Capital City Bank Group Reports First Quarter 2022 Results

Rhea-AI Summary

On April 25, 2022, Capital City Bank Group (NASDAQ: CCBG) reported a net income of $8.5 million for Q1 2022, equating to $0.50 per diluted share, up from $6.4 million ($0.38) in Q4 2021 but down from $9.5 million ($0.56) in Q1 2021. Loan balances rose by $54 million (2.8%), and noninterest income increased by 4.6%, due to growth in wealth management fees. Noninterest expenses decreased by $1.0 million (2.4%). The company maintained strong credit quality without any credit loss provisions, positioning itself to navigate economic challenges amid rising inflation and tightening monetary policies.

Positive

• Net income increased to $8.5 million in Q1 2022 from $6.4 million in Q4 2021.
• Loan balances grew by $54 million (2.8%) sequentially.
• Noninterest income rose by 4.6%, driven by wealth management fees.
• Noninterest expenses decreased by $1.0 million (2.4%).
• No credit loss provision recorded, indicating strong credit quality.

Negative

• Net interest margin decreased by 30 basis points from Q1 2021 to 2.55%.
• Compared to Q1 2021, noninterest income fell from $29.8 million to $25.8 million.

TALLAHASSEE, Fla., April 25, 2022 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $8.5 million, or $0.50 per diluted share, for the first quarter of 2022 compared to net income of $6.4 million, or $0.38 per diluted share, for the fourth quarter of 2021, and $9.5 million, or $0.56 per diluted share, for the first quarter of 2021.

First Quarter 2022 HIGHLIGHTS

• Period-end loan balances grew $54 million, or 2.8% sequentially
• Net interest income gained momentum driven by growth in investment portfolio and higher rates
• Noninterest income increased by 4.6% sequentially, driven by wealth management fees (insurance commission revenues)
• Noninterest expense decreased $1.0 million, or 2.4% sequentially, attributable to lower pension plan expense
• Continued strong credit quality resulted in no credit loss provision
  

“We begin 2022 with a quarter of solid financial performance,” said William G. Smith, Jr., Chairman, President and CEO of Capital City Bank Group.  “Loan growth, credit quality, rising rates, wealth management and lower expenses all contributed to this quarter’s strong performance.  Much has changed in a short period of time – rapidly escalating inflation, a pivot by the Federal Reserve toward a quicker tightening of monetary policy and the Russia-Ukraine war, along with the accompanying sanctions and questions around how the financial markets will respond to these macro-economic events. While much of this is out of our control, we believe we are well positioned to navigate through this year and beyond.  While acknowledging higher rates will generate unrealized losses in our investment portfolio, our asset-sensitive balance sheet and pension related other comprehensive loss should respond well to rising rates.  Capital City Strategic Wealth (“CCSW”) also had a strong first quarter and we continue our expansion efforts in west Florida and the northern arc of Atlanta.  While challenges remain, we continue to focus on identifying opportunities and executing strategies we believe are sustainable and add long-term value for our shareowners.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2022 totaled $24.8 million, comparable to the fourth quarter of 2021, and $24.6 million for the first quarter of 2021. Compared to the fourth quarter of 2021, higher rates on overnight funds and growth in the investment portfolio was offset by two less calendar days during the quarter. Compared to the first quarter of 2021, the increase was due to growth in our investment portfolio which was funded by higher deposit balances.

Our net interest margin for the first quarter of 2022 was 2.55%, a decrease of five basis points from the fourth quarter of 2021 and a decrease of 30 basis points from the first quarter of 2021. Compared to both prior periods, the decrease was primarily attributable to growth in earning assets (driven by deposit inflows), which negatively impacted our margin percentage. Our net interest margin for the first quarter of 2022, excluding the impact of overnight funds in excess of $200 million, was 3.11%.

Provision for Credit Loss

We did not record a provision for credit losses for the first quarter of 2022 or the fourth quarter of 2021 and recorded a negative provision of $1.0 million for the first quarter of 2021. The lack of provision for the first quarter of 2022 reflected continued strong credit quality and slight improvement in the forecasted level of unemployment. We discuss the allowance for credit losses further below.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2022 totaled $25.8 million compared to $24.7 million for the fourth quarter of 2021 and $29.8 million for the first quarter of 2021. The increase over the fourth quarter of 2021 was primarily attributable to higher wealth management fees of $2.1 million that were partially offset by lower mortgage banking revenues of $0.9 million. The increase in wealth management fees was attributable to higher insurance commission revenues. Lower loan production and a slightly lower gain on sale margin drove the decline in mortgage banking revenues. Compared to the first quarter of 2021, the decline was due to lower mortgage banking revenues attributable to lower loan production (primarily refinancing activity) and a lower gain on sale margin. Additional detail on our mortgage banking operation (CCHL) is provided on Page 11.

Noninterest expense for the first quarter of 2022 totaled $39.2 million compared to $40.2 million for the fourth quarter of 2021 and $40.5 million for the first quarter of 2021. The decrease from the fourth quarter of 2021 was primarily attributable to lower pension expense of $1.6 million (reflected in other expense) offset by higher commission expense of $0.7 million related to higher insurance revenues. The decrease in pension expense generally reflected a higher discount rate in 2022 for determining plan liabilities and strong asset returns in 2021. Compared to the first quarter of 2021, the decrease was attributable to lower commission expense of $2.6 million related to lower mortgage banking revenues offset by higher associate benefits of $0.5 million and a decrease in realized loan cost of $0.8 million (credit offset to salary expense).

Income Taxes

We realized income tax expense of $2.2 million (effective rate of 20%) for the first quarter of 2022 compared to $2.0 million (effective rate of 22%) for the fourth quarter of 2021 and $2.8 million (effective rate of 19%) for the first quarter of 2021. Tax expense for the fourth quarter of 2021 was unfavorably impacted by discrete tax expense of $0.1 million. Absent discrete items, we expect our annual effective tax rate to approximate 19%-20% in 2022. 

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.939 billion for the first quarter of 2022, an increase of $147.5 million, or 3.9%, over the fourth quarter of 2021, and an increase of $440.9 million, or 12.6%, over the first quarter of 2021. The increase over the fourth quarter of 2021 was primarily attributable to seasonal growth in our public fund deposits. The increase compared to the first quarter of 2021 was primarily driven by higher deposit balances (see below – Funding).

We maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $873.1 million in the first quarter of 2022 compared to $789.1 million in the fourth quarter of 2021 and $814.6 million in the first quarter of 2021. The growth compared to the fourth quarter of 2021 primarily reflected higher seasonal public fund balances. The increase compared to the first quarter of 2021 reflected higher deposit balance (see below – Funding).

Average loans held for investment (“HFI”) increased $15.3 million, or 0.8%, over the fourth quarter of 2021 and decreased $80.8 million, or 4.0%, from the first quarter of 2021. Excluding SBA PPP loans, average loans HFI increased $18.8 million compared to the fourth quarter of 2021, and increased $115.9 million compared to the first quarter of 2021. Compared to the fourth quarter of 2021, the increase in average loans (excluding SBA PPP loans) reflected growth in commercial loans (primarily institutional), residential loans, HELOCs, and consumer loans (indirect auto). Compared to the first quarter of 2021, we realized growth in commercial loans, construction loans, residential mortgages, and consumer loans (indirect auto). New loan production strengthened in the latter part of the first quarter of 2022 resulting in period end loan growth of $54 million over the fourth quarter of 2021. Increases were realized in most loan categories with the largest growth in commercial loans (primarily institutional) and consumer loans (indirect auto).

Allowance for Credit Losses

At March 31, 2022, the allowance for credit losses for HFI loans totaled $20.8 million compared to $21.6 million at December 31, 2021 and $22.0 million at March 31, 2021. Activity within the allowance is provided on Page 9. At March 31, 2022, the allowance represented 1.05% of HFI loans and provided coverage of 761% of nonperforming loans compared to 1.12% and 500%, respectively, at December 31, 2021, and 1.07% and 411%, respectively, at March 31, 2021.

Credit Quality

Overall credit quality is strong and continues to improve. Nonperforming assets (nonaccrual loans and other real estate) totaled $2.7 million at March 31, 2022 compared to $4.3 million at December 31, 2021 and $5.5 million at March 31, 2021. At March 31, 2022, nonperforming assets as a percentage of total assets totaled 0.06% compared to 0.10% at December 31, 2021 and 0.14% at March 31, 2021. Nonaccrual loans totaled $2.7 million at March 31, 2022, a $1.7 million decrease from December 31, 2021 and a $2.7 million decrease from March 31, 2021. The $4.4 million increase in classified loans over the fourth quarter of 2021, reflects one loan relationship that is in the loan workout process and has been reserved for at March 31, 2022.

Funding (Deposits/Debt)

Average total deposits were $3.714 billion for the first quarter of 2022, an increase of $164.9 million, or 4.6%, over the fourth quarter of 2021 and $474.6 million, or 14.6%, over the first quarter of 2021. Growth over the fourth quarter of 2021 was primarily attributable to an increase in seasonal public fund deposits. Compared to the first quarter 2021, strong growth occurred in our noninterest bearing deposits, NOW accounts, and savings account balances. Over the past few years, we have experienced strong core deposit growth, in addition to growth related to multiple government stimulus programs in response to the Covid-19 pandemic, such as those under the CARES Act and the American Rescue Plan Act. Given these increases, the potential exists for our deposit levels to be volatile into 2022 due to the uncertain timing of the outflows of the stimulus related balances, in addition to the frequency and degree to which the Federal Open Market Committee (FOMC) raises the overnight funds rate. It is anticipated that current liquidity levels will remain robust due to our strong overnight funds sold position. The Bank continues to strategically consider ways to safely deploy a portion of this liquidity.

Average borrowings decreased $14.6 million from the fourth quarter of 2021 and declined $36.6 million from the first quarter of 2021, as both periods reflected lower warehouse line borrowing needs to support CCHL’s loans held for sale.

Capital

Shareowners’ equity was $372.1 million at March 31, 2022 compared to $383.2 million at December 31, 2021 and $324.4 million at March 31, 2021. During the first quarter of 2022, shareowners’ equity was positively impacted by net income of $8.5 million, a $0.2 million decrease in the accumulated other comprehensive loss for our pension plan, a $1.4 million increase in the fair value of the interest rate swap related to subordinated debt, net adjustments totaling $0.5 million related to transactions under our stock compensation plans, and stock compensation accretion of $0.2 million. Shareowners’ equity was reduced by common stock dividends of $2.7 million ($0.16 per share) and a $19.1 million increase in the unrealized loss on investment securities.

At March 31, 2022, our total risk-based capital ratio was 16.98% compared to 17.15% at December 31, 2021 and 17.20% at March 31, 2021. Our common equity tier 1 capital ratio was 13.77%, 13.86%, and 13.63%, respectively, on these dates. Our leverage ratio was 8.78%, 8.95%, and 8.97%, respectively, on these dates. All of our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio was 6.61% at March 31, 2022 compared to 6.95% and 6.13% at December 31, 2021 and March 31, 2021, respectively. The slight reduction in our regulatory capital ratios was attributable to loan growth and higher asset levels.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.3 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 57 banking offices and 86 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: fluctuations in inflation, interest rates, or monetary policies; the accuracy of the our financial statement estimates and assumptions; legislative or regulatory changes; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; changes in consumer spending and savings habits; our growth and profitability; the strength of the U.S. economy and the local economies where we conduct operations; the effects of a non-diversified loan portfolio, including the risks of geographic and industry concentrations; natural disasters, widespread health emergencies, military conflict, terrorism or other geopolitical events; changes in the stock market and other capital and real estate markets; the magnitude and duration of the ongoing COVID-19 pandemic and its impact on the global economy and financial market conditions and our business; customer acceptance of third-party products and services; increased competition and its effect on pricing; negative publicity and the impact on our reputation; technological changes, especially changes that allow out of market competitors to compete in our markets; changes in accounting; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

USE OF NON-GAAP FINANCIAL MEASURES

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Shareowners' Equity (GAAP)		$	372,145		$	383,166		$	348,868		$	335,880		$	324,426
Less: Goodwill and Other Intangibles (GAAP)			93,213			93,253			93,293			93,333			89,095
Tangible Shareowners' Equity (non-GAAP)	A		278,932			289,913			255,575			242,547			235,331
Total Assets (GAAP)			4,310,045			4,263,849			4,048,733			4,011,459			3,929,884
Less: Goodwill and Other Intangibles (GAAP)			93,213			93,253			93,293			93,333			89,095
Tangible Assets (non-GAAP)	B	$	4,216,832		$	4,170,596		$	3,955,440		$	3,918,126		$	3,840,789
Tangible Common Equity Ratio (non-GAAP)	A/B		6.61	%		6.95	%		6.46	%		6.19	%		6.13	%
Actual Diluted Shares Outstanding (GAAP)	C		16,962,362			16,935,389			16,911,715			16,901,375			16,875,719
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	16.44		$	17.12		$	15.11		$	14.35		$	13.94

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
		Three Months Ended
(Dollars in thousands, except per share data)		Mar 31, 2022		Dec 31, 2021		Mar 31, 2021
EARNINGS
Net Income Attributable to Common Shareowners	$	8,455	$	6,372	$	9,506
Diluted Net Income Per Share	$	0.50	$	0.38	$	0.56
PERFORMANCE
Return on Average Assets		0.80	%	0.61	%	1.01		%
Return on Average Equity		8.93		7.22		11.81
Net Interest Margin		2.55		2.60		2.85
Noninterest Income as % of Operating Revenue		51.11		49.96		54.90
Efficiency Ratio		77.55	%	81.29	%	74.36		%
CAPITAL ADEQUACY
Tier 1 Capital		15.98	%	16.14	%	16.08		%
Total Capital		16.98		17.15		17.20
Leverage		8.78		8.95		8.97
Common Equity Tier 1		13.77		13.86		13.63
Tangible Common Equity (1)		6.61		6.95		6.13
Equity to Assets		8.63	%	8.99	%	8.26		%
ASSET QUALITY
Allowance as % of Non-Performing Loans		760.83	%	499.93	%	410.78		%
Allowance as a % of Loans HFI		1.05		1.12		1.07
Net Charge-Offs as % of Average Loans HFI		0.16		0.02		(0.10	)
Nonperforming Assets as % of Loans HFI and OREO		0.14		0.22		0.27
Nonperforming Assets as % of Total Assets		0.06	%	0.10	%	0.14		%
STOCK PERFORMANCE
High	$	28.88	$	29.00	$	28.98
Low		25.96		24.77		21.42
Close	$	26.36	$	26.40	$	26.02
Average Daily Trading Volume		24,019		29,900		30,303
(1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
	2022				2021
(Dollars in thousands)	First Quarter				Fourth Quarter			Third Quarter			Second Quarter			First Quarter
ASSETS
Cash and Due From Banks	$	77,963		$	65,313		$	73,132		$	78,894		$	73,973
Funds Sold and Interest Bearing Deposits		790,465			970,041			708,988			766,920			851,910
Total Cash and Cash Equivalents		868,428			1,035,354			782,120			845,814			925,883
Investment Securities Available for Sale		624,361			654,611			645,844			480,890			406,245
Investment Securities Held to Maturity		518,678			339,601			341,228			325,559			199,109
Other Equity Securities		855			861			-			-			-
Total Investment Securities		1,143,894			995,073			987,072			806,449			605,354
Loans Held for Sale		50,815			52,532			77,036			80,821			82,081
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural		230,213			223,086			218,929			292,953			413,819
Real Estate - Construction		174,293			174,394			177,443			149,884			138,104
Real Estate - Commercial		669,110			663,550			683,379			707,599			669,158
Real Estate - Residential		368,020			346,756			355,958			362,018			358,849
Real Estate - Home Equity		188,174			187,821			187,642			190,078			202,099
Consumer		347,785			321,511			309,983			298,464			267,666
Other Loans		6,692			13,265			6,792			6,439			7,082
Overdrafts		1,222			1,082			1,299			1,227			950
Total Loans Held for Investment		1,985,509			1,931,465			1,941,425			2,008,662			2,057,727
Allowance for Credit Losses		(20,756	)		(21,606	)		(21,500	)		(22,175	)		(22,026	)
Loans Held for Investment, Net		1,964,753			1,909,859			1,919,925			1,986,487			2,035,701
Premises and Equipment, Net		82,518			83,412			84,750			85,745			86,370
Goodwill and Other Intangibles		93,213			93,253			93,293			93,333			89,095
Other Real Estate Owned		17			17			192			1,192			110
Other Assets		106,407			94,349			104,345			111,618			105,290
Total Other Assets		282,155			271,031			282,580			291,888			280,865
Total Assets	$	4,310,045		$	4,263,849		$	4,048,733		$	4,011,459		$	3,929,884
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,704,329		$	1,668,912		$	1,592,345		$	1,552,864		$	1,473,891
NOW Accounts		1,062,498			1,070,154			926,201			970,705			993,571
Money Market Accounts		288,877			274,611			286,065			280,805			269,041
Regular Savings Accounts		614,599			599,811			559,714			539,477			518,373
Certificates of Deposit		95,204			99,374			101,637			103,070			103,232
Total Deposits		3,765,507			3,712,862			3,465,962			3,446,921			3,358,108
Short-Term Borrowings		30,865			34,557			51,410			47,200			55,687
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		806			884			1,610			1,720			1,829
Other Liabilities		77,323			67,735			113,720			105,534			109,487
Total Liabilities		3,927,388			3,868,925			3,685,589			3,654,262			3,577,998
Temporary Equity		10,512			11,758			14,276			21,317			27,460
SHAREOWNERS' EQUITY
Common Stock		169			169			169			169			169
Additional Paid-In Capital		35,188			34,423			33,876			33,560			32,804
Retained Earnings		370,531			364,788			359,550			345,574			335,324
Accumulated Other Comprehensive Loss, Net of Tax		(33,743	)		(16,214	)		(44,727	)		(43,423	)		(43,871	)
Total Shareowners' Equity		372,145			383,166			348,868			335,880			324,426
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,310,045		$	4,263,849		$	4,048,733		$	4,011,459		$	3,929,884
OTHER BALANCE SHEET DATA
Earning Assets	$	3,970,684		$	3,949,111		$	3,714,521		$	3,662,852		$	3,597,071
Interest Bearing Liabilities		2,145,736			2,132,278			1,979,524			1,995,864			1,994,620
Book Value Per Diluted Share	$	21.94		$	22.63		$	20.63		$	19.87		$	19.22
Tangible Book Value Per Diluted Share(1)		16.44			17.12			15.11			14.35			13.94
Actual Basic Shares Outstanding		16,948			16,892			16,878			16,874			16,852
Actual Diluted Shares Outstanding		16,962			16,935			16,912			16,901			16,876
(1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 4.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
		2022			2021
(Dollars in thousands, except per share data)		First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
INTEREST INCOME
Loans, including Fees	$	22,133		$	22,744		$	25,885		$	24,582		$	23,350
Investment Securities		2,896			2,505			2,350			2,054			1,883
Federal Funds Sold and Interest Bearing Deposits		409			300			285			200			213
Total Interest Income		25,438			25,549			28,520			26,836			25,446
INTEREST EXPENSE
Deposits		224			213			210			208			208
Short-Term Borrowings		192			307			317			324			412
Subordinated Notes Payable		317			306			307			308			307
Other Long-Term Borrowings		9			12			14			16			21
Total Interest Expense		742			838			848			856			948
Net Interest Income		24,696			24,711			27,672			25,980			24,498
Provision for Credit Losses		-			-			-			(571	)		(982	)
Net Interest Income after Provision for Credit Losses		24,696			24,711			27,672			26,551			25,480
NONINTEREST INCOME
Deposit Fees		5,191			5,300			5,075			4,236			4,271
Bank Card Fees		3,763			3,872			3,786			3,998			3,618
Wealth Management Fees		6,070			3,706			3,623			3,274			3,090
Mortgage Banking Revenues		8,946			9,800			12,283			13,217			17,125
Other		1,848			1,994			1,807			1,748			1,722
Total Noninterest Income		25,818			24,672			26,574			26,473			29,826
NONINTEREST EXPENSE
Compensation		24,856			24,783			25,245			25,378			26,064
Occupancy, Net		6,093			5,960			6,032			5,973			5,967
Other Real Estate, Net		25			26			(1,126	)		(270	)		(118	)
Pension Settlement		209			572			500			2,000			-
Other		8,050			8,866			9,051			9,042			8,563
Total Noninterest Expense		39,233			40,207			39,702			42,123			40,476
OPERATING PROFIT		11,281			9,176			14,544			10,901			14,830
Income Tax Expense		2,235			2,040			2,949			2,059			2,787
Net Income		9,046			7,136			11,595			8,842			12,043
Pre-Tax Income Attributable to Noncontrolling Interest		(591	)		(764	)		(1,504	)		(1,415	)		(2,537	)
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	8,455		$	6,372		$	10,091		$	7,427		$	9,506
PER COMMON SHARE
Basic Net Income	$	0.50		$	0.38		$	0.60		$	0.44		$	0.56
Diluted Net Income		0.50			0.38			0.60			0.44			0.56
Cash Dividend	$	0.16		$	0.16		$	0.16		$	0.15		$	0.15
AVERAGE SHARES
Basic		16,931			16,880			16,875			16,858			16,838
Diluted		16,946			16,923			16,909			16,885			16,862

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
		2022			2021
(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	$	21,606		$	21,500		$	22,175		$	22,026		$	23,816
Provision for Credit Losses		(79	)		200			(546	)		(184	)		(2,312	)
Net Charge-Offs (Recoveries)		771			94			129			(333	)		(522	)
Balance at End of Period	$	20,756		$	21,606		$	21,500		$	22,175		$	22,026
As a % of Loans HFI		1.05	%		1.12	%		1.11	%		1.10	%		1.07	%
As a % of Nonperforming Loans		760.83	%		499.93	%		710.39	%		433.93	%		410.78	%
ACL - DEBT SECURITIES
Provision for Credit Losses	$	-		$	20		$	16		$	-		$	-
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period		2,897		$	3,117		$	2,587		$	2,974		$	1,644
Provision for Credit Losses		79			(220	)		530			(387	)		1,330
Balance at End of Period(1)		2,976			2,897			3,117			2,587			2,974
CHARGE-OFFS
Commercial, Financial and Agricultural	$	73		$	101		$	37		$	32		$	69
Real Estate - Construction		-			-			-			-			-
Real Estate - Commercial		266			-			405			-			-
Real Estate - Residential		-			20			17			65			6
Real Estate - Home Equity		33			9			15			74			5
Consumer		622			254			221			230			564
Overdrafts		780			678			1,093			440			492
Total Charge-Offs	$	1,774		$	1,062		$	1,788		$	841		$	1,136
RECOVERIES
Commercial, Financial and Agricultural	$	165		$	148		$	66		$	103		$	136
Real Estate - Construction		8			-			10			-			-
Real Estate - Commercial		29			25			169			26			645
Real Estate - Residential		27			33			401			244			75
Real Estate - Home Equity		58			173			46			70			124
Consumer		183			214			334			332			311
Overdrafts		533			375			633			399			367
Total Recoveries	$	1,003		$	968		$	1,659		$	1,174		$	1,658
NET CHARGE-OFFS (RECOVERIES)	$	771		$	94		$	129		$	(333	)	$	(522	)
Net Charge-Offs as a % of Average Loans HFI(2)		0.16	%		0.02	%		0.03	%		(0.07	)%		(0.10	)%
CREDIT QUALITY
Nonaccruing Loans	$	2,728		$	4,322		$	3,026		$	5,110		$	5,362
Other Real Estate Owned		17			17			192			1,192			110
Total Nonperforming Assets ("NPAs")	$	2,745		$	4,339		$	3,218		$	6,302		$	5,472
Past Due Loans 30-89 Days	$	3,120		$	3,600		$	3,360		$	3,745		$	2,622
Past Due Loans 90 Days or More		74			-			-			-			-
Classified Loans		22,348			17,912			16,310			19,397			20,608
Performing Troubled Debt Restructurings	$	7,304		$	7,643		$	7,919		$	8,992		$	13,597
Nonperforming Loans as a % of Loans HFI		0.14	%		0.22	%		0.16	%		0.25	%		0.26	%
NPAs as a % of Loans HFI and Other Real Estate		0.14	%		0.22	%		0.17	%		0.31	%		0.27	%
NPAs as a % of Total Assets		0.06	%		0.10	%		0.08	%		0.16	%		0.14	%
(1) Recorded in other liabilities
(2) Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
		First Quarter 2022								Fourth Quarter 2021								Third Quarter 2021								Second Quarter 2021								First Quarter 2021
(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	$	43,004		$	397		3.75	%	$	62,809		$	522		3.29	%	$	67,753		$	497		2.91	%	$	77,101			566		2.94	%	$	106,242		$	970		3.70	%
Loans Held for Investment(1)		1,963,578			21,811		4.50			1,948,324			22,296		4.54			1,974,132			25,458		5.12			2,036,781			24,095		4.74			2,044,363			22,483		4.46
Investment Securities
Taxable Investment Securities		1,056,736			2,889		1.10			987,700			2,493		1.00			904,962			2,333		1.03			687,882			2,036		1.18			528,842			1,863		1.41
Tax-Exempt Investment Securities(1)		2,409			10		1.60			3,380			17		2.07			4,332			25		2.31			3,530			23		2.58			3,844			25		2.61
Total Investment Securities		1,059,145			2,899		1.10			991,080			2,510		1.01			909,294			2,358		1.03			691,412			2,059		1.19			532,686			1,888		1.42
Federal Funds Sold and Interest Bearing Deposits		873,097			409		0.19			789,100			300		0.15			741,944			285		0.15			818,616			200		0.10			814,638			213		0.11
Total Earning Assets		3,938,824		$	25,516		2.63	%		3,791,313		$	25,628		2.68	%		3,693,123		$	28,598		3.07	%		3,623,910		$	26,920		2.98	%		3,497,929		$	25,554		2.96	%
Cash and Due From Banks		74,253								73,752								72,773								74,076								68,978
Allowance for Loan Losses		(21,655	)							(22,127	)							(22,817	)							(22,794	)							(24,128	)
Other Assets		275,353								284,999								283,534								281,157								278,742
Total Assets	$	4,266,775							$	4,127,937							$	4,026,613							$	3,956,349							$	3,821,521
LIABILITIES:
Interest Bearing Deposits
NOW Accounts	$	1,079,906		$	86		0.03	%	$	963,778		$	72		0.03	%	$	945,788		$	72		0.03	%	$	966,649		$	74		0.03	%	$	985,517		$	76		0.03	%
Money Market Accounts		285,406			33		0.05			289,335			34		0.05			282,860			34		0.05			272,138			33		0.05			269,829			33		0.05
Savings Accounts		599,359			72		0.05			573,563			71		0.05			551,383			68		0.05			529,844			64		0.05			492,252			60		0.05
Time Deposits		97,054			33		0.14			101,037			36		0.14			102,765			36		0.14			102,995			37		0.15			102,089			39		0.15
Total Interest Bearing Deposits		2,061,725			224		0.04	%		1,927,713			213		0.04	%		1,882,796			210		0.04	%		1,871,626			208		0.04	%		1,849,687			208		0.05	%
Short-Term Borrowings		32,353			192		2.40	%		46,355			307		2.63	%		49,773			317		2.53	%		51,152			324		2.54	%		67,033			412		2.49	%
Subordinated Notes Payable		52,887			317		2.40			52,887			306		2.26			52,887			307		2.27			52,887			308		2.30			52,887			307		2.32
Other Long-Term Borrowings		833			9		4.49			1,414			12		3.50			1,652			14		3.37			1,762			16		3.38			2,736			21		3.18
Total Interest Bearing Liabilities		2,147,798		$	742		0.14	%		2,028,369		$	838		0.16	%		1,987,108		$	848		0.17	%		1,977,427		$	856		0.17	%		1,972,343		$	948		0.19	%
Noninterest Bearing Deposits		1,652,337								1,621,432								1,564,892								1,515,726								1,389,821
Other Liabilities		72,166								114,657								112,707								107,801								111,050
Total Liabilities		3,872,301								3,764,458								3,664,707								3,600,954								3,473,214
Temporary Equity		10,518								13,339								20,446								26,355								21,977
SHAREOWNERS' EQUITY:		383,956								350,140								341,460								329,040								326,330
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,266,775							$	4,127,937							$	4,026,613							$	3,956,349							$	3,821,521
Interest Rate Spread				$	24,774		2.49	%				$	24,790		2.52	%				$	27,750		2.91	%				$	26,064		2.81	%				$	24,606		2.77	%
Interest Income and Rate Earned(1)					25,516		2.63						25,628		2.68						28,598		3.07						26,920		2.98						25,554		2.96
Interest Expense and Rate Paid(2)					742		0.08						838		0.09						848		0.09						856		0.09						948		0.11
Net Interest Margin				$	24,774		2.55	%				$	24,790		2.60	%				$	27,750		2.98	%				$	26,064		2.89	%				$	24,606		2.85	%
(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.

CAPITAL CITY HOME LOANS
MORTGAGE BANKING ACTIVITY
Unaudited
		Three Months Ended
(Dollars in thousands)		Mar 31, 2022			Dec 31, 2021			Mar 31, 2021
Net Interest Income	$	75		$	35		$	(153	)
Mortgage Banking Fees		8,947			9,800			16,846
Other		467			470			426
Total Noninterest Income		9,414			10,270			17,272
Salaries		6,024			6,643			10,276
Other Associate Benefits		181			202			221
Total Compensation		6,205			6,845			10,497
Occupancy, Net		885			743			861
Other		1,313			1,312			1,101
Total Noninterest Expense		8,403			8,900			12,459
Operating Profit	$	1,086		$	1,405		$	4,660
Key Performance Metrics
Total Loans Closed	$	246,887		$	294,237		$	463,126
Total Loans Closed - Mix
Purchase		79	%		76	%		60	%
Refinance		21	%		24	%		40	%

For Information Contact:
J. Kimbrough Davis
Executive Vice President and Chief Financial Officer
850.402.7820

FAQ

What were Capital City Bank Group's earnings for Q1 2022?

Capital City Bank Group reported a net income of $8.5 million, or $0.50 per diluted share for Q1 2022.

How did loan balances perform in Q1 2022 for CCBG?

Loan balances increased by $54 million, which is a 2.8% growth compared to the previous quarter.

What was the change in noninterest income in Q1 2022 for CCBG?

Noninterest income increased by 4.6% sequentially, reflecting higher wealth management fees.

What is the net interest margin for Capital City Bank Group in Q1 2022?

The net interest margin for Q1 2022 was 2.55%, down 30 basis points from Q1 2021.

Did Capital City Bank Group record any provisions for credit losses in Q1 2022?

No provisions for credit losses were recorded in Q1 2022, indicating continued strong credit quality.