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CAPITAL CITY BANK GROUP INC

For the period ended Mar 31, 2026. Filed Apr 28, 2026.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2026 · Filed Apr 28, 2026

CCBG$51.35+2.1%Stored close · as of Nov 9, 2026

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Contents

Item 2. Results of Operations

Performance Summary

.

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.

.

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

  1. 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.

Provision and Allowance for Credit

Losses.

For the first quarter of 2026, we recorded a provision expense for credit

losses of $0.7

million compared to $2.0 million for the fourth quarter of 2025 and $0.8

million for the first quarter of 2025. 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 for credit losses for

loans held for investment (“HFI”) totaled

$31.0 million compared to $31.0 million at December 31, 2025

and $29.7 million at March 31, 2025.

.

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. 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.

.

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 (primarily

performance-based incentives), partially offset by

a $1.2

million increase in other expense (pension settlement gain in the fourth quarter

of 2025).

Compared to the first quarter of 2025, the

increase reflected a $2.9 million increase in other expense ($4.0

million gain from the sale of bank owned property in the first quarter

of 2025) and a $0.3 million increase in occupancy expense, which was partially

offset by a $0.5 million decrease in compensation

expense.

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.

Loans.

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. 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.

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. 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

quarter. 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.

.

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. 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. 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.

Capital

.

At March 31, 2026, we were “well-capitalized”

with a total risk-based capital ratio of 21.62% and a tangible common

equity

ratio (a non-GAAP financial measure) of 10.79% compared to

21.45% and 10.79%, respectively,

at December 31, 2025, and 19.20%

and 9.61%, respectively,

at March 31, 2025.

At March 31, 2026, all of our regulatory capital ratios exceeded the threshold to

be

“well-capitalized”

under the Basel III capital standards.

RESULTS

OF OPERATIONS

The following table provides a condensed summary of our results of operations

  • a discussion of the various components are discussed

in further detail below.

(Dollars in Thousands, except per share data)

Interest Income

$

51,020

$

51,715

$

49,782

Taxable Equivalent Adjustments

Total Interest Income (FTE)

51,060

51,759

49,826

Interest Expense

8,203

8,355

8,235

Net Interest Income (FTE)

42,857

43,404

41,591

1,995

Taxable Equivalent Adjustments

Net Interest Income After Provision for Credit Losses

42,105

41,365

40,779

19,933

20,103

19,907

41,373

42,867

38,701

Income Before Income Taxes

20,665

18,601

21,985

4,848

4,896

5,127

Net Income Attributable to Common Shareowners

$

15,817

$

13,705

$

16,858

Basic Net Income Per Share

$

0.92

$

0.80

$

0.99

Diluted Net Income Per Share

$

0.92

$

0.80

$

0.99

Net interest income represents our single largest source of earnings

and is equal to interest income and fees generated by earning assets

less interest expense paid on interest bearing liabilities.

This information is provided on a “taxable equivalent” basis to reflect the tax-

exempt status of income earned on certain loans and state and local government

debt obligations.

We provide an

analysis of our net

interest income including average yields and rates in Table

I, “Average Balances &

Interest Rates,” on page 47.

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.

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.

For the first quarter of 2026, we recorded a provision expense of $0.6

million for loans HFI and a provision expense of $0.1

million for unfunded loan commitments.

See “Allowance for Credit Losses”

below for a discussion of the various factors that impacted our provision

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 income represented 28.1% of operating revenues (net

interest income plus noninterest income) in the first quarter of 2026

compared to 28.0% in the fourth quarter of 2025 and 32.9% in the first quarter

of 2025.

The table below reflects the major components of noninterest income.

$

5,598

$

5,811

$

5,061

3,630

3,684

3,514

Wealth Management

Fees

4,051

4,525

5,763

4,252

4,155

3,820

Other

2,402

1,928

1,749

Total

$

19,933

$

20,103

$

19,907

Significant components of noninterest income are discussed in more

detail below.

.

Deposit fees for the first quarter of 2026 totaled $5.6 million, a decrease of $0.2

million, or 3.7%, from the fourth

quarter of 2025 and an increase of $0.5 million, or 10.6%, over the first quarter of

  1. Compared to the fourth quarter of 2025, the

$0.2

million decrease was attributable to lower overdraft fees.

Compared to the first quarter of 2025, the increase reflected a $0.4

million increase in account service charges and $0.1 million increase

in overdraft fees.

.

Bank card fees for the first quarter of 2026 totaled $3.6 million, a $0.1 million, or 1.5%,

decrease from the fourth

quarter of 2025 and a $0.1 million, or 3.3%, increase over the first quarter of

  1. The change across both periods primarily reflected

normal fluctuations in debit card usage, consistent with underlying consumer

spending trends.

Wealth

Management Fees

.

Wealth management fees

totaled $4.1 million for the first quarter of 2026, a decrease of $0.5 million, or

10.5%, from the fourth quarter of 2025 and a decrease of $1.7 million,

or 29.7%, from the first quarter of 2025. The decrease from the

fourth quarter of 2025

reflected lower retail brokerage fees of $0.3 million, trust fees of $0.1 million and insurance

commissions of

$0.1 million. The decrease from the first quarter of 2025 reflected lower

retail brokerage fees of $1.2 million and insurance

commission revenue of $0.7 million, partially offset by higher

trust fees of $0.2

million. The decline in insurance commission revenue

from both prior periods was due to the sale of our insurance subsidiary in

  1. At March 31, 2026, total assets under management

were approximately $2.691 billion compared to $2.867 billion

at December 31, 2025

and $3.068 billion at March 31, 2025. Compared

to both prior periods, the decline was due to lower retail brokerage assets partially attributable

to the sale of our insurance subsidiary

in 2025.

.

Mortgage banking revenues totaled $4.3 million for the first quarter of

2026, an increase of $0.1

million, or 2.3%, over the fourth quarter of 2025 and an increase of $0.4

million, or 11.3%, over the first quarter of 2025. Compared

to

first quarter of 2025, the increase was driven by a higher level of interest rate

locks and gain on sale margin.

We provide a detailed

overview of our mortgage banking operation, including a detailed break

-down of mortgage banking revenues, mortgage servicing

activity, and warehouse

funding within Note 4 - Mortgage Banking Activities in the Notes to Consolidated Financial

Other

.

Other income totaled $2.4 million for the first quarter of 2026, an increase of

$0.5 million, or 24.6%, over the fourth quarter of

2025 and an increase of $0.7 million, or 37.3%, over the first quarter

of 2025. The increase across both periods is primarily due to a

$0.5 million miscellaneous recovery in the first quarter of 2026.

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.

The table below reflects the major components of noninterest expense.

Salaries

$

21,372

$

23,054

$

21,883

Associate Benefits

4,331

5,330

4,365

Total Compensation

25,703

28,384

26,248

Premises

3,179

3,074

3,172

Equipment

3,904

3,978

3,621

Total Occupancy

7,083

7,052

6,793

Legal Fees

Professional Fees

1,305

1,055

1,622

Processing Services

2,433

2,145

2,469

Advertising

Telephone

Insurance - Other

Other Real Estate Owned, net

(321)

(4,470)

Pension - Other

(745)

(873)

(873)

Pension Settlement

(1,552)

Miscellaneous

2,993

3,713

4,119

Total Other

8,587

7,431

5,660

Total

$

41,373

$

42,867

$

38,701

Significant components of noninterest expense are discussed in more detail

below.

Compensation

.

Compensation expense totaled $25.7 million for the first quarter of 2026, a decrease

of $2.7 million, or 9.4%, from the

fourth quarter of 2025 and a decrease of $0.5 million, or 2.1%, from

the first quarter of 2025. Compared to the fourth quarter of 2025,

the decrease reflected a $1.7 million decrease in salary expense and $1.0

million decrease in associate benefit expense, both primarily

due to higher performance-based incentive pay in the fourth quarter

of 2025.

Compared to the first quarter of 2025, the decrease was

driven by a $0.5 million decrease in salary expense due to lower commission

expense related to the sale of our insurance subsidiary in

Occupancy.

Occupancy expense (including premises and equipment) totaled $7.1

million for the first quarter of 2026, similar to the

fourth quarter of 2025 and an increase of $0.3 million, or 4.3%, over the first

quarter of 2025.

The increase over the first quarter 2025

was primarily attributable to higher expense for maintenance agreement

s

of $0.2 million and software licenses of $0.1 million.

Other

.

Other noninterest expense totaled $8.6 million for the first quarter of

2026, an increase of $1.2 million, or 15.6%, over the

fourth quarter of 2025 and an increase of $2.9 million, or 51.7% over

the first quarter of 2025. Compared to the fourth quarter of 2025,

the variance 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 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

of $0.6

million, professional fees of $0.3 million, and other miscellaneous expenses

of $0.5 million.

Our operating efficiency ratio (expressed as noninterest

expense as a percent of the sum of taxable-equivalent net interest income plus

noninterest income) was 65.89% for the first quarter of 2026 compared

to 67.50% for the fourth quarter of 2025 and 62.93% for the

first quarter of 2025. Compared to the fourth quarter of 2025, the ratio was favorably

impacted by lower noninterest expense,

primarily performance-based compensation.

Compared to the first quarter of 2025, the variance was unfavorably impacted due

to

lower noninterest expense in the first quarter of 2025, which included

a $4.4 million gain from the sale of our operations center

building.

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.

FINANCIAL CONDITION

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 HFI. 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 HFI.

Investment Securities

Average investments

totaled $1,119.1 million in the first quarter of 2026, a

$113.1 million, or 11.2

%, increase over the fourth quarter

of 2025 and a $136.8 million, or 13.9% increase over the first quarter of

  1. Our investment portfolio represented 27.4% of our

average earning assets for the first quarter of 2026 compared to 24.9% for

the fourth quarter of 2025 and 24.6% for the first quarter of

For the remainder of 2026, we will continue to monitor our overall liquidity position

and market conditions to determine if cash

flow from the investment portfolio should be reinvested or utilized to support

loan growth.

The investment portfolio is a significant component of our operations and, as such,

it functions as a key element of liquidity and

asset/liability management.

Two types of classifications are approved

for investment securities which are Available

-for-Sale (“AFS”)

and Held-to-Maturity (“HTM”).

At March 31, 2026, $800.6

million, or 69.3%, of the investment portfolio was classified as AFS and

$353.3 million, or 30.6%, was classified as HTM. The average maturity of our

total portfolio at March 31, 2026 was 2.98 years

compared to 2.57 years at December 31, 2025 and 2.64 years at March

31, 2025.

The duration of our investment portfolio at March

31, 2026 was 2.64 years compared to 2.12 years at December 31, 2025 and

2.10 years at March 31, 2025.

Additional information on

unrealized gains/losses in the AFS and HTM portfolios is provided

in Note 2 – Investment Securities.

We

determine the classification of a security at the time of acquisition based

on how the purchase will affect our asset/liability strategy

and future business plans and opportunities.

We

consider multiple factors in determining classification, including

regulatory capital

requirements, volatility in earnings or other comprehensive income,

and liquidity needs. Securities in the AFS portfolio are recorded at

fair value with unrealized gains and losses associated with these securities recorded

net of tax, in the accumulated other

comprehensive income component of shareowners’ equity.

HTM securities are acquired or owned with the intent of holding

them to

maturity.

HTM investments are measured at amortized cost.

We

do not trade, nor do we presently intend to begin trading investment

securities for the purpose of recognizing gains and therefore we do not

maintain a trading portfolio.

At March 31, 2026, there were 790 positions (combined AFS and HTM)

with unrealized pre-tax losses totaling $26.3 million.

50 of

these positions are U.S. Treasury bonds

and carry the full faith and credit of the U.S. Government.

663 are U.S. government agency

securities issued by U.S. government sponsored entities.

We believe

the long history of no credit losses on government securities

indicates that the expectation of nonpayment of the amortized cost basis is effectively

zero.

At March 31, 2026, all collateralized

mortgage obligation securities, mortgage-backed securities, Small Business

Administration securities, U.S. Agency,

and U.S. Treasury

bonds held were rated AA+ or higher.

The remaining 77 positions (municipal securities and corporate bonds) have

a credit

component.

At March 31, 2026, corporate debt securities had an immaterial allowance for credit

losses.

None of the securities held

by the Company were past due or in nonaccrual status at March 31, 2026.

Loans HFI

Average loans

HFI decreased by $29.8 million, or 1.16%, from the fourth quarter of 2025, and

decreased by $127.6 million, or 4.7%,

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) or $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.

Without compromising our credit standards

,

changing our underwriting standards, or taking on inordinate interest rate risk,

we

continue to closely monitor our markets and make minor adjustments as necessary.

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.

The allowance for credit losses is a valuation account that is deducted from

the loans’ amortized cost basis to present the net amount

expected to be collected on the loans.

The allowance for credit losses is adjusted by a credit loss provision which is reported in

earnings and reduced by the charge-off

of loan amounts (net of recoveries).

Loans are charged off against the allowance when

management believes the uncollectability of a loan balance is confirmed.

Expected recoveries do not exceed the aggregate of amounts

previously charged-off and expected to be charged

-off.

Expected credit loss inherent in non-cancellable off-balance sheet credit

exposures is provided through the credit loss provision but recorded

as a separate liability included in other liabilities.

Management estimates the allowance balance using relevant available

information, from internal and external sources relating to past

events, current conditions, and reasonable and supportable forecasts.

Historical loan default and loss experience provides the basis for

the estimation of expected credit losses.

Adjustments to historical loss information incorporate management’s

view of current

conditions and forecasts.

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 at March 31, 2025, respectively.

Activity within the allowance is provided in Note 3 – Loans Held for

Investment and Allowance for Credit Losses in the Notes to Consolidated Financial

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.

At March 31, 2026, the allowance for credit losses for unfunded commitments

totaled $2.2 million compared to $2.1 million and $1.8

million at December 31, 2025 and March 31, 2025, respectively.

The change in the allowance for unfunded commitments from both

prior periods reflected variances in the level of unfunded loan commitments.

The allowance for unfunded commitments is recorded in

other liabilities.

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.

Business deposit transaction accounts classified as repurchase agreements

averaged $15.8 million for the first quarter of 2026, a

decrease of $4.9 million from the fourth quarter of 2025 and a decrease

of $14.0 million from the first quarter of 2025. At March 31,

2026, repurchase agreement balances were $4.6 million compared

to $22.0 million at December 31, 2025 and $22.8 million at March

31, 2025.

We continue

to closely monitor our cost of deposits and deposit mix as we manage through the current rate

environment.

MARKET RISK AND INTEREST RATE

SENSITIVITY

Market Risk and Interest Rate Sensitivity

Overview.

Market risk arises from changes in interest rates, exchange rates,

commodity prices, and equity prices.

We have risk

management policies designed to monitor and limit exposure to market

risk and we do not participate in activities that give rise to

significant market risk involving exchange rates, commodity prices, or

equity prices.

In asset and liability management activities, our

policies are designed to minimize structural interest rate risk.

Interest Rate Risk Management.

Our net income is largely dependent on net interest income.

Net interest income is susceptible to

interest rate risk to the degree that interest-bearing liabilities mature

or reprice on a different basis than interest-earning assets.

When

interest-bearing liabilities mature or reprice more quickly

than interest-earning assets in a given period, a significant increase in

market rates of interest could adversely affect net interest

income.

Similarly, when interest-earning

assets mature or reprice more

quickly than interest-bearing liabilities, falling market interest rates could

result in a decrease in net interest income.

Net interest

income is also affected by changes in the portion of interest-earning

assets that are funded by interest-bearing liabilities rather than by

other sources of funds, such as noninterest-bearing deposits and shareowners’

equity.

We have established

what we believe to be a comprehensive interest rate risk management policy,

which is administered by

management’s Asset Liability Management

Committee (“ALCO”).

The policy establishes limits of risk, which are quantitative

measures of the percentage change in net interest income (a measure of net

interest income at risk) and the fair value of equity capital

(a measure of economic value of equity (“EVE”) at risk) resulting from a hypothetical change

in interest rates for maturities from one

day to 30 years.

We measure the potential

adverse impacts that changing interest rates may have on our short-term

earnings, long-

term value, and liquidity by employing simulation analysis through the use of

computer modeling.

The simulation model captures

optionality factors such as call features and interest rate caps and floors

embedded in investment and loan portfolio contracts.

As with

any method of gauging interest rate risk, there are certain shortcomings

inherent in the interest rate modeling methodology used by

us.

When interest rates change, actual movements in different categories

of interest-earning assets and interest-bearing liabilities, loan

prepayments, and withdrawals of time and other deposits, may deviate significantly

from assumptions used in the model.

Finally, the

methodology does not measure or reflect the impact that higher rates may have

on adjustable-rate loan clients’ ability to service their

debts, or the impact of rate changes on demand for loan and deposit products.

The statement of financial condition is subject to testing for both parallel and

upward and downward shifts in interest rates (assuming

no balance sheet growth) to indicate the inherent interest rate risk. We

prepare a base case (assumes a static rate environment) and

several alternative interest rate simulations for various ranges of upward and downward

interest rate changes. This analysis is prepared

quarterly and reported to ALCO, our Market Risk Oversight Committee (“MROC”), our

Risk Oversight Committee (“ROC”) and the

Board of Directors. We

will periodically augment our interest rate simulations with alternative interest

rate scenarios that may include

various non-parallel shifts in interest rates, including a flattening or steepening

of the yield curve.

Our goal is to structure the statement of financial condition so that net interest earnings at risk over

12-month and 24-month periods

and the economic value of equity at risk do not exceed policy guidelines

at the various interest rate shock levels. We

attempt to

achieve this goal by balancing, within policy limits, the volume of floating-rate

liabilities with a similar volume of floating-rate assets,

by keeping the average maturity of fixed-rate asset and liability contracts

reasonably matched, by managing the mix of our core

deposits, and by adjusting our rates to market conditions on a continuing

basis.

Analysis.

Measures of net interest income at risk produced by simulation analysis are

indicators of an institution’s short-term

performance in alternative rate environments.

These measures are typically based upon a relatively brief period, and do not

necessarily indicate the long-term prospects or economic value of the institution.

The following table presents our net interest income

simulation results for gradual 12-month and 24-month “ramp” scenarios

applied to the base scenario. The “ramp” scenario is a parallel

shift applied gradually over a 12-month period for the projected 12-month

and 24-month period on a pro rata basis.

ESTIMATED CHANGES

IN NET INTEREST INCOME

As of March 31, 2026

% Change in NII

Policy Limit

Change in Interest Rates

+200 bp Ramp

5.0%

17.7%

-10.0%

-12.5%

+100 bp Ramp

2.5%

10.7%

-7.5%

-10.0%

-100 bp Ramp

-2.5%

-4.2%

-7.5%

-10.0%

-200 bp Ramp

-5.1%

-12.3%

-10.0%

-12.5%

As of December 31, 2025

% Change in NII

Policy Limit

Change in Interest Rates

+200 bp Ramp

5.3%

18.5%

-10.0%

-12.5%

+100 bp Ramp

2.0%

10.8%

-7.5%

-10.0%

-100 bp Ramp

-2.7%

-4.9%

-7.5%

-10.0%

-200 bp Ramp

-5.5%

-13.3%

-10.0%

-12.5%

The Net Interest Income (“NII”) at Risk position of an instantaneous,

parallel rate shock indicates that in the short-term (over the next

12 months), all rising rate environments will positively impact the net

interest margin of the Company,

while declining rate

environments

will have a negative impact on the net interest margin.

Compared to the fourth quarter of 2025, these metrics became

more favorable in the declining rate scenarios due to the deployment of variable

rate overnight funds into the investment securities

portfolio.

The instantaneous parallel rate shock results over the next 12-month

and 24-month periods are within our prescribed policy

limits for all rate scenarios.

The measures of equity value at risk indicate our ongoing economic value

by considering the effects of changes in interest rates on all

of our cash flows by discounting the cash flows to estimate the present value of

assets and liabilities. The difference between these

discounted values of the assets and liabilities is the economic value of equity,

which in theory approximates the fair value of our net

assets.

ESTIMATED CHANGES

IN ECONOMIC VALUE

OF EQUITY

% Change in EVE

EVE Ratio

Changes in Interest

Rates

Policy

Limit

Policy

Minimum

+200 bp Shock

9.5%

10.4%

-20.0%

26.5%

25.4%

5.0%

+100 bp Shock

6.2%

7.0%

-15.0%

25.3%

24.2%

5.0%

-100 bp Shock

-9.5%

-9.7%

-15.0%

20.9%

19.8%

5.0%

-200 bp Shock

-20.8%

-21.0%

-20.0%

18.0%

17.1%

5.0%

At March 31, 2026, the economic value of equity was favorable

in all rising rate environments and unfavorable in the falling rate

environments.

EVE was within prescribed tolerance levels as the EVE ratio (EVE/EVA)

in all rate scenarios is greater than 5.0%.

Factors that can impact EVE values include the absolute level of rates, the overall

structure of the balance sheet (including liquidity

levels), pre-payment speeds, loan floors, and the change of model assumptions.

As the interest rate environment and the dynamics of the economy continue to change,

additional simulations will be analyzed to

address not only the changing rate environment, but also the change

in mix of our financial assets and liabilities measured over

multiple years, to help assess the risk to the Company.

LIQUIDITY AND CAPITAL

RESOURCES

Liquidity

In general terms, liquidity is a measurement of our ability to meet our

cash needs.

Our objective in managing our liquidity is to

maintain our ability to meet loan commitments, purchase securities or repay deposits and

other liabilities in accordance with their

terms, without an adverse impact on our current or future earnings.

Our liquidity strategy is guided by policies that are formulated and

monitored by our ALCO and senior management, which take into account

the marketability of assets, the sources and stability of

funding and the level of unfunded commitments.

We regularly evaluate

all of our various funding sources with an emphasis on

accessibility, stability,

reliability and cost-effectiveness.

Our principal source of funding has been our client deposits, supplemented

by our short-term and long-term borrowings, primarily from securities sold under

repurchase agreements, federal funds purchased and

FHLB borrowings.

We believe that the cash

generated from operations, our borrowing capacity and our access to capital resources

are

sufficient to meet our future operating capital and funding requirements.

At March 31, 2026, we had the ability to generate approximately $1.6

51 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. We

recognize the importance of maintaining liquidity and have developed

a Contingent Liquidity Plan, which addresses various liquidity stress levels and

our response and action based on the level of severity.

We periodically

test our credit facilities for access to the funds but also understand that as the severity

of the liquidity level increases

certain credit facilities may no longer be available.

We conduct a liquidity

stress test on a quarterly basis based on events that could

potentially occur at the Bank and report results to our ALCO, MROC, EROC, and

Board of Directors.

We believe the

liquidity

available to us at March 31, 2026 was sufficient to meet our on-going

needs and execute our business strategy.

We also view our

investment portfolio as a liquidity source and have the option to pledge securities in our

portfolio as collateral for

borrowings or deposits, and/or to sell selected securities. Our portfolio consists of

debt issued by the U.S. Treasury,

U.S. governmental

agencies, municipal governments, and corporate entities. Additional

information on our investment portfolio is provided within Note 2

– Investment Securities.

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 2026 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 expect our

capital expenditures will be approximately $10.0 million over the next 12 months,

which will primarily consist of

construction of a new office, office remodeling,

office equipment/furniture, and technology purchases.

Management expects that

these capital expenditures will be funded with existing resources without impairing

our ability to meet our on-going obligations.

Average short

-term borrowings totaled $43.6 million for the first quarter of 2026 compared to $41.6

million for the fourth quarter of

2025 and $37.3 million for the first quarter of 2025.

The variances compared to both prior periods were primarily due to mortgage

warehouse borrowing activity.

Additional detail on warehouse borrowings is provided in Note 4 –

Mortgage Banking Activities in the

Consolidated Financial Statements.

We have issued two

junior subordinated deferrable interest notes to our wholly owned

Delaware statutory trusts.

The first note for

$30.9 million was issued to CCBG Capital Trust I in

November 2004, of which $10 million was retired in April 2016.

We made

principal payments on this note of $4.1 million and $5.1 million in the first quarter

of 2026 and the second quarter of 2025,

respectively.

The second note for $32.0 million was issued to CCBG Capital Trust

II in May 2005. We

made principal payments on

this note of $5.1 million each in the first quarter of 2026 and the second quarter

of 2025. The interest payment for the CCBG Capital

Trust I borrowing is due quarterly and adjusts quarterly

to a variable rate of three-month CME Term

SOFR (secured overnight

financing rate) plus a margin of 1.90%. This note

matures on December 31, 2034. The interest payment for the CCBG Capital Trust

II

borrowing is due quarterly and adjusts quarterly to a variable interest rate based

on three-month CME Term

SOFR plus a margin of

1.80%.

This note matures on June 15, 2035.

The proceeds from these borrowings were used to partially fund acquisitions.

Under the

terms of each junior subordinated deferrable interest note, in the event of default or

if we elect to defer interest on the note, we may

not, with certain exceptions, declare or pay dividends or make distributions on our

capital stock or purchase or acquire any of our

capital stock.

The Company previously maintained a derivative cash flow hedge of

our interest rate risk related to our subordinated debt. The

notional amount of the derivative is $30 million ($10 million of the

CCBG Capital Trust I borrowing and $20 million of the CCBG

Capital Trust II borrowing).

In October 2025, the interest rate swaps were terminated.

Additional detail on the interest rate swap

agreement is provided in Note 5 – Derivatives in the Consolidated Financial

Capital

Our capital ratios are presented in the Selected Quarterly Financial Data

table on page 36.

At March 31, 2026, our regulatory capital

ratios exceeded the threshold to be designated as “well-capitalized”

under the Basel III capital standards.

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,

  1. 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%.

Our tangible capital ratio is also impacted by the recording of our unfunded pension

liability through other comprehensive income in

accordance with Accounting Standards Codification

Topic 715. At March 31, 2026

and December 31, 2025, the net pension asset

reflected in other comprehensive income was $9.4 million compared

to $9.7 million at March 31, 2025. This liability is re-measured

annually on December 31

st

based on an actuarial calculation of our pension liability.

Significant assumptions used in calculating the

liability include the weighted average discount rate used to measure the present

value of the pension liability,

the weighted average

expected long-term rate of return on pension plan assets, and the assumed rate of

annual compensation increases, all of which will

vary when re-measured. The discount rate assumption used to calculate

the pension liability is subject to long-term corporate bond

rates at December 31

st

. These assumptions and sensitivities are discussed in the section entitled “Critical Accounting

Policies and

Estimates” in Part II, Item7. Management’s

Discussion and Analysis of Financial Condition and Results of Operations, of

our 2025

Form 10-K.

OFF-BALANCE SHEET ARRANGEMENTS

We are a party

to financial instruments with off-balance sheet risks in the normal

course of business to meet the financing needs of our

clients.

At March 31, 2026, we had $669.7 million in commitments to extend credit

and $7.5 million in standby letters of credit.

Commitments to extend credit are agreements to lend to a client so long as there is no violation of

any condition established in the

contract.

Commitments generally have fixed expiration dates or other termination

clauses and may require payment of a fee.

Since

many of the commitments are expected to expire without being drawn upon,

the total commitment amounts do not necessarily

represent future cash requirements.

Standby letters of credit are conditional commitments issued by us to guarantee

the performance

of a client to a third party.

We use the same credit

policies in establishing commitments and issuing letters of credit as we do for on-

balance sheet instruments.

If commitments arising from these financial instruments continue to require

funding at historical levels, management does not

anticipate that such funding will adversely impact our ability to meet our on-going

obligations.

In the event these commitments

require funding in excess of historical levels, management believes current

liquidity, advances available from the

FHLB and the

Federal Reserve, and investment security maturities provide a sufficient

source of funds to meet these commitments.

Certain agreements provide that the commitments are unconditionally

cancellable by the bank and for those agreements no allowance

for credit losses has been recorded.

We

have recorded an allowance for credit losses on loan commitments that are not

unconditionally cancellable by the Bank, which is included in other

liabilities on the Consolidated Statements of Financial Condition

and totaled $2.2 million at March 31, 2026.

CRITICAL ACCOUNTING POLICIES

Our significant accounting policies are described in Note 1 to the Consolidated

Financial Statements included in our 2025 Form 10-K.

The preparation of our Consolidated Financial Statements

in accordance with GAAP and reporting practices applicable to the banking

industry requires us to make estimates and assumptions that affect

the reported amounts of assets, liabilities, revenues and expenses,

and to disclose contingent assets and liabilities.

Actual results could differ from those estimates.

We have identified

accounting for (i) the allowance for credit losses, (ii) goodwill,

(iii) pension assumptions, and (iv) income taxes as

our most critical accounting policies and estimates in that they are important

to the portrayal of our financial condition and results, and

they require our subjective and complex judgment as a result of the need to make estimates about

the effects of matters that are

inherently uncertain.

These accounting policies, including the nature of the estimates and types of assumptions

used, are described

throughout this Item 2, Management’s

Discussion and Analysis of Financial Condition and Results of Operations, and

Part II, Item 7,

Management’s Discussion and Analysis

of Financial Condition and Results of Operations included

in our 2025 Form 10-K.

TABLE I

AVERAGE

BALANCES & INTEREST RATES

Average

Average

Average

Average

Average

Average

Rate

Rate

Rate

Assets:

$

24,716

$

6.63

%

$

24,261

$

6.11

%

$

24,726

$

8.04

%

(1)(2)

2,538,318

37,886

6.05

2,568,073

39,230

6.06

2,665,910

40,029

6.09

Taxable Securities

1,117,505

9,042

3.26

1,004,420

7,756

3.07

981,485

5,802

2.38

Tax-Exempt Securities

(2)

1,620

4.25

1,620

4.30

4.32

Interest Bearing Deposits

407,679

3,711

3.69

437,536

4,382

3.97

320,948

3,496

4.42

Total Earning Assets

4,089,838

51,060

5.06

%

4,035,910

51,759

5.08

%

3,993,914

49,826

5.06

%

Cash & Due From Banks

63,079

67,291

73,467

Allowance For Credit Losses

(31,545)

(30,922)

(30,008)

Other Assets

297,532

294,757

297,660

TOTAL ASSETS

$

$

$

Liabilities:

Noninterest Bearing Deposits

$

1,282,988

$

1,303,266

$

1,317,425

NOW Accounts

1,302,894

$

4,221

1.31

%

1,235,961

$

4,055

1.30

%

1,249,955

$

3,854

1.25

%

Money Market Accounts

403,340

1,752

1.76

415,577

1,977

1.89

420,059

2,187

2.11

Savings Accounts

509,351

0.10

501,080

0.12

507,676

0.14

Other Time Deposits

192,443

1,290

2.72

191,626

1,355

2.80

170,367

1,166

2.78

Total Interest Bearing Deposits

2,408,028

7,395

1.25

2,344,244

7,544

1.28

2,348,057

7,383

1.28

Total Deposits

3,691,016

7,395

0.81

3,647,510

7,544

0.82

3,665,482

7,383

0.82

Repurchase Agreements

15,789

1.88

20,690

2.57

29,821

2.23

Short-Term Borrowings

27,836

4.76

20,954

4.09

7,437

6.39

41,620

3.83

42,582

4.15

52,887

4.23

Other Long-Term Borrowings

5.68

5.55

5.68

Total Interest Bearing Liabilities

2,493,953

8,203

1.33

%

2,429,150

8,355

1.36

%

2,438,996

8,235

1.37

%

Other Liabilities

74,300

78,520

65,211

TOTAL LIABILITIES

3,851,241

3,810,936

3,821,632

TOTAL SHAREOWNERS’ EQUITY

567,663

556,100

513,401

TOTAL LIABILITIES, TEMPORARY

AND SHAREOWNERS’ EQUITY

$

$

$

Interest Rate Spread

3.72

%

3.72

%

3.69

%

$

42,857

$

43,404

$

41,591

Net Interest Margin

(3)

4.24

%

4.26

%

4.22

%

(1)

Average Balances include net loan fees, discounts and premiums and nonaccrual loans.

Interest income includes net loan costs of $0.4 million for

the three months ended

March 31, 2026, December 31, 2025, and March 31, 2025.

(2)

Interest income includes the effects of taxable equivalent adjustments

using a 21% tax rate.

(3)

Taxable equivalent net interest income divided by average earning assets.

QUANTITATIVE

AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

See “Market Risk and Interest Rate Sensitivity” in Management’s

Discussion and Analysis of Financial Condition and Results of

Operations, above, which is incorporated herein by reference.

Management has determined that no additional disclosures are

necessary to assess changes in information about market risk that have occurred

since December 31, 2025.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

At March 31, 2026, the end of the period covered by this Form 10-Q, our management,

including our Chief Executive Officer and

Chief Financial Officer, evaluated

the effectiveness of our disclosure controls and procedures (as defined

in Rule 13a-15(e) under the

Securities Exchange Act of 1934).

Based upon that evaluation, our Chief Executive Officer and Chief

Financial Officer concluded

that, as of the end of the period covered by this report,

our disclosure controls and procedures were effective.

Our management, including our Chief Executive Officer

and Chief Financial Officer, has reviewed

our internal control over financial

reporting (as defined in Rule 13a-15(f) under the Securities Exchange

Act of 1934). During the quarter ended March 31, 2026, there

have been no significant changes in our internal control over financial reporting

during our most recently completed fiscal quarter that

have materially affected, or are reasonably likely to materially

affect, our internal control over financial reporting.

PART

II.

OTHER INFORMATION

Legal Proceedings

We are party

to lawsuits arising out of the normal course of business.

In management's opinion, there is no known pending litigation,

the outcome of which would, individually or in the aggregate, have a material effect

on our consolidated results of operations,

financial position, or cash flows.

Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully consider

the factors discussed in Part I,

quarterly reports. The risks described in our 2025 Form

10-K, and our subsequent quarterly reports are not the only risks facing us.

Additional risks and uncertainties not currently known to

us or that we currently deem to be immaterial also may materially adversely affect

our business, financial condition and/or operating

results.

Unregistered Sales of Equity Securities and Use of

Proceeds

Purchases of Equity Securities by the Issuer and

Affiliated Purchasers

The following table contains information about all purchases made by,

or on behalf of, us and any affiliated purchaser (as defined

in

Rule 10b-18(a)(3) under the Exchange Act) of shares or other units of any class of

our equity securities that is registered pursuant to

Section 12 of the Exchange Act.

Total

number

Average

Total

number of shares

Maximum Number of shares

of shares

price paid

purchased under our

remaining for purchase under

Period

purchased

per share

share repurchase program

(1)

our share repurchase program

January 1, 2026 to

January 31, 2026

676,561

February 1, 2026 to

February 28, 2026

7,713

41.83

7,713

668,848

March 1, 2026 to

55,375

41.84

55,375

613,473

Total

63,088

$41.84

63,088

613,473

(1)

The information reported in this row relates to shares that were repurchased

during the first quarter of 2026 through the Capital

City Bank Group, Inc. Share Repurchase Program (“the Program”),

effective February 1, 2024, that was publicly announced on

February 2, 2024 and that expires on February 1, 2029, under which

we were authorized to repurchase up to 750,000 shares of

our common stock.

Under the Program, shares may be repurchased by the Company from time to time in the open

market or

through private transactions, as market conditions warrant.

The program does not obligate the Company to repurchase any

specified number of shares of its common stock.

No shares are repurchased outside of the Program.

Defaults Upon Senior Securities

None.

Mine Safety Disclosure

Not Applicable.

Other Information

(c) Rule 10b5-1 Trading Plans

During the three months ended March 31, 2026, none of our directors or officers

(as defined in Rule 16a-1(f) under the Exchange Act)

adopted

, modified or

terminated

any contract, instruction or written plan for the purchase or sale of our securities that was intended

to

satisfy the affirmative defense conditions of Rule 10b5-1(c)

under the Exchange Act or any “

non-Rule

10b5-1

trading arrangement” as

defined in Item 408(c) of Regulation S-K.

Exhibits

(A)

Exhibits

3.1

Amended and Restated Articles of Incorporation - incorporated herein by reference to Exhibit 3.1 of

the Registrant’s

Form 8-K (filed 5/3/21) (No. 000-13358).

3.2

Amended and Restated Bylaws - incorporated herein by reference to Exhibit 3.1 of the Registrant’s

Form 8-K (filed

12/20/2024) (No. 000-13358).

31.1

Certification of William G Smith, Jr., Chairman and Chief Executive Officer of Capital City Bank Group, Inc., Pursuant

to Rule 13a-14(a) of the Securities Exchange Act of 1934.

31.2

Certification of Jeptha E. Larkin, Executive Vice President and Chief Financial Officer of Capital City Bank Group, Inc.,

Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.

32.1

Certification of William G. Smith, Jr., Chairman and Chief Executive Officer of Capital City Bank Group, Inc., Pursuant

to 18 U.S.C. Section 1350.

32.2

Certification of Jeptha E. Larkin, Executive Vice President and Chief Financial Officer of Capital City Bank Group, Inc.,

Pursuant to 18 U.S.C. Section 1350.

101.SCH

Extension Schema Document

101.CAL

Extension Calculation Linkbase Document

101.LAB

Extension Label Linkbase Document

101.PRE

Extension Presentation Linkbase Document

101.DEF

Extension Definition Linkbase Document

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has

duly caused this Report to be signed on its

behalf by the undersigned Chief Financial Officer hereunto duly

authorized.

CAPITAL CITY

BANK GROUP,

INC.

(Registrant)

/s/ Jeptha E. Larkin

Jeptha E. Larkin

Executive Vice President

and Chief Financial Officer

(Mr. Larkin is the Principal Financial

Officer and has

been duly authorized to sign on behalf of the Registrant)

Date: April 28, 2026

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.