Capital City Bank Group, Inc. Reports First Quarter 2013 Results

Capital City Bank Group, Inc. Reports First Quarter 2013 Results

TALLAHASSEE, Fla., April 22, 2013 (GLOBE NEWSWIRE) -- Capital City Bank Group,
Inc. (Nasdaq:CCBG) today reported net income of $0.8 million, or $0.05 per
diluted share for the first quarter of 2013 compared to net income of $1.9
million, or $0.11 per diluted share for the fourth quarter of 2012 and a net
loss of $1.2 million, or $0.07 per diluted share for the first quarter of
2012.

Compared to the fourth quarter of 2012, performance reflects lower operating
revenues of $1.1 million and a $1.7 million increase in noninterest expense,
partially offset by a $1.7 million reduction in the loan loss provision.

Compared to the first quarter of 2012, the increase in earnings was due to a
lower loan loss provision of $3.7 million and lower noninterest expense of
$1.4 million, which was partially offset by lower operating revenues of $1.7
million and higher income tax expense of $1.4 million.

"In the first quarter of 2013 we saw more of the positive trends we
experienced coming out of the latter half of 2012 with the dramatic
improvement in nonperforming assets," said William G. Smith, Jr., Chairman,
President and CEO. "After declining 14.5% in 2012, nonperforming assets fell
another 11.7% to $104 million in the first quarter alone. We have made clear
progress in the disposition of other real estate owned and continue to believe
our retail strategy – though it takes longer to execute – serves the best
interests of our shareowners. While the operating environment remains choppy,
economic indicators such as unemployment, population growth, housing and the
overall level of real estate activity continue to improve, which we believe
points toward greater stability to come. I am encouraged by the progress we've
made despite a very challenging period and optimistic about the outlook ahead
as we move forward through 2013."

The Return on Average Assets was 0.13% and the Return on Average Equity was
1.36% for the first quarter of 2013, compared to 0.29% and 2.95%,
respectively, for the fourth quarter of 2012, and -0.18% and -1.84%,
respectively, for the comparable quarter in 2012.

Discussion of Financial Condition

Average earning assets were $2.241 billion for the first quarter of 2013, an
increase of $61.9 million, or 2.8% over the fourth quarter of 2012, and a
decline of $27.4 million, or 1.2%, from the first quarter of 2012. The
increase compared to the fourth quarter of 2012 primarily reflects the higher
level of deposits resulting from the seasonal influx of public funds. The
decrease in earning assets when compared to the same prior year period is
attributable to the continued decline of the loan portfolio resulting from the
resolution of problem loans.

We maintained an average net overnight funds (deposits with banks plus fed
funds sold less fed funds purchased) sold position of $448.4 million during
the first quarter of 2013 compared to an average net overnight funds sold
position of $366.0 million in the fourth quarter of 2012 and an average
overnight fundssold position of $373.0 million in the first quarter of 2012.
The higher balance when compared to the fourth quarter of 2012 primarily
reflects the decline in the loan portfolio and higher public funds. The
increase when compared to the first quarter of 2012 again reflects the
declining loan portfolio, partially offset by a lower level of deposits.

The loan portfolio continues to decline and the deployment of the excess
liquidity remains in overnight funds.Historically, we have maintained a
slight overnight funds position.During the remainder of 2013, we will begin
our efforts to reduce the current level of overnight funds.

When compared to the fourth and first quarters of 2012, average loans declined
by $21.8 million and $100.0 million, respectively.Most loan categories have
experienced declines with the reduction primarily in the commercial real
estate and residential real estate categories.Our core loan portfolio
continues to be impacted by normal amortization and a higher level of payoffs
that have outpaced our new loan production.New loan production continues to
be impacted by weak loan demand attributable to the trend toward consumers and
businesses deleveraging, the lack of consumer confidence, and a persistently
sluggish economy.Efforts to stimulate new loan growth are ongoing; during
2012 we modified lending programs in our business and commercial real estate
areas to try and mitigate the significant impact that consumer and business
deleveraging is having on our portfolio.

Nonperforming assets (nonaccrual loans and other real estate owned "OREO")
totaled $103.9 million at the end of the first quarter of 2013, a decrease of
$13.8 million from the fourth quarter of 2012 and $33.0 million from the first
quarter of 2012.Nonaccrual loans totaled $45.4 million at the end of the
first quarter of 2013, a decrease of $18.8 million and $33.3 million,
respectively, from the same prior year periods.Nonaccrual loan additions in
the first quarter of 2013 totaled $7.7 million compared to $12.5 million and
$19.7 million for the fourth quarter of 2012 and first quarter of 2012,
respectively.The balance of OREO totaled $58.4 million at the end of the
first quarter of 2013, an increase of $5.0 million over the fourth quarter of
2012 and $0.3 million over the first quarter of 2012.For the first quarter of
2013 we added properties totaling $13.0 million, sold properties totaling $6.8
million, and recorded valuation adjustments totaling $1.2
million.Nonperforming assets represented 3.99% of total assets at March 31,
2013 compared to 4.47% at December 31, 2012 and 5.14% at March 31, 2012.

Average total deposits were $2.103 billion for the first quarter of 2013, an
increase of $51.9 million, or 2.5%, over the fourth quarter of 2012 and lower
by $58.4 million, or 2.7%, from the first quarter of 2012. The increase in
deposits when compared to the fourth quarter of 2012 resulted primarily from
the higher level of public funds partially offset by a reduction in
certificates of deposit.When compared to the first quarter of 2012, the
decline was a result of lower certificates of deposit and noninterest bearing
accounts, while growth was experienced in savings and money market accounts.

Our mix of deposits continues to improve as higher cost certificates of
deposit are replaced with lower rate non-maturity deposits and noninterest
bearing demand accounts.Prudent pricing discipline will continue to be the
key to managing our mix of deposits. Therefore, we do not attempt to compete
with higher rate paying competitors for deposits.

Average borrowings increased by $9.6 million when compared to the fourth
quarter of 2012 as a result of higher balances in repurchase agreements, and
were higher by $8.2 million when compared to the first quarter of 2012,
resulting from a higher level of federal home loan bank advances.

Discussion of Operating Results

Tax equivalent net interest income for the first quarter of 2013 was $20.1
million compared to $20.7 million for the fourth quarter of 2012 and $21.8
million for the first quarter of 2012. The decrease in tax equivalent net
interest income compared to the prior periods was due to a reduction in loan
income primarily attributable to declining loan balances and unfavorable asset
repricing, partially offset by a reduction ininterest expense and a lower
level of foregone interest on loans. The lower interest expense is
attributable to favorable repricing on FHLB advances and certificates of
deposit which reflects both lower balances and favorable repricing.

The decline in the loan portfolio, coupled with the low rate environment
continues to put pressure on our net interest income. Lowering our cost of
funds, to the extent we can, and continuing to shift the mix of our deposits
will help to partially mitigate the unfavorable impact of weak loan demand and
repricing, although the impact is expected to be minimal.

The net interest margin for the first quarter of 2013 was 3.64%, a decrease of
fourteen basis points from the fourth quarter of 2012, and a decline of 23
basis points from the first quarter of 2012. The decrease in the margin for
both comparable periods is attributable to the shift in our earning asset mix
and unfavorable asset repricing, partially offset by a lower average cost of
funds.

The provision for loan losses for the first quarter of 2013 was $1.1 million
compared to $2.8 million in the fourth quarter of 2012 and $4.8 million for
the first quarter of 2012.The decrease in the loan loss provision compared to
both prior periods reflects a lower level of impaired loan additions and
related reserves as well as improving trends in loan delinquencies, classified
loans, and loan losses.Net charge-offs for the first quarter of 2013 totaled
$2.4 million, or 0.66% (annualized), of average loans compared to $3.8
million, or 1.00%, for the fourth quarter of 2012 and $4.6 million, or 1.16%,
in the first quarter of 2012.At quarter-end, the allowance for loan losses of
$27.8 million was 1.90% of outstanding loans (net of overdrafts) and provided
coverage of 61% of nonperforming loans compared to 1.93% and 45%,
respectively, at December 31, 2012, and 1.98% and 40%, respectively, at March
31, 2012.

Noninterest income for the first quarter of 2013 totaled $13.6 million, a
decrease of $0.5 million, or 3.8%, from the fourth quarter of 2012 reflective
of lower deposit fees of $0.6 million, trust fees of $0.1 million, and other
income of $0.2 million, partially offset by higher retail brokerage fees of
$0.2 million and mortgage banking fees of $0.1 million.The decrease in
deposit fees was primarily due to an expected lower utilization of our
overdraft protection service during the first quarter as clients receive tax
refunds and to a lesser extent two less processing days in the current
quarter.The decrease in trust fees reflects a lower level of assets under
management primarily due to account distributions.Other income declined due
to a lower level of gains from the sale of OREO properties.The increase in
retail brokerage fees reflects a higher level of client trading activity.A
higher level of loans funded and a higher margin realized for sold loans drove
the increase in mortgage banking fees.Compared to the first quarter of 2012,
noninterest income remained flat as higher retail brokerage fees of $0.2
million and mortgage banking fees of $0.2 million were offset by lower deposit
fees of $0.2 million, bank card fees of $0.1 million, and other income of $0.1
million.Increased client trading activity drove the improvement in retail
brokerage fees.The increase in mortgage fees was attributable to a higher
level of loans funded and a higher margin for sold loans.The reduction in
deposit fees was due to a higher level of charged off checking accounts.Bank
card fees decline due to a lower level of card activity and the decrease in
other income was attributable to a lower level of fees for our working capital
finance product.

Noninterest expense for the first quarter of 2013 totaled $31.2 million, an
increase of $1.7 million, or 5.9%, over the fourth quarter of 2012 and a
decrease of $1.4 million, or 4.3%, from the first quarter of 2012.The
increase compared to the fourth quarter of 2012 was due to higher compensation
expense of $1.0 million and an increase in OREO expense of $1.0 million,
partially offset by lower furniture/equipment expense of $0.1 million and
other expense of $0.2 million.The increase in compensation was driven by
higher pension plan expense of $0.4 million, payroll taxes of $0.2 million,
unemployment taxes of $0.2 million, cash incentive expense of $0.1 million,
and employee insurance of $0.1 million.The increase in expense for our
pension plan was primarily attributable to the utilization of a lower discount
rate in 2013 due to lower long-term bond interest rates.The increase in
payroll taxes reflects the reset of social security taxes and the increase in
unemployment taxes is attributable to timing as a large portion of the annual
premium is paid in the first quarter.Cash incentive expense increased due to
the reset of these plans for 2013 performance metrics.The increase in
employee insurance reflects the annual renewal of policies at a slightly
higher premium rate.OREO expense increased due to a higher level of property
valuation adjustments.The favorable variance in furniture/equipment expense
was due to lower tangible taxes and the decrease in other expense reflects
lower professional fees and advertising costs.The favorable variance in
noninterest expense compared to the first quarter of 2012 was primarily
attributable to a reduction in OREO expense of $0.6 million, compensation
expense of $0.1 million, and other expense of $0.6 million.The reduction in
OREO expense was due to a lower level of loss on sale from property
dispositions.Lower employee salary expense, which is reflective of reduced
headcount drove the decline in compensation.Decreases in professional fees,
legal fees, and advertising costs drove the reduction in the other expense
category. Expense management continues to be a key strategic focus as we
evaluate opportunities to optimize our delivery channels, review our vendor
relationships, and better manage our discretionary expenses.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (Nasdaq:CCBG) is one of the largest publicly
traded bank holding companies headquartered in Florida and has approximately
$2.6 billion in assets.The Company provides a full range of banking services,
including traditional deposit and credit services, asset management, trust,
mortgage banking, merchant services, bankcards, data processing and securities
brokerage services.The Company's bank subsidiary, Capital City Bank, was
founded in 1895 and now has 66 full-service offices and 71 ATMs 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 the Company's future results to differ materially.The following
factors, among others, could cause the Company's actual results to differ: the
Company's need and our ability to incur additional debt or equity financing;
the accuracy of the Company's financial statement estimates and assumptions,
including the estimate used for the Company's loan loss provision and deferred
tax valuation allowance; continued depression of the market value of the
Company that could result in an impairment of goodwill; legislative or
regulatory changes, including the Dodd-Frank Act and Basel III; the strength
of the U.S. economy and the local economies where the Company conducts
operations; the frequency and magnitude of foreclosure of the Company's loans;
restrictions on our operations, including the inability to pay dividends
without our regulators' consent; the effects of the health and soundness of
other financial institutions, including the FDIC's need to increase Deposit
Insurance Fund assessments; the effects of the Company's lack of a diversified
loan portfolio, including the risks of geographic and industry concentrations;
harsh weather conditions and man-made disasters; fluctuations in inflation,
interest rates, or monetary policies; changes in the stock market and other
capital and real estate markets; customer acceptance of third-party products
and services;increased competition and its effect on pricing, including the
impact on our net interest margin from the repeal of Regulation Q; negative
publicity and the impact on our reputation;technological changes;the effects
of security breaches and computer viruses that may affect the Company's
computer systems; changes in consumer spending and savings habits; the
Company's growth and profitability;changes in accounting; and the Company's
ability to manage the risks involved in the foregoing.Additional factors can
be found in the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2012, and the Company's 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 the Company assumes no obligation to update forward-looking
statements or the reasons why actual results could differ.

CAPITAL CITY BANK GROUP, INC.                                            
EARNINGS HIGHLIGHTS                                                      
Unaudited                                                                
                                                                          
                                 Three Months Ended                    
(Dollars in thousands, except per Mar 31, 2013 Dec 31, 2012 Mar 31, 2012
share data)
                                                         
EARNINGS                                                  
Net Income (Loss)                 $ 839        $ 1,875      $ (1,162)
Net Income (Loss) Per Common      $0.05      $0.11      $(0.07)
Share
PERFORMANCE                                               
Return on Average Assets          0.13%        0.29%        -0.18%
Return on Average Equity          1.36%        2.95%        -1.84%
Net Interest Margin               3.64%        3.78%        3.87%
Noninterest Income as % of        40.62%       40.81%       38.64%
Operating Revenue
Efficiency Ratio                  92.67%       84.68%       92.04%
CAPITAL ADEQUACY                                          
Tier 1 Capital Ratio              14.95%       14.35%       14.17%
Total Capital Ratio               16.32%       15.72%       15.54%
Tangible Common Equity Ratio      6.49%        6.35%        6.42%
Leverage Ratio                    9.81%        9.90%        9.71%
Equity to Assets                  9.54%        9.37%        9.43%
ASSET QUALITY                                             
Allowance as % of Non-Performing  61.17%       45.42%       39.65%
Loans
Allowance as a % of Loans         1.90%        1.93%        1.98%
Net Charge-Offs as % of Average   0.66%        1.00%        1.16%
Loans
Nonperforming Assets as % of      6.81%        7.47%        8.36%
Loans and ORE
Nonperforming Assets as % of      3.99%        4.47%        5.14%
Total Assets
STOCK PERFORMANCE                                         
High                             $12.54     $11.91     $9.91
Low                               10.95        9.04         7.32
Close                             12.35        11.37        7.45
Average Daily Trading Volume      $ 23,519     $ 20,045     $ 24,751

                                                                                       
CAPITAL CITY BANK GROUP, INC.                                                           
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION                                          
Unaudited                                                                               
                                                                                       
                                                                  
                  2013         2012
(Dollars in        First        Fourth       Third        Second       First
thousands)         Quarter      Quarter      Quarter      Quarter      Quarter
ASSETS                                                             
Cash and Due From  $52,677    $66,238    $53,076    $57,477    $50,567
Banks
Funds Sold and
Interest Bearing   461,714      443,494      314,318      434,814      418,678
Deposits
Total Cash and     514,391     509,732     367,394     492,291     469,245
Cash Equivalents
                                                                  
Investment
Securities,        307,502      296,985      288,166      280,753      284,490
Available-for-Sale
                                                                  
Loans, Net of                                                      
Unearned Interest
Commercial,
Financial, &       125,905      139,850      135,939      136,736      132,119
Agricultural
Real Estate -      42,968       43,740       43,278       46,803       34,554
Construction
Real Estate -      599,517      613,625      609,671      605,819      624,528
Commercial
Real Estate -      311,189      318,400      341,044      353,198      364,123
Residential
Real Estate - Home 233,205      236,263      239,446      242,929      240,800
Equity
Consumer           146,043      150,728      154,389      162,899      174,132
Other Loans        5,187        11,547       6,891        5,638        6,555
Overdrafts         2,307        7,149        2,637        2,214        2,073
Total Loans, Net
of Unearned        1,466,321   1,521,302   1,533,295   1,556,236   1,578,884
Interest
Allowance for Loan (27,803)     (29,167)     (30,222)     (29,929)     (31,217)
Losses
Loans, Net         1,438,518   1,492,135   1,503,073   1,526,307   1,547,667
                                                                  
Premises and       105,883      107,092      109,003      110,302      111,408
Equipment, Net
Intangible Assets  84,985       85,053       85,161       85,269       85,376
Other Real Estate  58,421       53,426       53,172       58,059       58,100
Owned
Other Assets       95,613       89,561       87,815       92,869       103,992
Total Other Assets 344,902      335,132      335,151      346,499      358,876
                                                                  
Total Assets       $2,605,313 $2,633,984 $2,493,784 $2,645,850 $2,660,278
                                                                  
LIABILITIES                                                        
Deposits:                                                          
Noninterest        $616,017   $609,235   $596,660   $623,130   $605,774
Bearing Deposits
NOW Accounts       765,030      842,435      703,327      789,103      845,149
Money Market       299,118      267,766      285,084      288,352      283,224
Accounts
Regular Savings    200,492      184,541      181,523      178,388      172,262
Accounts
Certificates of    233,325      241,019      254,000      271,413      279,295
Deposit
Total Deposits     2,113,982    2,144,996    2,020,594    2,150,386    2,185,704
                                                                  
Short-Term         50,682       47,435       42,388       69,449       42,188
Borrowings
Subordinated Notes 62,887       62,887       62,887       62,887       62,887
Payable
Other Long-Term    41,224       46,859       38,126       38,846       42,826
Borrowings
Other Liabilities  87,930       84,918       79,427       75,260       75,876
                                                                  
Total Liabilities  2,356,705    2,387,095    2,243,422    2,396,828    2,409,481
                                                                  
SHAREOWNERS'                                                       
EQUITY
Common Stock       173          172          172          172          172
Additional Paid-In 39,580       38,707       38,493       38,260       38,101
Capital
Retained Earnings  238,408      237,569      235,694      234,573      236,299
Accumulated Other
Comprehensive      (29,553)     (29,559)     (23,997)     (23,983)     (23,775)
Loss, Net of Tax
                                                                  
Total Shareowners' 248,608      246,889      250,362      249,022      250,797
Equity
                                                                  
Total Liabilities
and Shareowners'   $2,605,313 $2,633,984 $2,493,784 $2,645,850 $2,660,278
Equity
                                                                  
OTHER BALANCE                                                      
SHEET DATA
Earning Assets     $2,235,537 $2,261,781 $2,135,779 $2,271,803 $2,282,053
Intangible Assets                                                  
Goodwill           84,811       84,811       84,811       84,811       84,811
Core Deposits      0            19           79           139          198
Other              174          223          271          319          367
Interest Bearing   1,652,758    1,692,942    1,567,335    1,698,438    1,727,831
Liabilities
                                                                  
Book Value Per     $14.35     $14.31     $14.54     $14.48     $14.60
Diluted Share
Tangible Book
Value Per Diluted  9.44         9.38         9.59         9.52         9.63
Share
                                                                  
Actual Basic       17,319       17,232       17,223       17,198       17,182
Shares Outstanding
Actual Diluted     17,326       17,259       17,223       17,198       17,182
Shares Outstanding

                                                      
CAPITAL CITY BANK GROUP, INC.                                            
CONSOLIDATED STATEMENT OF OPERATIONS                                     
Unaudited                                                                
                                                                        
                                                      
                     2013     2012
(Dollars in           First    Fourth   Third    Second    First
thousands, except per Quarter  Quarter  Quarter  Quarter   Quarter
share data)
                                                      
INTEREST INCOME                                        
Interest and Fees on  $ 20,154 $ 20,756 $ 21,274 $ 21,359  $ 22,005
Loans
Investment Securities 704      808      798      834       900
Funds Sold            270      223      254      244       225
Total Interest Income 21,128   21,787   22,326   22,437    23,130
                                                      
INTEREST EXPENSE                                       
Deposits              415      429      480      556       643
Short-Term Borrowings 82       69       71       48        8
Subordinated Notes    339      351      372      372       382
Payable
Other Long-Term       347      383      372      396       436
Borrowings
Total Interest        1,183    1,232    1,295    1,372     1,469
Expense
Net Interest Income   19,945   20,555   21,031   21,065    21,661
Provision for Loan    1,070    2,766    2,864    5,743     4,793
Losses
Net Interest Income
after Provision for   18,875   17,789   18,167   15,322    16,868
Loan Losses
                                                      
NONINTEREST INCOME                                     
Service Charges on    6,165    6,764    6,406    6,313     6,309
Deposit Accounts
Data Processing Fees  653      671      687      680       675
Asset Management      993      1,100    1,020    1,020     1,015
Fees^(1)
Retail Brokerage      922      718      666      884       758
Fees^(1)
Mortgage Banking Fees 1,043    910      978      864       848
Interchange Fees ^    1,793    1,726    1,619    1,580     1,526
(2)
ATM/Debit Card Fees   868      886      997      1,204     1,245
^(2)
Other                1,151    1,343    1,202    1,361     1,210
Total Noninterest     13,588   14,118   13,575   13,906    13,586
Income
                                                      
NONINTEREST EXPENSE                                    
Compensation          16,739   15,772   15,510   16,117    16,843
Occupancy, Net        2,248    2,200    2,332    2,276     2,266
Furniture and         2,153    2,212    2,245    2,245     2,201
Equipment
Intangible            68       108      108      107       108
Amortization
Other Real Estate     2,901    1,917    2,616    3,460     3,513
Other                7,091    7,259    7,390    8,088     7,666
Total Noninterest     31,200   29,468   30,201   32,293    32,597
Expense
                                                      
OPERATING PROFIT      1,263    2,439    1,541    (3,065)   (2,143)
(LOSS)
Income Tax Expense    424      564      420      (1,339)   (981)
(Benefit)
NET INCOME (LOSS)     $ 839    $ 1,875  $ 1,121  $ (1,726) $ (1,162)
                                                      
PER SHARE DATA                                         
Basic Income (Loss)  $ 0.05   $ 0.11   $ 0.07   $ (0.10)  $ (0.07)
Diluted Income (Loss) $ 0.05   $ 0.11   $ 0.07   $ (0.10)  $ (0.07)
AVERAGE SHARES                                         
Basic                17,302   17,229   17,215   17,192    17,181
Diluted              17,309   17,256   17,228   17,192    17,181
                                                      
^(1)Together referred to as "Wealth Management Fees"                   
^(2)Together referred to as "Bank Card Fees"                            

                                                       
CAPITAL CITY BANK GROUP, INC.                                              
ALLOWANCE FOR LOAN LOSSES                                                 
AND NONPERFORMING ASSETS                                                   
Unaudited                                                                  
                                                                          
(Dollars in     2013       2012       2012       2012       2012
thousands,      First      Fourth     Third      Second     First
except per      Quarter    Quarter    Quarter    Quarter    Quarter
share data)
                                                       
ALLOWANCE FOR                                           
LOAN LOSSES
Balance at
Beginning of    $29,167  $30,222  $29,929  $31,217  $31,035
Period
Provision for   1,070      2,766      2,864      5,743      4,793
Loan Losses
Net Charge-Offs 2,434      3,821      2,571      7,031      4,611
Balance at End  $27,803  $29,167  $30,222  $29,929  $31,217
of Period
As a % of Loans 1.90%      1.93%      1.97%      1.93%      1.98%
As a % of
Nonperforming   61.17%     45.42%     40.80%     40.03%     39.65%
Loans
                                                       
CHARGE-OFFS                                             
Commercial,
Financial and   $154     $166     $331     $57      $268
Agricultural
Real Estate -   610        227        127        275        0
Construction
Real Estate -   1,043      468        512        3,519      1,532
Commercial
Real Estate -   683        2,877      981        3,894      1,967
Residential
Real Estate -   113        745        834        425        892
Home Equity
Consumer        296        488        355        550        732
Total           $2,899   $4,971   $3,140   $8,720   $5,391
Charge-Offs
                                                       
RECOVERIES                                              
Commercial,
Financial and   $51      $87      $53      $83      $67
Agricultural
Real Estate -   --       7         9         27        --
Construction
Real Estate -   38         468        34         42         138
Commercial
Real Estate -   96         83         76         969        163
Residential
Real Estate -   18         250        15         116        18
Home Equity
Consumer        262        255        382        452        394
Total           $465     $1,150   $569     $1,689   $780
Recoveries
                                                       
NET CHARGE-OFFS $2,434   $3,821   $2,571   $7,031   $4,611
                                                       
Net Charge-Offs
as a % of       0.66%      1.00%      0.66%      1.80%      1.16%
Average
Loans^(1)
                                                       
RISK ELEMENT                                            
ASSETS
Nonaccruing     $45,448  $64,222  $74,075  $74,770  $78,726
Loans
Other Real      58,421     53,426     53,172     58,059     58,100
Estate Owned
Total
Nonperforming   $103,869 $117,648 $127,247 $132,829 $136,826
Assets
                                                       
Past Due Loans  $9,274   $9,934   $12,923  $16,695  $9,193
30-89 Days
Past Due Loans  --       --       --       --       25
90 Days or More
Performing
Troubled Debt   $53,108  $47,474  $45,973  $38,734  $37,373
Restructuring's
                                                       
Nonperforming
Loans as a % of 3.10%      4.22%      4.83%      4.80%      4.99%
Loans
Nonperforming
Assets as a %
of Loans and    6.81%      7.47%      8.02%      8.23%      8.36%
Other Real
Estate
Nonperforming
Assets as a %   3.99%      4.47%      5.10%      5.02%      5.14%
of Total Assets
                                                       
^(1) Annualized                                                            

                                                                                         
CAPITAL CITY BANK GROUP, INC.                                                                                     
AVERAGE BALANCE AND INTEREST RATES^(1)                                                                            
Unaudited                                                                                                         
                                                                                                                 
                                                                                         
            First Quarter 2013             Fourth Quarter 2012            Third Quarter 2012
(Dollars in  Average                Average Average                Average Average                Average
thousands)   Balance      Interest  Rate    Balance      Interest  Rate    Balance      Interest  Rate
ASSETS:                                                                                   
Loans, Net
of Unearned  $1,496,432 20,228   5.48%   $1,518,280 20,837   5.46%   $1,541,262 21,366   5.51%
Interest
                                                                                         
Investment                                                                                
Securities
Taxable
Investment   215,087     590      1.10    219,985     697      1.26    214,431     691      1.28
Securities
Tax-Exempt
Investment   80,946       174       0.86    74,647       172       0.92    67,446       163       0.97
Securities
                                                                                         
Total
Investment   296,033     764      1.04    294,632     869      1.17    281,877     854      1.21
Securities
                                                                                         
Funds Sold   448,424      270       0.24    366,034      223       0.24    386,027      254       0.26
                                                                                         
Total
Earning      2,240,889   $21,262 3.85%   2,178,946   $21,929 4.00%   2,209,166   $22,474 4.05%
Assets
                                                                                         
Cash and Due 50,679                      51,344                      47,207               
From Banks
Allowance
for Loan     (30,467)                    (30,605)                    (30,260)             
Losses
Other Assets 337,579                      334,326                      340,126               
                                                                                         
Total Assets $2,598,680                 $2,534,011                 $2,566,239          
                                                                                         
LIABILITIES:                                                                              
Interest
Bearing                                                                                   
Deposits
NOW Accounts $788,660   $156    0.08%   $714,682   $131    0.07%   $740,178   $144    0.08%
Money Market 282,847     54       0.08    275,458     57       0.08    287,250     60       0.08
Accounts
Savings      193,033     23       0.05    182,760     23       0.05    179,445     23       0.05
Accounts
Time         238,441      181       0.31    247,679      218       0.35    263,007      253       0.38
Deposits
Total
Interest     1,502,981   414      0.11%   1,420,579   429      0.12%   1,469,880   480      0.13%
Bearing
Deposits
                                                                                         
Short-Term   55,255      82       0.60%   45,893      69       0.59%   59,184      71       0.48%
Borrowings
Subordinated
Notes        62,887      339      2.15    62,887      351      2.19    62,887      372      2.31
Payable
Other
Long-Term    42,898       348       3.29    42,673       383       3.57    38,494       372       3.85
Borrowings
                                                                                         
Total
Interest     1,664,021   $1,183  0.29%   1,572,032   $1,232  0.31%   1,630,445   $1,295  0.32%
Bearing
Liabilities
                                                                                         
Noninterest
Bearing      599,986                     630,520                     605,602              
Deposits
Other        85,116                       78,442                       78,446                
Liabilities
                                                                                         
Total        2,349,123                    2,280,994                    2,314,493             
Liabilities
                                                                                         
SHAREOWNERS' 249,557                      253,017                      251,746               
EQUITY:
                                                                                         
Total
Liabilities
and          $2,598,680                 $2,534,011                 $2,566,239          
Shareowners'
Equity
                                                                                         
Interest                 $20,079 3.56%               $20,697 3.69%               $21,179 3.73%
Rate Spread
                                                                                         
Interest
Income and               21,262    3.85                21,929    4.00                22,474    4.05
Rate
Earned^(1)
Interest
Expense and              1,183     0.21                1,232     0.22                1,295     0.23
Rate
Paid^(2)
                                                                                         
Net Interest             $20,079 3.64%               $20,697 3.78%               $21,179 3.82%
Margin
                                                                                         
^(1)Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.      
^(2)Rate calculated based on average earning assets.                                                            

                                                             
CAPITAL CITY BANK GROUP, INC.                                                   
AVERAGE BALANCE AND INTEREST RATES^(1)                                          
Unaudited                                                                       
                                                                               
                                                             
            Second Quarter 2012            First Quarter 2012
(Dollars in  Average                Average Average                Average
thousands)   Balance      Interest  Rate    Balance      Interest  Rate
ASSETS:                                                       
Loans, Net
of Unearned  $1,570,827 21,456   5.49%   $1,596,480 22,121   5.57%
Interest
                                                             
Investment                                                    
Securities
Taxable
Investment   216,952     730      1.35    242,481     794      1.31
Securities
Tax-Exempt
Investment   63,715       161       1.01    56,313       162       1.15
Securities
                                                             
Total
Investment   280,667     891      1.27    298,794     956      1.28
Securities
                                                             
Funds Sold   411,353      244       0.24    373,033      225       0.24
                                                             
Total
Earning      2,262,847   $22,591 4.01%   2,268,307   $23,302 4.13%
Assets
                                                             
Cash and Due 47,711                      49,427               
From Banks
Allowance
for Loan     (31,599)                    (31,382)             
Losses
Other Assets 345,458                      350,555               
                                                             
Total Assets $2,624,417                 $2,636,907          
                                                             
LIABILITIES:                                                  
Interest
Bearing                                                       
Deposits
NOW Accounts $809,172   $167    0.08%   $823,406   $192    0.09%
Money Market 280,371     63       0.09    277,558     75       0.11
Accounts
Savings      174,923     21       0.05    165,603     20       0.05
Accounts
Time         274,497      305       0.45    284,129      356       0.50
Deposits
Total
Interest     1,538,963   556      0.15%   1,550,696   643      0.17%
Bearing
Deposits
                                                             
Short-Term   57,983      48       0.33%   45,645      8        0.07%
Borrowings
Subordinated
Notes        62,887      372      2.34    62,887      382      2.40
Payable
Other
Long-Term    40,617       396       3.92    44,286       436       3.96
Borrowings
                                                             
Total
Interest     1,700,450   $1,372  0.32%   1,703,514   $1,469  0.35%
Bearing
Liabilities
                                                             
Noninterest
Bearing      596,690                     610,692              
Deposits
Other        74,633                       68,254                
Liabilities
                                                             
Total        2,371,773                    2,382,460             
Liabilities
                                                             
SHAREOWNERS' 252,644                      254,447               
EQUITY:
                                                             
Total
Liabilities
and          $2,624,417                 $2,636,907          
Shareowners'
Equity
                                                             
Interest                 $21,219 3.69%               $21,833 3.78%
Rate Spread
                                                             
Interest
Income and               22,591    4.01                23,302    4.13
Rate
Earned^(1)
Interest
Expense and              1,372     0.24                1,469     0.26
Rate
Paid^(2)
                                                             
Net Interest             $21,219 3.77%               $21,833 3.87%
Margin
                                                             
^(1)Interest and average rates are calculated on a tax-equivalent basis    
using the 35% Federal tax rate.
^(2)Rate calculated based on average earning assets.                          

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