8-K - CCBG - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,

DC 20549

FORM

8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

January 27, 2026

CAPITAL CITY BANK GROUP, INC.

(Exact name of registrant as specified in its charter)

Florida

0-13358

59-2273542

(State of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

217 North Monroe Street,

Tallahassee

Florida

32301

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including

area code: (

850

)

402-7821

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended

to simultaneously satisfy the filing obligation of the registrant

under any of the following provisions (see General Instruction

A.2. below):

☐

Written communications pursuant to Rule

425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a

-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange

Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the

Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par value $0.01

CCBG

Nasdaq Stock Market

, LLC

Indicate by check mark whether the registrant is an emerging

growth company as defined in Rule 405 of the Securities Act of 1933

(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act

of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company,

indicate by check mark if the registrant has elected not to use the extended transition

period for

complying with any new or revised financial accounting standards pursuant

to Section 13(a) of The Exchange Act.

☐

CAPITAL CITY BANK

GROUP,

INC.

FORM 8-

CURRENT REPORT

Item 2.02.

Results of Operations and Financial Condition.

On January 27, 2026, Capital City Bank Group, Inc. (“CCBG”) issued an earnings

press release reporting CCBG’s financial

results for the three and twelve month periods ended December

31, 2025.

A copy of the press release is attached as Exhibit 99.1

hereto and incorporated herein by reference.

The information furnished under Item 2.02 of this Current Report, including

the Exhibits attached hereto, shall not be deemed

“filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor

shall it be deemed incorporated by reference in any

filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference

in such filing.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits

Item No.

Description of Exhibit

99.1

Press release, dated January 27, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibit 99.1 referenced herein, contains “forward-looking statements” within

the meaning, and protections, of Section 27A

of the Securities Act of 1933, as amended, and Section 21E of the Securities

Exchange Act of 1934, as amended, including,

without limitation, statements about future financial and operating results,

economic and seasonal conditions in CCBG’s

markets, and improvements to reported earnings that may or may not be

realized, as well as statements with respect to

CCBG’s objectives, strategic

plans, expectations and intentions and other statements that are not historical

facts. Actual

results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to CCBG’s

beliefs, plans, objectives, goals, expectations,

anticipations, assumptions, estimates and intentions about future performance

and involve known and unknown risks,

uncertainties and other factors, which may be beyond CCBG’s

control, and which may cause the actual results, performance

or achievements of CCBG or its wholly-owned banking subsidiary,

Capital City Bank, to be materially different from future

results, performance or achievements expressed or implied by such forward-looking

statements. You

should not expect

CCBG to update any forward-looking statements.

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 hereunto duly authorized.

CAPITAL CITY BANK

GROUP,

INC.

Date:

January 27, 2026

By:

/s/ Jeptha E. Larkin

Jeptha E. Larkin,

Executive Vice President

and Chief Financial Officer

ex991

Capital City Bank Group, Inc.

Reports Fourth Quarter 2025 Results

TALLAHASSEE, Fla.

(January 27, 2026) – Capital City Bank Group, Inc. (NASDAQ:

CCBG) today reported net income

attributable to common shareowners of $13.7 million, or $0.80 per diluted

share, for the fourth quarter of 2025 compared to $16.0

million, or $0.93 per diluted share, for the third quarter of 2025, and

$13.1 million, or $0.77 per diluted share for the fourth quarter

of 2024.

For 2025, net income attributable to common shareowners totaled $61.6

million, or $3.60 per diluted share, compared to net income

of $52.9 million, or $3.12 per diluted share, for 2024.

QUARTER HIGHLIGHTS (4

Quarter 2025

versus 3

Quarter 2025)

Income Statement

●

Tax-equivalent

net interest income totaled $43.4 million compared

to $43.6 million for the prior quarter

Net interest margin decreased

by 8 basis points to 4.26% (decrease in earning

asset yield of 4 basis points and increase in cost

of funds of 4 basis points)

●

Stable credit quality metrics and credit

loss provision – net loan charge

-offs were 18 basis points (annualized) of average

loans –

allowance coverage ratio was 1.22% at December 31, 2025

●

Noninterest income decreased

$2.2 million, or 10.0%, due to lower other income of $0.8 million (third

quarter gain from sale of

insurance subsidiary), mortgage revenues

of $0.6 million, and wealth management fees of $0.6 million

●

Noninterest expense was comparable

to the third quarter of 2025 and reflected

higher performance-based pay that was

significantly offset by a pension plan settlement gain of $1.5 million

Balance Sheet

●

Loan balances decreased $38.1 million,

or 1.5% (average), and decreased $35.9 million, or

1.4% (end of period)

●

Deposit balances increased $35.2

million, or 1.0% (average), and increased $47.4 million,

or 1.3% (end of period) due to the

normal seasonal inflow of public fund balances

●

Tangible

book value per diluted share (non-GAAP financial measure)

increased by $0.65, or 2.5%

FULL YEAR 2025 HIGHLIGHTS

Income Statement

●

Tax-equivalent

net interest income totaled $171.8 million

compared to $159.2 million for 2024

Net interest margin increased

by 20 basis points to 4.28% (increase in earning

asset yield of 10 basis points and decrease in

cost of funds of 10 basis points)

●

Credit quality metrics remained

strong throughout

the year – allowance coverage ratio increased to 1.22%

in 2025 compared to

1.10% in 2024 - net loan charge-offs were

14 basis points of average loans for 2025 compared

to 21 basis points for 2024

●

Noninterest income increased

by $6.4 million, or 8.4%, due to higher mortgage banking revenues

of $2.6 million, wealth

management fees of $1.6 million, other income of $1.5 million, and deposit fees of

$0.7 million

●

Noninterest expense increased

$1.7 million, or 1.0%, primarily due to higher compensation expense

(primarily performance-

based pay and health care cost) partially offset by lower pension

expense and higher gains from sale of banking

facilities

Balance Sheet

●

Loan balances decreased $83.6 million,

or 3.1% (average), and decreased $105.4

million, or 4.0% (end of period)

●

Average deposit balances increased

$53.9 million, or 1.5% driven by strong core

deposit growth

●

Tangible

book value per diluted share (non-GAAP financial measure)

increased by $3.38, or 14.3%

“2025 was an exceptional year for Capital City Bank,” said William

G. Smith, Jr., Capital City Bank

Group Chairman and

CEO.

“Another record year of earnings generated strong shareholder returns,

highlighted by a 14.3% increase in tangible book value

per share and a 13.6% increase in the dividend. Our results were driven by our

long-time commitment to the fundamentals — core

deposits, disciplined credit management and healthy liquidity and

capital.

I want to congratulate and thank our associates for their

outstanding results and unwavering commitment to our clients and

communities. I look forward to another successful year in 2026.”

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net

interest income for the fourth quarter of 2025 totaled $43.4 million compared

to $43.6 million for the third

quarter of 2025 and $41.2 million for the fourth quarter of 2024.

Compared to the third quarter of 2025, the decrease was due to a

$0.7 million decrease in loan income and a $0.5 million increase in interest expense,

partially offset by a $0.6 million increase in

investment securities income and a $0.4 million increase in overnight

funds income.

Compared to the fourth quarter of 2024, the

increase was due to a $3.1 million increase in investment securities income,

a $0.8 million increase in overnight funds income, and a

$0.3 million decrease in interest expense, partially offset by a decrease

of $1.8

million in loan income.

For 2025, tax-equivalent net interest income totaled $171.8 million

compared to $159.2 million for 2024 with the increase

attributable to a $10.3

million increase in investment securities income, a $3.1 million increase in overnight

funds income, and a $2.6

million decrease in deposit interest expense,

partially offset by a $3.5 million decrease in loan income.

New investment purchases at

higher yields drove the increase in investment securities income.

Higher average deposit balances contributed to the increase in

overnight funds income.

The decrease in deposit interest expense reflected the decrease in our deposit rates

throughout 2025.

The

decrease in loan income was due to lower loan balances that were partially

offset by favorable rate repricing.

Our net interest margin for the fourth quarter of 2025 was 4.26%,

a decrease of 8 basis points

from the third quarter of 2025 and an

increase of 9 basis points over the fourth quarter of 2024.

Compared to the third quarter of 2025, the decrease in the margin

reflected a lower yield on earning assets due to an unfavorable shift in mix

and lower interest rates.

For 2025, our net interest

margin of 4.28% reflected a 20 basis point increase over

2024.

The improvement in the net interest margin compared to both prior

year periods was primarily due to a higher yield for investment securities driven

by new purchases at higher yields, favorable loan

repricing, and lower deposit cost.

For the fourth quarter of 2025, our cost of funds was 82 basis points, an increase

of 4 basis points

over the third quarter of 2025 and a 6 basis point decrease from the fourth quarter

of 2024.

Our cost of deposits (including

noninterest bearing accounts) was 82 basis points, 80 basis points, and

86 basis points, respectively, for the

same periods.

Provision for Credit Losses

We recorded

a provision expense for credit losses of $2.0 million for the fourth quarter of 2025

compared to $1.9 million for the

third quarter of 2025 and $0.7 million for the fourth quarter of 2024.

For 2025, we recorded a provision expense for credit losses of

$5.3 million compared to $4.0 million in 2024.

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 fourth quarter of 2025 totaled $20.1 million

compared to $22.3 million for the third quarter of 2025

and

$18.8 million for the fourth quarter of 2024.

Compared to the third quarter of 2025, the $2.2 million, or 10.0%, decrease was

primarily attributable to a $0.8 million decrease in other income, a $0.6

million decrease in mortgage banking revenues and a $0.6

million decrease in wealth management fees.

The decline in other income reflected the $0.7 million gain from the sale of our

insurance subsidiary in the third quarter of 2025.

The decline in mortgage banking revenues was due to a lower gain on sale

margin.

The decrease in wealth management fees was attributable to lower retail brokerage fees.

The $1.3 million, or 7.2%,

increase over the fourth quarter of 2024 was primarily due to a $1.0 million increase

in mortgage banking revenues which reflected

higher production volume and gain on sale margin.

For 2025, noninterest income totaled $82.4 million compared to $76.0 million

for 2024, attributable to increases in mortgage

banking revenues of $2.6 million, wealth management fees of $1.6 million,

other income of $1.5 million, and deposit fees of $0.7

million.

Higher production volume and gain on sale margin drove

the improvement in mortgage banking revenues.

The increase in

wealth management fees was due to higher trust fees and reflected a combination

of new business, higher account valuations, and

fee adjustments.

The increase in other income reflected the aforementioned $0.7

million gain from the sale of our insurance

subsidiary in 2025.

Fee adjustments implemented in mid-2025 contributed to the increase in deposit

fees and other income.

Noninterest expense for the fourth quarter of 2025 totaled $42.9

million comparable to the third quarter of 2025 and $41.8 million

for the fourth quarter of 2024.

Compared to the third quarter of 2025, a $2.3 million increase in compensation

expense was offset

by a $2.4 million decrease in other expense.

The increase in compensation was driven by higher performance-based

pay and the

decrease in other expense was primarily attributable to a $1.5 million pension

settlement gain and to a lesser extent lower

professional fees and processing fees.

Compared to the fourth quarter of 2024, the $1.1 million increase was primarily

attributable

to a $2.3 million increase in compensation expense partially offset

by a $1.3

million decrease in other expense.

The increase in

compensation reflected higher performance-based pay and to a lesser extent

higher health insurance cost.

The decrease in other

expense was primarily due to the aforementioned pension settlement gain

of $1.5 million and a $0.8 million decrease in professional

fees, partially offset by a $1.1 million increase in other

real estate expense which reflected gains from the sale of banking facilities

in the fourth quarter of 2024.

For 2025, noninterest expense totaled $167.0 million compared to

$165.3 million for 2024 with the $1.7 million, or 1.0%, increase

primarily due to a $6.5 million increase in compensation expense that was partially

offset by a $4.7 million decrease in other

expense.

The increase in compensation was driven by higher performance-based

pay and health insurance cost, and to a lesser

extent an increase in 401k matching expense.

The decrease in other expense was primarily due to a $3.4 million decrease in other

real estate expense due to higher gains from the sale of banking facilities in

2025 and a $3.7 million decrease in pension expense

(non-service component), partially offset by increases in processing

expense of $1.2

million (outsource of core processing system)

and charitable contribution expense of $0.9 million.

The variance in pension expense included the aforementioned $1.5 million

pension settlement gain that occurred in the fourth quarter of 2025.

Income Taxes

We realized income

tax expense of $4.9 million (effective rate of 26.3%) for the

fourth quarter of 2025 compared to $5.1 million

(effective rate of 24.4%) for the third quarter of 2025

and $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024.

For

2025, we realized income tax expense of $20.2 million (effective

rate of 24.7%) compared to $13.9 million (effective rate of 21.2%)

for 2024.

The increase in the effective tax rate for the fourth quarter of 2025 was attributable

to a higher than projected

Internal

Revenue Code (“IRC”) Section 162(m) limitation related to current

and future compensation.

A lower level of tax benefit accrued

from a solar tax credit equity fund drove the increase in our effective

tax rate compared to 2024.

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 $4.036 billion for the fourth quarter of 2025, an increase of $54.4 million,

or 1.4%, over the third

quarter of 2025, and an increase of $114.0

million, or 2.9%, over the fourth quarter of 2024.

Compared to the third quarter of 2025,

the change in the earning asset mix reflected an $81.4 million increase

in overnight funds sold and a $12.2 million increase in

investment securities, partially offset by a $38.1

million decrease in loans HFI and a $1.0 million decrease in loans held for sale

(“HFS”).

Compared to the fourth quarter of 2024, the change in earning asset mix reflected

a $139.3 million increase in overnight

funds sold and a $90.8 million increase in investment securities, partially

offset by a $109.3 million decrease in loans HFI and a

$6.8 million decrease in loans HFS.

Average loans

HFI decreased by $38.1 million, or 1.5%, from the third quarter of 2025 and decreased

by $109.3 million, or 4.1%,

from the fourth quarter of 2024.

Compared to the third quarter of 2025, the decline was primarily attributable

to decreases in

commercial real estate loans of $15.9 million, residential real estate loans of $12.9

million, and consumer loans (primarily indirect

auto) of $8.8 million.

Compared to the fourth quarter of 2024, the decline was driven by decreases in construction

loans of $61.2

million, consumer loans (primarily auto indirect loans) of $23.3 million, and

commercial real estate loans of $22.7 million.

Loans HFI at December 31, 2025, decreased by $35.9 million,

or 1.4%, from September 30, 2025, and decreased by $105.4 million,

or 4.0%, from December 31, 2024.

Compared to September 30, 2025, the decline was primarily due to decreases in commercial

real estate loans of $16.6 million, residential real estate loans of $16.4 million,

and construction loans of $9.8 million.

Compared to

December 31, 2024, the decline was driven by decreases in construction

loans of $73.1 million, consumer loans (primarily indirect

auto) of $17.2 million, and commercial real estate loans of $10.4 million.

Allowance for Credit Losses

At December 31, 2025, the allowance for credit losses for loans HFI totaled

$31.0 million compared to $30.2 million at September

30, 2025 and $29.3 million at December 31, 2024.

Activity within the allowance is provided on Page 14.

The increase in the

allowance over both prior periods was primarily attributable to qualitative

factor adjustments that were partially offset by lower loan

balances.

Net loan charge-offs were 18 basis points of

average loans for the fourth quarter of 2025 comparable to the third quarter

of 2025 and 25 basis points for the fourth quarter of 2024.

For 2025, net loan charge-offs were 14 basis points

compared to 21 basis

points for 2024.

At December 31, 2025, the allowance represented 1.22% of loans HFI compared

to 1.17% at September 30, 2025,

and 1.10% at December 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled

$10.6 million at December 31, 2025, compared to $10.0

million at September 30, 2025, and $6.7 million at December 31,

2024.

At December 31, 2025, nonperforming assets as a

percentage of total assets was 0.24%, compared to 0.23% at September

30, 2025 and 0.15% at December 31, 2024.

Nonaccrual

loans totaled $8.7 million at December 31, 2025, a $0.5 million increase over

September 30, 2025 and a $2.4 million increase over

December 31, 2024.

Classified loans totaled $14.3 million at December 31, 2025, a $12.2 million

decrease from September 30,

2025,

and a $5.6 million decrease from December 31, 2024.

Deposits

Average total

deposits were $3.648 billion for the fourth quarter of 2025, an increase of $35.2 million, or

1.0%, over the third

quarter of 2025 and an increase of $47.1 million, or 1.3%, over the fourth quarter

of 2024.

Compared to the third quarter of 2025,

the increase was primarily attributable to higher public funds balances

(primarily NOW accounts) due to the seasonal inflow of

funds from municipal clients as they receive their tax receipts beginning in late November

The increase over the fourth quarter of

2024

was primarily due to growth in core deposit balances (primarily business NOW accounts)

At December 31, 2025, total deposits were $3.662 billion, an increase of $47.4

million, or 1.3%, over September 30 2025, and a

decrease of $9.7 million, or 0.3%, from December 31, 2024.

The decrease compared to September 30, 2025 reflected the

aforementioned seasonal inflow of public funds partially offset by

lower core deposit balances, primarily noninterest bearing and

NOW business accounts.

Public funds totaled $654.7 million at December 31, 2025, $497.9

million at September 30, 2025, and

$660.9 million at December 31, 2024.

Liquidity

We maintained

an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds

purchased) sold

position of $437.5 million in the fourth quarter of 2025 compared to $356.2

million in the third quarter of 2025 and $298.3 million

in the fourth quarter of 2024.

Compared to the third quarter of 2025, the increase reflected growth

in average public fund deposit

balances and lower average loan balances.

The increase over the fourth quarter of 2024 was primarily due to higher average core

deposit balances and lower average loan balances, partially offset

by higher average investment security balances.

At December 31, 2025, we had the ability to generate approximately $1.523

billion (excludes overnight funds position of $467.8

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 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 December 31, 2025, the weighted-

average maturity and duration of our portfolio were 2.57 years and 2.12

years, respectively, and the available

-for-sale portfolio had

a net unrealized after-tax loss of $9.4 million.

Capital

Shareowners’ equity was $552.9 million at December 31, 2025,

compared to $540.6 million at September 30, 2025, and $495.3

million at December 31, 2024.

For the full year 2025, shareowners’ equity was positively impacted

by net income attributable to

shareowners of $61.6 million, a net $9.1 million decrease in the accumulated

other comprehensive loss, the issuance of common

stock of $3.5 million, and stock compensation accretion of $2.4 million.

The net favorable change in accumulated other

comprehensive loss reflected a $10.7

million decrease in the investment securities loss that was partially offset

by a $1.3 million

decrease in the fair value of the interest rate swap related to subordinated debt

and a $0.3 million decrease in the pension plan loss

from the year-end re-measurement of the plan.

Shareowners’ equity was reduced by common stock dividends

of $17.1 million

($1.00 per share) and net adjustments totaling $1.9 million related to transactions

under our stock compensation plans.

At December 31, 2025, our total risk-based capital ratio was 21.45%

compared to 20.59% at September 30, 2025, and 18.64% at

December 31, 2024.

Our common equity tier 1 capital ratio was 18.54%, 17.73%, and 15.54%, respectively,

on these dates.

Our

leverage ratio was 11.77%, 11.

64%, and 11.05%, respectively,

on these dates.

At December 31, 2025, 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 December 31, 2025, compared to 10.66% and 9.51% at

September 30, 2025, and December 31, 2024, respectively.

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 $4.4

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 108

ATMs/ITMs

in Florida, Georgia

and Alabama.

For more information about Capital City Bank Group, Inc., visit

https://www.ccbg.com/

FORWARD

-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans

and expectations that are subject to uncertainties and

risks, which could cause our future results to differ materially.

The words “may,” “could,” “should,”

“would,” “believe,”

“anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,”

“goal,” and similar expressions are intended to identify

forward-looking statements.

The following factors, among others, could cause our actual results to differ:

the effects of and changes

in trade and monetary and fiscal policies and laws, including the interest rate policies of

the Federal Reserve Board; inflation,

interest rate, market and monetary fluctuations; local, regional, national, and international

economic conditions and the impact they

may have on us and our clients and our assessment of that impact; 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,

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, 2024 and our other filings with the

SEC, which are available at the SEC’s internet

site (https://www.sec.gov).

Forward-looking statements in this Press Release speak

only as of the date of the Press Release, and we assume no obligation to update

forward-looking statements or the reasons why actual

results could differ, except as may

be required by law.

USE OF NON-GAAP FINANCIAL MEASURES

Unaudited

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.

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)

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Shareowners' Equity (GAAP)

552,851

540,635

526,423

512,575

495,317

Less: Goodwill and Other Intangibles (GAAP)

89,095

92,693

92,733

92,773

Tangible Shareowners' Equity (non-GAAP)

463,756

451,540

433,730

419,842

402,544

Total Assets (GAAP)

4,385,765

4,323,774

4,391,753

4,461,233

4,324,932

Less: Goodwill and Other Intangibles (GAAP)

89,095

92,693

92,733

92,773

Tangible Assets (non-GAAP)

4,296,670

4,234,679

4,299,060

4,368,500

4,232,159

Tangible Common Equity Ratio (non-GAAP)

A/B

10.79%

10.66%

10.09%

9.61%

9.51%

Actual Diluted Shares Outstanding (GAAP)

17,154,586

17,115,336

17,097,986

17,072,330

17,018,122

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

27.03

26.38

25.37

24.59

23.65

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

Twelve Months Ended

(Dollars in thousands, except per share data)

Dec 31, 2025

Sep 30, 2025

Dec 31, 2024

Dec 31, 2025

Dec 31, 2024

EARNINGS

Net Income Attributable to Common Shareowners

13,705

15,950

13,090

61,557

52,915

Diluted Net Income Per Share

0.80

0.93

0.77

3.60

3.12

PERFORMANCE

Return on Average Assets (annualized)

1.25

1.47

1.22

1.42

1.25

Return on Average Equity (annualized)

9.78

11.67

10.60

11.51

11.18

Net Interest Margin

4.26

4.34

4.17

4.28

4.08

Noninterest Income as % of Operating Revenue

31.68

33.89

31.34

32.42

32.34

Efficiency Ratio

67.50

65.09

69.74

65.71

70.30

CAPITAL ADEQUACY

Tier 1 Capital

20.20

19.33

17.46

20.20

17.46

Total Capital

21.45

20.59

18.64

21.45

18.64

Leverage

11.77

11.64

11.05

11.77

11.05

Common Equity Tier 1

18.54

17.73

15.54

18.54

15.54

Tangible Common Equity

(1)

10.79

10.66

9.51

10.79

9.51

Equity to Assets

12.61

12.50

11.45

12.61

11.45

ASSET QUALITY

Allowance as % of Non-Performing Loans

360.69

368.54

464.14

360.69

464.14

Allowance as a % of Loans HFI

1.22

1.17

1.10

1.22

1.10

Net Charge-Offs as % of Average Loans HFI

0.18

0.25

0.14

0.21

Nonperforming Assets as % of Loans HFI and OREO

0.41

0.39

0.25

0.41

0.25

Nonperforming Assets as % of Total Assets

0.24

0.23

0.15

0.24

0.15

STOCK PERFORMANCE

High

45.63

44.69

40.86

45.63

40.86

Low

38.27

38.00

33.00

32.38

25.45

42.57

41.79

36.65

42.57

36.65

Average Daily Trading Volume

54,533

42,187

27,484

37,371

31,390

(1)

Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a

reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT

OF FINANCIAL CONDITION

Unaudited

2025

2024

(Dollars in thousands)

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

ASSETS

Cash and Due From Banks

62,189

68,397

78,485

78,521

70,543

Funds Sold and Interest Bearing Deposits

467,782

397,502

394,917

446,042

321,311

Total Cash and Cash Equivalents

529,971

465,899

473,402

524,563

391,854

Investment Securities Available for Sale

643,922

577,333

533,457

461,224

403,345

Investment Securities Held to Maturity

377,446

404,659

462,599

517,176

567,155

Other Equity Securities

2,069

2,145

3,242

2,315

2,399

Total Investment Securities

1,023,437

984,137

999,298

980,715

972,899

Loans Held for Sale ("HFS"):

21,695

24,204

19,181

21,441

28,672

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

180,341

179,018

180,008

184,393

189,208

Real Estate - Construction

146,920

156,756

174,115

192,282

219,994

Real Estate - Commercial

768,731

785,290

802,504

806,942

779,095

Real Estate - Residential

1,020,942

1,037,324

1,046,368

1,040,594

1,028,498

Real Estate - Home Equity

240,897

234,111

228,201

225,987

220,064

Consumer

182,327

185,847

197,483

206,191

199,479

Other Loans

4,748

2,283

1,552

3,227

14,006

Overdrafts

1,212

1,378

1,259

1,154

1,206

Total Loans Held for Investment

2,546,118

2,582,007

2,631,490

2,660,770

2,651,550

Allowance for Credit Losses

(31,001)

(30,202)

(29,862)

(29,734)

(29,251)

Loans Held for Investment, Net

2,515,117

2,551,805

2,601,628

2,631,036

2,622,299

Premises and Equipment, Net

79,457

79,748

79,906

80,043

81,952

Goodwill and Other Intangibles

89,095

92,693

92,733

92,773

Other Real Estate Owned

1,936

1,831

132

367

Other Assets

125,057

127,055

125,513

130,570

134,116

Total Other Assets

295,545

297,729

298,244

303,478

309,208

Total Assets

4,385,765

4,323,774

4,391,753

4,461,233

4,324,932

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,251,886

1,303,786

1,332,080

1,363,739

1,306,254

NOW Accounts

1,322,114

1,222,861

1,284,137

1,292,654

1,285,281

Money Market Accounts

390,888

405,846

408,666

445,999

404,396

Savings Accounts

503,485

500,323

504,331

511,265

506,766

Certificates of Deposit

193,939

182,096

175,639

170,233

169,280

Total Deposits

3,662,312

3,614,912

3,704,853

3,783,890

3,671,977

Repurchase Agreements

22,018

25,629

21,800

22,799

26,240

Other Short-Term Borrowings

28,074

14,615

12,741

14,401

2,064

Subordinated Notes Payable

42,582

52,887

Other Long-Term Borrowings

680

794

Other Liabilities

77,248

84,721

82,674

73,887

75,653

Total Liabilities

3,832,914

3,783,139

3,865,330

3,948,658

3,829,615

SHAREOWNERS' EQUITY

Common Stock

171

170

Additional Paid-In Capital

41,650

40,067

39,527

38,576

37,684

Retained Earnings

508,443

499,176

487,665

476,715

463,949

Accumulated Other Comprehensive Income (Loss), Net

of Tax

2,587

1,221

(940)

(2,887)

(6,486)

Total Shareowners' Equity

552,851

540,635

526,423

512,575

495,317

Total Liabilities, Temporary Equity and Shareowners' Equity

4,385,765

4,323,774

4,391,753

4,461,233

4,324,932

OTHER BALANCE SHEET DATA

Earning Assets

4,059,032

3,987,850

4,044,886

4,108,969

3,974,431

Interest Bearing Liabilities

2,503,780

2,394,632

2,450,576

2,511,032

2,447,708

Book Value Per Diluted Share

32.23

31.59

30.79

30.02

29.11

Tangible Book Value

Per Diluted Share

(1)

27.03

26.38

25.37

24.59

23.65

Actual Basic Shares Outstanding

17,084

17,069

17,066

17,055

16,975

Actual Diluted Shares Outstanding

17,155

17,115

17,098

17,072

17,018

(1)

Tangible book value per diluted share is a non-GAAP financial measure. For additional

information, including a reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENT

OF OPERATIONS

Unaudited

2025

2024

Twelve Months

Ended December 31,

(Dollars in thousands, except per share data)

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

2025

2024

INTEREST INCOME

Loans, including Fees

39,565

40,279

40,872

40,478

41,453

161,194

164,933

Investment Securities

7,768

7,188

6,678

5,808

4,694

27,442

17,097

Federal Funds Sold and Interest Bearing Deposits

4,382

3,964

3,909

3,496

3,596

15,751

12,627

Total Interest Income

51,715

51,431

51,459

49,782

49,743

204,387

194,657

INTEREST EXPENSE

Deposits

7,544

7,265

7,405

7,383

7,766

29,597

32,162

Repurchase Agreements

134

158

156

164

199

612

838

Other Short-Term Borrowings

217

179

117

571

242

Subordinated Notes Payable

451

383

530

560

581

1,924

2,449

Other Long-Term Borrowings

Total Interest Expense

8,355

7,874

8,275

8,235

8,640

32,739

35,719

Net Interest Income

43,360

43,557

43,184

41,547

41,103

171,648

158,938

Provision for Credit Losses

1,995

1,881

620

768

701

5,264

4,031

Net Interest Income after Provision for Credit Losses

41,365

41,676

42,564

40,779

40,402

166,384

154,907

NONINTEREST INCOME

Deposit Fees

5,811

5,877

5,320

5,061

5,207

22,069

21,346

Bank Card Fees

3,684

3,733

3,774

3,514

3,697

14,705

14,707

Wealth Management Fees

4,525

5,173

5,206

5,763

5,222

20,667

19,113

Mortgage Banking Revenues

4,155

4,794

4,190

3,820

3,118

16,959

14,343

Other

1,928

2,754

1,524

1,749

1,516

7,955

6,467

Total Noninterest Income

20,103

22,331

20,014

19,907

18,760

82,355

75,976

NONINTEREST EXPENSE

Compensation

28,384

26,056

26,490

26,248

26,108

107,178

100,721

Occupancy, Net

7,052

7,037

7,071

6,793

6,893

27,953

27,982

Other

7,431

9,823

8,977

5,660

8,781

31,891

36,612

Total Noninterest Expense

42,867

42,916

42,538

38,701

41,782

167,022

165,315

OPERATING PROFIT

18,601

21,091

20,040

21,985

17,380

81,717

65,568

Income Tax Expense

4,896

5,141

4,996

5,127

4,219

20,160

13,924

Net Income

13,705

15,950

15,044

16,858

13,161

61,557

51,644

Pre-Tax (Income) Loss Attributable to Noncontrolling Interest

(71)

1,271

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

13,705

15,950

15,044

16,858

13,090

61,557

52,915

PER COMMON SHARE

Basic Net Income

0.80

0.93

0.88

0.99

0.77

3.61

3.12

Diluted Net Income

0.80

0.93

0.88

0.99

0.77

3.60

3.12

Cash Dividend

0.26

0.24

0.23

1.00

0.88

AVERAGE

Basic

17,070

17,068

17,056

17,027

16,946

17,055

16,943

Diluted

17,140

17,114

17,088

17,044

16,990

17,102

16,969

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND CREDIT QUALITY

Unaudited

2025

2024

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

2025

2024

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

30,202

29,862

29,734

29,251

29,836

29,251

29,941

Transfer from Other (Assets) Liabilities

(50)

Provision for Credit Losses

1,984

1,550

718

1,083

1,085

5,335

5,025

Net Charge-Offs (Recoveries)

1,185

1,210

590

600

1,670

3,585

5,665

Balance at End of Period

31,001

30,202

29,862

29,734

29,251

31,001

29,251

As a % of Loans HFI

1.22%

1.17%

1.13%

1.12%

1.10%

1.22%

1.10%

As a % of Nonperforming Loans

360.69%

368.54%

463.01%

692.10%

464.14%

360.69%

464.14%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

2,095

1,738

1,832

2,155

2,522

2,155

3,191

Provision for Credit Losses

357

(94)

(323)

(367)

(48)

(1,036)

Balance at End of Period

(1)

2,107

2,095

1,738

1,832

2,155

2,107

2,155

ACL - DEBT SECURITIES

Provision for Credit Losses

(1)

(26)

(4)

(17)

(23)

CHARGE-OFFS

Commercial, Financial and Agricultural

167

373

168

499

782

1,512

Real Estate - Construction

Real Estate - Commercial

Real Estate - Residential

136

Real Estate - Home Equity

132

Consumer

925

954

914

865

1,307

3,658

5,233

Overdrafts

670

619

437

570

574

2,296

2,394

Total Charge-Offs

1,843

1,968

1,498

1,611

2,504

6,920

9,382

RECOVERIES

Commercial, Financial and Agricultural

117

103

331

379

Real Estate - Construction

Real Estate - Commercial

261

Real Estate - Residential

119

205

176

Real Estate - Home Equity

137

Consumer

246

369

456

481

352

1,552

1,480

Overdrafts

325

263

222

324

298

1,134

1,281

Total Recoveries

658

758

908

1,011

834

3,335

3,717

NET CHARGE-OFFS (RECOVERIES)

1,185

1,210

590

600

1,670

3,585

5,665

Net Charge-Offs as a % of Average Loans

HFI

(2)

0.18%

0.09%

0.25%

0.14%

0.21%

CREDIT QUALITY

Nonaccruing Loans

8,595

8,195

6,449

4,296

6,302

Other Real Estate Owned

1,936

1,831

132

367

Total Nonperforming Assets ("NPAs")

10,531

10,026

6,581

4,428

6,669

Past Due Loans 30-89 Days

7,017

5,468

4,523

3,735

4,311

Classified Loans

14,334

26,512

28,623

19,194

19,896

Nonperforming Loans as a % of Loans HFI

0.34%

0.32%

0.25%

0.16%

0.24%

NPAs as a % of Loans HFI and Other Real Estate

0.41%

0.39%

0.25%

0.17%

0.25%

NPAs as a % of Total

Assets

0.24%

0.23%

0.15%

0.10%

0.15%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

Fourth Quarter 2025

Third Quarter 2025

Second Quarter 2025

First Quarter 2025

Fourth Quarter 2024

December 2025 YTD

December 2024 YTD

(Dollars in thousands)

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

ASSETS:

Loans Held for Sale

24,261

374

6.11

25,276

425

6.68

22,668

475

8.40

24,726

490

8.04

31,047

976

7.89

24,234

1,764

7.28

27,306

2,776

6.72

Loans Held for Investment

(1)

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

2,677,396

40,521

6.07

2,622,877

159,589

6.08

2,706,461

162,385

6.03

Investment Securities

Taxable Investment Securities

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

914,353

4,688

2.04

996,222

27,399

2.75

923,253

17,073

1.85

Tax-Exempt Investment Securities

(1)

1,620

4.30

1,620

4.44

1,467

4.50

845

4.32

849

4.31

1,391

4.39

848

4.34

Total Investment Securities

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

915,202

4,697

2.04

997,613

27,460

2.75

924,101

17,110

1.85

Federal Funds Sold and Interest

Bearing Deposits

437,536

4,382

3.97

356,161

3,964

4.42

348,787

3,909

4.49

320,948

3,496

4.42

298,255

3,596

4.80

366,151

15,751

4.30

239,712

12,627

5.27

Total Earning Assets

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

3,921,900

49,790

5.05

4,010,875

204,564

5.10

3,897,580

194,898

5.00

Cash and Due From Banks

67,291

65,085

65,761

73,467

73,992

67,876

73,881

Allowance for Credit Losses

(30,922)

(30,342)

(30,492)

(30,008)

(30,107)

(30,443)

(29,902)

Other Assets

294,757

301,678

302,984

297,660

293,884

299,269

293,044

Total Assets

4,367,036

4,317,951

4,370,261

4,335,033

4,259,669

4,347,577

4,234,603

LIABILITIES:

Noninterest Bearing Deposits

1,303,266

1,314,560

1,342,304

1,317,425

1,323,556

1,319,336

1,336,601

NOW Accounts

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

1,182,073

3,826

1.29

1,227,316

15,441

1.26

1,183,962

16,835

1.42

Money Market Accounts

415,577

1,977

1.89

416,656

2,090

1.99

431,774

2,340

2.17

420,059

2,187

2.11

422,615

2,526

2.38

420,992

8,594

2.04

400,664

9,957

2.49

Savings Accounts

501,080

157

0.12

503,189

159

0.13

507,950

174

0.14

507,676

176

0.14

504,859

179

0.14

504,951

666

0.13

518,869

723

0.14

Time Deposits

191,626

1,355

2.80

179,802

1,234

2.72

172,982

1,141

2.65

170,367

1,166

2.78

167,321

1,235

2.94

178,756

4,896

2.74

157,342

4,647

2.95

Total Interest Bearing Deposits

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

2,276,868

7,766

1.36

2,332,015

29,597

1.27

2,260,837

32,162

1.42

Total Deposits

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

3,600,424

7,766

0.86

3,651,351

29,597

0.81

3,597,438

32,162

0.89

Repurchase Agreements

20,690

134

2.57

21,966

158

2.86

22,557

156

2.78

29,821

164

2.23

28,018

199

2.82

23,728

612

2.58

26,970

838

3.11

Other Short-Term Borrowings

20,954

217

4.09

12,753

1.82

10,503

179

6.82

7,437

117

6.39

6,510

5.06

12,949

571

4.40

4,882

242

4.94

Subordinated Notes Payable

42,582

451

4.15

42,582

383

3.52

51,981

530

4.03

52,887

560

4.23

52,887

581

4.30

47,466

1,924

4.00

52,887

2,449

4.56

Other Long-Term Borrowings

680

5.55

681

5.55

792

2.41

794

5.68

794

5.57

736

4.74

534

5.31

Total Interest Bearing Liabilities

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

2,365,077

8,640

1.45

2,416,894

32,739

1.35

2,346,110

35,719

1.52

Other Liabilities

78,520

85,422

76,138

65,211

73,130

76,385

71,964

Total Liabilities

3,810,936

3,775,735

3,842,678

3,821,632

3,761,763

3,812,615

3,754,675

Temporary Equity

6,763

6,712

SHAREOWNERS' EQUITY:

556,100

542,216

527,583

513,401

491,143

534,962

473,216

Total Liabilities, Temporary

Equity

and Shareowners' Equity

4,367,036

4,317,951

4,370,261

4,335,033

4,259,669

4,347,577

4,234,603

Interest Rate Spread

43,404

3.72

43,602

3.81

43,228

3.75

41,591

3.69

41,150

3.59

171,825

3.74

159,179

3.47

Interest Income and Rate Earned

(1)

51,759

5.08

51,476

5.12

51,503

5.12

49,826

5.06

49,790

5.05

204,564

5.10

194,898

5.00

Interest Expense and Rate Paid

(2)

8,355

0.82

7,874

0.78

8,275

0.82

8,235

0.84

8,640

0.88

32,739

0.82

35,719

0.92

Net Interest Margin

43,404

4.26

43,602

4.34

43,228

4.30

41,591

4.22

41,150

4.17

171,825

4.28

159,179

4.08

(1)

Interest and average rates are

calculated on a tax-equivalent basis using a 21% Federal tax rate.

(2)

Rate calculated based on average earning assets.