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):

July 22, 2025

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 July 22, 2025, Capital City Bank Group, Inc. (“CCBG”) issued an earnings press

release reporting CCBG’s financial

results for the three and six month periods ended June 30, 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 July 22, 2025

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:

July 22, 2025

By:

/s/ Jeptha E. Larkin

Jeptha E. Larkin,

Executive Vice President

and Chief Financial Officer

ex991

Capital City Bank Group, Inc.

Reports Second Quarter 2025 Results

TALLAHASSEE, Fla.

(July 22, 2025) – Capital City Bank Group, Inc. (NASDAQ: CCBG)

today reported net income attributable to

common shareowners of $15.0 million, or $0.88 per diluted share, for

the second quarter of 2025

compared to $16.9 million, or

$0.99 per diluted share, for the first quarter of 2025, and $14.2 million, or $0.

83 per diluted share, for the second quarter of 2024.

QUARTER HIGHLIGHTS (2

Quarter 2025

versus 1

Quarter 2025)

Income Statement

●

Tax-equivalent

net interest income totaled $43.2 million compared

to $41.6

million for the first quarter of 2025

Net interest margin increased

eight basis points to 4.30% (earning asset yield increased

by six basis points

and cost of funds

decreased two basis points to 82 basis points

)

●

Provision for credit losses decreased

by $0.1 million to $0.6 million for the second quarter - net loan

charge-offs were

comparable to the first quarter of 2025 at nine basis points (annualized) of

average loans – allowance coverage ratio increased

to 1.13% at June 30, 2025

●

Noninterest income increased

by $0.1 million, or 0.5%, reflecting higher

deposit and bankcard fees as well as mortgage fees

partially offset by lower wealth management fees

●

Noninterest expense increased

by $3.8 million, or 9.9%, primarily due to a $3.9 million net gain from

the sale of our operations

center building (reflected in other expense)

in the first quarter of 2025

Balance Sheet

●

Loan balances decreased by $13.3 million, or

0.5% (average), and decreased by $29.3 million, or

1.1% (end of period)

●

Deposit balances increased by $15.2 million,

or 0.4% (average), and decreased by $79.0 million, or

2.1% (end of period) due to

the seasonal decrease in our public fund balances

Noninterest bearing deposits averaged

36.5% of total deposits for the second quarter and 36.2% for the year

●

Tangible

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

increased by $0.78, or 3.2%

“Capital City delivered another strong quarter,

highlighted by sustained revenue growth and continued credit strength,”

said William

G. Smith, Jr, Capital City Bank Group Chairman

and CEO. “Our second quarter results reflect a 3.9% increase in net interest

income and an 8 basis point expansion in the net interest margin

to 4.30%.

Tangible book value per

share increased by 3.2%, and

we further strengthened our capital position, with our tangible capital ratio

increasing to 10.1%. We

remain focused on executing

strategies that drive consistent, profitable growth,

supported by a fortress balance sheet that provides resilience and strategic

flexibility.”

Discussion of Operating Results

Net Interest Income/Net Interest

Margin

Tax-equivalent net

interest income for the second quarter of 2025 totaled $43.2 million compared

to $41.6 million for the first

quarter of 2025 and $39.3 million for the second quarter of 2024.

Compared to the first quarter of 2025, the increase was driven by a

$0.9 million increase in investment securities income and a $0.4

million increase in overnight funds income.

One additional

calendar day in the second quarter of 2025 contributed to the increase.

Compared to the second quarter of 2024, the increase was

primarily due to a $2.7 million increase in investment securities income and

a $1.2

million decrease in deposit interest expense.

New investment purchases at higher yields drove the increase in investment

securities income for both prior period comparisons.

Further, the decrease in deposit interest expense

from the prior year period reflected the gradual decrease in our deposit rates, as

short term rates began declining in the second half of 2024.

For the first six months of 2025, tax-equivalent net interest income totaled

$84.8 million compared to $77.8 million for the same

period of 2024 with the increase primarily attributable to a $4.2 million

increase in investment securities income, a $1.9 million

increase in overnight funds income, and a $1.4 million decrease in deposit

interest expense.

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 aforementioned decrease in our deposit

rates.

Our net interest margin for the second quarter of 2025 was 4.30%,

an increase of eight basis points

over the first quarter of 2025

and

an increase of 28 basis points over the second quarter of 2024.

For the month of June 2025, our net interest margin was 4.36%.

For

the first six months of 2025, our net interest margin increased

by 25 basis points to 4.26% compared to the same period of 2024.

The increase in net interest margin over all prior periods reflected

a higher yield in the investment portfolio driven by new purchases

at higher yields.

Lower deposit cost also contributed to the improvement over both prior year periods.

For the second quarter of

2025, our cost of funds was 82 basis points, a decrease of two basis points from

the first quarter of 2025 and a 15-basis point

decrease from the second quarter of 2024.

Our cost of deposits (including noninterest bearing accounts) was 81 basis points, 82

basis points, and 95 basis points, respectively,

for the same periods.

Provision for Credit Losses

We recorded

a provision expense for credit losses of $0.6

million for the second quarter of 2025

compared to $0.8 million for the

first quarter of 2025 and $1.2 million for the second quarter of 2024.

For the first six months of 2025, we recorded a provision

expense for credit losses of $1.4 million compared to $2.1 million for

the first six months of 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 second quarter of 2025 totaled $20.0 million

compared to $19.9 million for the first quarter of 2025

and

$19.6 million for the second quarter of 2024.

The $0.1 million, or 0.5%, increase over the first quarter of 2025 was primarily

due to

a $0.4

million increase in mortgage banking revenues and a $0.3

million increase in deposit fees, partially offset by a $0.6 million

decrease in wealth management fees.

The increase in mortgage revenues was driven by an increase in production

volume.

Fee

adjustments made late in the second quarter of 2025 led to the increase

in deposit fees.

The decrease in wealth management fees

was attributable to a decrease in insurance commission revenue.

Compared to the second quarter of 2024, the $0.4 million, or 2.1%,

increase was primarily due to a $0.8 million increase in wealth management

fees, partially offset by a $0.2 million decrease in

mortgage banking revenues and a $0.1 million decrease in other

income.

The increase in wealth management fees reflected a $0.5

million increase in trust fees and a $0.4 million increase in retail brokerage

fees, partially offset by a $0.1 million decrease in

insurance commission revenue.

A combination of new business, higher account valuations, and fee increases

implemented in early

2025 drove the improvement in trust and retail brokerage fees.

For the first six months of 2025, noninterest income totaled $39.9 million compared

to $37.7 million for the same period of 2024,

primarily attributable to a $1.8 million increase in wealth management

fees and a $0.7 million increase in mortgage banking

revenues that was partially offset by a $0.2 million decrease in deposit

fees.

The increase in wealth management fees reflected

increases in retail brokerage fees of $1.0 million, trust fees of $0.7 million,

and insurance commission revenue of $0.1 million.

The

increases in retail brokerage and trust fees were attributable to a combination

of new business, higher account valuations, and fee

increases implemented in early 2025.

The increase in mortgage banking revenues was due to a higher gain on sale margin.

Noninterest expense for the second quarter of 2025 totaled $42.5

million compared to $38.7 million for the first quarter of 2025

and

$40.4

million for the second quarter of 2024.

The $3.8 million, or 9.9%, increase over the first quarter of 2025, reflected a

$3.3

million increase in other expense, a $0.3

million increase in occupancy expense, and a $0.2 million increase in compensation

expense.

The increase in other expense was driven by a $4.5 million increase in other real estate expense

which reflected lower

gains from the sale of banking facilities, primarily the sale of our operations center

building in the first quarter of 2025, partially

offset by a $0.5

million decrease in charitable contribution expense and a $0.6 million decrease in miscellaneous

expense.

The

slight increase in occupancy expense was due to higher software maintenance

agreement expense and maintenance/repairs for

buildings and furniture/fixtures.

The slight increase in compensation expense reflected a $0.1 million

increase in salary expense and

a $0.1 million increase in associate benefit expense.

Compared to the second quarter of 2024, the $2.1 million, or 5.2%, increase

was primarily due to a $2.1 million increase in compensation expense which

reflected a $1.3 million increase in salary expense and

a $0.8 million increase in associate benefit expense.

The increase in salary expense was primarily due to increases in incentive plan

expense of $0.9 million and base salaries of $0.4

million (merit based).

The increase in associate benefit expense was attributable to

a $0.6 million increase in associate insurance expense and a $0.2

million increase in stock compensation expense.

For the first six months of 2025, noninterest expense totaled $81.2 million

compared to $80.6 million for the same period of 2024

with the $0.6 million, or 0.8%, increase due to a $3.9 million increase in

compensation expense that was partially offset by a $3.2

million decrease in other expense and a $0.1 million decrease in occupancy

expense.

The increase in compensation was due to a

$2.5 million increase in salary expense and a $1.4 million increase in associate benefit

expense.

The increase in salary expense was

primarily due to increases in incentive plan expense of $1.2 million, base

salaries of $0.9 million (merit based), and commissions of

$0.7 million (retail brokerage and mortgage).

The increase in associate benefit expense was attributable to a higher

cost for

associate insurance.

The decrease in other expense was primarily due to a $4.5 million decrease in other real

estate expense due to

lower gains from the sale of banking facilities, and a $1.0 million decrease in

miscellaneous expense (non-service component of

pension expense), partially offset by increases in processing

expense of $1.1 million (outsource of core processing system),

charitable contribution expense of $0.7 million, and professional fees

of $0.5 million.

Income Taxes

We realized income

tax expense of $5.0

million (effective rate of 24.9%) for the second quarter of 2025 compared

to $5.1 million

(effective rate of 23.3%) for the first quarter of 2025 and

$3.2 million (effective rate of 18.5%) for the second quarter of 2024.

For

the first six months of 2025, we realized income tax expense of $10.1 million

(effective rate of 24.1%) compared to $6.7 million

(effective rate of 20.6%) for the same period of 2024.

A lower level of tax benefit accrued from a solar tax credit equity fund drove

the increase in our effective tax rate for all prior period comparisons.

Absent discrete items or new tax credit investments, we

expect our annual effective tax rate to approximate 24%

for 2025.

Discussion of Financial Condition

Earning Assets

Average earning

assets totaled $4.032 billion for the second quarter of 2025, an increase of $38.1 million,

or 1.0%, over the first

quarter of 2025, and an increase of $110.1

million, or 2.8%, over the fourth quarter of 2024.

The increase over both prior periods

was driven by higher average deposit balances (see below –

Deposits

Compared to the first quarter of 2025, the change in the

earning asset mix reflected a $27.8 million increase in overnight funds

and a $25.7 million increase in investment securities that was

partially offset by a $13.3 million decrease in loans HFI and

a $2.1

million decrease in loans held for sale (“HFS”).

Compared to

the fourth quarter of 2024, the change in the earning asset mix reflected a $92.8

million increase in investment securities and a

$50.5 million increase in overnight funds sold partially offset

by a $24.8 million decrease in loans HFI and a $8.4 million decrease

in loans HFS.

Average loans

HFI decreased by $13.3 million, or 0.5%, from the first quarter of 2025 and decreased

by $24.8 million, or 0.9%,

from the fourth quarter of 2024.

Compared to the first quarter of 2025, the decrease was due to decreases in

construction loans of

$24.6 million, consumer loans (primarily indirect auto) of $1.9 million,

and commercial loans of $3.4 million, partially offset by

increases to residential real estate loans of $10.2 million, commercial real estate loans

of $2.1 million, and home equity loans of

$4.1 million.

Compared to the fourth quarter of 2024, the decline was primarily attributable to decreases

in construction loans of

$33.2 million, commercial loans of $9.2 million, and consumer loans

(primarily indirect auto) of $4.0 million, partially offset by

increases in home equity loans of $10.8 million, residential real estate loans of

$9.9 million, and commercial real estate loans of

$1.9 million.

Loans HFI at June 30, 2025 decreased by $29.3 million, or 1.1%, from

March 31, 2025 and decreased by $20.1 million, or 0.8%,

from December 31, 2024.

Compared to the first quarter of 2025, the decline was primarily due to decreases

in construction loans of

$18.2 million, consumer loans (primarily indirect auto) of $8.7 million,

commercial loans of $4.4 million, and commercial real

estate loans of $4.4 million, partially offset by increases in residential real

estate loans of $5.8 million and home equity loans of $2.2

million.

Compared to December 31, 2024, the decrease was primarily attributable to decreases in

construction loans of $45.9

million, commercial loans of $9.2 million, and consumer loans (primarily

indirect auto) of $2.0 million, partially offset by increases

in commercial real estate loans of $23.4 million, residential real estate loans of

$17.9 million, and home equity loans of $8.1

million.

Allowance for Credit Losses

At June 30, 2025, the allowance for credit losses for loans HFI totaled

$29.9 million compared to $29.7 million at March 31, 2025

and $29.3 million at December 31, 2024.

Activity within the allowance is provided on Page 14.

The slight increase in the

allowance over March 31, 2025 and December 31, 2024 was primarily

attributable to qualitative factor adjustments that were

partially offset by lower loan balances.

Net loan charge-offs for both the second quarter of 2025

and the first quarter of 2025 were

comparable at nine basis points of average loans.

At June 30, 2025, the allowance represented 1.13% of loans HFI compared

1.12% at March 31, 2025, and 1.10% at December 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled

$6.6 million at June 30, 2025 compared to $4.4 million at

March 31, 2025 and $6.7 million at December 31, 2024.

At June 30, 2025, nonperforming assets as a percentage of total assets was

0.15%, compared to 0.10% at March 31, 2025 and 0.15% at December 31,

2024.

Nonaccrual loans totaled $6.4 million at June 30,

2025, a $2.2 million increase over March 31, 2025 and a $0.1 million increase

over December 31, 2024 with the increase over the

first quarter of 2025 primarily attributable to two home equity loans

totaling $1.8 million.

Classified loans totaled $28.6 million at

June 30, 2025, a $9.4 million increase over March 31, 2025 and a $8.7 million increase

over December 31, 2024.

The increase over

the prior periods was primarily due to the downgrade of four residential real

estate loans totaling $4.2 million and two commercial

real estate loans totaling $4.3 million.

Deposits

Average total

deposits were $3.681 billion for the second quarter of 2025, an increase of $15.2

million, or 0.4%, over the first

quarter of 2025 and an increase of $80.3 million, or 2.2%, over the fourth quarter

of 2024.

Compared to the first quarter of 2025,

the increase was attributable to higher core deposit balances (primarily noninterest

bearing checking and money market), partially

offset by a decline in public funds balances (primarily NOW accounts)

due to the seasonal reduction in those balances.

The

increase over the fourth quarter of 2024 reflected strong growth in core deposit

balances and a seasonal increase in public funds

balances (primarily NOW) which are received/deposited by those clients

starting in December and peak on average in the first

quarter.

At June 30, 2025, total deposits were $3.705 billion, a decrease of $79.0

million, or 2.1%, from March 31, 2025, and an increase of

$32.9 million, or 0.9%, over December 31, 2024.

The decrease from March 31, 2025 was primarily due to a seasonal decline in

public funds balances,

(primarily money market and noninterest bearing).

The increase over December 31, 2024 reflected higher

core deposit balances, primarily noninterest bearing accounts. Public

funds totaled $596.6 million at June 30, 2025, $648.0 million

at March 31, 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 $348.8 million in the second quarter of 2025

compared to $320.9 million in the first quarter of 2025 and $298.3 million

in the fourth quarter of 2024.

Compared to both prior periods, the increase reflected higher average deposit

and lower average

loans.

At June 30, 2025, we had the ability to generate approximately $1.603

billion (excludes overnight funds position of $395 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 June 30, 2025, the weighted-average

maturity and duration of our portfolio were 2.66 years and 2.14 years

respectively, and the available

-for-sale portfolio had a net

unrealized after-tax loss of $13.4 million.

Capital

Shareowners’ equity was $526.4 million at June 30, 2025 compared

to $512.6 million at March 31, 2025 and $495.3 million at

December 31, 2024.

For the first six months of 2025, shareowners’ equity was positively impacted by net

income attributable to

shareowners of $31.9 million, a net $5.5 million decrease in the accumulated

other comprehensive loss, the issuance of common

stock of $2.8 million, and stock compensation accretion of $0.9 million.

The net favorable change in accumulated other

comprehensive loss reflected a $6.4 million decrease in the investment securities

loss that was partially offset by a $0.9 million

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

Shareowners’ equity was reduced by common stock

dividends

of $8.2 million ($0.48 per share) and net adjustments totaling $1.8 million related to

transactions under our stock

compensation plans.

At June 30, 2025, our total risk-based capital ratio was 19.60% compared to

19.20% at March 31, 2025 and 18.64% at December

31, 2024.

Our common equity tier 1 capital ratio was 16.81%, 16.08%, and 15.54%, respectively,

on these dates.

Our leverage ratio

was 11.14%, 11.17%,

and 11.05%, respectively,

on these dates.

At June 30, 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 10.09%

at June 30, 2025 compared to 9.61% and 9.51% at March 31, 2025

and December 31,

2024, respectively.

If the unrealized loss for held-to-maturity securities of $9.9 million (after-tax)

was recognized in accumulated

other comprehensive loss, our adjusted tangible capital ratio would be

9.86%.

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,

securities brokerage services, and

financial advisory services, including the sale of life insurance, risk management

and asset protection services.

Our bank

subsidiary, Capital City Bank,

was founded in 1895 and now has 62 banking offices and 107 ATM

s/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; 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; 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; government intervention in the U.S. financial

system; 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)

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Jun 30, 2024

Shareowners' Equity (GAAP)

526,423

512,575

495,317

476,499

460,999

Less: Goodwill and Other Intangibles (GAAP)

92,693

92,733

92,773

92,813

92,853

Tangible Shareowners' Equity (non-GAAP)

433,730

419,842

402,544

383,686

368,146

Total Assets (GAAP)

4,391,753

4,461,233

4,324,932

4,225,316

4,225,695

Less: Goodwill and Other Intangibles (GAAP)

92,693

92,733

92,773

92,813

92,853

Tangible Assets (non-GAAP)

4,299,060

4,368,500

4,232,159

4,132,503

4,132,842

Tangible Common Equity Ratio (non-GAAP)

A/B

10.09%

9.61%

9.51%

9.28%

8.91%

Actual Diluted Shares Outstanding (GAAP)

17,097,986

17,072,330

17,018,122

16,980,686

16,970,228

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

25.37

24.59

23.65

22.60

21.69

CAPITAL CITY BANK

GROUP,

INC.

EARNINGS HIGHLIGHTS

Unaudited

Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

Jun 30, 2025

Mar 31, 2025

Jun 30, 2024

Jun 30, 2025

Jun 30, 2024

EARNINGS

Net Income Attributable to Common Shareowners

15,044

16,858

14,150

31,902

26,707

Diluted Net Income Per Share

0.88

0.99

0.83

1.87

1.57

PERFORMANCE

Return on Average Assets (annualized)

1.38

1.58

1.33

1.48

1.27

Return on Average Equity (annualized)

11.44

13.32

12.23

12.36

11.66

Net Interest Margin

4.30

4.22

4.02

4.26

4.01

Noninterest Income as % of Operating Revenue

31.67

32.39

33.30

32.03

32.69

Efficiency Ratio

67.26

62.93

68.61

65.13

69.81

CAPITAL ADEQUACY

Tier 1 Capital

18.38

18.01

16.31

18.38

16.31

Total Capital

19.60

19.20

17.50

19.60

17.50

Leverage

11.14

11.17

10.51

11.14

10.51

Common Equity Tier 1

16.81

16.08

14.44

16.81

14.44

Tangible Common Equity

(1)

10.09

9.61

8.91

10.09

8.91

Equity to Assets

11.99

11.49

10.91

11.99

10.91

ASSET QUALITY

Allowance as % of Non-Performing Loans

463.01

692.10

529.79

463.01

529.79

Allowance as a % of Loans HFI

1.13

1.12

1.09

1.13

1.09

Net Charge-Offs as % of Average Loans HFI

0.09

0.18

0.09

0.20

Nonperforming Assets as % of Loans HFI and OREO

0.25

0.17

0.23

0.25

0.23

Nonperforming Assets as % of Total Assets

0.15

0.10

0.15

STOCK PERFORMANCE

High

39.82

38.27

28.58

39.82

31.34

Low

32.38

33.00

25.45

32.38

25.45

39.35

35.96

28.44

39.35

28.44

Average Daily Trading Volume

27,397

24,486

29,861

25,988

30,433

(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)

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

ASSETS

Cash and Due From Banks

78,485

78,521

70,543

83,431

75,304

Funds Sold and Interest Bearing Deposits

394,917

446,042

321,311

261,779

272,675

Total Cash and Cash Equivalents

473,402

524,563

391,854

345,210

347,979

Investment Securities Available for Sale

533,457

461,224

403,345

336,187

310,941

Investment Securities Held to Maturity

462,599

517,176

567,155

561,480

582,984

Other Equity Securities

3,242

2,315

2,399

6,976

2,537

Total Investment Securities

999,298

980,715

972,899

904,643

896,462

Loans Held for Sale ("HFS"):

19,181

21,441

28,672

31,251

24,022

Loans Held for Investment ("HFI"):

Commercial, Financial, & Agricultural

180,008

184,393

189,208

194,625

204,990

Real Estate - Construction

174,115

192,282

219,994

218,899

200,754

Real Estate - Commercial

802,504

806,942

779,095

819,955

823,122

Real Estate - Residential

1,046,368

1,040,594

1,028,498

1,023,485

1,012,541

Real Estate - Home Equity

228,201

225,987

220,064

210,988

211,126

Consumer

197,483

206,191

199,479

213,305

234,212

Other Loans

1,552

3,227

14,006

461

2,286

Overdrafts

1,259

1,154

1,206

1,378

1,192

Total Loans Held for Investment

2,631,490

2,660,770

2,651,550

2,683,096

2,690,223

Allowance for Credit Losses

(29,862)

(29,734)

(29,251)

(29,836)

(29,219)

Loans Held for Investment, Net

2,601,628

2,631,036

2,622,299

2,653,260

2,661,004

Premises and Equipment, Net

79,906

80,043

81,952

81,876

81,414

Goodwill and Other Intangibles

92,693

92,733

92,773

92,813

92,853

Other Real Estate Owned

132

367

650

Other Assets

125,513

130,570

134,116

115,613

121,311

Total Other Assets

298,244

303,478

309,208

290,952

296,228

Total Assets

4,391,753

4,461,233

4,324,932

4,225,316

4,225,695

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,332,080

1,363,739

1,306,254

1,330,715

1,343,606

NOW Accounts

1,284,137

1,292,654

1,285,281

1,174,585

1,177,180

Money Market Accounts

408,666

445,999

404,396

401,272

413,594

Savings Accounts

504,331

511,265

506,766

507,604

514,560

Certificates of Deposit

175,639

170,233

169,280

164,901

159,624

Total Deposits

3,704,853

3,783,890

3,671,977

3,579,077

3,608,564

Repurchase Agreements

21,800

22,799

26,240

29,339

22,463

Other Short-Term Borrowings

12,741

14,401

2,064

7,929

3,307

Subordinated Notes Payable

42,582

52,887

Other Long-Term Borrowings

680

794

1,009

Other Liabilities

82,674

73,887

75,653

71,974

69,987

Total Liabilities

3,865,330

3,948,658

3,829,615

3,742,000

3,758,217

Temporary Equity

6,817

6,479

SHAREOWNERS' EQUITY

Common Stock

171

170

169

Additional Paid-In Capital

39,527

38,576

37,684

36,070

35,547

Retained Earnings

487,665

476,715

463,949

454,342

445,959

Accumulated Other Comprehensive Loss, Net of Tax

(940)

(2,887)

(6,486)

(14,082)

(20,676)

Total Shareowners' Equity

526,423

512,575

495,317

476,499

460,999

Total Liabilities, Temporary Equity and Shareowners' Equity

4,391,753

4,461,233

4,324,932

4,225,316

4,225,695

OTHER BALANCE SHEET DATA

Earning Assets

4,044,886

4,108,969

3,974,431

3,880,769

3,883,382

Interest Bearing Liabilities

2,450,576

2,511,032

2,447,708

2,339,311

2,344,624

Book Value Per Diluted Share

30.79

30.02

29.11

28.06

27.17

Tangible Book Value

Per Diluted Share

(1)

25.37

24.59

23.65

22.60

21.69

Actual Basic Shares Outstanding

17,066

17,055

16,975

16,944

16,942

Actual Diluted Shares Outstanding

17,098

17,072

17,018

16,981

16,970

(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

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

2025

2024

INTEREST INCOME

Loans, including Fees

40,872

40,478

41,453

41,659

41,138

81,350

81,821

Investment Securities

6,678

5,808

4,694

4,155

4,004

12,486

8,248

Federal Funds Sold and Interest Bearing Deposits

3,909

3,496

3,596

3,514

3,624

7,405

5,517

Total Interest Income

51,459

49,782

49,743

49,328

48,766

101,241

95,586

INTEREST EXPENSE

Deposits

7,405

7,383

7,766

8,223

8,579

14,788

16,173

Repurchase Agreements

156

164

199

221

217

320

418

Other Short-Term Borrowings

179

117

296

107

Subordinated Notes Payable

530

560

581

610

630

1,090

1,258

Other Long-Term Borrowings

Total Interest Expense

8,275

8,235

8,640

9,117

9,497

16,510

17,962

Net Interest Income

43,184

41,547

41,103

40,211

39,269

84,731

77,624

Provision for Credit Losses

620

768

701

1,206

1,204

1,388

2,124

Net Interest Income after Provision for Credit Losses

42,564

40,779

40,402

39,005

38,065

83,343

75,500

NONINTEREST INCOME

Deposit Fees

5,320

5,061

5,207

5,512

5,377

10,381

10,627

Bank Card Fees

3,774

3,514

3,697

3,624

3,766

7,288

7,386

Wealth Management Fees

5,206

5,763

5,222

4,770

4,439

10,969

9,121

Mortgage Banking Revenues

4,190

3,820

3,118

3,966

4,381

8,010

7,259

Other

1,524

1,749

1,516

1,641

1,643

3,273

3,310

Total Noninterest Income

20,014

19,907

18,760

19,513

19,606

39,921

37,703

NONINTEREST EXPENSE

Compensation

26,490

26,248

26,108

25,800

24,406

52,738

48,813

Occupancy, Net

7,071

6,793

6,893

7,098

6,997

13,864

13,991

Other

8,977

5,660

8,781

10,023

9,038

14,637

17,808

Total Noninterest Expense

42,538

38,701

41,782

42,921

40,441

81,239

80,612

OPERATING PROFIT

20,040

21,985

17,380

15,597

17,230

42,025

32,591

Income Tax Expense

4,996

5,127

4,219

2,980

3,189

10,123

6,725

Net Income

15,044

16,858

13,161

12,617

14,041

31,902

25,866

Pre-Tax (Income) Loss Attributable to Noncontrolling Interest

(71)

501

109

841

NET INCOME ATTRIBUTABLE

COMMON SHAREOWNERS

15,044

16,858

13,090

13,118

14,150

31,902

26,707

PER COMMON SHARE

Basic Net Income

0.88

0.99

0.77

0.84

1.87

1.58

Diluted Net Income

0.88

0.99

0.77

0.83

1.87

1.57

Cash Dividend

0.24

0.23

0.21

0.48

0.42

AVERAGE

Basic

17,056

17,027

16,946

16,943

16,931

17,042

16,941

Diluted

17,088

17,044

16,990

16,979

16,960

17,067

16,964

CAPITAL CITY BANK GROUP,

INC.

ALLOWANCE FOR CREDIT LOSSES ("ACL")

AND CREDIT QUALITY

Unaudited

2025

2024

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

2025

2024

ACL - HELD FOR INVESTMENT LOANS

Balance at Beginning of Period

29,734

29,251

29,836

29,219

29,329

29,251

29,941

Transfer from Other (Assets) Liabilities

(50)

Provision for Credit Losses

718

1,083

1,085

1,879

1,129

1,801

2,061

Net Charge-Offs (Recoveries)

590

600

1,670

1,262

1,239

1,190

2,733

Balance at End of Period

29,862

29,734

29,251

29,836

29,219

29,862

29,219

As a % of Loans HFI

1.13%

1.12%

1.10%

1.11%

1.09%

1.13%

1.09%

As a % of Nonperforming Loans

463.01%

692.10%

464.14%

452.64%

529.79%

463.01%

529.79%

ACL - UNFUNDED COMMITMENTS

Balance at Beginning of Period

1,832

2,155

2,522

3,139

3,121

2,155

3,191

Provision for Credit Losses

(94)

(323)

(367)

(617)

(417)

(52)

Balance at End of Period

(1)

1,738

1,832

2,155

2,522

3,139

1,738

3,139

ACL - DEBT SECURITIES

Provision for Credit Losses

(4)

(17)

(56)

115

CHARGE-OFFS

Commercial, Financial and Agricultural

168

499

331

400

242

682

Real Estate - Construction

Real Estate - Commercial

Real Estate - Residential

Real Estate - Home Equity

Consumer

914

865

1,307

1,315

1,061

1,779

2,611

Overdrafts

437

570

574

611

571

1,007

1,209

Total Charge-Offs

1,498

1,611

2,504

2,283

2,032

3,109

4,595

RECOVERIES

Commercial, Financial and Agricultural

117

103

176

192

100

Real Estate - Construction

Real Estate - Commercial

223

Real Estate - Residential

119

184

Real Estate - Home Equity

Consumer

456

481

352

405

313

937

723

Overdrafts

222

324

298

288

342

546

695

Total Recoveries

908

1,011

834

1,021

793

1,919

1,862

NET CHARGE-OFFS (RECOVERIES)

590

600

1,670

1,262

1,239

1,190

2,733

Net Charge-Offs as a % of Average Loans

HFI

(2)

0.09%

0.25%

0.19%

0.18%

0.09%

0.20%

CREDIT QUALITY

Nonaccruing Loans

6,449

4,296

6,302

6,592

5,515

Other Real Estate Owned

132

367

650

Total Nonperforming Assets ("NPAs")

6,581

4,428

6,669

7,242

6,165

Past Due Loans 30-89 Days

4,523

3,735

4,311

9,388

5,672

Classified Loans

28,623

19,194

19,896

25,501

25,566

Nonperforming Loans as a % of Loans HFI

0.25%

0.16%

0.24%

0.25%

0.21%

NPAs as a % of Loans HFI and Other Real Estate

0.25%

0.17%

0.25%

0.27%

0.23%

NPAs as a % of

Total Assets

0.15%

0.10%

0.15%

0.17%

0.15%

(1)

Recorded in other liabilities

(2)

Annualized

CAPITAL CITY BANK GROUP,

INC.

AVERAGE

BALANCE AND INTEREST RATES

Unaudited

Second Quarter 2025

First Quarter 2025

Fourth Quarter 2024

Third Quarter 2024

Second Quarter 2024

June 2025 YTD

June 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

22,668

475

8.40

24,726

490

8.04

31,047

976

7.89

24,570

720

7.49

26,281

517

5.26

23,692

965

8.21

26,797

1,080

5.62

Loans Held for Investment

(1)

2,652,572

40,436

6.11

2,665,910

40,029

6.09

2,677,396

40,521

6.07

2,693,533

40,985

6.09

2,726,748

40,683

6.03

2,659,204

80,465

6.10

2,727,688

80,879

5.99

Investment Securities

Taxable Investment Securities

1,006,514

6,666

2.65

981,485

5,802

2.38

914,353

4,688

2.04

907,610

4,148

1.82

918,989

3,998

1.74

994,068

12,468

2.52

935,658

8,237

1.76

Tax-Exempt Investment Securities

(1)

1,467

4.50

845

4.32

849

4.31

846

4.33

843

4.36

1,158

4.43

850

4.35

Total Investment Securities

1,007,981

6,683

2.65

982,330

5,811

2.38

915,202

4,697

2.04

908,456

4,158

1.82

919,832

4,007

1.74

995,226

12,494

2.52

936,508

8,255

1.76

Federal Funds Sold and Interest

Bearing Deposits

348,787

3,909

4.49

320,948

3,496

4.42

298,255

3,596

4.80

256,855

3,514

5.44

262,419

3,624

5.56

334,944

7,405

4.46

201,454

5,517

5.51

Total Earning Assets

4,032,008

51,503

5.12

3,993,914

49,826

5.06

3,921,900

49,790

5.05

3,883,414

49,377

5.06

3,935,280

48,831

4.99

4,013,066

101,329

5.09

3,892,447

95,731

4.94

Cash and Due From Banks

65,761

73,467

73,992

70,994

74,803

69,593

75,283

Allowance for Credit Losses

(30,492)

(30,008)

(30,107)

(29,905)

(29,564)

(30,251)

(29,797)

Other Assets

302,984

297,660

293,884

291,359

291,669

300,336

293,473

Total Assets

4,370,261

4,335,033

4,259,669

4,215,862

4,272,188

4,352,744

4,231,406

LIABILITIES:

Noninterest Bearing Deposits

1,342,304

1,317,425

1,323,556

1,332,305

1,346,546

1,329,933

1,345,367

NOW Accounts

1,225,697

3,750

1.23

1,249,955

3,854

1.25

1,182,073

3,826

1.29

1,145,544

4,087

1.42

1,207,643

4,425

1.47

1,237,759

7,604

1.24

1,204,337

8,922

1.49

Money Market Accounts

431,774

2,340

2.17

420,059

2,187

2.11

422,615

2,526

2.38

418,625

2,694

2.56

407,387

2,752

2.72

425,949

4,527

2.14

380,489

4,737

2.50

Savings Accounts

507,950

174

0.14

507,676

176

0.14

504,859

179

0.14

512,098

180

0.14

519,374

176

0.14

507,813

350

0.14

529,374

364

0.14

Time Deposits

172,982

1,141

2.65

170,367

1,166

2.78

167,321

1,235

2.94

163,462

1,262

3.07

160,078

1,226

3.08

171,682

2,307

2.71

149,203

2,150

2.90

Total Interest Bearing Deposits

2,338,403

7,405

1.27

2,348,057

7,383

1.28

2,276,868

7,766

1.36

2,239,729

8,223

1.46

2,294,482

8,579

1.50

2,343,203

14,788

1.27

2,263,403

16,173

1.44

Total Deposits

3,680,707

7,405

0.81

3,665,482

7,383

0.82

3,600,424

7,766

0.86

3,572,034

8,223

0.92

3,641,028

8,579

0.95

3,673,136

14,788

0.81

3,608,770

16,173

0.90

Repurchase Agreements

22,557

156

2.78

29,821

164

2.23

28,018

199

2.82

27,126

221

3.24

26,999

217

3.24

26,169

320

2.47

26,362

418

3.19

Other Short-Term Borrowings

10,503

179

6.82

7,437

117

6.39

6,510

5.06

2,673

7.63

6,592

4.16

8,978

296

6.64

5,176

107

4.16

Subordinated Notes Payable

51,981

530

4.03

52,887

560

4.23

52,887

581

4.30

52,887

610

4.52

52,887

630

4.71

52,432

1,090

4.13

52,887

1,258

4.70

Other Long-Term Borrowings

792

2.41

794

5.68

794

5.57

795

5.55

258

4.31

793

4.04

270

4.56

Total Interest Bearing Liabilities

2,424,236

8,275

1.37

2,438,996

8,235

1.37

2,365,077

8,640

1.45

2,323,210

9,117

1.56

2,381,218

9,497

1.60

2,431,575

16,510

1.37

2,348,098

17,962

1.54

Other Liabilities

76,138

65,211

73,130

73,767

72,634

70,705

70,464

Total Liabilities

3,842,678

3,821,632

3,761,763

3,729,282

3,800,398

3,832,213

3,763,929

Temporary Equity

6,763

6,443

6,493

6,821

SHAREOWNERS' EQUITY:

527,583

513,401

491,143

480,137

465,297

520,531

460,656

Total Liabilities, Temporary

Equity

and Shareowners' Equity

4,370,261

4,335,033

4,259,669

4,215,862

4,272,188

4,352,744

4,231,406

Interest Rate Spread

43,228

3.75

41,591

3.69

41,150

3.59

40,260

3.49

39,334

3.38

84,819

3.72

77,769

3.40

Interest Income and Rate Earned

(1)

51,503

5.12

49,826

5.06

49,790

5.05

49,377

5.06

48,831

4.99

101,329

5.09

95,731

4.94

Interest Expense and Rate Paid

(2)

8,275

0.82

8,235

0.84

8,640

0.88

9,117

0.93

9,497

0.97

16,510

0.83

17,962

0.93

Net Interest Margin

43,228

4.30

41,591

4.22

41,150

4.17

40,260

4.12

39,334

4.02

84,819

4.26

77,769

4.01

(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.