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

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

TALLAHASSEE, Fla., Oct. 29, 2013 (GLOBE NEWSWIRE) -- Capital City Bank Group,
Inc. (Nasdaq:CCBG) today reported net income of $1.6 million, or $0.09 per
diluted share for the third quarter of 2013 compared to net income of $0.8
million, or $0.05 per diluted share for the second quarter of 2013, and net
income of $1.1 million, or $0.07 per diluted share, for the third quarter of
2012. For the first nine months of 2013, the Company reported net income of
$3.3 million, or $0.19 per diluted share, compared to a net loss of $1.8
million, or $0.10 per diluted share for the same period in 2012.

Compared to the second quarter of 2013, performance reflects a lower loan loss
provision of $0.9 million, an increase in noninterest income of $0.5 million
and a decrease in noninterest expense of $0.1 million, partially offset by
lower net interest income of $0.4 million and higher income taxes of $0.3
million.

Compared to the third quarter of 2012, the increase in earnings was due to a
lower loan loss provision of $2.3 million and higher noninterest income of
$0.7 million, partially offset by lower net interest income of $1.8 million,
an increase in noninterest expense of $0.2 million and higher income taxes of
$0.5 million.

The increase in earnings for the first nine months of 2013 versus the
comparable period in 2012 is attributable to a lower loan loss provision of
$10.3 million, an increase in noninterest income of $0.7 million and a
decrease in noninterest expense of $2.9 million, partially offset by a
reduction in net interest income of $5.0 million and higher income taxes of
$3.8 million.

"We continue to make progress as improving credit quality has led to lower
credit costs and expense management initiatives are resulting in lower
operating costs," said William G. Smith, Jr., Chairman, President and CEO of
Capital City Bank Group. "Our credit metrics continue to improve with
nonperforming assets declining for the seventh consecutive quarter, reaching
their lowest level since the third quarter of 2008. Past due loans are also at
the lowest level we've seen since this cycle began. Our retail strategy for
the disposition of OREO continues to produce strong results, and we remain
committed to this approach as we believe it generates the best economic
outcome for our shareowners. While improving credit costs have been the
greatest contributor, year-to-date earnings have also benefited from higher
fee income and lower operating expenses. Although choppy, we are making steady
progress, and I am encouraged about the future."

The Return on Average Assets was 0.25% and the Return on Average Equity was
2.51% for the third quarter of 2013. These metrics were 0.13% and 1.35% for
the second quarter of 2013, and 0.17% and 1.77% for the third quarter of 2012,
respectively.

For the first nine months of 2013, the Return on Average Assets was 0.17% and
the Return on Average Equity was 1.75% compared to -0.09% and -0.93%,
respectively, for the same period in 2012.

Discussion of Financial Condition

Average earning assets were $2.201 billion for the third quarter of 2013, a
decrease of $5.3 million, or 0.2%, from the second of 2013 and an increase of
$22.4 million, or 1.0%, over the fourth quarter of 2012. The change in earning
assets from the prior quarter reflects a decline in the overnight funds
position reflecting a lower level of deposits. The increase compared to the
fourth quarter of 2012 primarily reflects a higher level of public fund
deposits.

We maintained an average net overnight funds (deposits with banks plus fed
funds sold less fed funds purchased) sold position of $412.1 million during
the third quarter of 2013 compared to an average net overnight funds sold
position of $419.0 million in the second quarter of 2013 and an average
overnight funds sold position of $366.0 million in the fourth quarter of 2012.
The lower balance when compared to the second quarter of 2013 primarily
reflects the decline in deposits. Additionally, a shift in earning asset mix
continued to occur due to growth in the investment portfolio while the loan
portfolio declined. The increase when compared to the fourth quarter of 2012
reflects the declining loan portfolio and a higher level of public funds,
partially offset by an increase in the investment portfolio.

Economic uncertainty and deleveraging by our clients continues to generate a
historically high level of liquidity, which, given the current operating
environment, is difficult to profitably deploy without taking inordinate
risks. Where practical we are working to lower the level of overnight funds by
adding to our investment portfolio with short-duration securities and reducing
deposit balances. We continue to use a fully-insured money market account
which is offered by a third party and can serve as an alternative investment
for some of our higher balance depositors while at the same time allowing us
to maintain the account relationship. Until such time that attractive
investment alternatives arise, we will continue to execute these strategies as
well as seek other initiatives in an effort to lower our overnight fund
balances.

When compared to the second quarter of 2013 and fourth quarter of 2012,
average loans declined by $20.9 million and $82.2 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 has improved over the past four quarters as our efforts to
stimulate loan growth are ongoing. Without compromising our credit standards
or taking on inordinate interest rate risk, we have modified several 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 OREO) totaled $94.7 million at the
end of the third quarter of 2013, a decrease of $2.0 million from the second
quarter of 2013 and $22.9 million from the fourth quarter of 2012. Nonaccrual
loans totaled $41.7 million at the end of the third quarter of 2013, a slight
increase of $0.1 million over the second quarter of 2013 and a decrease of
$22.5 million from the fourth quarter of 2012. Nonaccrual loan additions
totaled $11.1 million in the third quarter of 2013 and $29.6 million for the
first nine months of 2013, which compares to $48.5 million in the first nine
months of 2012. The balance of OREO totaled $53.0 million at the end of the
third quarter of 2013, a decrease of $2.1 million from the second quarter of
2013 and $0.4 million from the fourth quarter of 2012. For the third quarter
of 2013 we added properties totaling $3.7 million, sold properties totaling
$5.2 million, and recorded valuation adjustments totaling $0.6 million. For
the first nine months of 2013, we have added properties totaling $21.0
million, sold properties totaling $18.5 million, and recorded valuation
adjustments totaling $2.9 million. Nonperforming assets represented 3.77% of
total assets at both September 30, 2013 and June 30, 2013, and 4.47% at
December 31, 2012.

Average total deposits were $2.059 billion for the third quarter of 2013, a
decrease of $8.1 million, or 0.4%, from the second quarter of 2013 and higher
by $8.4 million, or 0.4%, over the fourth quarter of 2012. The decrease in
deposits when compared to the second quarter of 2013 resulted primarily from
the reduction in the level of public funds and money market accounts,
partially offset by higher noninterest bearing demand and savings accounts.
When compared to the fourth quarter of 2012, the increase was a result of
higher public funds and savings accounts, partially offset by lower
certificates of deposit and regular NOWs.

Core deposits experienced growth when compared to both periods as the Bank
continues to expand relationships and grow the client base. The seasonal
inflow of public funds will begin late in the fourth quarter of 2013 and
continue into the first quarter of 2014. Both events are anticipated to
increase the overnight funds position during the fourth quarter.

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 decreased by $2.6 million when compared to the second
quarter of 2013 as a result of payoff/amortization of FHLB advances and lower
repurchase agreement balances.Borrowings increased by $2.2 million when
compared to the fourth quarter of 2012, primarily a result of higher
repurchase agreement balances, partially offset by FHLB advance
payoffs/amortization.

Discussion of Operating Results

Tax equivalent net interest income for the third quarter of 2013 was $19.4
million compared to $19.7 million for the second quarter of 2013 and $21.2
million for the third 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 in interest 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.For the
nine months ended September 30, 2013, tax equivalent net interest income
totaled $59.2 million compared to $64.3 million for the same period of 2012.

Pressure on net interest income continues primarily as a result of the
declining loan portfolio and the low rate environment. Loans have declined by
approximately $102 million since the third quarter of 2012.The low rate
environment, although favorable to the repricing of deposits, continues to
negatively impact the loan and investment portfolios.Increased lending
competition in all markets has also unfavorably impacted the pricing for
loans.

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 third quarter of 2013 was 3.49%, a decrease of
ten basis points from the second quarter of 2013, and a decline of 33 basis
points from the third 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 third quarter of 2013 was $0.6 million
compared to $1.4 million in the second quarter of 2013 and $2.9 million for
the third quarter of 2012.For the nine month period ended September 30, 2013,
the loan loss provision totaled $3.1 million compared to $13.4 million for the
same period in 2012.The decrease compared to the second quarter of 2013
reflects continued improvement in key credit metrics, including our level of
classified loans which declined noticeably during the quarter.The reduction
in the provision from both of the prior year periods was due to a significant
decline in loan losses, a reduced level of problem loan inflow, and overall
improvement in key credit metric trends.Net charge-offs for the third quarter
of 2013 totaled $2.8 million, or 0.78% (annualized), of average loanscompared
to $2.0 million, or 0.54%, for the second quarter of 2013 and $2.6 million, or
0.66%, in the third quarter of 2012.For the first nine months of 2013, net
charge-offs totaled $7.2 million, or 0.66% (annualized), of average loans
compared to $14.2 million, or 1.21%, for the same period of 2012.Lower
charge-offs in our residential real estate and commercial real estate
portfolios drove the decrease in loan losses comparing 2013 to 2012.At
September 30, 2013, the allowance for loan losses of $25.0 million was 1.75%
of outstanding loans (net of overdrafts) and provided coverage of 60% of
nonperforming loans compared to 1.89% and 66%, respectively, at June 30, 2013,
and 1.93% and 45%, respectively, at December 31, 2012.

Noninterest income for the third quarter of 2013 totaled $14.3 million, an
increase of $0.5 million, or 3.3%, over the second quarter of 2013 and $0.7
million, or 5.4%, over the third quarter of 2012.The increase over the second
quarter of 2013 was driven by higher deposit fees of $0.3 million and wealth
management fees of $0.2 million.The increase in deposit fees was due to
higher overdraft fees and the increase in wealth management primarily reflects
an increase in retail brokerage fees due to increased client trading
activity.Compared to the third quarter of 2012, the increase was due to
higher wealth management fees driven by an increase in retail brokerage fees
reflective of increased client trading activity and growth in new
accounts.For the nine month period ended September 30, 2013, noninterest
income totaled $41.7 million, a $0.7 million increase over the same period in
2012 due to higher wealth management fees of $0.6 million and mortgage banking
fees of $0.2 million.Wealth management fees increased due to higher retail
brokerage fees reflective of increased client trading activity and growth in
new account openings.The increase in mortgage fees was attributable to a
higher margin for sold loans.

Noninterest expense for the third quarter of 2013 totaled $30.4 million, a
decrease of $0.1 million, or 0.5%, from the second quarter of 2013
attributable to lower compensation expense of $0.5 million and OREO expense of
$0.3 million, partially offset by higher occupancy expense of $0.3 million and
other expense of $0.4 million.Compensation expense declined primarily due to
a reduction in pension expense reflective of a lower required 2013 expense
upon finalization of actuarial work.Lower stock compensation also contributed
to the decrease.The decrease in OREO expense was due to a reduction in the
level of property valuation adjustments.The increase in occupancy expense was
driven by a higher level of premises maintenance activity as well as utility
costs.Higher advertising costs and professional fees drove the increase in
the other expense category.Compared to the third quarter of 2012, noninterest
expense increased by $0.2 million, or 0.8%, primarily reflective of higher
compensation expense of $0.6 million that was partially offset by lower OREO
expense of $0.5 million.Higher pension expense and stock compensation expense
drove the increase in compensation.The reduction in OREO expense reflects a
reduced level of property valuation adjustments as well as property carrying
costs.For the nine month period ended September 30, 2013, noninterest expense
totaled $92.2 million, a decrease of $2.9 million, or 3.0%, from the same
period of 2012 attributable to lower occupancy expense of $0.6 million, OREO
expense of $2.1 million, intangible amortization expense of $0.2 million, and
other expense of $1.1 million, partially offset by higher compensation expense
of $1.1 million.Declines were realized in most of the occupancy expense
categories and were generally driven by stronger cost controls and other cost
reduction initiatives.The reduction in OREO expense was primarily
attributable to a lower level of losses from the sale of properties and to a
lesser extent reduction in carrying costs for properties.The decrease in
intangible amortization reflects the full amortization of our remaining core
deposit intangible asset in early 2013.The other expense category declined
due to reduction in legal fees, professional fees, postage costs, and
printing/supplies expense.Higher compensation expense reflects an increase in
our pension plan expense of $0.8 million, stock compensation expense of $0.8
million, and associate insurance expense of $0.2 million that was partially
offset by lower salary expense of $0.7 million.

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
$2.5 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 63 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; a decrease to 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; 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
long-term impact on our net interest margin from the repeal of Regulation Q;
negative publicity and the impact on our reputation;technological changes,
especially changes that allow out of market competitors to compete in our
markets;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            Nine Months Ended
(Dollars in thousands,      Sep 30,   Jun 30,   Sep 30,   Sep 30,   Sep 30,
except per share data)      2013      2013      2012      2013      2012
                                                               
EARNINGS                                                        
Net Income (Loss)           $1,591  $843    $1,121  $3,273  $(1,767)
Net Income (Loss) Per       $0.09   $0.05   $0.07   $0.19   $(0.10)
Common Share
PERFORMANCE                                                     
Return on Average Assets    0.25%     0.13%     0.17%     0.17%     -0.09%
Return on Average Equity    2.51%     1.35%     1.77%     1.75%     -0.93%
Net Interest Margin         3.49%     3.59%     3.82%     3.57%     3.81%
Noninterest Income as % of  42.82%    41.68%    39.31%    41.71%    39.28%
Operating Revenue
Efficiency Ratio            90.42%    91.07%    86.89%    91.39%    90.06%
CAPITAL ADEQUACY                                                
Tier 1 Capital Ratio        15.60%    15.36%    14.43%    15.60%    14.43%
Total Capital Ratio         16.97%    16.73%    15.80%    16.97%    15.80%
Tangible Common Equity      6.84%     6.64%     6.86%     6.84%     6.86%
Ratio
Leverage Ratio              10.16%    10.07%    9.83%     10.16%    9.83%
Equity to Assets            9.99%     9.73%     10.04%    9.99%     10.04%
ASSET QUALITY                                                   
Allowance as % of           60.00%    65.66%    40.80%    60.00%    40.80%
Non-Performing Loans
Allowance as a % of Loans   1.75%     1.89%     1.97%     1.75%     1.97%
Net Charge-Offs as % of     0.78%     0.54%     0.66%     0.66%     1.21%
Average Loans
Nonperforming Assets as %   6.38%     6.44%     8.02%     6.38%     8.02%
of Loans and ORE
Nonperforming Assets as %   3.77%     3.77%     5.10%     3.77%     5.10%
of Total Assets
STOCK PERFORMANCE                                               
High                        $13.08  $12.64  $10.96  $13.08  $10.96
Low                         11.06     10.12     7.00      10.12     6.35
Close                       11.78     11.53     10.64     11.78     10.64
Average Daily Trading       $18,380 $16,366 $23,737 $19,334 $28,826
Volume


CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited

                                                                  
                  2013                                   2012
(Dollars in        Third        Second       First        Fourth       Third
thousands)         Quarter      Quarter      Quarter      Quarter      Quarter
ASSETS                                                             
Cash and Due From  $51,136    $67,811    $52,677    $66,238    $53,076
Banks
Funds Sold and
Interest Bearing   358,869      391,457      461,714      443,494      314,318
Deposits
Total Cash and     410,005     459,268     514,391     509,732     367,394
Cash Equivalents
                                                                  
Investment
Securities -       271,838     350,614     307,502     296,985     288,166
Available-for-Sale
Investment
Securities -       97,309       0            0            0            0
Held-to-Maturity
Total Investment   369,147      350,614      307,502      296,985      288,166
Securities
                                                                  
Loans Held for     13,822      15,362      11,422      14,189      16,527
Sale
                                                                  
Loans, Net of                                                      
Unearned Interest
Commercial,
Financial, &       123,253      126,931      125,905      139,850      135,939
Agricultural
Real Estate -      31,454       35,823       37,948       37,512       39,537
Construction
Real Estate -      570,736      581,501      599,517      613,625      609,671
Commercial
Real Estate -      305,811      302,254      304,786      310,439      328,258
Residential
Real Estate - Home 230,212      232,530      233,205      236,263      239,446
Equity
Consumer           148,321      142,620      146,043      150,728      154,389
Other Loans        5,220        5,904        5,187        11,547       6,891
Overdrafts         2,835        2,554        2,307        7,149        2,637
Total Loans, Net
of Unearned        1,417,842   1,430,117   1,454,898   1,507,113   1,516,768
Interest
Allowance for Loan (25,010)     (27,294)     (27,803)     (29,167)     (30,222)
Losses
Loans, Net         1,392,832   1,402,823   1,427,096   1,477,946   1,486,546
                                                                  
Premises and       103,702      104,743      105,883      107,092      109,003
Equipment, Net
Intangible Assets  84,891       84,937       84,985       85,053       85,161
Other Real Estate  53,018       55,087       58,421       53,426       53,172
Owned
Other Assets       87,055       89,024       95,613       89,561       87,815
Total Other Assets 328,666      333,791      344,902      335,132      335,151
                                                                  
Total Assets       $2,514,472 $2,561,858 $2,605,313 $2,633,984 $2,493,784
                                                                  
LIABILITIES                                                        
Deposits:                                                          
Noninterest        $626,114   $644,739   $616,017   $609,235   $596,660
Bearing Deposits
NOW Accounts       668,240      706,101      765,030      842,435      703,327
Money Market       283,338      287,340      299,118      267,766      285,084
Accounts
Regular Savings    211,174      204,594      200,492      184,541      181,523
Accounts
Certificates of    228,020      228,349      233,325      241,019      254,000
Deposit
Total Deposits     2,016,886    2,071,123    2,113,982    2,144,996    2,020,594
                                                                  
Short-Term         51,918       46,081       50,682       47,435       42,388
Borrowings
Subordinated Notes 62,887       62,887       62,887       62,887       62,887
Payable
Other Long-Term    40,244       41,251       41,224       46,859       38,126
Borrowings
Other Liabilities  91,369       91,227       87,930       84,918       79,427
                                                                  
Total Liabilities  2,263,304    2,312,569    2,356,705    2,387,095    2,243,422
                                                                  
SHAREOWNERS'                                                       
EQUITY
Common Stock       173          173          173          172          172
Additional Paid-In 40,481       40,210       39,580       38,707       38,493
Capital
Retained Earnings  240,842      239,251      238,408      237,569      235,694
Accumulated Other
Comprehensive      (30,328)     (30,345)     (29,553)     (29,559)     (23,997)
Loss, Net of Tax
                                                                  
Total Shareowners' 251,168      249,289      248,608      246,889      250,362
Equity
                                                                  
Total Liabilities
and Shareowners'   $2,514,472 $2,561,858 $2,605,313 $2,633,984 $2,493,784
Equity
                                                                  
OTHER BALANCE                                                      
SHEET DATA
Earning Assets     $2,159,680 $2,187,549 $2,235,537 $2,261,781 $2,135,779
Intangible Assets                                                  
Goodwill           84,811       84,811       84,811       84,811       84,811
Core Deposits      --          --          --          19           79
Other              80           126          174          223          271
Interest Bearing   1,545,821    1,576,601    1,652,758    1,692,942    1,567,335
Liabilities
                                                                  
Book Value Per     $14.44     $14.36     $14.35     $14.31     $14.54
Diluted Share
Tangible Book
Value Per Diluted  9.56         9.47         9.44         9.38         9.59
Share
                                                                  
Actual Basic       17,336       17,336       17,319       17,232       17,223
Shares Outstanding
Actual Diluted     17,396       17,372       17,326       17,259       17,223
Shares Outstanding


CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited

                                                         Nine Months Ended
            2013                          2012                September 30,
(Dollars in
thousands,   Third     Second    First     Fourth    Third     2013      2012
except per   Quarter   Quarter   Quarter   Quarter   Quarter
share data)
                                                                  
INTEREST                                                           
INCOME
Interest and
Fees on      $19,264 $19,709 $20,154 $20,756 $21,274 $59,127 $64,638
Loans
Investment   717       710       704       808       798       2,131     2,532
Securities
Funds Sold   269       279       270       223       254       818       723
Total
Interest     20,250    20,698    21,128    21,787    22,326    62,076    67,893
Income
                                                                  
INTEREST                                                           
EXPENSE
Deposits     335       367       415       429       480       1,117     1,679
Short-Term   46        61        82        69        71        189       127
Borrowings
Subordinated
Notes        339       342       339       351       372       1,020     1,126
Payable
Other
Long-Term    330       333       347       383       372       1,010     1,204
Borrowings
Total
Interest     1,050     1,103     1,183     1,232     1,295     3,336     4,136
Expense
Net Interest 19,200    19,595    19,945    20,555    21,031    58,740    63,757
Income
Provision
for Loan     555       1,450     1,070     2,766     2,864     3,075     13,400
Losses
Net Interest
Income after
Provision    18,645    18,145    18,875    17,789    18,167    55,665    50,357
for Loan
Losses
                                                                  
NONINTEREST                                                        
INCOME
Deposit Fees 6,474     6,217     6,165     6,764     6,406     18,856    19,028
Bank Card    2,715     2,754     2,661     2,612     2,616     8,130     8,171
Fees
Wealth
Management   2,130     1,901     1,915     1,818     1,686     5,946     5,363
Fees
Mortgage     869       968       1,043     910       978       2,880     2,690
Banking Fees
Data
Processing   662       670       653       671       687       1,985     2,042
Fees
Other        1,456     1,339     1,151     1,343     1,202     3,946     3,773
Total
Noninterest  14,306    13,849    13,588    14,118    13,575    41,743    41,067
Income
                                                                  
NONINTEREST                                                        
EXPENSE
Compensation 16,158    16,647    16,739    15,772    15,510    49,544    48,470
Occupancy,   4,403     4,161     4,418     4,429     4,590     12,982    13,626
Net
Intangible   46        48        68        108       108       162       323
Amortization
Other Real   2,148     2,408     2,884     1,900     2,603     7,440     9,528
Estate
Other        7,678     7,318     7,091     7,259     7,390     22,087    23,144
Total
Noninterest  30,433    30,582    31,200    29,468    30,201    92,215    95,091
Expense
                                                                  
OPERATING
PROFIT       2,518     1,412     1,263     2,439     1,541     5,193     (3,667)
(LOSS)
Income Tax
Expense      927       569       424       564       420       1,920     (1,900)
(Benefit)
NET INCOME   $1,591  $843    $839    $1,875  $1,121  $3,273  $(1,767)
(LOSS)
                                                                  
PER SHARE                                                          
DATA
Basic Income $0.09   $0.05   $0.05   $0.11   $0.07   $0.19   $(0.10)
(Loss)
Diluted
Income       $0.09   $0.05   $0.05   $0.11   $0.07   $0.19   $(0.10)
(Loss)
AVERAGE                                                            
SHARES
Basic        17,336    17,319    17,302    17,229    17,215    17,319    17,196
Diluted      17,396    17,355    17,309    17,256    17,228    17,381    17,196


CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
Unaudited

                         2013      2013      2013       2012       2012
(Dollars in thousands,    Third     Second    First      Fourth     Third
except per share data)    Quarter   Quarter   Quarter    Quarter    Quarter
                                                               
ALLOWANCE FOR LOAN LOSSES                                       
Balance at Beginning of   $27,294 $27,803 $29,167  $30,222  $29,929
Period
Provision for Loan Losses 555       1,450     1,070      2,766      2,864
Net Charge-Offs           2,839     1,959     2,434      3,821      2,571
Balance at End of Period  $25,010 $27,294 $27,803  $29,167  $30,222
As a % of Loans           1.75%     1.89%     1.90%      1.93%      1.97%
As a % of Nonperforming   60.00%    65.66%    61.17%     45.42%     40.80%
Loans
                                                               
CHARGE-OFFS                                                     
Commercial, Financial and $138    $119    $154     $166     $331
Agricultural
Real Estate -             278       110       610        227        127
Construction
Real Estate - Commercial  882       1,050     1,043      468        512
Real Estate - Residential 1,178     1,053     683        2,877      981
Real Estate - Home Equity 362       322       113        745        834
Consumer                  674       351       296        488        355
Total Charge-Offs         $3,512  $3,005  $2,899   $4,971   $3,140
                                                               
RECOVERIES                                                      
Commercial, Financial and $87     $38     $51      $87      $53
Agricultural
Real Estate -             1        --       --        7         9
Construction
Real Estate - Commercial  167       144       38         468        34
Real Estate - Residential 167       396       96         83         76
Real Estate - Home Equity 13        224       18         250        15
Consumer                  238       244       262        255        382
Total Recoveries          $673    $1,046  $465     $1,150   $569
                                                               
NET CHARGE-OFFS           $2,839  $1,959  $2,434   $3,821   $2,571
                                                               
Net Charge-Offs as a % of 0.78%     0.54%     0.66%      1.00%      0.66%
Average Loans^(1)
                                                               
RISK ELEMENT ASSETS                                             
Nonaccruing Loans         $41,682 $41,566 $45,448  $64,222  $74,075
Other Real Estate Owned   53,018    55,087    58,421     53,426     53,172
Total Nonperforming       $94,700 $96,653 $103,869 $117,648 $127,247
Assets
                                                               
Past Due Loans 30-89 Days $8,427  $9,017  $9,274   $9,934   $12,923
Past Due Loans 90 Days or 0         0         0          0          0
More
Performing Troubled Debt  $50,692 $52,729 $53,108  $47,474  $45,973
Restructuring's
                                                               
Nonperforming Loans as a  2.91%     2.88%     3.10%      4.22%      4.83%
% of Loans
Nonperforming Assets as a                                       
% of
Loans and Other Real      6.38%     6.44%     6.81%      7.47%      8.02%
Estate
Nonperforming Assets as a 3.77%     3.77%     3.99%      4.47%      5.10%
% of Total Assets
                                                               
(1) Annualized


CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES^(1)
Unaudited

                                                                                                                                                 
            Third Quarter 2013             Second Quarter 2013            First Quarter 2013             Fourth Quarter 2012            Third Quarter 2012
(Dollars in  Average      Interest  Average Average      Interest  Average Average      Interest  Average Average      Interest  Average Average      Interest  Average
thousands)   Balance                Rate    Balance                Rate    Balance                Rate    Balance                Rate    Balance                Rate
ASSETS:                                                                                                                                           
Loans, Net
of Unearned  $1,436,039 19,342   5.34%   $1,456,904 19,790   5.45%   $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   232,094     571      0.95    225,770     578      1.02    215,087     590      1.10    219,985     697      1.26    214,431     691      1.28
Securities
Tax-Exempt
Investment   121,119      223       0.73    104,981      200       0.76    80,946       174       0.86    74,647       172       0.92    67,446       163       0.97
Securities
                                                                                                                                                 
Total
Investment   353,213     794      0.89    330,751     778      0.94    296,033     764      1.04    294,632     869      1.17    281,877     854      1.21
Securities
                                                                                                                                                 
Funds Sold   412,138      269       0.26    419,039      279       0.27    448,424      270       0.24    366,034      223       0.24    386,027      254       0.26
                                                                                                                                                 
Total
Earning      2,201,390   $20,405 3.68%   2,206,694   $20,847 3.79%   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 51,640                      49,081                      50,679                      51,344                      47,207               
From Banks
Allowance
for Loan     (27,636)                    (29,012)                    (30,467)                    (30,605)                    (30,260)             
Losses
Other Assets 333,001                      337,765                      337,579                      334,326                      340,126               
                                                                                                                                                 
Total Assets $2,558,395                 $2,564,528                 $2,598,680                 $2,534,011                 $2,566,239          
                                                                                                                                                 
LIABILITIES:                                                                                                                                      
Interest
Bearing                                                                                                                                           
Deposits
NOW Accounts $676,855   $107    0.06%   $716,459   $124    0.07%   $788,660   $156    0.08%   $714,682   $131    0.07%   $740,178   $144    0.08%
Money Market 284,920     53       0.07    289,637     54       0.07    282,847     54       0.08    275,458     57       0.08    287,250     60       0.08
Accounts
Savings      207,631     26       0.05    202,784     25       0.05    193,033     23       0.05    182,760     23       0.05    179,445     23       0.05
Accounts
Time         231,490      149       0.26    231,134      164       0.29    238,441      182       0.31    247,679      218       0.35    263,007      253       0.38
Deposits
Total
Interest     1,400,896   335      0.09%   1,440,014  367      0.10%   1,502,981   415      0.11%   1,420,579   429      0.12%   1,469,880   480      0.13%
Bearing
Deposits
                                                                                                                                                 
Short-Term   49,919      46       0.37%   52,399      61       0.47%   55,255      82       0.60%   45,893      69       0.59%   59,184      71       0.48%
Borrowings
Subordinated
Notes        62,887      339      2.11    62,887      342      2.15    62,887      339      2.15    62,887      351      2.19    62,887      372      2.31
Payable
Other
Long-Term    40,832       330       3.21    40,942       333       3.26    42,898       347       3.29    42,673       383       3.57    38,494       372       3.85
Borrowings
                                                                                                                                                 
Total
Interest     1,554,534   $1,050  0.27%   1,596,242   $1,103  0.28%   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      658,602                     627,633                     599,986                     630,520                     605,602              
Deposits
Other        93,642                       90,168                       85,116                       78,442                       78,446                
Liabilities
                                                                                                                                                 
Total        2,306,778                    2,314,043                    2,349,123                    2,280,994                    2,314,493             
Liabilities
                                                                                                                                                 
SHAREOWNERS' 251,617                      250,485                      249,557                      253,017                      251,746               
EQUITY:
                                                                                                                                                 
Total
Liabilities
and          $2,558,395                 $2,564,528                 $2,598,680                 $2,534,011                 $2,566,239          
Shareowners'
Equity
                                                                                                                                                 
Interest                 $19,355 3.41%               $19,744 3.51%               $20,079 3.56%               $20,697 3.69%               $21,179 3.73%
Rate Spread
                                                                                                                                                 
Interest
Income and               20,405    3.68                20,847    3.79                21,262    3.85                21,929    4.00                22,474    4.05
Rate
Earned^(1)
Interest
Expense and              1,050     0.19                1,103     0.20                1,183     0.21                1,232     0.22                1,295     0.23
Rate
Paid^(2)
                                                                                                                                                 
Net Interest             $19,355 3.49%               $19,744 3.59%               $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

                                                                 
                Sept 2013 YTD                  Sept 2012 YTD
(Dollars in      Average      Interest  Average Average      Interest  Average
thousands)       Balance                Rate    Balance                Rate
ASSETS:                                                           
Loans, Net of
Unearned         $1,462,904 $59,361 5.43%   $1,569,420 $64,943 5.53%
Interest
                                                                 
Investment                                                        
Securities
Taxable
Investment       224,379     1,739    0.99    224,584     2,215    1.33
Securities
Tax-Exempt
Investment       102,496      596       0.77    62,509       486       1.04
Securities
                                                                 
Total Investment 326,875     2,335    0.95    287,093     2,701    1.25
Securities
                                                                 
Funds Sold       426,401      818       0.26    390,122      723       0.25
                                                                 
Total Earning    2,216,180   $62,514 3.77%   2,246,635   $68,367 4.06%
Assets
                                                                 
Cash and Due     50,470                      48,112               
From Banks
Allowance for    (29,028)                    (31,077)             
Loan Losses
Other Assets     336,098                      345,361               
                                                                 
Total Assets     $2,573,720                 $2,609,031          
                                                                 
LIABILITIES:                                                      
Interest Bearing                                                  
Deposits
NOW Accounts     $726,915   $388    0.07%   $790,733   $503    0.08%
Money Market     285,809     161      0.08    281,746     198      0.09
Accounts
Savings Accounts 201,203     74       0.05    173,346     64       0.05
Time Deposits    233,663      494       0.28    273,838      914       0.45
Total Interest   1,447,590   1,117    0.10%   1,519,663   1,679    0.15%
Bearing Deposits
                                                                 
Short-Term       52,505      189      0.48%   54,289      127      0.31%
Borrowings
Subordinated     62,887      1,020    2.14    62,887      1,126    2.35
Notes Payable
Other Long-Term  41,550       1,010     3.25    41,123       1,204     3.91
Borrowings
                                                                 
Total Interest
Bearing          1,604,532   $3,336  0.28%   1,677,962   $4,136  0.33%
Liabilities
                                                                 
Noninterest      628,955                     604,333              
Bearing Deposits
Other            89,673                       73,795                
Liabilities
                                                                 
Total            2,323,160                    2,356,090             
Liabilities
                                                                 
SHAREOWNERS'     250,560                      252,941               
EQUITY:
                                                                 
Total
Liabilities and  $2,573,720                 $2,609,031          
Shareowners'
Equity
                                                                 
Interest Rate                $59,178 3.49%               $64,231 3.73%
Spread
                                                                 
Interest Income
and Rate                     62,514    3.77                68,367    4.06
Earned^(1)
Interest Expense
and Rate                     3,336     0.20                4,136     0.26
Paid^(2)
                                                                 
Net Interest                 $59,178 3.57%               $64,231 3.81%
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