
21.89
$
21.94
Tangible Book Value
 
Per Diluted Share
(1)
18.66
17.66
16.47
16.40
16.44
Actual Basic Shares Outstanding
17,022
16,987
16,962
16,959
16,948
Actual Diluted Shares Outstanding
17,050
17,039
16,998
16,982
16,962
(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
2023
2022
(Dollars in thousands, except per share data)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
INTEREST INCOME
Loans, including Fees
$
34,880
$
31,916
$
27,761
$
24,072
$
22,133
Investment Securities
4,924
4,847
4,372
3,840
2,896
Federal Funds Sold and Interest Bearing Deposits
4,111
4,463
3,231
1,408
409
Total Interest Income
43,915
41,226
35,364
29,320
25,438
INTEREST EXPENSE
Deposits
2,488
1,902
1,052
266
224
Short-Term Borrowings
461
690
536
343
192
Subordinated Notes Payable
571
522
443
370
317
Other Long-Term Borrowings
6
8
6
8
9
Total Interest Expense
3,526
3,122
2,037
987
742
Net Interest Income
40,389
38,104
33,327
28,333
24,696
Provision for Credit Losses
3,130
3,521
2,099
1,542
-
Net Interest Income after Provision for Credit Losses
37,259
34,583
31,228
26,791
24,696
NONINTEREST INCOME
Deposit Fees
5,239
5,536
5,947
5,447
5,191
Bank Card Fees
3,726
3,744
3,860
4,034
3,763
Wealth Management Fees
3,928
3,649
3,937
4,403
6,070
Mortgage Banking Revenues
6,995
5,497
7,116
9,065
8,946
Other
 
2,360
2,546
2,074
1,954
1,848
Total Noninterest Income
22,248
20,972
22,934
24,903
25,818
NONINTEREST EXPENSE
Compensation
25,636
25,565
24,738
25,383
24,856
Occupancy, Net
6,762
6,253
6,153
6,075
6,093
Other
 
8,057
10,469
8,919
9,040
8,284
Total Noninterest Expense
40,455
42,287
39,810
40,498
39,233
OPERATING PROFIT
19,052
13,268
14,352
11,196
11,281
Income Tax Expense
4,133
2,599
3,074
2,177
2,235
Net Income
14,919
10,669
11,278
9,019
9,046
Pre-Tax Loss (Income) Attributable to Noncontrolling Interest
35
995
37
(306)
(591)
NET INCOME ATTRIBUTABLE
 
TO
 
COMMON SHAREOWNERS
$
14,954
$
11,664
$
11,315
$
8,713
$
8,455
PER COMMON SHARE
Basic Net Income
$
0.88
$
0.69
$
0.67
$
0.51
$
0.50
Diluted Net Income
0.88
0.68
0.67
0.51
0.50
Cash Dividend
 
$
0.18
$
0.17
$
0.17
$
0.16
$
0.16
AVERAGE
 
SHARES
Basic
 
17,016
16,963
16,960
16,949
16,931
Diluted
 
17,045
17,016
16,996
16,971
16,946
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
CAPITAL CITY BANK GROUP,
 
INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
2023
2022
(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
$
24,736
$
22,510
$
21,281
$
20,756
$
21,606
Provision for Credit Losses
3,291
3,543
1,931
1,670
(79)
Net Charge-Offs (Recoveries)
1,520
1,317
702
1,145
771
Balance at End of Period
$
26,507
$
24,736
$
22,510
$
21,281
$
20,756
As a % of Loans HFI
1.01%
0.98%
0.96%
0.96%
1.05%
As a % of Nonperforming Loans
577.63%
1,076.89%
934.53%
677.57%
760.83%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period
2,989
$
3,012
$
2,853
$
2,976
$
2,897
Provision for Credit Losses
 
(156)
(23)
159
(123)
79
Balance at End of Period
(1)
2,833
2,989
3,012
2,853
2,976
ACL - DEBT SECURITIES
Provision for Credit Losses
 
$
(5)
$
1
$
9
$
(5)
$
-
CHARGE-OFFS
Commercial, Financial and Agricultural
$
164
$
129
$
2
$
1,104
$
73
Real Estate - Commercial
120
88
1
-
266
Real Estate - Home Equity
-
160
-
-
33
Consumer
1,732
976
770
533
622
Overdrafts
634
720
989
660
780
Total Charge-Offs
$
2,650
$
2,073
$
1,762
$
2,297
$
1,774
RECOVERIES
Commercial, Financial and Agricultural
$
95
$
25
$
58
$
59
$
165
Real Estate - Construction
1
-
2
-
8
Real Estate - Commercial
8
13
8
56
29
Real Estate - Residential
57
98
44
115
27
Real Estate - Home Equity
25
36
22
67
58
Consumer
571
175
260
453
183
Overdrafts
373
409
666
402
533
Total Recoveries
$
1,130
$
756
$
1,060
$
1,152
$
1,003
NET CHARGE-OFFS (RECOVERIES)
$
1,520
$
1,317
$
702
$
1,145
$
771
Net Charge-Offs as a % of Average Loans
 
HFI
(2)
0.24%
0.21%
0.12%
0.22%
0.16%
CREDIT QUALITY
Nonaccruing Loans
$
4,589
$
2,297
$
2,409
$
3,141
$
2,728
Other Real Estate Owned
13
431
13
90
17
Total Nonperforming Assets ("NPAs")
$
4,602
$
2,728
$
2,422
$
3,231
$
2,745
Past Due Loans 30-89 Days
 
$
5,061
$
7,829
$
6,263
$
3,554
$
3,120
Past Due Loans 90 Days or More
-
-
-
-
-
Classified Loans
12,179
19,342
20,988
19,620
22,348
Nonperforming Loans as a % of Loans HFI
0.17%
0.09%
0.10%
0.14%
0.14%
NPAs as a % of Loans HFI and Other Real Estate
0.17%
0.11%
0.10%
0.15%
0.14%
NPAs as a % of
 
Total Assets
0.10%
0.06%
0.06%
0.07%
0.06%
(1)
 
Recorded in other liabilities
(2)
 
Annualized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
CAPITAL CITY BANK GROUP,
 
INC.
AVERAGE
 
BALANCE AND INTEREST RATES
Unaudited
First Quarter 2023
Fourth Quarter 2022
Third Quarter 2022
Second Quarter 2022
First Quarter 2022
(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
$
55,110
$
644
4.74
%
$
42,910
$
581
5.38
%
$
55,164
$
486
4.82
%
$
52,860
711
4.44
%
$
43,004
$
397
3.19
%
Loans Held for Investment
(1)
2,582,395
34,331
5.39
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
Investment Securities
Taxable Investment Securities
1,061,372
4,912
1.86
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
Tax-Exempt Investment Securities
(1)
2,840
17
2.36
2,827
17
2.36
2,939
17
2.30
2,488
10
1.73
2,409
10
1.60
Total Investment Securities
1,064,212
4,929
1.86
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
Federal Funds Sold and Interest Bearing Deposits
360,971
4,111
4.62
469,352
4,463
3.77
569,984
3,231
2.25
691,925
1,408
0.82
873,097
409
0.19
Total Earning Assets
4,062,688
$
44,015
4.39
%
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
%
Cash and Due From Banks
74,639
74,178
79,527
79,730
74,253
Allowance for Credit Losses
(25,637)
(22,596)
(21,509)
(20,984)
(21,655)
Other Assets
300,175
297,510
289,709
288,421
275,353
Total Assets
$
4,411,865
$
4,381,825
$
4,357,678
$
4,321,388
$
4,266,775
LIABILITIES:
Interest Bearing Deposits
NOW Accounts
$
1,228,928
$
2,152
0.71
%
$
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
%
Money Market Accounts
267,573
208
0.31
273,328
63
0.09
288,758
71
0.10
286,210
36
0.05
285,406
33
0.05
Savings Accounts
629,388
76
0.05
641,153
80
0.05
643,640
80
0.05
628,472
77
0.05
599,359
72
0.05
Time Deposits
89,675
52
0.24
92,385
34
0.15
94,073
33
0.14
95,132
33
0.14
97,054
33
0.14
Total Interest Bearing Deposits
2,215,564
2,488
0.46
%
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
%
Short-Term Borrowings
47,109
461
3.97
%
50,844
690
5.38
%
46,679
536
4.56
%
31,782
343
4.33
%
32,353
192
2.40
%
Subordinated Notes Payable
52,887
571
4.32
52,887
522
3.86
52,887
443
3.28
52,887
370
2.76
52,887
317
2.40
Other Long-Term Borrowings
480
6
4.80
530
8
4.80
580
6
4.74
722
8
4.54
833
9
4.49
Total Interest Bearing Liabilities
2,316,040
$
3,526
0.62
%
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
%
Noninterest Bearing Deposits
1,601,750
1,662,443
1,726,918
1,722,325
1,652,337
Other Liabilities
81,206
84,585
98,501
87,207
72,166
Total Liabilities
3,998,996
3,991,888
3,968,511
3,937,927
3,872,301
Temporary Equity
8,802
9,367
9,862
10,096
10,518
SHAREOWNERS' EQUITY:
404,067
380,570
379,305
373,365
383,956
Total Liabilities, Temporary
 
Equity and Shareowners' Equity
$
4,411,865
$
4,381,825
$
4,357,678
$
4,321,388
$
4,266,775
Interest Rate Spread
$
40,489
3.77
%
$
38,192
3.52
%
$
33,410
3.13
%
$
28,409
2.78
%
$
24,774
2.49
%
Interest Income and Rate Earned
(1)
44,015
4.39
41,314
4.07
35,447
3.51
29,396
2.97
25,516
2.63
Interest Expense and Rate Paid
(2)
3,526
0.35
3,122
0.31
2,037
0.20
987
0.10
742
0.08
Net Interest Margin
$
40,489
4.04
%
$
38,192
3.76
%
$
33,410
3.31
%
$
28,409
2.87
%
$
24,774
2.55
%
(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.