Capital City Bank Group, Inc. Reports Second Quarter 2026 Results

TALLAHASSEE, Fla., July 21, 2026 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $16.3 million, or $0.95 per diluted share, for the second quarter of 2026 compared to $15.8 million, or $0.92 per diluted share, for the first quarter of 2026, and $15.0 million, or $0.88 per diluted share, for the second quarter of 2025.

Return on Assets was 1.48% and Return on Equity was 11.38% for the second quarter of 2026 compared to 1.45% and 11.30%, respectively for the first quarter of 2026, and 1.38% and 11.44%, respectively for the second quarter of 2025.

QUARTER HIGHLIGHTS (2^nd Quarter 2026 versus 1^st Quarter 2026)

Income Statement

• Tax-equivalent net interest income totaled $44.2 million compared to $42.9 million for the prior quarter and reflected one additional calendar day in the second quarter
  • Net interest margin increased 11 basis points to 4.35% (earning asset yield increased 5 basis points and cost of funds decreased 6 basis points to 75 basis points)
• Credit loss provision increased $0.2 million - net loan charge-offs of 14 basis points (annualized) of average loans - allowance coverage ratio increased one basis point to 1.24% at June 30, 2026
• Noninterest income increased $0.7 million, or 3.3%, driven by higher mortgage banking revenues and bank card fees
• Noninterest expense increased $1.3 million, or 3.1%, primarily due to a higher other expense of $0.9 million and occupancy expense of $0.3 million
  

Balance Sheet

• Loan balances decreased $32.4 million, or 1.3% (average), and decreased $18.5 million, or 0.7% (end of period)
• Stable credit quality - total nonperforming assets of $13.4 million (30 basis points of total assets) at June 30, 2026, a $0.4 million increase over the prior quarter  
• Deposit balances decreased $12.2 million, or 0.3% (average), and decreased $30.6 million, or 0.8% (end of period) due to the seasonal decrease in our public fund balances
• Tangible book value per diluted share (non-GAAP financial measure) increased $0.56, or 2.0%

“We’re pleased with another strong quarter of performance and the momentum our team continues to build,” said William G. Smith, Jr., Chairman and CEO. “As we look to the second half of the year, we’ll remain focused on serving our clients’ financial needs, managing risk wisely and executing on the opportunities ahead. None of this happens without the dedication of our associates and the strong communities we’re privileged to serve.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the second quarter of 2026 totaled $44.2 million, compared to $42.9 million for the first quarter of 2026, and $43.2 million for the second quarter of 2025. Compared to the first quarter of 2026, the increase was attributable to higher investment securities income and lower deposit interest expense, partially offset by lower loan interest income and overnight funds income due to lower average balances. The increase in investment securities income reflected new investment purchases at higher rates and higher balances as we deploy additional liquidity into the investment security portfolio. The increase over the second quarter of 2025 was also driven by the same aforementioned factors. One additional calendar day also contributed to the increase over the first quarter of 2026.

For the first six months of 2026, tax-equivalent net interest income totaled $87.1 million compared to $84.8 million for the same period of 2025, primarily attributable to higher investment securities income and lower deposit interest expense, partially offset by lower loan interest income and overnight funds income. New investment purchases at higher yields and higher balances drove the increase in investment securities income. The decrease in deposit interest expense reflected lower public funds deposit balances and lower rates across our product lines. Lower average loan balances contributed to the decrease in loan interest income, while the decrease in overnight funds income reflected the deployment of more liquidity into the investment portfolio.

Our net interest margin for the second quarter of 2026 was 4.35%, an increase of 11 basis points from the first quarter of 2026 and an increase of five basis points over the second quarter of 2025. For the first six months of 2026, our net interest margin increased by four basis points to 4.30% compared to the same period of 2025. The increase in net interest margin over all prior periods was largely attributable to a higher investment security yield driven by new purchases at higher rates and lower deposit costs. For the second quarter of 2026, our cost of funds was 75 basis points, a decrease of six basis points from the first quarter of 2026, and a decrease of seven basis points from the second quarter of 2025. Our cost of deposits (including noninterest bearing accounts) was 76 basis points, 81 basis points, and 81 basis points, respectively, for the same periods.

Provision for Credit Losses 

We recorded a provision expense for credit losses of $0.9 million for the second quarter of 2026, compared to $0.7 million for the first quarter of 2026 and $0.6 million for the second quarter of 2025. For the first six months of 2026, we recorded a provision expense for credit losses of $1.6 million compared to $1.4 million for the first six months of 2025. Activity within the components of the provision (loans held for investment (“HFI”) and unfunded loan commitments) for each reported period is provided in the table on page 10. We discuss the various factors that impacted our provision expense for Loans HFI in further detail below under the heading Allowance for Credit Losses.

Noninterest Income and Noninterest Expense

Noninterest income for the second quarter of 2026 totaled $20.6 million, a $0.7 million, or 3.3%, increase over the first quarter of 2026 and a $0.6 million, or 2.9%, increase over the second quarter of 2025. The increase over the first quarter of 2026 was primarily attributable to increases in mortgage banking revenues of $0.4 million and bank card fees of $0.2 million. The increase in mortgage banking revenues was primarily due to higher production volume and the increase in bank card fees reflected higher card volume. The increase over the second quarter of 2025 was driven by increases in other income of $0.7 million, mortgage banking revenues of $0.5 million, and deposit fees of $0.3 million that were partially offset by a decrease in wealth management fees of $1.0 million. The increase in other income was primarily due to a higher level of other fees/commissions, bank owned life insurance income, and miscellaneous income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The decrease in wealth management fees was attributable to lower retail brokerage fees, which reflects a decline in assets under management.

For the first six months of 2026, noninterest income totaled $40.5 million, a $0.6 million, or 1.5%, increase over the same period of 2025, primarily attributable to increases in other income of $1.4 million, mortgage banking revenues of $0.9 million, and deposit fees of $0.9 million, that were partially offset by a decrease in wealth management fees of $2.7 million. The increase in other income was primarily attributable to a $0.5 million miscellaneous recovery and increases in other fees/commissions of $0.3 million, miscellaneous income of $0.2 million, and bank owned life insurance income of $0.1 million. The increase in mortgage banking revenues reflected a higher gain on sale margin. Higher service charge fees and commercial account analysis fees drove the increase in deposit fees. We are currently in the process of reviewing and updating our deposit product offerings against peer and industry best practices and we expect modifications will reduce related fee revenues beginning in the third quarter of 2026. The decrease in wealth management fees was attributable to the aforementioned decrease in retail brokerage assets under management and lower insurance commissions.

Noninterest expense for the second quarter of 2026 totaled $42.6 million, a $1.3 million, or 3.1%, increase over the first quarter of 2026 and a $0.1 million, or 0.2%, increase over the second quarter of 2025. The increase over the first quarter of 2026 was primarily attributable to increases in other expense of $0.9 million and occupancy expense of $0.2 million. Increases in other real estate (ORE) expense of $0.4 million, travel/entertainment expense of $0.2 million, professional fees of $0.1 million, and miscellaneous expenses of $0.1 million drove the increase in other expense. The increase in occupancy expense was primarily attributable to higher FF&E maintenance agreement expense. The increase over the second quarter of 2025 reflected increases in other expense of $0.5 million and occupancy expense of $0.2 million that was partially offset by a $0.6 million decrease in compensation expense, including a $0.3 million decline in salary expense and $0.3 million decrease in associate benefits.

For the first six months of 2026, noninterest expense totaled $84.0 million, a $2.8 million, or 3.4%, increase over the same period of 2025 and reflected increases in other expense of $3.4 million and occupancy expense of $0.6 million that was partially offset by a $1.2 million decrease in compensation expense. The increase in other expense was primarily due to a $4.2 million increase in ORE expense, which reflected a lower level of gains from the sale of properties, namely a large gain realized from the sale of our operations center building in 2025. Higher expense for charitable contributions of $0.6 million was partially offsetting. The increase in occupancy expense reflected higher expense for FF&E maintenance agreements and software licenses. The decrease in compensation expense reflected lower salary expense of $0.9 million and associate benefit expense of $0.3 million. Lower commission expense drove the decline in salary expense and the decrease in associate benefit expense was attributable to lower stock based compensation.

Income Taxes

We realized income tax expense of $5.0 million (effective rate of 23.4%) for the second quarter of 2026, compared to $4.8 million (effective rate of 23.5%) for the first quarter of 2026 and $5.0 million (effective rate of 24.9%) for the second quarter of 2025. For the first six months of 2026, we realized income tax expense of $9.8 million (effective rate of 23.4%) compared to $10.1 million (effective rate of 24.1%) for the same period of 2025. The effective rate for the second quarter of 2026 reflected a tax benefit related to an investment in a solar tax equity fund during the quarter and the effective rate for the first quarter of 2026 included a discrete item related to stock-based compensation. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 23.5% for 2026.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $4.069 billion for the second quarter of 2026, a decrease of $21.0 million, or 0.5% from the first quarter of 2026, and an increase of $32.9 million, or 0.8% over the fourth quarter of 2025. Compared to the first quarter of 2026, the change in earning asset mix reflected a $42.6 million decrease in overnight funds and a $32.4 million decrease in loans held for investment, partially offset by a $48.2 million increase in investment securities and a $5.8 million increase in loans held for sale (“HFS”). Compared to the fourth quarter of 2025, the change reflected a $161.3 million increase in investment securities and a $6.2 million increase in loans HFS, partially offset by a $72.4 million decrease in overnight funds and a $62.2 million decrease in loans held for investment.

Average loans HFI decreased by $32.4 million, or 1.3% from the first quarter of 2026, and decreased by $62.2 million, or 2.4% from the fourth quarter of 2025. Compared to the first quarter of 2026, the decline was primarily attributable to decreases in residential real estate loans of $14.4 million, commercial real estate loans of $14.4 million, and commercial loans of $5.2 million, partially offset by increases in home equity loans of $1.9 million. Compared to the fourth quarter of 2025, the decline was primarily attributable to decreases in residential real estate loans of $30.6 million, commercial real estate loans of $24.5 million, commercial loans of $6.6 million, construction loans of $4.1 million, consumer loans (primarily indirect auto) of $2.9 million, partially offset by an increase in home equity loans of $5.9 million.

Loans HFI at June 30, 2026, decreased by $18.5 million, or 0.7% from March 31, 2026, and decreased by $46.2 million, or 1.8%, from December 31, 2025. Compared to March 31, 2026, the decline was primarily due to decreases in other loans of $9.7 million, construction loans of $7.5 million, and commercial real estate loans of $5.2 million, partially offset by increases in commercial loans of $2.3 million, and consumer loans (primarily indirect auto) of $1.3 million. Compared to December 31, 2025, the decline was primarily attributable to decreases in residential real estate loans of $22.8 million, commercial real estate loans of $18.1 million, commercial loans of $7.8 million, other loans of $2.1 million, consumer loans (primarily indirect auto) of $1.5 million, partially offset by increases in home equity loans of $3.6 million, and construction loans of $2.2 million.

Allowance for Credit Losses

At June 30, 2026, the allowance for credit losses for loans HFI totaled $31.0 million comparable to March 31, 2026 and December 31, 2025. Activity within the allowance is provided on Page 10. Net loan charge-offs were 14 basis points of average loans for the second quarter of 2026 versus 10 basis points for the first quarter of 2026 and 18 basis points for the fourth quarter of 2025. At June 30, 2026, the allowance represented 1.24% of loans HFI compared to 1.23% at March 31, 2026, and 1.22% at December 31, 2025.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $13.4 million at June 30, 2026, compared to $13.0 million at March 31, 2026 and $10.5 million at December 31, 2025. At June 30, 2026, nonperforming assets as a percentage of total assets was 0.30%, compared to 0.29% at March 31, 2026 and 0.24% at December 31, 2025. Nonaccrual loans totaled $10.0 million at June 30, 2026, a $1.1 million decrease from March 31, 2026 and a $1.4 million increase over December 31, 2025. Other real estate totaled $3.4 million at June 30, 2026, a $1.6 million increase over March 31, 2026 and a $1.5 million increase over December 31, 2025. Further, classified loans totaled $29.8 million at June 30, 2026, a $15.3 million increase over March 31, 2026 and a $15.5 million increase over December 31, 2025. The increase over both prior periods reflected the downgrade of four commercial real estate relationships (two private schools totaling $9.8 million ($6.4 million and $3.4 million), hotel $2.0 million, funeral home $5.0 million).

Deposits

Average total deposits were $3.679 billion for the second quarter of 2026, a decrease of $12.2 million, or 0.3%, from the first quarter of 2026, and an increase of $31.3 million, or 0.9%, over the fourth quarter of 2025. Compared to the first quarter of 2026, the decrease was primarily attributable to lower public funds balances of $43.5 million (primarily NOW account balances) as those balances begin to seasonally decline in the second quarter, partially offset by higher core account balances of $31.3 million (primarily MMA and noninterest bearing checking). The increase over the fourth quarter of 2025 was primarily due to higher public funds balances of $56.1 million, partially offset by lower core deposit balances of $24.8 million.

At June 30, 2026, total deposits were $3.721 billion, a decrease of $30.6 million, or 0.8% from March 31, 2026, and an increase of $58.7 million, or 1.6% over December 31, 2025. The decrease from March 31, 2026, was driven by lower public funds balances of $68.4 million (primarily NOW accounts), partially offset by an increase in core deposit balances of $37.8 million (primarily noninterest bearing accounts). The increase over December 31, 2025 was primarily due to core deposit growth of $151.9 million, partially offset by lower public funds balances of $93.2 million. Total public funds balances were $561.5 million at June 30, 2026, $629.9 million at March 31, 2026, and $654.7 million at December 31, 2025, respectively.

Liquidity

The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold, less FED funds purchased) sold position of $365.1 million in the second quarter of 2026 compared to $407.7 million in the first quarter of 2026 and $437.5 million in the fourth quarter of 2025. Compared to the first quarter of 2026, the variance reflected lower average deposits and the deployment of excess liquidity into the investment security portfolio. Compared to the fourth quarter of 2025, the variance was driven by the deployment of excess liquidity into the investment security portfolio.
  
We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At June 30, 2026, the weighted-average maturity and duration of our portfolio were 2.95 years and 2.60 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $14.0 million.

At June 30, 2026, we had the ability to generate approximately $1.721 billion (excludes overnight funds position of $413 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.
  
Capital

Shareowners’ equity was $570.1 million at June 30, 2026 compared to $559.9 million at March 31, 2026 and $552.9 million at December 31, 2025. For the first six months of 2026, shareowners’ equity was positively impacted by net income attributable to shareowners of $32.1 million, the issuance of stock of $3.4 million, and stock compensation accretion of $0.9 million. Shareowners’ equity was reduced by common stock dividends of $9.2 million ($0.54 per share), repurchases of our common stock of $2.6 million (63,088 shares), net adjustments totaling $2.6 million related to transactions under our stock-based compensation plans, and an unfavorable net change of $4.8 million in accumulated other comprehensive loss due to an unfavorable fair value mark on the investment securities portfolio driven by higher bond rates in the second quarter.

At June 30, 2026, our total risk-based capital ratio was 22.35%, compared to 21.62% at March 31, 2026 and 21.45% at December 31, 2025. Our common equity tier 1 capital ratio was 19.80%, 19.08%, and 18.56%, respectively, on these dates. Our leverage ratio was 11.96%, 11.65%, and 11.77%, respectively, on these dates. At June 30, 2026, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 11.03% at June 30, 2026, compared to 10.79% at both March 31, 2026, and December 31, 2025. If our unrealized held-to-maturity securities loss of $7.8 million (after-tax) was recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 10.85%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.5 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and has 62 banking offices and 107 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit https://www.ccbg.com/. 

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; supply-demand imbalances and general economic conditions affecting local real estate prices and a general deterioration in commercial real estate market fundamentals; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; increased competition and its effect on deposit fees; technological changes, including the impact of generative artificial intelligence; the costs and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; dispositions; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; action or inaction by the federal government, including tariffs or trade wars (including potential resulting reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), government intervention in the U.S. financial system; policies related to credit card interest rates, and legislative, regulatory or supervisory actions related to so-called “de-banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict (including impacts related to the conflicts in the Middle East and resulting disruptions to energy and other commodities markets and supply chains), terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our other filings with the SEC, which are available at the SEC’s internet site (https://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because they allow investors to more easily compare our capital adequacy to other companies in the industry. Non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025
Shareowners' Equity (GAAP)		$	570,095		$	559,912		$	552,851		$	540,635		$	526,423
Less: Goodwill and Other Intangibles (GAAP)			89,095			89,095			89,095			89,095			92,693
Tangible Shareowners' Equity (non-GAAP)	A		481,000			470,817			463,756			451,540			433,730
Total Assets (GAAP)			4,450,483			4,453,734			4,385,765			4,323,774			4,391,753
Less: Goodwill and Other Intangibles (GAAP)			89,095			89,095			89,095			89,095			92,693
Tangible Assets (non-GAAP)	B	$	4,361,388		$	4,364,639		$	4,296,670		$	4,234,679		$	4,299,060
Tangible Common Equity Ratio (non-GAAP)	A/B		11.03%			10.79%			10.79%			10.66%			10.09%
Actual Diluted Shares Outstanding (GAAP)	C		17,135,824			17,114,954			17,154,586			17,115,336			17,097,986
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	28.07		$	27.51		$	27.03		$	26.38		$	25.37

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited
		Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)		Jun 30, 2026		Mar 31, 2026		Jun 30, 2025		Jun 30, 2026		Jun 30, 2025
EARNINGS
Net Income Attributable to Common Shareowners	$	16,277	$	15,817	$	15,044	$	32,094	$	31,902
Diluted Net Income Per Share	$	0.95	$	0.92	$	0.88	$	1.87	$	1.87
PERFORMANCE
Return on Average Assets (annualized)		1.48	%	1.45	%	1.38	%	1.47	%	1.48	%
Return on Average Equity (annualized)		11.38		11.30		11.44		11.34		12.36
Net Interest Margin		4.35		4.24		4.30		4.30		4.26
Noninterest Income as % of Operating Revenue		31.79		31.77		31.67		31.78		32.03
Efficiency Ratio		65.76	%	65.89	%	67.26	%	65.83	%	65.13	%
CAPITAL ADEQUACY
Tier 1 Capital		21.10	%	20.37	%	18.38	%	21.10	%	18.38	%
Total Capital		22.35		21.62		19.60		22.35		19.60
Leverage		11.96		11.65		11.14		11.96		11.14
Common Equity Tier 1		19.80		19.08		16.81		19.80		16.81
Tangible Common Equity(1)		11.03		10.79		10.09		11.03		10.09
Equity to Assets		12.81	%	12.57	%	11.99	%	12.81	%	11.99	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		309.72	%	278.19	%	463.01	%	309.72	%	463.01	%
Allowance as a % of Loans HFI		1.24		1.23		1.13		1.24		1.13
Net Charge-Offs as % of Average Loans HFI		0.14		0.10		0.09		0.12		0.09
Nonperforming Assets as % of Loans HFI and OREO		0.54		0.51		0.25		0.54		0.25
Nonperforming Assets as % of Total Assets		0.30	%	0.29	%	0.15	%	0.30	%	0.15	%
STOCK PERFORMANCE
High	$	51.04	$	46.83	$	39.82	$	51.04	$	39.82
Low		42.79		39.26		32.38		39.26		32.38
Close	$	49.42	$	43.46	$	39.35	$	49.42	$	39.35
Average Daily Trading Volume		95,532		100,149		27,397		97,821		25,988
(1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 9.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
Unaudited
	2026							2025
(Dollars in thousands)	Second Quarter				First Quarter			Fourth Quarter			Third Quarter			Second Quarter
ASSETS
Cash and Due From Banks	$	67,124		$	64,214		$	62,189		$	68,397		$	78,485
Funds Sold and Interest Bearing Deposits		412,609			424,756			467,782			397,502			394,917
Total Cash and Cash Equivalents		479,733			488,970			529,971			465,899			473,402
Investment Securities Available for Sale		853,608			800,550			643,922			577,333			533,457
Investment Securities Held to Maturity		304,460			353,296			377,446			404,659			462,599
Other Equity Securities		2,068			2,083			2,069			2,145			3,242
Total Investment Securities		1,160,136			1,155,929			1,023,437			984,137			999,298
Loans Held for Sale ("HFS"):		34,278			25,088			21,695			24,204			19,181
Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural		172,536			170,268			180,341			179,018			180,008
Real Estate - Construction		149,127			156,630			146,920			156,756			174,115
Real Estate - Commercial		750,637			755,800			768,731			785,290			802,504
Real Estate - Residential		998,145			998,720			1,020,942			1,037,324			1,046,368
Real Estate - Home Equity		244,462			243,932			240,897			234,111			228,201
Consumer		180,859			179,515			182,327			185,847			197,483
Other Loans		2,668			12,347			4,748			2,283			1,552
Overdrafts		1,437			1,192			1,212			1,378			1,259
Total Loans Held for Investment		2,499,871			2,518,404			2,546,118			2,582,007			2,631,490
Allowance for Credit Losses		(31,007	)		(30,999	)		(31,001	)		(30,202	)		(29,862	)
Loans Held for Investment, Net		2,468,864			2,487,405			2,515,117			2,551,805			2,601,628
Premises and Equipment, Net		81,148			77,670			79,457			79,748			79,906
Goodwill and Other Intangibles		89,095			89,095			89,095			89,095			92,693
Other Real Estate Owned		3,424			1,822			1,936			1,831			132
Other Assets		133,805			127,755			125,057			127,055			125,513
Total Other Assets		307,472			296,342			295,545			297,729			298,244
Total Assets	$	4,450,483		$	4,453,734		$	4,385,765		$	4,323,774		$	4,391,753
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,344,694		$	1,299,933		$	1,251,886		$	1,303,786		$	1,332,080
NOW Accounts		1,282,360			1,309,527			1,322,114			1,222,861			1,284,137
Money Market Accounts		418,342			432,874			390,888			405,846			408,666
Savings Accounts		511,000			516,149			503,485			500,323			504,331
Certificates of Deposit		164,613			193,134			193,939			182,096			175,639
Total Deposits		3,721,009			3,751,617			3,662,312			3,614,912			3,704,853
Repurchase Agreements		7,420			4,561			22,018			25,629			21,800
Other Short-Term Borrowings		39,487			28,715			28,074			14,615			12,741
Subordinated Notes Payable		33,303			33,303			42,582			42,582			42,582
Other Long-Term Borrowings		567			680			680			680			680
Other Liabilities		78,602			74,946			77,248			84,721			82,674
Total Liabilities		3,880,388			3,893,822			3,832,914			3,783,139			3,865,330
SHAREOWNERS' EQUITY
Common Stock		171			171			171			171			171
Additional Paid-In Capital		40,821			39,854			41,650			40,067			39,527
Retained Earnings		531,291			519,632			508,443			499,176			487,665
Accumulated Other Comprehensive Income (Loss), Net of Tax		(2,188	)		255			2,587			1,221			(940	)
Total Shareowners' Equity		570,095			559,912			552,851			540,635			526,423
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,450,483		$	4,453,734		$	4,385,765		$	4,323,774		$	4,391,753
OTHER BALANCE SHEET DATA
Earning Assets	$	4,106,894		$	4,124,177		$	4,059,032		$	3,987,850		$	4,044,886
Interest Bearing Liabilities		2,457,092			2,518,943			2,503,780			2,394,632			2,450,576
Book Value Per Diluted Share	$	33.27		$	32.71		$	32.23		$	31.59		$	30.79
Tangible Book Value Per Diluted Share(1)		28.07			27.51			27.03			26.38			25.37
Actual Basic Shares Outstanding		17,111			17,098			17,084			17,069			17,066
Actual Diluted Shares Outstanding		17,136			17,115			17,155			17,115			17,098
(1)Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 9.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
		2026				2025						Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter		2026		2025
INTEREST INCOME
Loans, including Fees	$	38,212	$	38,254	$	39,565	$	40,279	$	40,872	$	76,466	$	81,350
Investment Securities		10,260		9,055		7,768		7,188		6,678		19,315		12,486
Federal Funds Sold and Interest Bearing Deposits		3,366		3,711		4,382		3,964		3,909		7,077		7,405
Total Interest Income		51,838		51,020		51,715		51,431		51,459		102,858		101,241
INTEREST EXPENSE
Deposits		6,933		7,395		7,544		7,265		7,405		14,328		14,788
Repurchase Agreements		61		73		134		158		156		134		320
Other Short-Term Borrowings		349		327		217		58		179		676		296
Subordinated Notes Payable		288		398		451		383		530		686		1,090
Other Long-Term Borrowings		9		10		9		10		5		19		16
Total Interest Expense		7,640		8,203		8,355		7,874		8,275		15,843		16,510
Net Interest Income		44,198		42,817		43,360		43,557		43,184		87,015		84,731
Provision for Credit Losses		919		712		1,995		1,881		620		1,631		1,388
Net Interest Income after Provision for Credit Losses		43,279		42,105		41,365		41,676		42,564		85,384		83,343
NONINTEREST INCOME
Deposit Fees		5,656		5,598		5,811		5,877		5,320		11,254		10,381
Bank Card Fees		3,858		3,630		3,684		3,733		3,774		7,488		7,288
Wealth Management Fees		4,185		4,051		4,525		5,173		5,206		8,236		10,969
Mortgage Banking Revenues		4,660		4,252		4,155		4,794		4,190		8,912		8,010
Other		2,240		2,402		1,928		2,754		1,524		4,642		3,273
Total Noninterest Income		20,599		19,933		20,103		22,331		20,014		40,532		39,921
NONINTEREST EXPENSE
Compensation		25,836		25,703		28,384		26,056		26,490		51,539		52,738
Occupancy, Net		7,319		7,083		7,052		7,037		7,071		14,402		13,864
Other		9,485		8,587		7,431		9,823		8,977		18,072		14,637
Total Noninterest Expense		42,640		41,373		42,867		42,916		42,538		84,013		81,239
OPERATING PROFIT		21,238		20,665		18,601		21,091		20,040		41,903		42,025
Income Tax Expense		4,961		4,848		4,896		5,141		4,996		9,809		10,123
NET INCOME	$	16,277	$	15,817	$	13,705	$	15,950	$	15,044	$	32,094	$	31,902
PER COMMON SHARE
Basic Net Income	$	0.95	$	0.92	$	0.80	$	0.93	$	0.88	$	1.88	$	1.87
Diluted Net Income		0.95		0.92		0.80		0.93		0.88		1.87		1.87
Cash Dividend	$	0.27	$	0.27	$	0.26	$	0.26	$	0.24	$	0.54	$	0.48
AVERAGE SHARES
Basic		17,101		17,129		17,070		17,068		17,056		17,115		17,042
Diluted		17,126		17,146		17,140		17,114		17,088		17,133		17,067

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited
		2026						2025									Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2026			2025
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	30,999		$	31,001		$	30,202		$	29,862		$	29,734		$	31,001		$	29,251
Provision for Credit Losses		904			635			1,984			1,550			718			1,539			1,801
Net Charge-Offs		896			637			1,185			1,210			590			1,533			1,190
Balance at End of Period	$	31,007		$	30,999		$	31,001		$	30,202		$	29,862		$	31,007		$	29,862
As a % of Loans HFI		1.24%			1.23%			1.22%			1.17%			1.13%			1.24%			1.13%
As a % of Nonperforming Loans		309.72%			278.19%			360.69%			368.54%			463.01%			309.72%			463.01%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period		2,189		$	2,107		$	2,095		$	1,738		$	1,832		$	2,107		$	2,155
Provision for Credit Losses		8			82			12			357			(94	)		90			(417	)
Balance at End of Period(1)		2,197			2,189			2,107			2,095			1,738			2,197			1,738
ACL - DEBT SECURITIES
Provision for Credit Losses	$	7		$	(5	)	$	(1	)	$	(26	)	$	(4	)	$	2		$	4
CHARGE-OFFS
Commercial, Financial and Agricultural	$	577		$	300		$	167		$	373		$	74		$	877		$	242
Real Estate - Construction		-			-			-			-			-			-			-
Real Estate - Commercial		-			-			4			-			-			-			-
Real Estate - Residential		38			-			67			12			49			38			57
Real Estate - Home Equity		-			13			10			10			24			13			24
Consumer		613			852			925			954			914			1,465			1,779
Overdrafts		524			631			670			619			437			1,155			1,007
Total Charge-Offs	$	1,752		$	1,796		$	1,843		$	1,968		$	1,498		$	3,548		$	3,109
RECOVERIES
Commercial, Financial and Agricultural	$	65		$	74		$	44		$	95		$	117		$	139		$	192
Real Estate - Construction		-			-			-			-			-			-			-
Real Estate - Commercial		7			84			29			8			6			91			9
Real Estate - Residential		27			77			8			13			65			104			184
Real Estate - Home Equity		4			10			6			10			42			14			51
Consumer		468			579			246			369			456			1,047			937
Overdrafts		285			335			325			263			222			620			546
Total Recoveries	$	856		$	1,159		$	658		$	758		$	908		$	2,015		$	1,919
NET CHARGE-OFFS	$	896		$	637		$	1,185		$	1,210		$	590		$	1,533		$	1,190
Net Charge-Offs as a % of Average Loans HFI(2)		0.14%			0.10%			0.18%			0.18%			0.09%			0.12%			0.09%
CREDIT QUALITY
Nonaccruing Loans	$	10,011		$	11,143		$	8,595		$	8,195		$	6,449
Other Real Estate Owned		3,424			1,822			1,936			1,831			132
Total Nonperforming Assets ("NPAs")	$	13,435		$	12,965		$	10,531		$	10,026		$	6,581
Past Due Loans 30-89 Days	$	2,680		$	6,643		$	7,017		$	5,468		$	4,523
Classified Loans
Commercial, Financial and Agricultural		1,479			1,660			1,650			1,514			1,820
Real Estate - Construction		379			-			-			718			-
Real Estate - Commercial		21,638			6,374			5,897			11,745			12,212
Real Estate - Residential		3,825			3,497			3,601			8,348			8,237
Real Estate - Home Equity		1,461			2,003			1,957			3,043			4,995
Consumer		1,020			1,011			1,229			1,144			1,359
Total Classified Loans		29,802			14,545			14,334			26,512			28,623
Nonperforming Loans as a % of Loans HFI		0.40%			0.44%			0.34%			0.32%			0.25%
NPAs as a % of Loans HFI and Other Real Estate		0.54%			0.51%			0.41%			0.39%			0.25%
NPAs as a % of Total Assets		0.30%			0.29%			0.24%			0.23%			0.15%
(1)Recorded in other liabilities.
(2)Annualized.

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited
		Second Quarter 2026								First Quarter 2026								Fourth Quarter 2025								Third Quarter 2025								Second Quarter 2025									June 2026 YTD								June 2025 YTD
(Dollars in thousands)		Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate				Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate
ASSETS:
Loans Held for Sale	$	30,505		$	500		6.57	%	$	24,716		$	404		6.63	%	$	24,261		$	374		6.11	%	$	25,276			425		6.68	%	$	22,668		$	475		8.40	%		$	27,626		$	904		6.60	%	$	23,692		$	965		8.21	%
Loans Held for Investment(1)		2,505,875			37,751		6.04			2,538,318			37,886		6.05			2,568,073			39,230		6.06			2,606,213			39,894		6.07			2,652,572			40,436		6.11				2,522,007			75,637		6.05			2,659,204			80,465		6.10
Investment Securities
Taxable Investment Securities		1,165,965			10,249		3.52			1,117,505			9,042		3.26			1,004,420			7,756		3.07			992,260			7,175		2.88			1,006,514			6,666		2.65				1,141,869			19,291		3.39			994,068			12,468		2.52
Tax-Exempt Investment Securities(1)		1,356			15		4.41			1,620			17		4.25			1,620			17		4.30			1,620			18		4.44			1,467			17		4.50				1,487			32		4.32			1,158			26		4.43
Total Investment Securities		1,167,321			10,264		3.52			1,119,125			9,059		3.26			1,006,040			7,773		3.08			993,880			7,193		2.88			1,007,981			6,683		2.65				1,143,356			19,323		3.39			995,226			12,494		2.52
Federal Funds Sold and Interest Bearing Deposits		365,126			3,366		3.70			407,679			3,711		3.69			437,536			4,382		3.97			356,161			3,964		4.42			348,787			3,909		4.49				386,285			7,077		3.69			334,944			7,405		4.46
Total Earning Assets		4,068,827		$	51,881		5.11	%		4,089,838		$	51,060		5.06	%		4,035,910		$	51,759		5.08	%		3,981,530		$	51,476		5.12	%		4,032,008		$	51,503		5.12	%			4,079,274		$	102,941		5.08	%		4,013,066		$	101,329		5.09	%
Cash and Due From Banks		64,337								63,079								67,291								65,085								65,761									63,712								69,593
Allowance for Credit Losses		(31,602	)							(31,545	)							(30,922	)							(30,342	)							(30,492	)								(31,574	)							(30,251	)
Other Assets		305,809								297,532								294,757								301,678								302,984									301,694								300,336
Total Assets	$	4,407,371							$	4,418,904							$	4,367,036							$	4,317,951							$	4,370,261								$	4,413,106							$	4,352,744
LIABILITIES:
Noninterest Bearing Deposits	$	1,308,276							$	1,282,988							$	1,303,266							$	1,314,560							$	1,342,304								$	1,295,703							$	1,329,933
NOW Accounts		1,263,616		$	3,938		1.25	%		1,302,894		$	4,221		1.31	%		1,235,961		$	4,055		1.30	%		1,198,124		$	3,782		1.25	%		1,225,697		$	3,750		1.23	%			1,283,146		$	8,159		1.28	%		1,237,759		$	7,604		1.24	%
Money Market Accounts		419,983			1,857		1.77			403,340			1,752		1.76			415,577			1,977		1.89			416,656			2,090		1.99			431,774			2,340		2.17				411,708			3,609		1.77			425,949			4,527		2.14
Savings Accounts		513,815			100		0.08			509,351			132		0.10			501,080			157		0.12			503,189			159		0.13			507,950			174		0.14				511,595			232		0.09			507,813			350		0.14
Time Deposits		173,086			1,038		2.41			192,443			1,290		2.72			191,626			1,355		2.80			179,802			1,234		2.72			172,982			1,141		2.65				182,711			2,328		2.57			171,682			2,307		2.71
Total Interest Bearing Deposits		2,370,500			6,933		1.17			2,408,028			7,395		1.25			2,344,244			7,544		1.28			2,297,771			7,265		1.25			2,338,403			7,405		1.27				2,389,160			14,328		1.21			2,343,203			14,788		1.27
Total Deposits		3,678,776			6,933		0.76			3,691,016			7,395		0.81			3,647,510			7,544		0.82			3,612,331			7,265		0.80			3,680,707			7,405		0.81				3,684,863			14,328		0.78			3,673,136			14,788		0.81
Repurchase Agreements		10,917			61		2.24			15,789			73		1.88			20,690			134		2.57			21,966			158		2.86			22,557			156		2.78				13,340			134		2.03			26,169			320		2.47
Other Short-Term Borrowings		33,545			349		4.17			27,836			327		4.76			20,954			217		4.09			12,753			58		1.82			10,503			179		6.82				30,706			676		4.44			8,978			296		6.64
Subordinated Notes Payable		33,303			288		3.42			41,620			398		3.83			42,582			451		4.15			42,582			383		3.52			51,981			530		4.03				37,438			686		3.64			52,432			1,090		4.13
Other Long-Term Borrowings		660			9		5.78			680			10		5.68			680			9		5.55			681			10		5.55			792			5		2.41				670			19		5.73			793			16		4.04
Total Interest Bearing Liabilities		2,448,925		$	7,640		1.25	%		2,493,953		$	8,203		1.33	%		2,429,150		$	8,355		1.36	%		2,375,753		$	7,874		1.32	%		2,424,236		$	8,275		1.37	%			2,471,314		$	15,843		1.29	%		2,431,575		$	16,510		1.37	%
Other Liabilities		76,331								74,300								78,520								85,422								76,138									75,321								70,705
Total Liabilities		3,833,532								3,851,241								3,810,936								3,775,735								3,842,678									3,842,338								3,832,213
SHAREOWNERS' EQUITY:		573,839								567,663								556,100								542,216								527,583									570,768								520,531
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,407,371							$	4,418,904							$	4,367,036							$	4,317,951							$	4,370,261								$	4,413,106							$	4,352,744
Interest Rate Spread				$	44,241		3.86	%				$	42,857		3.72	%				$	43,404		3.72	%				$	43,602		3.81	%				$	43,228		3.75	%					$	87,098		3.79	%				$	84,819		3.72	%
Interest Income and Rate Earned(1)					51,881		5.11						51,060		5.06						51,759		5.08						51,476		5.12						51,503		5.12							102,941		5.08						101,329		5.09
Interest Expense and Rate Paid(2)					7,640		0.75						8,203		0.81						8,355		0.82						7,874		0.78						8,275		0.82							15,843		0.78						16,510		0.83
Net Interest Margin				$	44,241		4.35	%				$	42,857		4.24	%				$	43,404		4.26	%				$	43,602		4.34	%				$	43,228		4.30	%					$	87,098		4.30	%				$	84,819		4.26	%
(1)Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
(2)Rate calculated based on average earning assets.

For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450

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