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

2026-04-20 07:01:59

(MENAFN- GlobeNewsWire - Nasdaq) TALLAHASSEE, Fla., April 20, 2026 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $15.8 million, or $0.92 per diluted share, for the first quarter of 2026 compared to $13.7 million, or $0.80 per diluted share, for the fourth quarter of 2025, and $16.9 million, or $0.99 per diluted share, for the first quarter of 2025.

Return on Assets of 1.45% and Return on Equity of 11.30% for the first quarter of 2026 compared to 1.25% and 9.78%, respectively for the fourth quarter of 2025, and 1.58% and 13.32%, respectively for the first quarter of 2025.

QUARTER HIGHLIGHTS (1 ^st Quarter 2026 versus 4 ^th Quarter 2025)

Income Statement

Tax-equivalent net interest income totaled $42.9 million compared to $43.4 million for the prior quarter and reflected two less calendar days in the first quarter
- Net interest margin decreased two basis points to 4.24%
Credit quality metrics remained stable, with net loan charge‐offs of 10 basis points (annualized) of average loans, while the allowance coverage ratio increased one basis point to 1.23% as of March 31, 2026
Noninterest income decreased $0.2 million, or 0.8%, and reflected lower wealth management fees of $0.5 million and deposit fees of $0.2 million, partially offset by a miscellaneous recovery of $0.5 million
Noninterest expense decreased $1.5 million, or 3.5%, primarily due to a $2.7 million decrease in compensation expense (lower performance-based incentives) that was partially offset by an increase in other expense which reflected a $1.5 million pension plan settlement gain recognized in the prior quarter

Balance Sheet

Loan balances decreased $29.8 million, or 1.2% (average), and decreased $27.7 million, or 1.1% (end of period)
Deposit balances increased by $43.5 million, or 1.2% (average), and increased $89.3 million, or 2.4% (end of period), driven by strong core deposit growth
Tangible book value per diluted share (non-GAAP financial measure) increased $0.48, or 1.8%
Repurchased 63,088 shares of our common stock

“We are off to a strong start to the year, with earnings growth of 15% over the prior quarter driven by solid deposit trends, disciplined credit performance, and continued expense control,” said William G. Smith, Jr., Chairman and CEO.“We remain focused on deepening client relationships and executing consistently, while maintaining the balance sheet strength and flexibility to perform across a range of economic conditions.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2026 totaled $42.9 million, compared to $43.4 million for the fourth quarter of 2025, and $41.6 million for the first quarter of 2025. Compared to the fourth quarter of 2025, the decrease was primarily driven by lower loan interest income due to lower average loan balances and lower overnight funds income, partially offset by higher investment securities income due to new investment purchases at higher yields and lower deposit interest expense. Two less calendar days contributed to the decline compared to the fourth quarter of 2025. Compared to the first quarter of 2025, the increase was primarily attributable to higher investment securities income due to new investment purchases at higher yields and higher overnight funds income due to higher average balances that outpaced a decrease in loan interest income due to lower average balances.

Our net interest margin for the first quarter of 2026 was 4.24%, a decrease of two basis points from the fourth quarter of 2025 and an increase of two basis points over the first quarter of 2025. Compared to the fourth quarter of 2025 the decrease was primarily attributable to a lower overnight funds rate and lower average loan balances. Compared to the first quarter of 2025, the increase reflected favorable investment securities repricing partially offset by a lower overnight funds rate and lower average loan balances. For the first quarter of 2026, our cost of funds was 81 basis points, a decrease of one basis point from the fourth quarter of 2025 and a decrease of three basis points from the first quarter of 2025. Our cost of deposits (including noninterest bearing accounts) was 81 basis points, 82 basis points, and 82 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $0.7 million for the first quarter of 2026, compared to $2.0 million for the fourth quarter of 2025 and $0.8 million for the first quarter 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 14. We discuss the various factors that impacted our provision expense for Loans HFI in further detail below under the heading Allowance for Credit Losses.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2026 totaled $19.9 million, a $0.2 million, or 0.8%, decrease from the fourth quarter of 2025 and similar to the first quarter of 2025. The decrease from the fourth quarter of 2025 reflected a $0.5 million decrease in wealth management fees and a $0.2 million decrease in deposit fees, partially offset by a $0.5 million increase in other income. The decline in wealth management fees was primarily due to a decrease in retail brokerage fees. The increase in other income was due to a $0.5 million miscellaneous recovery. Compared to the first quarter of 2025, a $1.7 million decrease in wealth management fees was offset by a $0.7 million increase in other income, a $0.5 million increase in deposit related fees, and a $0.4 million increase in mortgage banking revenues. The decline in wealth management fees was attributable to a decrease in retail brokerage assets under management and lower insurance commission revenue due to the sale of our insurance subsidiary in 2025. The increase in other income reflected the aforementioned miscellaneous recovery of $0.5 million.

Noninterest expense for the first quarter of 2026 totaled $41.4 million, a $1.5 million, or 3.5%, decrease from the fourth quarter of 2025 and a $2.7 million, or 6.9%, increase over the first quarter of 2025. The decrease from the fourth quarter of 2025 reflected a $2.7 million decrease in compensation expense, partially offset by a $1.2 million increase in other expense. The decrease in compensation expense was primarily due to higher performance-based incentive pay of $2.6 million in the fourth quarter of 2025. The increase in other expense reflected a $1.5 million pension plan settlement gain recorded in the fourth quarter of 2025. Compared to the first quarter of 2025, the increase reflected a $2.9 million increase in other expense and a $0.3 million increase in occupancy expense, which was partially offset by a $0.5 million decrease in compensation expense. The increase in other expense was primarily attributable to a $4.1 million increase in other real estate expense that reflected a gain from the sale of our operations center building in the first quarter of 2025, partially offset by decreases in charitable contributions, professional fees, and other miscellaneous expenses. The increase in occupancy expense was primarily attributable to higher expense for maintenance agreements and software. The decrease in compensation expense reflected a decrease in commission expense related to the sale of our insurance subsidiary.

Income Taxes

We realized income tax expense of $4.8 million (effective rate of 23.5%) for the first quarter of 2026, compared to $4.9 million (effective rate of 26.3%) for the fourth quarter of 2025 and $5.1 million (effective rate of 23.3%) for the first quarter of 2025. Compared to the fourth quarter of 2025, the variance in the effective tax rate reflected discrete items for both quarters, including a benefit in the first quarter of 2026 related to stock-based compensation and an expense in the fourth quarter of 2025 related to an Internal Revenue Code (“IRC”) Section 162(m) limitation for executive compensation. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2026.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $4.090 billion for the first quarter of 2026, an increase of $53.9 million, or 1.3% over the fourth quarter of 2025, and an increase of $95.9 million, or 2.4% over the first quarter of 2025. Compared to the fourth quarter of 2025, the change in earning asset mix reflected a $113.1 million increase in investment securities and a $0.5 million increase in loans held for sale (“HFS”), partially offset by a $29.9 million decrease in overnight funds sold and a $29.8 million decrease in loans held for investment. Compared to the first quarter of 2025, the increase was primarily attributable to a $136.8 million increase in investment securities and an $86.7 million increase in overnight funds sold, partially offset by a $127.6 million decrease in loans held for investment.

Average loans HFI decreased by $29.8 million, or 1.16% from the fourth quarter of 2025, and decreased by $127.6 million, or 4.8% from the first quarter of 2025. Compared to the fourth quarter of 2025, the decline was primarily attributable to decreases in residential real estate loans of $16.3 million, commercial real estate loans of $10.2 million, construction loans of $4.2 million, consumer loans (primarily indirect auto) of $2.3 million, and commercial loans of $1.5 million, partially offset by an increase in home equity loans of $4.0 million. Compared to the first quarter of 2025, the decline was primarily attributable to declines in construction loans of $56.8 million, commercial real estate loans of $32.6 million, consumer loans (primarily indirect auto) of $23.4 million, residential real estate loans of $21.8 million, and commercial loans of $11.3 million, partially offset by an increase in home equity loans of $19.1 million.

Loans HFI at March 31, 2026, decreased by $27.7 million, or 1.1%, from December 31, 2025, and decreased by $142.4 million, or 5.4%, from March 31, 2025. Compared to December 31, 2025, the decline was primarily due to decreases in residential real estate loans of $22.2 million, commercial real estate loans of $12.9 million, commercial loans of $10.1 million, other loans of $7.6 million and consumer loans (primarily indirect auto) of $2.8 million, partially offset by increases in construction loans of $9.7 million and home equity loans of $3.0 million. Compared to the first quarter of 2025, the decrease was primarily attributable to declines in commercial real estate loans of $51.1 million, residential real estate loans of $41.9 million, construction loans of $35.7 million, consumer loans (primarily indirect auto) of $26.7 million, and commercial loans of $14.1 million, partially offset by an increase in home equity loans of $17.9 million.

Allowance for Credit Losses

At March 31, 2026, the allowance for credit losses for loans HFI totaled $31.0 million comparable to $31.0 million and $29.7 million at December 31, 2025 and March 31, 2025, respectively. Activity within the allowance is provided on Page 10. The slight increase in the allowance over March 31, 2025 was primarily attributable to utilization of a higher forecasted unemployment rate in calculating loan loss rates. Net loan charge-offs were 10 basis points of average loans for the first quarter of 2026 versus 18 basis points for the fourth quarter of 2025 and 9 basis points for the first quarter of 2025. At March 31, 2026, the allowance represented 1.23% of loans HFI compared to 1.22% at December 31, 2025, and 1.12% at March 31, 2025.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $13.0 million at March 31, 2026 compared to $10.5 million at December 31, 2025 and $4.4 million at March 31, 2025. At March 31, 2026, nonperforming assets as a percentage of total assets was 0.29%, compared to 0.24% at December 31, 2025 and 0.10% at March 31, 2025. Nonaccrual loans totaled $11.1 million at March 31, 2026, a $2.5 million increase over December 31, 2025 and a $6.8 million increase over March 31, 2025. The increase over December 31, 2025 was primarily attributable to the addition of four residential 1-4 family real estate loans totaling $1.9 million. Other real estate totaled $1.8 million at March 31, 2026 and reflected the addition of a banking office property for $1.2 million during the first quarter of 2026. Further, classified loans totaled $14.5 million at March 31, 2026, a $0.2 million increase over December 31, 2025 and a $4.6 million decrease from March 31, 2025.

Deposits

Average total deposits were $3.691 billion for the first quarter of 2026, an increase of $43.5 million, or 1.2%, over the fourth quarter of 2025 and an increase of $25.5 million, or 0.7%, over the first quarter of 2025. Compared to the fourth quarter of 2025, the increase was primarily attributable to higher public funds balances of $99 million, driven by seasonal inflows from municipal clients as they receive their tax receipts beginning in late November, partially offset by declines in core deposits of $64 million (noninterest bearing and interest bearing DDAs). The increase over the first quarter of 2025 was due to growth in both core deposit balances, and public funds.

At March 31, 2026, total deposits were $3.752 billion, an increase of $89.3 million, or 2.4%, over December 31, 2025, and a decrease of $32.3 million, or 0.9%, from March 31, 2025. The increase over December 31, 2025, was driven by higher core deposit balances of $103 million (primarily noninterest bearing and NOW accounts), partially offset by a decrease in public funds balances of $25 million (primarily NOW accounts). The decrease from March 31, 2025, was primarily due to lower public funds balances (noninterest bearing accounts). Total public funds balances were $629.9 million at March 31, 2026, $654.7 million at December 31, 2025, and $648.0 million at March 31, 2025.

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 $407.7 million in the first quarter of 2026 compared to $437.5 million in the fourth quarter of 2025 and $320.9 million in the first quarter of 2025. Compared to both prior periods, the variance reflected higher average deposits and lower average loans and 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 March 31, 2026, the weighted-average maturity and duration of our portfolio were 2.98 years and 2.64 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $11.7 million.

At March 31, 2026, we had the ability to generate approximately $1.651 billion (excludes overnight funds position of $425 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 $559.9 million at March 31, 2026 compared to $552.9 million at December 31, 2025 and $512.6 million at March 31, 2025. For the first three months of 2026, shareowners' equity was positively impacted by net income attributable to shareowners of $15.8 million, the issuance of stock of $2.8 million, and stock compensation accretion of $0.5 million. Shareowners' equity was reduced by a common stock dividend of $4.6 million ($0.27 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 a net $2.3 million decrease in the accumulated other comprehensive gain. The net unfavorable change in accumulated other comprehensive gain was primarily due to a $2.2 million increase in the investment securities loss.

At March 31, 2026, our total risk-based capital ratio was 21.62%, compared to 21.45% at December 31, 2025 and 19.20% at March 31, 2025. Our common equity tier 1 capital ratio was 19.08%, 18.56%, and 16.08%, respectively, on these dates. Our leverage ratio was 11.65%, 11.77%, and 11.17%, respectively, on these dates. At March 31, 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 10.79% at March 31, 2026 and December 31, 2025, compared to 9.61% at March 31, 2025. If our unrealized held-to-maturity securities loss of $7.2 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 10.62%.

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 .

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; 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 (including the impact from the sale of our insurance subsidiary); 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 conflict 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 ( ). 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)	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025
Shareowners' Equity (GAAP)		$	559,912		$	552,851		$	540,635		$	526,423		$	512,575
Less: Goodwill and Other Intangibles (GAAP)			89,095			89,095			89,095			92,693			92,733
Tangible Shareowners' Equity (non-GAAP)	A		470,817			463,756			451,540			433,730			419,842
Total Assets (GAAP)			4,453,734			4,385,765			4,323,774			4,391,753			4,461,233
Less: Goodwill and Other Intangibles (GAAP)			89,095			89,095			89,095			92,693			92,733
Tangible Assets (non-GAAP)	B	$	4,364,639		$	4,296,670		$	4,234,679		$	4,299,060		$	4,368,500
Tangible Common Equity Ratio (non-GAAP)	A/B		10.79	%		10.79	%		10.66	%		10.09	%		9.61	%
Actual Diluted Shares Outstanding (GAAP)	C		17,114,954			17,154,586			17,115,336			17,097,986			17,072,330
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	27.51		$	27.03		$	26.38		$	25.37		$	24.59

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
Unaudited

		Three Months Ended
(Dollars in thousands, except per share data)		Mar 31, 2026		Dec 31, 2025		Mar 31, 2025
EARNINGS
Net Income Attributable to Common Shareowners	$	15,817	$	13,705	$	16,858
Diluted Net Income Per Share	$	0.92	$	0.80	$	0.99
PERFORMANCE
Return on Average Assets (annualized)		1.45	%	1.25	%	1.58	%
Return on Average Equity (annualized)		11.30		9.78		13.32
Net Interest Margin		4.24		4.26		4.22
Noninterest Income as % of Operating Revenue		31.77		31.68		32.39
Efficiency Ratio		65.89	%	67.50	%	62.93	%
CAPITAL ADEQUACY
Tier 1 Capital		20.37	%	20.20	%	18.01	%
Total Capital		21.62		21.45		19.20
Leverage		11.65		11.77		11.17
Common Equity Tier 1		19.08		18.56		16.08
Tangible Common Equity⁽¹⁾		10.79		10.79		9.61
Equity to Assets		12.57	%	12.61	%	11.49	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		278.19	%	360.69	%	692.10	%
Allowance as a % of Loans HFI		1.23		1.22		1.12
Net Charge-Offs as % of Average Loans HFI		0.10		0.18		0.09
Nonperforming Assets as % of Loans HFI and OREO		0.51		0.41		0.17
Nonperforming Assets as % of Total Assets		0.29	%	0.24	%	0.10	%
STOCK PERFORMANCE
High	$	46.83	$	45.63	$	38.27
Low		39.26		38.27		33.00
Close	$	43.46	$	42.57	$	35.96
Average Daily Trading Volume		100,149		54,533		24,486

⁽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)	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
ASSETS
Cash and Due From Banks	$	64,214		$	62,189		$	68,397		$	78,485		$	78,521
Funds Sold and Interest Bearing Deposits		424,756			467,782			397,502			394,917			446,042
Total Cash and Cash Equivalents		488,970			529,971			465,899			473,402			524,563

Investment Securities Available for Sale		800,550			643,922			577,333			533,457			461,224
Investment Securities Held to Maturity		353,296			377,446			404,659			462,599			517,176
Other Equity Securities		2,083			2,069			2,145			3,242			2,315
Total Investment Securities		1,155,929			1,023,437			984,137			999,298			980,715

Loans Held for Sale ("HFS"):		25,088			21,695			24,204			19,181			21,441

Loans Held for Investment ("HFI"):
Commercial, Financial, & Agricultural		170,268			180,341			179,018			180,008			184,393
Real Estate - Construction		156,630			146,920			156,756			174,115			192,282
Real Estate - Commercial		755,800			768,731			785,290			802,504			806,942
Real Estate - Residential		998,720			1,020,942			1,037,324			1,046,368			1,040,594
Real Estate - Home Equity		243,932			240,897			234,111			228,201			225,987
Consumer		179,515			182,327			185,847			197,483			206,191
Other Loans		12,347			4,748			2,283			1,552			3,227
Overdrafts		1,192			1,212			1,378			1,259			1,154
Total Loans Held for Investment		2,518,404			2,546,118			2,582,007			2,631,490			2,660,770
Allowance for Credit Losses		(30,999	)		(31,001	)		(30,202	)		(29,862	)		(29,734	)
Loans Held for Investment, Net		2,487,405			2,515,117			2,551,805			2,601,628			2,631,036

Premises and Equipment, Net		77,670			79,457			79,748			79,906			80,043
Goodwill and Other Intangibles		89,095			89,095			89,095			92,693			92,733
Other Real Estate Owned		1,822			1,936			1,831			132			132
Other Assets		127,755			125,057			127,055			125,513			130,570
Total Other Assets		296,342			295,545			297,729			298,244			303,478
Total Assets	$	4,453,734		$	4,385,765		$	4,323,774		$	4,391,753		$	4,461,233
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,299,933		$	1,251,886		$	1,303,786		$	1,332,080		$	1,363,739
NOW Accounts		1,309,527			1,322,114			1,222,861			1,284,137			1,292,654
Money Market Accounts		432,874			390,888			405,846			408,666			445,999
Savings Accounts		516,149			503,485			500,323			504,331			511,265
Certificates of Deposit		193,134			193,939			182,096			175,639			170,233
Total Deposits		3,751,617			3,662,312			3,614,912			3,704,853			3,783,890

Repurchase Agreements		4,561			22,018			25,629			21,800			22,799
Other Short-Term Borrowings		28,715			28,074			14,615			12,741			14,401
Subordinated Notes Payable		33,303			42,582			42,582			42,582			52,887
Other Long-Term Borrowings		680			680			680			680			794
Other Liabilities		74,946			77,248			84,721			82,674			73,887
Total Liabilities		3,893,822			3,832,914			3,783,139			3,865,330			3,948,658

SHAREOWNERS' EQUITY
Common Stock		171			171			171			171			171
Additional Paid-In Capital		39,854			41,650			40,067			39,527			38,576
Retained Earnings		519,632			508,443			499,176			487,665			476,715
Accumulated Other Comprehensive Income (Loss), Net of Tax		255			2,587			1,221			(940	)		(2,887	)
Total Shareowners' Equity		559,912			552,851			540,635			526,423			512,575
Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,453,734		$	4,385,765		$	4,323,774		$	4,391,753		$	4,461,233
OTHER BALANCE SHEET DATA
Earning Assets	$	4,124,177		$	4,059,032		$	3,987,850		$	4,044,886		$	4,108,968
Interest Bearing Liabilities		2,518,943			2,503,780			2,394,632			2,450,576			2,511,032
Book Value Per Diluted Share	$	32.71		$	32.23		$	31.59		$	30.79		$	30.02
Tangible Book Value Per Diluted Share⁽¹⁾		27.51			27.03			26.38			25.37			24.59
Actual Basic Shares Outstanding		17,098			17,084			17,069			17,066			17,055
Actual Diluted Shares Outstanding		17,115			17,155			17,115			17,098			17,072
⁽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
(Dollars in thousands, except per share data)		First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
INTEREST INCOME
Loans, including Fees	$	38,254	$	39,565	$	40,279	$	40,872	$	40,478
Investment Securities		9,055		7,768		7,188		6,678		5,808
Federal Funds Sold and Interest Bearing Deposits		3,711		4,382		3,964		3,909		3,496
Total Interest Income		51,020		51,715		51,431		51,459		49,782
INTEREST EXPENSE
Deposits		7,395		7,544		7,265		7,405		7,383
Repurchase Agreements		73		134		158		156		164
Other Short-Term Borrowings		327		217		58		179		117
Subordinated Notes Payable		398		451		383		530		560
Other Long-Term Borrowings		10		9		10		5		11
Total Interest Expense		8,203		8,355		7,874		8,275		8,235
Net Interest Income		42,817		43,360		43,557		43,184		41,547
Provision for Credit Losses		712		1,995		1,881		620		768
Net Interest Income after Provision for Credit Losses		42,105		41,365		41,676		42,564		40,779
NONINTEREST INCOME
Deposit Fees		5,598		5,811		5,877		5,320		5,061
Bank Card Fees		3,630		3,684		3,733		3,774		3,514
Wealth Management Fees		4,051		4,525		5,173		5,206		5,763
Mortgage Banking Revenues		4,252		4,155		4,794		4,190		3,820
Other		2,402		1,928		2,754		1,524		1,749
Total Noninterest Income		19,933		20,103		22,331		20,014		19,907
NONINTEREST EXPENSE
Compensation		25,703		28,384		26,056		26,490		26,248
Occupancy, Net		7,083		7,052		7,037		7,071		6,793
Other		8,587		7,431		9,823		8,977		5,660
Total Noninterest Expense		41,373		42,867		42,916		42,538		38,701
OPERATING PROFIT		20,665		18,601		21,091		20,040		21,985
Income Tax Expense		4,848		4,896		5,141		4,996		5,127
Net Income		15,817		13,705		15,950		15,044		16,858
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	15,817	$	13,705	$	15,950	$	15,044	$	16,858
PER COMMON SHARE
Basic Net Income	$	0.92	$	0.80	$	0.93	$	0.88	$	0.99
Diluted Net Income		0.92		0.80		0.93		0.88		0.99
Cash Dividend	$	0.27	$	0.26	$	0.26	$	0.24	$	0.24
AVERAGE SHARES
Basic		17,129		17,070		17,068		17,056		17,027
Diluted		17,146		17,140		17,114		17,088		17,044

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
AND CREDIT QUALITY
Unaudited

		2026			2025
(Dollars in thousands, except per share data)		First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
ACL - HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	31,001		$	30,202		$	29,862		$	29,734		$	29,251
Provision for Credit Losses		635			1,984			1,550			718			1,083
Net Charge-Offs (Recoveries)		637			1,185			1,210			590			600
Balance at End of Period	$	30,999		$	31,001		$	30,202		$	29,862		$	29,734
As a % of Loans HFI		1.23	%		1.22	%		1.17	%		1.13	%		1.12	%
As a % of Nonperforming Loans		278.19	%		360.69	%		368.54	%		463.01	%		692.10	%
ACL - UNFUNDED COMMITMENTS
Balance at Beginning of Period		2,107		$	2,095		$	1,738		$	1,832		$	2,155
Provision for Credit Losses		82			12			357			(94	)		(323	)
Balance at End of Period⁽¹⁾		2,189			2,107			2,095			1,738			1,832
ACL - DEBT SECURITIES
Provision for Credit Losses	$	(5	)	$	(1	)	$	(26	)	$	(4	)	$	8
CHARGE-OFFS
Commercial, Financial and Agricultural	$	300		$	167		$	373		$	74		$	168
Real Estate - Commercial		-			4			-			-			-
Real Estate - Residential		-			67			12			49			8
Real Estate - Home Equity		13			10			10			24			-
Consumer		852			925			954			914			865
Overdrafts		631			670			619			437			570
Total Charge-Offs	$	1,796		$	1,843		$	1,968		$	1,498		$	1,611
RECOVERIES
Commercial, Financial and Agricultural	$	74		$	44		$	95		$	117		$	75
Real Estate - Commercial		84			29			8			6			3
Real Estate - Residential		77			8			13			65			119
Real Estate - Home Equity		10			6			10			42			9
Consumer		579			246			369			456			481
Overdrafts		335			325			263			222			324
Total Recoveries	$	1,159		$	658		$	758		$	908		$	1,011
NET CHARGE-OFFS (RECOVERIES)	$	637		$	1,185		$	1,210		$	590		$	600
Net Charge-Offs as a % of Average Loans HFI⁽²⁾		0.10	%		0.18	%		0.18	%		0.09	%		0.09	%
CREDIT QUALITY
Nonaccruing Loans	$	11,143		$	8,595		$	8,195		$	6,449		$	4,296
Other Real Estate Owned		1,822			1,936			1,831			132			132
Total Nonperforming Assets ("NPAs")	$	12,965		$	10,531		$	10,026		$	6,581		$	4,428

Past Due Loans 30-89 Days	$	6,643		$	7,017		$	5,468		$	4,523		$	3,735
Classified Loans		14,545			14,334			26,512			28,623			19,194

Nonperforming Loans as a % of Loans HFI		0.44	%		0.34	%		0.32	%		0.25	%		0.16	%
NPAs as a % of Loans HFI and Other Real Estate		0.51	%		0.41	%		0.39	%		0.25	%		0.17	%
NPAs as a % of Total Assets		0.29	%		0.24	%		0.23	%		0.15	%		0.10	%

⁽¹⁾Recorded in other liabilities.
⁽²⁾Annualized.

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
Unaudited

		First Quarter 2026			Fourth Quarter 2025			Third Quarter 2025			Second Quarter 2025			First Quarter 2025
(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
ASSETS:
Loans Held for Sale	$	24,716		$	404		6.63	%	$	24,261		$	374		6.11	%	$	25,276		$	425	6.68	%	$	22,668			475		8.40	%	$	24,726		$	490	8.04	%
Loans Held for Investment⁽¹⁾		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			2,665,910			40,029	6.09

Investment Securities
Taxable Investment Securities		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			981,485			5,802	2.38
Tax-Exempt Investment Securities⁽¹⁾		1,620			17		4.25			1,620			17		4.30			1,620			18	4.44			1,467			17		4.50			845			9	4.32

Total Investment Securities		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			982,330			5,811	2.38

Federal Funds Sold and Interest Bearing Deposits		407,679			3,711		3.69			437,536			4,382		3.97			356,161			3,964	4.42			348,787			3,909		4.49			320,948			3,496	4.42

Total Earning Assets		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	%		3,993,914		$	49,826	5.06	%

Cash and Due From Banks		63,079								67,291								65,085							65,761								73,467
Allowance for Credit Losses		(31,545	)							(30,922	)							(30,342	)						(30,492	)							(30,008	)
Other Assets		297,532								294,757								301,678							302,984								297,660

Total Assets	$	4,418,904							$	4,367,036							$	4,317,951						$	4,370,261							$	4,335,033

LIABILITIES:
Noninterest Bearing Deposits	$	1,282,988							$	1,303,266							$	1,314,560						$	1,342,304							$	1,317,425
NOW Accounts		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	%		1,249,955		$	3,854	1.25	%
Money Market Accounts		403,340			1,752		1.76			415,577			1,977		1.89			416,656			2,090	1.99			431,774			2,340		2.17			420,059			2,187	2.11
Savings Accounts		509,351			132		0.10			501,080			157		0.12			503,189			159	0.13			507,950			174		0.14			507,676			176	0.14
Time Deposits		192,443			1,290		2.72			191,626			1,355		2.80			179,802			1,234	2.72			172,982			1,141		2.65			170,367			1,166	2.78
Total Interest Bearing Deposits		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			2,348,057			7,383	1.28
Total Deposits		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			3,665,482			7,383	0.82
Repurchase Agreements		15,789			73		1.88			20,690			134		2.57			21,966			158	2.86			22,557			156		2.78			29,821			164	2.23
Other Short-Term Borrowings		27,836			327		4.76			20,954			217		4.09			12,753			58	1.82			10,503			179		6.82			7,437			117	6.39
Subordinated Notes Payable		41,620			398		3.83			42,582			451		4.15			42,582			383	3.52			51,981			530		4.03			52,887			560	4.23
Other Long-Term Borrowings		680			10		5.68			680			9		5.55			681			10	5.55			792			5		2.41			794			11	5.68
Total Interest Bearing Liabilities		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	%		2,438,996		$	8,235	1.37	%

Other Liabilities		74,300								78,520								85,422							76,138								65,211

Total Liabilities		3,851,241								3,810,936								3,775,735							3,842,678								3,821,632

SHAREOWNERS' EQUITY:		567,663								556,100								542,216							527,583								513,401

Total Liabilities, Temporary Equity and Shareowners' Equity	$	4,418,904							$	4,367,036							$	4,317,951						$	4,370,261							$	4,335,033

Interest Rate Spread			$	42,857		3.72	%			$	43,404		3.72	%			$	43,602		3.81	%		$	43,228		3.75	%			$	41,591		3.69	%

Interest Income and Rate Earned⁽¹⁾				51,060		5.06					51,759		5.08					51,476		5.12				51,503		5.12					49,826		5.06
Interest Expense and Rate Paid⁽²⁾				8,203		0.81					8,355		0.82					7,874		0.78				8,275		0.82					8,235		0.84

Net Interest Margin			$	42,857		4.24	%			$	43,404		4.26	%			$	43,602		4.34	%		$	43,228		4.30	%			$	41,591		4.22	%

⁽¹⁾Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
⁽²⁾Ratecalculated based on average earning assets.

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

MENAFN20042026004107003653ID1111004539

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