Capital City Bank Group, Inc. Reports Second Quarter 2025 Results

TALLAHASSEE, Fla., July 22, 2025 (GLOBE NEWSWIRE) -- 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 second quarter of 2025 compared to $16.9 million, or $0.99 per diluted share, for the first quarter of 2025, and $14.2 million, or $0.83 per diluted share, for the second quarter of 2024.

QUARTER HIGHLIGHTS (2^nd Quarter 2025 versus 1^st Quarter 2025)

Income Statement

• Tax-equivalent net interest income totaled $43.2 million compared to $41.6 million for the first quarter of 2025
  • Net interest margin increased eight basis points to 4.30% (earning asset yield increased by six basis points and cost of funds decreased two basis points to 82 basis points)
• Provision for credit losses decreased by $0.1 million to $0.6 million for the second quarter - net loan charge-offs were comparable to the first quarter of 2025 at nine basis points (annualized) of average loans – allowance coverage ratio increased to 1.13% at June 30, 2025
• Noninterest income increased by $0.1 million, or 0.5%, reflecting higher deposit and bankcard fees as well as mortgage fees partially offset by lower wealth management fees
• Noninterest expense increased by $3.8 million, or 9.9%, primarily due to a $3.9 million net gain from the sale of our operations center building (reflected in other expense) in the first quarter of 2025
  
  

Balance Sheet

• Loan balances decreased by $13.3 million, or 0.5% (average), and decreased by $29.3 million, or 1.1% (end of period)
• Deposit balances increased by $15.2 million, or 0.4% (average), and decreased by $79.0 million, or 2.1% (end of period) due to the seasonal decrease in our public fund balances
  • Noninterest bearing deposits averaged 36.5% of total deposits for the second quarter and 36.2% for the year
• Tangible book value per diluted share (non-GAAP financial measure) increased by $0.78, or 3.2%

"Capital City delivered another strong quarter, highlighted by sustained revenue growth and continued credit strength," said William G. Smith, Jr, Capital City Bank Group Chairman and CEO. "Our second quarter results reflect a 3.9% increase in net interest income and an 8 basis point expansion in the net interest margin to 4.30%. Tangible book value per share increased by 3.2%, and we further strengthened our capital position, with our tangible capital ratio increasing to 10.1%. We remain focused on executing strategies that drive consistent, profitable growth, supported by a fortress balance sheet that provides resilience and strategic flexibility."                          

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the second quarter of 2025 totaled $43.2 million compared to $41.6 million for the first quarter of 2025 and $39.3 million for the second quarter of 2024. Compared to the first quarter of 2025, the increase was driven by a $0.9 million increase in investment securities income and a $0.4 million increase in overnight funds income. One additional calendar day in the second quarter of 2025 contributed to the increase. Compared to the second quarter of 2024, the increase was primarily due to a $2.7 million increase in investment securities income and a $1.2 million decrease in deposit interest expense. New investment purchases at higher yields drove the increase in investment securities income for both prior period comparisons. Further, the decrease in deposit interest expense from the prior year period reflected the gradual decrease in our deposit rates, as short term rates began declining in the second half of 2024.

For the first six months of 2025, tax-equivalent net interest income totaled $84.8 million compared to $77.8 million for the same period of 2024 with the increase primarily attributable to a $4.2 million increase in investment securities income, a $1.9 million increase in overnight funds income, and a $1.4 million decrease in deposit interest expense. New investment purchases at higher yields drove the increase in investment securities income. Higher average deposit balances contributed to the increase in overnight funds income. The decrease in deposit interest expense reflected the aforementioned decrease in our deposit rates.

Our net interest margin for the second quarter of 2025 was 4.30%, an increase of eight basis points over the first quarter of 2025 and an increase of 28 basis points over the second quarter of 2024. For the month of June 2025, our net interest margin was 4.36%. For the first six months of 2025, our net interest margin increased by 25 basis points to 4.26% compared to the same period of 2024. The increase in net interest margin over all prior periods reflected a higher yield in the investment portfolio driven by new purchases at higher yields. Lower deposit cost also contributed to the improvement over both prior year periods. For the second quarter of 2025, our cost of funds was 82 basis points, a decrease of two basis points from the first quarter of 2025 and a 15-basis point decrease from the second quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 81 basis points, 82 basis points, and 95 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $0.6 million for the second quarter of 2025 compared to $0.8 million for the first quarter of 2025 and $1.2 million for the second quarter of 2024. For the first six months of 2025, we recorded a provision expense for credit losses of $1.4 million compared to $2.1 million for the first six months of 2024. Activity within the components of the provision (loans held for investment ("HFI") and unfunded loan commitments) for each reported period is provided in the table on page 14. We discuss the various factors that impacted our provision expense for Loans HFI in further detail below under the heading Allowance for Credit Losses.

Noninterest Income and Noninterest Expense

Noninterest income for the second quarter of 2025 totaled $20.0 million compared to $19.9 million for the first quarter of 2025 and $19.6 million for the second quarter of 2024. The $0.1 million, or 0.5%, increase over the first quarter of 2025 was primarily due to a $0.4 million increase in mortgage banking revenues and a $0.3 million increase in deposit fees, partially offset by a $0.6 million decrease in wealth management fees. The increase in mortgage revenues was driven by an increase in production volume. Fee adjustments made late in the second quarter of 2025 led to the increase in deposit fees. The decrease in wealth management fees was attributable to a decrease in insurance commission revenue. Compared to the second quarter of 2024, the $0.4 million, or 2.1%, increase was primarily due to a $0.8 million increase in wealth management fees, partially offset by a $0.2 million decrease in mortgage banking revenues and a $0.1 million decrease in other income. The increase in wealth management fees reflected a $0.5 million increase in trust fees and a $0.4 million increase in retail brokerage fees, partially offset by a $0.1 million decrease in insurance commission revenue. A combination of new business, higher account valuations, and fee increases implemented in early 2025 drove the improvement in trust and retail brokerage fees.

For the first six months of 2025, noninterest income totaled $39.9 million compared to $37.7 million for the same period of 2024, primarily attributable to a $1.8 million increase in wealth management fees and a $0.7 million increase in mortgage banking revenues that was partially offset by a $0.2 million decrease in deposit fees. The increase in wealth management fees reflected increases in retail brokerage fees of $1.0 million, trust fees of $0.7 million, and insurance commission revenue of $0.1 million. The increases in retail brokerage and trust fees were attributable to a combination of new business, higher account valuations, and fee increases implemented in early 2025. The increase in mortgage banking revenues was due to a higher gain on sale margin.   

Noninterest expense for the second quarter of 2025 totaled $42.5 million compared to $38.7 million for the first quarter of 2025 and $40.4 million for the second quarter of 2024. The $3.8 million, or 9.9%, increase over the first quarter of 2025, reflected a $3.3 million increase in other expense, a $0.3 million increase in occupancy expense, and a $0.2 million increase in compensation expense. The increase in other expense was driven by a $4.5 million increase in other real estate expense which reflected lower gains from the sale of banking facilities, primarily the sale of our operations center building in the first quarter of 2025, partially offset by a $0.5 million decrease in charitable contribution expense and a $0.6 million decrease in miscellaneous expense. The slight increase in occupancy expense was due to higher software maintenance agreement expense and maintenance/repairs for buildings and furniture/fixtures. The slight increase in compensation expense reflected a $0.1 million increase in salary expense and a $0.1 million increase in associate benefit expense.   Compared to the second quarter of 2024, the $2.1 million, or 5.2%, increase was primarily due to a $2.1 million increase in compensation expense which reflected a $1.3 million increase in salary expense and a $0.8 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $0.9 million and base salaries of $0.4 million (merit based). The increase in associate benefit expense was attributable to a $0.6 million increase in associate insurance expense and a $0.2 million increase in stock compensation expense.

For the first six months of 2025, noninterest expense totaled $81.2 million compared to $80.6 million for the same period of 2024 with the $0.6 million, or 0.8%, increase due to a $3.9 million increase in compensation expense that was partially offset by a $3.2 million decrease in other expense and a $0.1 million decrease in occupancy expense. The increase in compensation was due to a $2.5 million increase in salary expense and a $1.4 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $1.2 million, base salaries of $0.9 million (merit based), and commissions of $0.7 million (retail brokerage and mortgage). The increase in associate benefit expense was attributable to a higher cost for associate insurance. The decrease in other expense was primarily due to a $4.5 million decrease in other real estate expense due to lower gains from the sale of banking facilities, and a $1.0 million decrease in miscellaneous expense (non-service component of pension expense), partially offset by increases in processing expense of $1.1 million (outsource of core processing system), charitable contribution expense of $0.7 million, and professional fees of $0.5 million.

Income Taxes

We realized income tax expense of $5.0 million (effective rate of 24.9%) for the second quarter of 2025 compared to $5.1 million (effective rate of 23.3%) for the first quarter of 2025 and $3.2 million (effective rate of 18.5%) for the second quarter of 2024. For the first six months of 2025, we realized income tax expense of $10.1 million (effective rate of 24.1%) compared to $6.7 million (effective rate of 20.6%) for the same period of 2024. A lower level of tax benefit accrued from a solar tax credit equity fund drove the increase in our effective tax rate for all prior period comparisons. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $4.032 billion for the second quarter of 2025, an increase of $38.1 million, or 1.0%, over the first quarter of 2025, and an increase of $110.1 million, or 2.8%, over the fourth quarter of 2024. The increase over both prior periods was driven by higher average deposit balances (see below – Deposits). Compared to the first quarter of 2025, the change in the earning asset mix reflected a $27.8 million increase in overnight funds and a $25.7 million increase in investment securities that was partially offset by a $13.3 million decrease in loans HFI and a $2.1 million decrease in loans held for sale ("HFS"). Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $92.8 million increase in investment securities and a $50.5 million increase in overnight funds sold partially offset by a $24.8 million decrease in loans HFI and a $8.4 million decrease in loans HFS.

Average loans HFI decreased by $13.3 million, or 0.5%, from the first quarter of 2025 and decreased by $24.8 million, or 0.9%, from the fourth quarter of 2024. Compared to the first quarter of 2025, the decrease was due to decreases in construction loans of $24.6 million, consumer loans (primarily indirect auto) of $1.9 million, and commercial loans of $3.4 million, partially offset by increases to residential real estate loans of $10.2 million, commercial real estate loans of $2.1 million, and home equity loans of $4.1 million. Compared to the fourth quarter of 2024, the decline was primarily attributable to decreases in construction loans of $33.2 million, commercial loans of $9.2 million, and consumer loans (primarily indirect auto) of $4.0 million, partially offset by increases in home equity loans of $10.8 million, residential real estate loans of $9.9 million, and commercial real estate loans of $1.9 million.

Loans HFI at June 30, 2025 decreased by $29.3 million, or 1.1%, from March 31, 2025 and decreased by $20.1 million, or 0.8%, from December 31, 2024. Compared to the first quarter of 2025, the decline was primarily due to decreases in construction loans of $18.2 million, consumer loans (primarily indirect auto) of $8.7 million, commercial loans of $4.4 million, and commercial real estate loans of $4.4 million, partially offset by increases in residential real estate loans of $5.8 million and home equity loans of $2.2 million. Compared to December 31, 2024, the decrease was primarily attributable to decreases in construction loans of $45.9 million, commercial loans of $9.2 million, and consumer loans (primarily indirect auto) of $2.0 million, partially offset by increases in commercial real estate loans of $23.4 million, residential real estate loans of $17.9 million, and home equity loans of $8.1 million.

Allowance for Credit Losses

At June 30, 2025, the allowance for credit losses for loans HFI totaled $29.9 million compared to $29.7 million at March 31, 2025 and $29.3 million at December 31, 2024. Activity within the allowance is provided on Page 14. The slight increase in the allowance over March 31, 2025 and December 31, 2024 was primarily attributable to qualitative factor adjustments that were partially offset by lower loan balances. Net loan charge-offs for both the second quarter of 2025 and the first quarter of 2025 were comparable at nine basis points of average loans. At June 30, 2025, the allowance represented 1.13% of loans HFI compared to 1.12% at March 31, 2025, and 1.10% at December 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $6.6 million at June 30, 2025 compared to $4.4 million at March 31, 2025 and $6.7 million at December 31, 2024. At June 30, 2025, nonperforming assets as a percentage of total assets was 0.15%, compared to 0.10% at March 31, 2025 and 0.15% at December 31, 2024. Nonaccrual loans totaled $6.4 million at June 30, 2025, a $2.2 million increase over March 31, 2025 and a $0.1 million increase over December 31, 2024 with the increase over the first quarter of 2025 primarily attributable to two home equity loans totaling $1.8 million. Classified loans totaled $28.6 million at June 30, 2025, a $9.4 million increase over March 31, 2025 and a $8.7 million increase over December 31, 2024. The increase over the prior periods was primarily due to the downgrade of four residential real estate loans totaling $4.2 million and two commercial real estate loans totaling $4.3 million.

Deposits

Average total deposits were $3.681 billion for the second quarter of 2025, an increase of $15.2 million, or 0.4%, over the first quarter of 2025 and an increase of $80.3 million, or 2.2%, over the fourth quarter of 2024.   Compared to the first quarter of 2025, the increase was attributable to higher core deposit balances (primarily noninterest bearing checking and money market), partially offset by a decline in public funds balances (primarily NOW accounts) due to the seasonal reduction in those balances. The increase over the fourth quarter of 2024 reflected strong growth in core deposit balances and a seasonal increase in public funds balances (primarily NOW) which are received/deposited by those clients starting in December and peak on average in the first quarter.

At June 30, 2025, total deposits were $3.705 billion, a decrease of $79.0 million, or 2.1%, from March 31, 2025, and an increase of $32.9 million, or 0.9%, over December 31, 2024. The decrease from March 31, 2025 was primarily due to a seasonal decline in public funds balances, (primarily money market and noninterest bearing). The increase over December 31, 2024 reflected higher core deposit balances, primarily noninterest bearing accounts. Public funds totaled $596.6 million at June 30, 2025, $648.0 million at March 31, 2025, and $660.9 million at December 31, 2024.

Liquidity

We maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $348.8 million in the second quarter of 2025 compared to $320.9 million in the first quarter of 2025 and $298.3 million in the fourth quarter of 2024. Compared to both prior periods, the increase reflected higher average deposits and lower average loans.

At June 30, 2025, we had the ability to generate approximately $1.603 billion (excludes overnight funds position of $395 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

We also view our investment portfolio as a liquidity source, as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At June 30, 2025, the weighted-average maturity and duration of our portfolio were 2.66 years and 2.14 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $13.4 million.

Capital

Shareowners' equity was $526.4 million at June 30, 2025 compared to $512.6 million at March 31, 2025 and $495.3 million at December 31, 2024. For the first six months of 2025, shareowners' equity was positively impacted by net income attributable to shareowners of $31.9 million, a net $5.5 million decrease in the accumulated other comprehensive loss, the issuance of common stock of $2.8 million, and stock compensation accretion of $0.9 million. The net favorable change in accumulated other comprehensive loss reflected a $6.4 million decrease in the investment securities loss that was partially offset by a $0.9 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners' equity was reduced by common stock dividends of $8.2 million ($0.48 per share) and net adjustments totaling $1.8 million related to transactions under our stock compensation plans.

At June 30, 2025, our total risk-based capital ratio was 19.60% compared to 19.20% at March 31, 2025 and 18.64% at December 31, 2024. Our common equity tier 1 capital ratio was 16.81%, 16.08%, and 15.54%, respectively, on these dates. Our leverage ratio was 11.14%, 11.17%, and 11.05%, respectively, on these dates. At June 30, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as "well-capitalized" under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 10.09% at June 30, 2025 compared to 9.61% and 9.51% at March 31, 2025 and December 31, 2024, respectively. If the unrealized loss for held-to-maturity securities of $9.9 million (after-tax) was recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.86%.

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 62 banking offices and 107 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit https://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: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes; the costs and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; government intervention in the U.S. financial system; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other filings with the SEC, which are available at the SEC's internet site (https://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, except as may be required by law.

For Information Contact:

Jep Larkin

Executive Vice President and Chief Financial Officer

850.402.8450

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 they allow investors to more easily compare our capital adequacy to other companies in the industry. Non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024			Sep 30, 2024	Jun 30, 2024
Shareowners' Equity (GAAP)		$	526,423	$	512,575	$	495,317		476,499	$	460,999
Less: Goodwill and Other Intangibles (GAAP)			92,693		92,733		92,773		92,813		92,853
Tangible Shareowners' Equity (non-GAAP)	A		433,730		419,842		402,544		383,686		368,146
Total Assets (GAAP)			4,391,753		4,461,233		4,324,932		4,225,316		4,225,695
Less: Goodwill and Other Intangibles (GAAP)			92,693		92,733		92,773		92,813		92,853
Tangible Assets (non-GAAP)	B	$	4,299,060	$	4,368,500	$	4,232,159		4,132,503	$	4,132,842
Tangible Common Equity Ratio (non-GAAP)	A/B		10.09%		9.61%		9.51%		9.28%		8.91%
Actual Diluted Shares Outstanding (GAAP)	C		17,097,986		17,072,330		17,018,122		16,980,686		16,970,228
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	25.37	$	24.59	$	23.65		22.60	$	21.69

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
		Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)		Jun 30, 2025		Mar 31, 2025		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
EARNINGS
Net Income Attributable to Common Shareowners	$	15,044	$	16,858	$	14,150	$	31,902	$	26,707
Diluted Net Income Per Share	$	0.88	$	0.99	$	0.83	$	1.87	$	1.57
PERFORMANCE
Return on Average Assets (annualized)		1.38	%	1.58	%	1.33	%	1.48	%	1.27	%
Return on Average Equity (annualized)		11.44		13.32		12.23		12.36		11.66
Net Interest Margin		4.30		4.22		4.02		4.26		4.01
Noninterest Income as % of Operating Revenue		31.67		32.39		33.30		32.03		32.69
Efficiency Ratio		67.26	%	62.93	%	68.61	%	65.13	%	69.81	%
CAPITAL ADEQUACY
Tier 1 Capital		18.38	%	18.01	%	16.31	%	18.38	%	16.31	%
Total Capital		19.60		19.20		17.50		19.60		17.50
Leverage		11.14		11.17		10.51		11.14		10.51
Common Equity Tier 1		16.81		16.08		14.44		16.81		14.44
Tangible Common Equity(1)		10.09		9.61		8.91		10.09		8.91
Equity to Assets		11.99	%	11.49	%	10.91	%	11.99	%	10.91	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		463.01	%	692.10	%	529.79	%	463.01	%	529.79	%
Allowance as a % of Loans HFI		1.13		1.12		1.09		1.13		1.09
Net Charge-Offs as % of Average Loans HFI		0.09		0.09		0.18		0.09		0.20
Nonperforming Assets as % of Loans HFI and OREO		0.25		0.17		0.23		0.25		0.23
Nonperforming Assets as % of Total Assets		0.15	%	0.10	%	0.15	%	0.15	%	0.15	%
STOCK PERFORMANCE
High	$	39.82	$	38.27	$	28.58	$	39.82	$	31.34
Low		32.38		33.00		25.45		32.38		25.45
Close	$	39.35	$	35.96	$	28.44	$	39.35	$	28.44
Average Daily Trading Volume		27,397		24,486		29,861		25,988		30,433
(1)Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
	2025							2024
(Dollars in thousands)	Second Quarter				First Quarter			Fourth Quarter			Third Quarter			Second Quarter
ASSETS
Cash and Due From Banks	$	78,485		$	78,521		$	70,543		$	83,431		$	75,304
Funds Sold and Interest Bearing Deposits		394,917			446,042			321,311			261,779			272,675
Total Cash and Cash Equivalents		473,402			524,563			391,854			345,210			347,979
Investment Securities Available for Sale		533,457			461,224			403,345			336,187			310,941
Investment Securities Held to Maturity		462,599			517,176			567,155			561,480			582,984
Other Equity Securities		3,242			2,315			2,399			6,976			2,537
Total Investment Securities		999,298			980,715			972,899			904,643			896,462
Loans Held for Sale ("HFS"):		19,181			21,441			28,672			31,251			24,022
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural		180,008			184,393			189,208			194,625			204,990
Real Estate - Construction		174,115			192,282			219,994			218,899			200,754
Real Estate - Commercial		802,504			806,942			779,095			819,955			823,122
Real Estate - Residential		1,046,368			1,040,594			1,028,498			1,023,485			1,012,541
Real Estate - Home Equity		228,201			225,987			220,064			210,988			211,126
Consumer		197,483			206,191			199,479			213,305			234,212
Other Loans		1,552			3,227			14,006			461			2,286
Overdrafts		1,259			1,154			1,206			1,378			1,192
Total Loans Held for Investment		2,631,490			2,660,770			2,651,550			2,683,096			2,690,223
Allowance for Credit Losses		(29,862	)		(29,734	)		(29,251	)		(29,836	)		(29,219	)
Loans Held for Investment, Net		2,601,628			2,631,036			2,622,299			2,653,260			2,661,004
Premises and Equipment, Net		79,906			80,043			81,952			81,876			81,414
Goodwill and Other Intangibles		92,693			92,733			92,773			92,813			92,853
Other Real Estate Owned		132			132			367			650			650
Other Assets		125,513			130,570			134,116			115,613			121,311
Total Other Assets		298,244			303,478			309,208			290,952			296,228
Total Assets	$	4,391,753		$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,332,080		$	1,363,739		$	1,306,254		$	1,330,715		$	1,343,606
NOW Accounts		1,284,137			1,292,654			1,285,281			1,174,585			1,177,180
Money Market Accounts		408,666			445,999			404,396			401,272			413,594
Savings Accounts		504,331			511,265			506,766			507,604			514,560
Certificates of Deposit		175,639			170,233			169,280			164,901			159,624
Total Deposits		3,704,853			3,783,890			3,671,977			3,579,077			3,608,564
Repurchase Agreements		21,800			22,799			26,240			29,339			22,463
Other Short-Term Borrowings		12,741			14,401			2,064			7,929			3,307
Subordinated Notes Payable		42,582			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		680			794			794			794			1,009
Other Liabilities		82,674			73,887			75,653			71,974			69,987
Total Liabilities		3,865,330			3,948,658			3,829,615			3,742,000			3,758,217
Temporary Equity		-			-			-			6,817			6,479
SHAREOWNERS' EQUITY
Common Stock		171			171			170			169			169
Additional Paid-In Capital		39,527			38,576			37,684			36,070			35,547
Retained Earnings		487,665			476,715			463,949			454,342			445,959
Accumulated Other Comprehensive Loss, Net of Tax		(940	)		(2,887	)		(6,486	)		(14,082	)		(20,676	)
Total Shareowners' Equity		526,423			512,575			495,317			476,499			460,999
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,391,753		$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695
OTHER BALANCE SHEET DATA
Earning Assets	$	4,044,886		$	4,108,969		$	3,974,431		$	3,880,769		$	3,883,382
Interest Bearing Liabilities		2,450,576			2,511,032			2,447,708			2,339,311			2,344,624
Book Value Per Diluted Share	$	30.79		$	30.02		$	29.11		$	28.06		$	27.17
Tangible Book Value Per Diluted Share(1)		25.37			24.59			23.65			22.60			21.69
Actual Basic Shares Outstanding		17,066			17,055			16,975			16,944			16,942
Actual Diluted Shares Outstanding		17,098			17,072			17,018			16,981			16,970
(1)Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
		2025				2024							Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter		First Quarter		Fourth Quarter			Third Quarter		Second Quarter		2025		2024
INTEREST INCOME
Loans, including Fees	$	40,872	$	40,478	$	41,453		$	41,659	$	41,138	$	81,350	$	81,821
Investment Securities		6,678		5,808		4,694			4,155		4,004		12,486		8,248
Federal Funds Sold and Interest Bearing Deposits		3,909		3,496		3,596			3,514		3,624		7,405		5,517
Total Interest Income		51,459		49,782		49,743			49,328		48,766		101,241		95,586
INTEREST EXPENSE
Deposits		7,405		7,383		7,766			8,223		8,579		14,788		16,173
Repurchase Agreements		156		164		199			221		217		320		418
Other Short-Term Borrowings		179		117		83			52		68		296		107
Subordinated Notes Payable		530		560		581			610		630		1,090		1,258
Other Long-Term Borrowings		5		11		11			11		3		16		6
Total Interest Expense		8,275		8,235		8,640			9,117		9,497		16,510		17,962
Net Interest Income		43,184		41,547		41,103			40,211		39,269		84,731		77,624
Provision for Credit Losses		620		768		701			1,206		1,204		1,388		2,124
Net Interest Income after Provision for Credit Losses		42,564		40,779		40,402			39,005		38,065		83,343		75,500
NONINTEREST INCOME
Deposit Fees		5,320		5,061		5,207			5,512		5,377		10,381		10,627
Bank Card Fees		3,774		3,514		3,697			3,624		3,766		7,288		7,386
Wealth Management Fees		5,206		5,763		5,222			4,770		4,439		10,969		9,121
Mortgage Banking Revenues		4,190		3,820		3,118			3,966		4,381		8,010		7,259
Other		1,524		1,749		1,516			1,641		1,643		3,273		3,310
Total Noninterest Income		20,014		19,907		18,760			19,513		19,606		39,921		37,703
NONINTEREST EXPENSE
Compensation		26,490		26,248		26,108			25,800		24,406		52,738		48,813
Occupancy, Net		7,071		6,793		6,893			7,098		6,997		13,864		13,991
Other		8,977		5,660		8,781			10,023		9,038		14,637		17,808
Total Noninterest Expense		42,538		38,701		41,782			42,921		40,441		81,239		80,612
OPERATING PROFIT		20,040		21,985		17,380			15,597		17,230		42,025		32,591
Income Tax Expense		4,996		5,127		4,219			2,980		3,189		10,123		6,725
Net Income		15,044		16,858		13,161			12,617		14,041		31,902		25,866
Pre-Tax (Income) Loss Attributable to Noncontrolling Interest		-		-		(71	)		501		109		-		841
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	15,044	$	16,858	$	13,090		$	13,118	$	14,150	$	31,902	$	26,707
PER COMMON SHARE
Basic Net Income	$	0.88	$	0.99	$	0.77		$	0.77	$	0.84	$	1.87	$	1.58
Diluted Net Income		0.88		0.99		0.77			0.77		0.83		1.87		1.57
Cash Dividend	$	0.24	$	0.24	$	0.23		$	0.23	$	0.21	$	0.48	$	0.42
AVERAGE SHARES
Basic		17,056		17,027		16,946			16,943		16,931		17,042		16,941
Diluted		17,088		17,044		16,990			16,979		16,960		17,067		16,964

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
		2025						2024									Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2025			2024
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,734		$	29,251		$	29,836		$	29,219		$	29,329		$	29,251		$	29,941
Transfer from Other (Assets) Liabilities		-			-			-			-			-			-			(50	)
Provision for Credit Losses		718			1,083			1,085			1,879			1,129			1,801			2,061
Net Charge-Offs (Recoveries)		590			600			1,670			1,262			1,239			1,190			2,733
Balance at End of Period	$	29,862		$	29,734		$	29,251		$	29,836		$	29,219		$	29,862		$	29,219
As a % of Loans HFI		1.13	%		1.12	%		1.10	%		1.11	%		1.09	%		1.13	%		1.09	%
As a % of Nonperforming Loans		463.01	%		692.10	%		464.14	%		452.64	%		529.79	%		463.01	%		529.79	%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period		1,832		$	2,155		$	2,522		$	3,139		$	3,121		$	2,155		$	3,191
Provision for Credit Losses		(94	)		(323	)		(367	)		(617	)		18			(417	)		(52	)
Balance at End of Period(1)		1,738			1,832			2,155			2,522			3,139			1,738			3,139
ACL - DEBT SECURITIES
Provision for Credit Losses	$	(4	)	$	8		$	(17	)	$	(56	)	$	57		$	4		$	115
CHARGE-OFFS
Commercial, Financial and Agricultural	$	74		$	168		$	499		$	331		$	400		$	242		$	682
Real Estate - Construction		-			-			47			-			-			-			-
Real Estate - Commercial		-			-			-			3			-			-			-
Real Estate - Residential		49			8			44			-			-			57			17
Real Estate - Home Equity		24			-			33			23			-			24			76
Consumer		914			865			1,307			1,315			1,061			1,779			2,611
Overdrafts		437			570			574			611			571			1,007			1,209
Total Charge-Offs	$	1,498		$	1,611		$	2,504		$	2,283		$	2,032		$	3,109		$	4,595
RECOVERIES
Commercial, Financial and Agricultural	$	117		$	75		$	103		$	176		$	59		$	192		$	100
Real Estate - Construction		-			-			3			-			-			-			-
Real Estate - Commercial		6			3			33			5			19			9			223
Real Estate - Residential		65			119			28			88			23			184			60
Real Estate - Home Equity		42			9			17			59			37			51			61
Consumer		456			481			352			405			313			937			723
Overdrafts		222			324			298			288			342			546			695
Total Recoveries	$	908		$	1,011		$	834		$	1,021		$	793		$	1,919		$	1,862
NET CHARGE-OFFS (RECOVERIES)	$	590		$	600		$	1,670		$	1,262		$	1,239		$	1,190		$	2,733
Net Charge-Offs as a % of Average Loans HFI(2)		0.09	%		0.09	%		0.25	%		0.19	%		0.18	%		0.09	%		0.20	%
CREDIT QUALITY
Nonaccruing Loans	$	6,449		$	4,296		$	6,302		$	6,592		$	5,515
Other Real Estate Owned		132			132			367			650			650
Total Nonperforming Assets ("NPAs")	$	6,581		$	4,428		$	6,669		$	7,242		$	6,165
Past Due Loans 30-89 Days	$	4,523		$	3,735		$	4,311		$	9,388		$	5,672
Classified Loans		28,623			19,194			19,896			25,501			25,566
Nonperforming Loans as a % of Loans HFI		0.25	%		0.16	%		0.24	%		0.25	%		0.21	%
NPAs as a % of Loans HFI and Other Real Estate		0.25	%		0.17	%		0.25	%		0.27	%		0.23	%
NPAs as a % of Total Assets		0.15	%		0.10	%		0.15	%		0.17	%		0.15	%
(1)Recorded in other liabilities
(2)Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
		Second Quarter 2025								First Quarter 2025								Fourth Quarter 2024								Third Quarter 2024								Second Quarter 2024									June 2025 YTD								June 2024 YTD
(Dollars in thousands)		Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate				Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate
ASSETS:
Loans Held for Sale	$	22,668		$	475		8.40	%	$	24,726		$	490		8.04	%	$	31,047		$	976		7.89	%	$	24,570			720		7.49	%	$	26,281		$	517		5.26	%		$	23,692		$	965		8.21	%	$	26,797		$	1,080		5.62	%
Loans Held for Investment(1)		2,652,572			40,436		6.11			2,665,910			40,029		6.09			2,677,396			40,521		6.07			2,693,533			40,985		6.09			2,726,748			40,683		6.03				2,659,204			80,465		6.10			2,727,688			80,879		5.99
Investment Securities
Taxable Investment Securities		1,006,514			6,666		2.65			981,485			5,802		2.38			914,353			4,688		2.04			907,610			4,148		1.82			918,989			3,998		1.74				994,068			12,468		2.52			935,658			8,237		1.76
Tax-Exempt Investment Securities(1)		1,467			17		4.50			845			9		4.32			849			9		4.31			846			10		4.33			843			9		4.36				1,158			26		4.43			850			18		4.35
Total Investment Securities		1,007,981			6,683		2.65			982,330			5,811		2.38			915,202			4,697		2.04			908,456			4,158		1.82			919,832			4,007		1.74				995,226			12,494		2.52			936,508			8,255		1.76
Federal Funds Sold and Interest Bearing Deposits		348,787			3,909		4.49			320,948			3,496		4.42			298,255			3,596		4.80			256,855			3,514		5.44			262,419			3,624		5.56				334,944			7,405		4.46			201,454			5,517		5.51
Total Earning Assets		4,032,008		$	51,503		5.12	%		3,993,914		$	49,826		5.06	%		3,921,900		$	49,790		5.05	%		3,883,414		$	49,377		5.06	%		3,935,280		$	48,831		4.99	%			4,013,066		$	101,329		5.09	%		3,892,447		$	95,731		4.94	%
Cash and Due From Banks		65,761								73,467								73,992								70,994								74,803									69,593								75,283
Allowance for Credit Losses		(30,492	)							(30,008	)							(30,107	)							(29,905	)							(29,564	)								(30,251	)							(29,797	)
Other Assets		302,984								297,660								293,884								291,359								291,669									300,336								293,473
Total Assets	$	4,370,261							$	4,335,033							$	4,259,669							$	4,215,862							$	4,272,188								$	4,352,744							$	4,231,406
LIABILITIES:
Noninterest Bearing Deposits	$	1,342,304							$	1,317,425							$	1,323,556							$	1,332,305							$	1,346,546								$	1,329,933							$	1,345,367
NOW Accounts		1,225,697		$	3,750		1.23	%		1,249,955		$	3,854		1.25	%		1,182,073		$	3,826		1.29	%		1,145,544		$	4,087		1.42	%		1,207,643		$	4,425		1.47	%			1,237,759		$	7,604		1.24	%		1,204,337		$	8,922		1.49	%
Money Market Accounts		431,774			2,340		2.17			420,059			2,187		2.11			422,615			2,526		2.38			418,625			2,694		2.56			407,387			2,752		2.72				425,949			4,527		2.14			380,489			4,737		2.50
Savings Accounts		507,950			174		0.14			507,676			176		0.14			504,859			179		0.14			512,098			180		0.14			519,374			176		0.14				507,813			350		0.14			529,374			364		0.14
Time Deposits		172,982			1,141		2.65			170,367			1,166		2.78			167,321			1,235		2.94			163,462			1,262		3.07			160,078			1,226		3.08				171,682			2,307		2.71			149,203			2,150		2.90
Total Interest Bearing Deposits		2,338,403			7,405		1.27			2,348,057			7,383		1.28			2,276,868			7,766		1.36			2,239,729			8,223		1.46			2,294,482			8,579		1.50				2,343,203			14,788		1.27			2,263,403			16,173		1.44
Total Deposits		3,680,707			7,405		0.81			3,665,482			7,383		0.82			3,600,424			7,766		0.86			3,572,034			8,223		0.92			3,641,028			8,579		0.95				3,673,136			14,788		0.81			3,608,770			16,173		0.90
Repurchase Agreements		22,557			156		2.78			29,821			164		2.23			28,018			199		2.82			27,126			221		3.24			26,999			217		3.24				26,169			320		2.47			26,362			418		3.19
Other Short-Term Borrowings		10,503			179		6.82			7,437			117		6.39			6,510			83		5.06			2,673			52		7.63			6,592			68		4.16				8,978			296		6.64			5,176			107		4.16
Subordinated Notes Payable		51,981			530		4.03			52,887			560		4.23			52,887			581		4.30			52,887			610		4.52			52,887			630		4.71				52,432			1,090		4.13			52,887			1,258		4.70
Other Long-Term Borrowings		792			5		2.41			794			11		5.68			794			11		5.57			795			11		5.55			258			3		4.31				793			16		4.04			270			6		4.56
Total Interest Bearing Liabilities		2,424,236		$	8,275		1.37	%		2,438,996		$	8,235		1.37	%		2,365,077		$	8,640		1.45	%		2,323,210		$	9,117		1.56	%		2,381,218		$	9,497		1.60	%			2,431,575		$	16,510		1.37	%		2,348,098		$	17,962		1.54	%
Other Liabilities		76,138								65,211								73,130								73,767								72,634									70,705								70,464
Total Liabilities		3,842,678								3,821,632								3,761,763								3,729,282								3,800,398									3,832,213								3,763,929
Temporary Equity		-								-								6,763								6,443								6,493									-								6,821
SHAREOWNERS' EQUITY:		527,583								513,401								491,143								480,137								465,297									520,531								460,656
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,370,261							$	4,335,033							$	4,259,669							$	4,215,862							$	4,272,188								$	4,352,744							$	4,231,406
Interest Rate Spread				$	43,228		3.75	%				$	41,591		3.69	%				$	41,150		3.59	%				$	40,260		3.49	%				$	39,334		3.38	%					$	84,819		3.72	%				$	77,769		3.40	%
Interest Income and Rate Earned(1)					51,503		5.12						49,826		5.06						49,790		5.05						49,377		5.06						48,831		4.99							101,329		5.09						95,731		4.94
Interest Expense and Rate Paid(2)					8,275		0.82						8,235		0.84						8,640		0.88						9,117		0.93						9,497		0.97							16,510		0.83						17,962		0.93
Net Interest Margin				$	43,228		4.30	%				$	41,591		4.22	%				$	41,150		4.17	%				$	40,260		4.12	%				$	39,334		4.02	%					$	84,819		4.26	%				$	77,769		4.01	%
(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.