CAPITAL CITY BANK GROUP INC

(Dollars in Thousands, Except Per Share Data)

Interest Income

$

181,068

$

131,910

$

106,351

Net Interest Income

158,988

125,022

102,861

9,714

7,494

(1,553)

71,610

75,181

107,545

(1)

157,023

151,634

162,508

Pre-Tax Loss (Income) Attributable to Noncontrolling Interests

(2)

1,437

(6,220)

52,258

33,412

33,396

Per Common Share:

Basic Net Income

$

3.08

$

1.97

$

1.98

Diluted Net Income

3.07

1.97

1.98

Cash Dividends Declared

0.76

0.66

0.62

Diluted Book Value

25.92

22.73

22.63

Diluted Tangible Book Value

(3)

20.45

17.27

17.12

Performance Ratios:

Return on Average Assets

1.22

%

0.77

%

0.84

%

Return on Average Equity

12.40

8.81

9.92

Net Interest Margin (FTE)

4.05

3.14

2.83

Noninterest Income as % of Operating Revenues

31.05

37.55

51.11

Efficiency Ratio

67.99

75.62

77.11

Asset Quality:

Allowance for Credit Losses ("ACL")

$

29,941

$

25,068

$

21,606

ACL to Loans Held for Investment ("HFI")

1.10

%

0.98

%

1.12

%

Nonperforming Assets ("NPAs")

6,243

2,728

4,339

NPAs to Total

Assets

0.15

0.06

0.10

NPAs to Loans HFI plus OREO

0.23

0.11

0.22

ACL to Non-Performing Loans

479.70

1091.33

499.93

Net Charge-Offs to Average Loans HFI

0.18

0.18

-0.03

Capital Ratios:

Tier 1 Capital

15.37

%

14.27

%

16.14

%

Total Capital

16.57

15.30

17.15

Common Equity Tier 1 Capital

13.52

12.38

13.86

Tangible Common Equity

(3)

8.26

6.65

6.95

Leverage

10.30

8.91

8.95

Equity to Assets

10.24

8.57

8.99

Dividend Pay-Out

24.76

33.50

31.31

Averages for the Year:

$

2,656,394

$

2,189,440

$

2,000,563

3,933,800

3,989,248

3,652,486

3,669,612

3,763,336

3,406,886

Shareowners’ Equity

421,482

379,290

336,821

Year

-End Balances:

$

$

$

1,931,465

3,957,452

4,177,177

3,949,111

4,263,849

3,712,862

Shareowners’ Equity

440,625

387,281

383,166

Other Data:

Basic Average Shares Outstanding

16,987,167

16,950,810

16,862,932

Diluted Average Shares Outstanding

17,022,922

16,984,740

16,892,947

Shareowners of Record

(4)

1,080

1,124

1,157

Banking Locations

(4)

Full-Time Equivalent Associates

(4)(5)

(1)

For 2023, 2022 and 2021, includes pension settlement

gain of $0.3 million, charge of $2.3 million and $3.1 million, respectively.

(2)

Acquired 51% membership interest in Brand Mortgage Group, LLC, re-named as Capital City Home Loans,

LLC, on March 1, 2020 - fully consolidated.

(3)

Diluted tangible book value and tangible common equity

ratio are non-GAAP financial measures. For additional information, including a reconciliation

to GAAP, refer

to page 42.

(4)

As of January 31st of the following year.

(5)

Reflects 970 full-time equivalent associates that

includes 178 full-time equivalent associates at CCHL.

NON-GAAP FINANCIAL MEASURES

We present a tangible

common equity ratio and a tangible book value per diluted share that, in each case,

removes the effect of

goodwill that resulted 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 generally accepted accounting

principles (“GAAP”) to non-GAAP reconciliation for selected year-to-date

financial data is provided below.

Non-GAAP Reconciliation - Selected Financial Data

(Dollars in Thousands, except per share data)

Shareowners' Equity (GAAP)

$

440,625

$

387,281

$

383,166

Less: Goodwill and Other Intangibles (GAAP)

92,933

93,093

93,253

Tangible Shareowners' Equity (non-GAAP)

A

347,692

294,188

289,913

Total Assets (GAAP)

4,263,849

Less: Goodwill and Other Intangibles (GAAP)

92,933

93,093

93,253

Tangible Assets (non-GAAP)

B

$

4,211,544

$

4,426,130

$

4,170,596

Tangible Common Equity Ratio (non-GAAP)

A/B

8.26%

6.65%

6.95%

Actual Diluted Shares Outstanding (GAAP)

C

17,000,758

17,039,401

16,935,389

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

20.45

17.27

17.12

Management’s

Discussion and Analysis of Financial Condition and Results of Operations