Capital City Bank Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

BUSINESS AND BASIS OF PRESENTATION (Policies)

BUSINESS AND BASIS OF PRESENTATION (Policies)	3 Months Ended
BUSINESS AND BASIS OF PRESENTATION (Policies)	Mar. 31, 2023
Business and Basis of Presentation [Abstract]
Nature of Operations	Nature of Operations . Capital City Bank Group, Inc. (“CCBG” or the “Company”) provides a full range of banking and banking- related services to individual and corporate clients through its subsidiary, Capital City Bank, with banking offices located in Florida, Georgia, and Alabama. The Company is subject to competition from other financial institutions, is subject to regulation by certain government agencies and undergoes periodic examinations by those regulatory authorities.
Basis of Presentation	Basis of Presentation . The consolidated financial statements in this Quarterly Report on Form 10-Q include the accounts of CCBG and its wholly owned subsidiary, Capital City Bank (“CCB” or the “Bank”). All material inter-company transactions and accounts have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year’s presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Consolidated Statement of Financial Condition at December 31, 2022 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K/A for the year ended December 31, 2022.
Accounting Standards Updates	Accounting Standards Updates Adoption of New Accounting Standard, On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification (“ASC”) 310-40, “Receivables - Troubled Debt Restructurings by Creditors ” for entities that have adopted the current expected credit loss model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2022- 02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost.” Proposed Accounting Standards , ASU 2023-01, “Leases (Topic 842) : Common Control Arrangements.” ASU 2023-01 requires entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. ASU 2023-01 also provides certain practical expedients applicable to private companies and not-for-profit organizations. ASU 2023- 01 will be effective for us on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect that ASU 2023-01 will have on its consolidated financial statements and related disclosures. ASU No. 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323) : Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 is intended to improve the accounting and disclosures for investments in tax credit structures. ASU 2023-02 allows entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. Previously, this method was only available for qualifying tax equity investments in low-income housing tax credit structures. ASU 2023-02 will be effective for us on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect that ASU 2023-02 will have on its consolidated financial statements and related disclosures.
Restatement of Previously Issued Consolidated Financial Statements	Restatement of Previously Issued Consolidated Financial Statements We have restated herein our unaudited consolidated financial statements for the three months ended March 31, 2023. We have also restated financial statement periods for the year of 2022 and restated the impacted amounts within the accompanying notes to the consolidated financial statements. Restatement Background CCHL sold residential mortgage loans to CCB. CCHL recorded mortgage banking revenue and a mortgage servicing right. On an ongoing basis, CCHL recognized noninterest income for servicing these loans on behalf of CCB. As a result of this misstatement, assets are overstated by $ 1.2 million as of March 31, 2023 and net income is overstated by $ 1.2 million for the three months ended March 31, 2023. This represents 0.03 % of previously reported total assets as of March 31, 2023 and 8.33 % of previously reported net income for the three months ended March 31, 2023. As a result, diluted EPS decreases from $ 0.88 per share to $ 0.80 per share. Description of Misstatements Misstatements Associated with Mortgage Loan Sale Transactions a) Loan Origination Costs & Gain on Sale of Loan CCHL originated certain mortgage loans that were sold to the Bank for a premium. The gain recorded by CCHL and the corresponding loan purchase premium recorded by the Bank were not eliminated in consolidation. Additionally, the Company did not defer net loan origination costs on these loans. The impacts of the loan origination costs & gain on sale of loan misstatements on each period are presented in this note. b) Mortgage Servicing Right (“MSR”) Asset CCHL recorded an MSR asset and recognized a corresponding gain related to the aforementioned loans sold to and serviced for the Bank. As the MSR asset is recorded at amortized cost, CCHL also recorded amortization expense in each period in other non-interest expense. The MSR asset, gain, and amortization expense should have been eliminated in consolidation. The impacts of the MSR Asset misstatements on each period are presented in this note. c) Mortgage Servicing The Bank recorded servicing fee expense and CCHL recorded servicing income; these amounts should have been eliminated in consolidation. The impacts of the mortgage servicing misstatements on each period are presented in this note. d) Statement of Financial Condition Misclassification CCHL classifies all mortgage production as loans held for sale. The portion of this production that was designated to be sold to the Bank should have been designated as loans held for investment for the Consolidated Financial Statements. This reclassification also reflects the reversal of the related mark-to-market adjustment and the establishment of the Allowance for Credit Losses (“ACL”) on these loans. While previously the mark-to-market adjustment had been reversed and the ACL established at the time the loans were sold to CCB, this correction reflects those entries in the appropriate periods. The impacts of the restatement on each period are presented in this note. Description of Restatement Tables The following tables present the amounts previously reported and a reconciliation of the restatement amounts reported on the restated Consolidated Statement of Financial Condition as of March 31, 2023 and December 31, 2022, the restated Consolidated Statements of Income for the three months ended March 31, 2023 and 2022, restated Consolidated Statement of Comprehensive Income for the three months ended March 31, 2023 and 2022, restated Consolidated Statements of Changes in Shareowners’ Equity for the three months ended March 31, 2023 and 2022, and the restated Consolidated Statements of Cash Flows for the three months ended March 31, 2023. The amounts previously reported for the three months ended March 31, 2023 were derived from our Quarterly Report on Form 10-Q for the three months ended March 31, 2023, originally filed May 1, 2023. PART I. FINANCIAL INFORMATION CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) March 31, 2023 December 31, 2022 (Dollars in Thousands, Except Par Value) As Previously Reported As Restated As Previously Reported As Restated ASSETS Cash and Due From Banks $ 84,549 $ 84,549 $ 72,114 $ 72,114 Federal Funds Sold and Interest Bearing Deposits 303,403 303,403 528,536 528,536 Total Cash and Cash Equivalents 387,952 387,952 600,650 600,650 Investment Securities, Available for Sale, at fair value (amortized cost of $ 438,068 and $ 455,232 ) 402,943 402,943 413,294 413,294 Investment Securities, Held to Maturity (fair value of $ 612,200 and $ 612,701 ) 651,755 651,755 660,744 660,744 Equity Securities 1,883 1,883 10 10 Total Investment Securities 1,056,581 1,056,581 1,074,048 1,074,048 Loans Held For Sale, at fair value 55,118 28,475 54,635 26,909 Loans Held for Investment 2,636,884 2,657,147 2,525,180 2,547,685 Allowance for Credit Losses (26,507) (26,808) (24,736) (25,068) Loans Held for Investment, Net 2,610,377 2,630,339 2,500,444 2,522,617 Premises and Equipment, Net 82,055 82,055 82,138 82,138 Goodwill and Other Intangibles 93,053 93,053 93,093 93,093 Other Real Estate Owned 13 13 431 431 Other Assets 124,593 123,294 120,519 119,337 Total Assets $ 4,409,742 $ 4,401,762 $ 4,525,958 $ 4,519,223 LIABILITIES Deposits: Noninterest Bearing Deposits $ 1,601,388 $ 1,601,388 $ 1,653,620 $ 1,653,620 Interest Bearing Deposits 2,222,532 2,222,532 2,285,697 2,285,697 Total Deposits 3,823,920 3,823,920 3,939,317 3,939,317 Short-Term Borrowings 26,632 26,632 56,793 56,793 Subordinated Notes Payable 52,887 52,887 52,887 52,887 Other Long-Term Borrowings 463 463 513 513 Other Liabilities 85,878 85,878 73,675 73,675 Total Liabilities 3,989,780 3,989,780 4,123,185 4,123,185 Temporary Equity 8,722 8,722 8,757 8,757 SHAREOWNERS’ EQUITY Preferred Stock, $ 0.01 par value; 3,000,000 shares authorized; no shares issued and outstanding - - - - Common Stock, $ 0.01 par value; 90,000,000 shares authorized; 17,021,748 and 16,986,785 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively 170 170 170 170 Additional Paid-In Capital 37,512 37,512 37,331 37,331 Retained Earnings 405,634 397,654 393,744 387,009 Accumulated Other Comprehensive Loss, net of tax (32,076) (32,076) (37,229) (37,229) Total Shareowners’ Equity 411,240 403,260 394,016 387,281 Total Liabilities, Temporary Equity, and Shareowners’ Equity $ 4,409,742 $ 4,401,762 $ 4,525,958 $ 4,519,223 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 (Dollars in Thousands, Except Per Share Data) As Previously Reported As Restated As Previously Reported As Restated INTEREST INCOME Loans, including Fees $ 34,880 $ 34,891 $ 22,133 $ 22,429 Investment Securities: Taxable Securities 4,912 4,912 2,890 2,890 Tax Exempt Securities 12 12 6 6 Federal Funds Sold and Interest Bearing Deposits 4,111 4,111 409 409 Total Interest Income 43,915 43,926 25,438 25,734 INTEREST EXPENSE Deposits 2,488 2,488 224 224 Short-Term Borrowings 461 461 192 192 Subordinated Notes Payable 571 571 317 317 Other Long-Term Borrowings 6 6 9 9 Total Interest Expense 3,526 3,526 742 742 NET INTEREST INCOME 40,389 40,400 24,696 24,992 Provision for Credit Losses 3,130 3,099 - 32 Net Interest Income After Provision for Credit Losses 37,259 37,301 24,696 24,960 NONINTEREST INCOME Deposit Fees 5,239 5,239 5,191 5,191 Bank Card Fees 3,726 3,726 3,763 3,763 Wealth Management Fees 3,928 3,928 6,070 6,070 Mortgage Banking Revenues 6,995 2,871 8,946 4,055 Other 2,360 1,994 1,848 1,733 Total Noninterest Income 22,248 17,758 25,818 20,812 NONINTEREST EXPENSE Compensation 25,636 23,524 24,856 22,298 Occupancy, Net 6,762 6,762 6,093 6,093 Other 8,057 7,389 8,284 8,132 Total Noninterest Expense 40,455 37,675 39,233 36,523 INCOME BEFORE INCOME TAXES 19,052 17,384 11,281 9,249 Income Tax Expense 4,133 3,710 2,235 1,720 NET INCOME $ 14,919 $ 13,674 $ 9,046 $ 7,529 Loss (Income) Attributable to Noncontrolling Interests 35 35 (591) (591) NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS $ 14,954 $ 13,709 $ 8,455 $ 6,938 BASIC NET INCOME PER SHARE $ 0.88 $ 0.81 $ 0.50 $ 0.41 DILUTED NET INCOME PER SHARE $ 0.88 $ 0.80 $ 0.50 $ 0.41 Average Basic Shares Outstanding 17,016 17,016 16,931 16,931 Average Diluted Shares Outstanding 17,045 17,045 16,946 16,946 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 (Dollars in Thousands) As Previously Reported As Restated As Previously Reported As Restated NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS $ 14,954 $ 13,709 $ 8,455 $ 6,938 Other comprehensive income (loss), before tax: Investment Securities: Change in net unrealized gain (loss) on securities available for sale 6,808 6,808 (25,448) (25,448) Amortization of unrealized losses on securities transferred from available for sale to held to maturity 865 865 3 3 Derivative: Change in net unrealized (loss) gain on effective cash flow derivative (801) (801) 1,836 1,836 Benefit Plans: Pension Settlement - - 209 209 Total Benefit Plans - - 209 209 Other comprehensive income (loss), before tax 6,872 6,872 (23,400) (23,400) Deferred tax expense (benefit) related to other comprehensive income 1,719 1,719 (5,871) (5,871) Other comprehensive income (loss), net of tax 5,153 5,153 (17,529) (17,529) TOTAL COMPREHENSIVE INCOME (LOSS) $ 20,107 $ 18,862 $ (9,074) $ (10,591) The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Unaudited) Three Months Ended March 31, 2023 (Dollars in thousands, except per share data) Shares Outstanding Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss, Net of Taxes Total As Previously Reported Balance, January 1, 2023, as previously reported 16,986,785 $ 170 $ 37,331 $ 393,744 $ (37,229) $ 394,016 Net Income Attributable to Common Shareowners 14,954 14,954 Other Comprehensive Loss, Net of Tax 5,153 5,153 Cash Dividends ($ 0.18 per share) (3,064) (3,064) Repurchase of Common Stock (25,241) (819) (819) Stock Based Compensation 536 536 Stock Compensation Plan Transactions, net 60,204 - 464 464 Balance, March 31, 2023, as previously reported 17,021,748 $ 170 $ 37,512 $ 405,634 $ (32,076) $ 411,240 As Restated Balance, January 1, 2023, as restated 16,986,785 $ 170 $ 37,331 $ 387,009 $ (37,229) $ 387,281 Net Income Attributable to Common Shareowners 13,709 13,709 Other Comprehensive Loss, Net of Tax 5,153 5,153 Cash Dividends ($ 0.18 per share) (3,064) (3,064) Repurchase of Common Stock (25,241) (819) (819) Stock Based Compensation 536 536 Stock Compensation Plan Transactions, net 60,204 - 464 464 Balance, March 31, 2023, as restated 17,021,748 $ 170 $ 37,512 $ 397,654 $ (32,076) $ 403,260 Three Months Ended March 31, 2022 (Dollars in thousands, except per share data) Shares Outstanding Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss, Net of Taxes Total As Previously Reported Balance, January 1, 2022, as previously reported 16,892,060 $ 169 $ 34,423 $ 364,788 $ (16,214) $ 383,166 Net Income Attributable to Common Shareowners 8,455 8,455 Other Comprehensive Loss, Net of Tax (17,529) (17,529) Cash Dividends ($ 0.16 per share) (2,712) (2,712) Stock Based Compensation 245 245 Stock Compensation Plan Transactions, net 55,542 - 520 520 Balance, March 31, 2022, as previously reported 16,947,602 $ 169 $ 35,188 $ 370,531 $ (33,743) $ 372,145 As Restated Balance, January 1, 2022, as restated 16,892,060 $ 169 $ 34,423 $ 364,788 $ (16,214) $ 383,166 Net Income Attributable to Common Shareowners 6,938 6,938 Other Comprehensive Loss, Net of Tax (17,529) (17,529) Cash Dividends ($ 0.16 per share) (2,712) (2,712) Stock Based Compensation 245 245 Stock Compensation Plan Transactions, net 55,542 - 520 520 Balance, March 31, 2022, as restated 16,947,602 $ 169 $ 35,188 $ 369,014 $ (33,743) $ 370,628 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 (Dollars in Thousands) As Previously Reported As Restated As Previously Reported As Restated CASH FLOWS FROM OPERATING ACTIVITIES Net Income Attributable to Common Shareowners $ 14,954 $ 13,709 $ 8,455 $ 6,938 Adjustments to Reconcile Net Income to Provision for Credit Losses 3,130 3,099 - 32 Depreciation 1,969 1,969 1,907 1,907 Amortization of Premiums, Discounts, and Fees, net 1,080 1,067 2,907 2,610 Amortization of Intangible Assets 40 40 40 40 Pension Settlement Charge - - 209 209 Originations of Loans Held-for-Sale (212,085) (213,240) (246,887) (242,253) Proceeds From Sales of Loans Held-for-Sale 218,597 214,545 257,550 252,584 Mortgage Banking Revenues (6,995) (2,871) (8,946) (4,055) Net Additions for Capitalized Mortgage Servicing Rights (633) (91) 227 364 Stock Compensation 536 536 245 245 Net Tax Benefit From Stock-Based Compensation - - (19) (19) Deferred Income Taxes (Benefit) (747) (1,170) (6,167) (6,682) Net Change in Operating Leases (3) (3) (27) (27) Net (Gain) Loss on Sales and Write-Downs of Other Real Estate Owned (1,858) (1,858) - - Net Decrease (Increase) in Other Assets (4,349) (4,349) 1,441 1,897 Net (Decrease) Increase in Other Liabilities 12,471 12,471 7,036 7,036 Net Cash Provided (Used In) By Operating Activities 26,107 23,854 17,971 20,826 CASH FLOWS FROM INVESTING ACTIVITIES Securities Held to Maturity: Purchases - - (194,448) (194,448) Payments, Maturities, and Calls 8,820 8,820 14,441 14,441 Securities Available for Sale: - - - - Purchases (2,017) (2,017) (25,139) (25,139) Proceeds from Sale of Securities - - 3,365 3,365 Payments, Maturities, and Calls 16,559 16,559 24,824 24,824 Purchase of loans held for investment (121,029) (121,029) (26,713) (26,713) Net Decrease (Increase) in Loans Held for Investment 7,376 9,629 (28,405) (31,260) Proceeds From Sales of Other Real Estate Owned 2,699 2,699 - - Purchases of Premises and Equipment (1,886) (1,886) (1,013) (1,013) Noncontrolling interest contributions received - - 1,838 1,838 Net Cash Used In Investing Activities (89,478) (87,225) (231,250) (234,105) CASH FLOWS FROM FINANCING ACTIVITIES Net Increase in Deposits (115,397) (115,397) 52,645 52,645 Net (Decrease) Increase in Other Short-Term Borrowings (30,161) (30,161) (3,692) (3,692) Repayment of Other Long-Term Borrowings (50) (50) (78) (78) Dividends Paid (3,064) (3,064) (2,712) (2,712) Payments to Repurchase Common Stock (819) (819) - - Issuance of Common Stock Under Compensation Plans 164 164 190 190 Net Cash Provided By Financing Activities (149,327) (149,327) 46,353 46,353 NET DECREASE IN CASH AND CASH EQUIVALENTS (212,698) (212,698) (166,926) (166,926) Cash and Cash Equivalents at Beginning of Period 600,650 600,650 1,035,354 1,035,354 Cash and Cash Equivalents at End of Period $ 387,952 $ 387,952 $ 868,428 $ 868,428 Supplemental Cash Flow Disclosures: Interest Paid $ 3,723 $ 3,723 $ 715 $ 715 Income Taxes Paid $ 7,466 $ 7,466 $ 20 $ 20 Noncash Investing and Financing Activities: Loans and Premises Transferred to Other Real Estate Owned $ 423 $ 423 $ - $ - CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Unaudited) As of March 31, 2023 (Dollars in Thousands, except per share data) As Previously Reported 2022 Restatement Impact 2023 Restatement Impact As Restated ASSETS: Cash and Due From Banks $ 84,549 $ - $ - $ 84,549 Federal Funds Sold and Interest Bearing Deposits 303,403 - - 303,403 Total Cash and Cash Equivalents 387,952 - - 387,952 Investment Securities Available for Sale (amortized cost of $ 438,068 ) 402,943 - - 402,943 Investment Securities Held to Maturity (fair value of $ 612,200 ) 651,755 - - 651,755 Other Equity Securities 1,883 - - 1,883 Total Investment Securities 1,056,581 - - 1,056,581 Loans Held For Sale 55,118 (27,726) 1,083 28,475 Loans, Net of Unearned Income 2,636,884 22,505 (2,242) 2,657,147 Allowance for Loan Losses (26,507) (332) 31 (26,808) Loans, Net 2,610,377 22,173 (2,211) 2,630,339 Premises and Equipment, Net 82,055 - - 82,055 Goodwill 93,053 - - 93,053 Other Real Estate Owned 13 - - 13 Other Assets 124,593 (1,182) (117) 123,294 Total Assets 4,409,742 (6,735) (1,245) 4,401,762 LIABILITIES Deposits: Noninterest Bearing Deposits 1,601,388 - - 1,601,388 Interest Bearing Deposits 2,222,532 - - 2,222,532 Total Deposits 3,823,920 - - 3,823,920 Short-Term Borrowings 26,632 - - 26,632 Subordinated Notes Payable 52,887 - - 52,887 Other Long-Term Borrowings 463 - - 463 Other Liabilities 85,878 - - 85,878 Total Liabilities 3,989,780 - - 3,989,780 Temporary Equity 8,722 - - 8,722 SHAREOWNERS' EQUITY Preferred Stock: $ .01 par value, 3,000,000 shares authorized no shares issues and outstanding - - - - Common Stock, $ .01 par value, 90,000,000 shares authorized 17,021,748 shares issued and outstanding 170 - - 170 Additional Paid-In Capital 37,512 - - 37,512 Retained Earnings 405,634 (6,735) (1,245) 397,654 Accumulated Other Comprehensive Loss, Net of Tax (32,076) - - (32,076) Total Shareowners' Equity 411,240 (6,735) (1,245) 403,260 Total Liabilities, Temporary Equity, and Shareowners' Equity $ 4,409,742 $ (6,735) $ (1,245) $ 4,401,762 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF INCOME (Unaudited) For Three Months Ended March 31, 2023 (Dollars in thousands, except per share data) As Previously Reported Restatement Impact As Restated INTEREST INCOME Loans, Including Fees $ 34,880 $ 11 $ 34,891 Taxable Securities 4,912 - 4,912 Tax Exempt Securities 12 - 12 Funds Sold 4,111 - 4,111 Total Interest Income 43,915 11 43,926 INTEREST EXPENSE Deposits 2,488 - 2,488 Short-Term Borrowings 461 - 461 Subordinated Notes Payable 571 - 571 Other Long-Term Borrowings 6 - 6 Total Interest Expense 3,526 - 3,526 Net Interest Income 40,389 11 40,400 Provision for Loan Losses 3,130 (31) 3,099 Net Interest Income After Provision For Loan Losses 37,259 42 37,301 NONINTEREST INCOME Deposit Fees 5,239 - 5,239 Bank Card Fees 3,726 - 3,726 Wealth Management Fees 3,928 - 3,928 Mortgage Banking Fees 6,995 (4,124) 2,871 Other 2,360 (366) 1,994 Total Noninterest Income 22,248 (4,490) 17,758 NONINTEREST EXPENSE Compensation 25,636 (2,112) 23,524 Occupancy, Net 6,762 - 6,762 Other 8,057 (668) 7,389 Total Noninterest Expense 40,455 (2,780) 37,675 INCOME BEFORE INCOME TAXES 19,052 (1,668) 17,384 Income Tax Expense 4,133 (423) 3,710 NET INCOME 14,919 (1,245) 13,674 Pre-Tax Income Attributable to Noncontrolling Interests 35 - 35 NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS $ 14,954 $ (1,245) $ 13,709 BASIC NET INCOME PER SHARE $ 0.88 $ (0.07) $ 0.81 DILUTED NET INCOME PER SHARE $ 0.88 $ (0.08) $ 0.80 AVERAGE SHARES: Basic 17,016 - 17,016 Diluted 17,045 - 17,045 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, 2023 (Dollars in thousands, except per share data) As Previously Reported Restatement Impact As Restated NET INCOME $ 14,954 $ (1,245) $ 13,709 Other comprehensive income (loss), before tax: Investment Securities: Change in net unrealized (loss) gain on securities available for sale 6,808 - 6,808 Amortization of unrealized losses on securities transferred from available for sale to held to maturity 865 - 865 Derivative: Change in net unrealized gain on effective cash flow derivative (801) - (801) Benefit Plans: Other comprehensive income (loss), before tax: 6,872 - 6,872 Deferred tax expense related to other comprehensive income 1,719 - 1,719 Other comprehensive income (loss), net of tax 5,153 - 5,153 TOTAL COMPREHENSIVE INCOME $ 20,107 $ (1,245) $ 18,862 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (Unaudited) Three Months Ended March 31, 2023 (Dollars in thousands, except per share data) Shares Outstanding Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss, Net of Taxes Total As Previously Reported Balance, January 1, 2023, as previously reported 16,986,785 $170 $37,331 $393,744 $(37,229) $394,016 Net Income Attributable to Common Shareowners 14,954 14,954 Other Comprehensive Loss, Net of Tax 5,153 5,153 Cash Dividends ($ 0.18 per share) (3,064) (3,064) Repurchase of Common Stock (25,241) (819) (819) Stock Based Compensation 536 536 Stock Compensation Plan Transactions, net 60,204 - 464 464 Balance, March 31, 2023, as previously reported 17,021,748 $170 $37,512 $405,634 $(32,076) $411,240 Restatement Impacts Balance, January 1, 2023, as restated - - - (6,735) - (6,735) Net Income Attributable to Common Shareowners (1,245) (1,245) Balance, March 31, 2023, as restated - - - (7,980) - (7,980) As Restated Balance, January 1, 2023, as restated 16,986,785 $170 $37,331 $387,009 $(37,229) $387,281 Net Income Attributable to Common Shareowners 13,709 13,709 Other Comprehensive Loss, Net of Tax 5,153 5,153 Cash Dividends ($ 0.18 per share) (3,064) (3,064) Repurchase of Common Stock (25,241) (819) (819) Stock Based Compensation 536 536 Stock Compensation Plan Transactions, net 60,204 - 464 464 Balance, March 31, 2023, as restated 17,021,748 $170 $37,512 $397,654 $(32,076) $403,260 CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2023 (Dollars in Thousands) As Previously Reported Restatement Impact As Restated CASH FLOWS FROM OPERATING ACTIVITIES Net Income Attributable to Common Shareowners $ 14,954 $ (1,245) $ 13,709 Adjustments to Reconcile Net Income to Provision for Credit Losses 3,130 (31) 3,099 Depreciation 1,969 - 1,969 Amortization of Premiums, Discounts, and Fees, net 1,080 (13) 1,067 Amortization of Intangible Assets 40 - 40 Originations of Loans Held-for-Sale (212,085) (1,155) (213,240) Proceeds From Sales of Loans Held-for-Sale 218,597 (4,052) 214,545 Mortgage Banking Revenues (6,995) 4,124 (2,871) Net Additions for Capitalized Mortgage Servicing Rights (633) 542 (91) Stock Compensation 536 - 536 Deferred Income Taxes (Benefit) (747) (423) (1,170) Net Change in Operating Leases (3) - (3) Net (Gain) Loss on Sales and Write-Downs of Other Real Estate Owned (1,858) - (1,858) Net Decrease (Increase) in Other Assets (4,349) - (4,349) Net (Decrease) Increase in Other Liabilities 12,471 - 12,471 Net Cash Provided (Used In) By Operating Activities 26,107 (2,253) 23,854 CASH FLOWS FROM INVESTING ACTIVITIES Securities Held to Maturity: Payments, Maturities, and Calls 8,820 - 8,820 Securities Available for Sale: Purchases (2,017) - (2,017) Payments, Maturities, and Calls 16,559 - 16,559 Purchase of loans held for investment (121,029) - (121,029) Net Decrease in Loans Held for Investment 7,376 2,253 9,629 Proceeds From Sales of Other Real Estate Owned 2,699 - 2,699 Purchases of Premises and Equipment (1,886) - (1,886) Net Cash Used In Investing Activities (89,478) 2,253 (87,225) CASH FLOWS FROM FINANCING ACTIVITIES Net Increase in Deposits (115,397) - (115,397) Net (Decrease) Increase in Other Short-Term Borrowings (30,161) - (30,161) Repayment of Other Long-Term Borrowings (50) - (50) Dividends Paid (3,064) - (3,064) Payments to Repurchase Common Stock (819) - (819) Issuance of Common Stock Under Compensation Plans 164 - 164 Net Cash Provided By Financing Activities (149,327) - (149,327) NET DECREASE IN CASH AND CASH EQUIVALENTS (212,698) - (212,698) Cash and Cash Equivalents at Beginning of Period 600,650 - 600,650 Cash and Cash Equivalents at End of Period $ 387,952 $ - $ 387,952 Supplemental Cash Flow Disclosures: Interest Paid $ 3,723 $ - $ 3,723 Income Taxes Paid $ 7,466 $ - $ 7,466 Noncash Investing and Financing Activities: Loans and Premises Transferred to Other Real Estate Owned $ 423 $ - $ 423