Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,D.C.20549

FORM

10-Q

☒

QUARTERLY REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended

March 31, 2026

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number:

0-13358

Capital City Bank Group, Inc.

(Exact name of Registrant as specified in its charter)

Florida

59-2273542

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

217 North Monroe Street

,

Tallahassee

,

Florida

32301

(Address of principal executive office)

(Zip Code)

(

850

)

402-7821

(Registrant's telephone number, including area code)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of

1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such

filing requirements for the past 90 days.Yes

[X]

No []

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405

of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit

such files).Yes

[X]

No []

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company,or

an emerging growth company.See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth

company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

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.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [] No

[X]

At April 27, 2026,

17,101,409

shares of the Registrant's Common Stock, $.01 par value, were outstanding.

2

CAPITAL CITY BANKGROUP,INC.

QUARTERLYREPORT ON FORM 10-Q

FOR THE THREE MONTHS ENDED MARCH 31, 2026

TABLE OF CONTENTS

PART I -Financial Information

Page

Item 1.

Consolidated Financial Statements (Unaudited)

Consolidated Statements of Financial Condition - March 31, 2026 and December 31, 2025

5

Consolidated Statements of Income - Three Months Ended March 31, 2026 and 2025

6

Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2026 and 2025

7

Consolidated Statements of Changes in Shareowners' Equity - Three Months Ended March 31, 2026 and 2025

8

Consolidated Statements of Cash Flows - Three Months Ended March 31, 2026 and 2025

9

Notes to Consolidated Financial Statements

10

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

34

Item 3.

Quantitative and Qualitative Disclosure About Market Risk

49

Item 4.

Controls and Procedures

49

PART II -Other Information

Item 1.

Legal Proceedings

49

Item 1A.

Risk Factors

49

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

49

Item 3.

Defaults Upon Senior Securities

50

Item 4.

Mine Safety Disclosure

50

Item 5.

Other Information

50

Item 6.

Exhibits

51

Signatures

52

3

INTRODUCTORY NOTE

Special Cautionary Notice Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform

Act of 1995. These forward-looking statements include, among others, statements about our beliefs, plans, objectives, goals, expectations,

estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of

which are beyond our control.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.

All forward-looking statements, by their nature, are subject to risks and uncertainties.Forward-looking statements are based on current

assumptions and expectations that are subject to change and may prove to be inaccurate.Our actual future results may differ materially from

those set forth in our forward-looking statements.

OurabilitytoachieveourfinancialobjectivescouldbeadverselyaffectedbythefactorsdiscussedindetailinPartII,Item1A."Risk

Factors" in this Quarterly Report on Form 10-Q and in Part I, Item 1A. "Risk Factors" in our Annual Report onForm 10-K for the year ended

December 31,2025(the "2025Form 10-K"),as updatedin oursubsequentquarterly reportsfiled onForm 10-Q,as wellas,among other

factors:

●

Changes in trade, monetary, and fiscal policies and laws, includingactual changes in interest rates and the Fed Funds rate and

changes in international trade policies, tariffs and treaties affecting imports and exports, and their related impacts on

macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios;

●

Inflation, interest rate, market and monetary fluctuations;

●

Local, regional, national, and international economic conditions (including the value of the U.S. Dollar in relation to the

currencies of other advanced and emerging market countries and the performance of both domestic and international equity

and debt markets and valuation of securities traded on recognized domestic and international exchanges), and the impact they

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

●

Supply-demand imbalances and general economic conditions affecting local real estate prices and a general deterioration in

commercial real estate market fundamentals;

●

The costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other

governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory

approvals;

●

The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and

insurance) and their application with which we and our subsidiaries must comply;

●

The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other

accounting standard setters;

●

The accuracy of our financial statement estimates and assumptions;

●

Changes in the creditworthiness, 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;

●

Changes in our capital levels, capital requirements or our ability to maintain adequate regulatory capital ratios;

●

The timely development and acceptance of new products and services as well as risks (including reputational and litigation)

attendant thereto, and perceived overall value of these products and services by users;

●

Changes in consumer spending, borrowing, and saving habits;

●

Changes in deposit levels, deposit mix, pricing, or the availability and cost of other funding sources;

●

Greater than expected costs or difficulties related to the integration of new products and lines of business;

●

Technological changes;

●

Risks associated with the development and use of artificial intelligence;

●

The cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our

customers or third-party providers;

●

Fraud or misconduct by internal or external parties which we may not be able to prevent, detect or mitigate;

●

Dispositions, acquisitions and integration of acquired businesses;

●

Impairment of our goodwill or other intangible assets;

●

Changes in the reliability of our vendors, internal control systems, or information systems;

●

Our ability to increase market share and control expenses;

●

Our ability to attract and retain qualified employees;

●

Changes in our organization, compensation, and benefit plans;

●

The soundness of other financial institutions;

●

Volatilityand 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;

4

●

Action or inaction by the federal government, including as a result of any prolonged government shutdown or government

intervention in the U.S. financial system;

●

A deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid

exceeding the debt ceiling, and uncertainties surrounding the federal budget and economic policy;

●

The effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict

(including impacts related to the conflict in the Middle East and resulting disruptions to energy and other commodities markets

and supply chains), terrorism, civil unrest, climate change or other geopolitical events;

●

Our ability to declare and pay dividends;

●

Structural changes in the markets for origination, sale and servicing of residential mortgages;

●

Any inability to implement and maintain effective internal control over financial reporting and/or disclosure control;

●

Potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation,

regulatory proceedings and enforcement actions;

●

Negative publicity and the impact on our reputation; including the speed and scale at which information can spread through

social media or digital channels, which could amplify adverse market or customer reactions; and

●

The limited trading activity and concentration of ownership of our common stock.

However, other factors besides those listed in

Item 1A Risk Factors

or discussed in this Form 10-Q also could adversely affect our results,

and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties.Any forward-looking

statements made by us or on our behalf speak only as of the date they are made.We do not undertake to update any forward-looking

statement, except as required by applicable law.

5

PARTI.

FINANCIAL INFORMATION

Item 1.

CAPITAL CITY BANKGROUP,INC.

CONSOLIDATED STATEMENTSOF FINANCIAL CONDITION

(Unaudited)

March 31,

December 31,

(Dollars in Thousands, Except Par Value)

2026

2025

ASSETS

Cash and Due From Banks

$

64,214

$

62,189

Federal Funds Sold and Interest Bearing Deposits

424,756

467,782

Total Cash and Cash Equivalents

488,970

529,971

Investment Securities, Availablefor Sale, at fair value (amortized cost of $

816,203

and $

656,546

)

800,550

643,922

Investment Securities, Held to Maturity (fair value of $

343,591

and $

369,320

)

353,296

377,446

Equity Securities

2,083

2,069

Total InvestmentSecurities

1,155,929

1,023,437

Loans Held For Sale, at fair value

25,088

21,695

Loans Held for Investment

2,518,404

2,546,118

Allowance for Credit Losses

(30,999)

(31,001)

Loans Held for Investment, Net

2,487,405

2,515,117

Premises and Equipment, Net

77,670

79,457

Goodwill

89,095

89,095

Other Real Estate Owned

1,822

1,936

Other Assets

127,755

125,057

Total Assets

$

4,453,734

$

4,385,765

LIABILITIES

Deposits:

Noninterest Bearing Deposits

$

1,299,933

$

1,251,886

Interest Bearing Deposits

2,451,684

2,410,426

Total Deposits

3,751,617

3,662,312

Short-TermBorrowings

33,276

50,092

Subordinated Notes Payable

33,303

42,582

Other Long-TermBorrowings

680

680

Other Liabilities

74,946

77,248

Total Liabilities

3,893,822

3,832,914

SHAREOWNERS' EQUITY

Preferred Stock, $

0.01

par value;

3,000,000

shares authorized;

no

shares issued and outstanding

-

-

Common Stock, $

0.01

par value;

90,000,000

shares authorized;

17,097,636

and

17,084,386

shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

171

171

Additional Paid-In Capital

39,854

41,650

Retained Earnings

519,632

508,443

Accumulated Other Comprehensive Income (Loss), net of tax

255

2,587

Total Shareowners'

Equity

559,912

552,851

Total Liabilities and Shareowners'Equity

$

4,453,734

$

4,385,765

The accompanying Notes to Consolidated Financial Statements arean integral part of these statements.

6

CAPITAL CITY BANKGROUP,INC.

CONSOLIDATED STATEMENTSOF INCOME

(Unaudited)

Three Months Ended March 31,

(Dollars in Thousands, Except Per ShareData)

2026

2025

INTEREST INCOME

Loans, including Fees

$

38,254

$

40,478

Investment Securities:

Taxable Securities

9,042

5,802

Tax Exempt Securities

13

6

Federal Funds Sold and Interest Bearing Deposits

3,711

3,496

Total Interest Income

51,020

49,782

INTEREST EXPENSE

Deposits

7,395

7,383

Short-TermBorrowings

400

281

Subordinated Notes Payable

398

560

Other Long-TermBorrowings

10

11

Total Interest Expense

8,203

8,235

NET INTEREST INCOME

42,817

41,547

Provision for Credit Losses

712

768

Net Interest Income After Provision for Credit Losses

42,105

40,779

NONINTEREST INCOME

Deposit Fees

5,598

5,061

Bank Card Fees

3,630

3,514

Wealth ManagementFees

4,051

5,763

Mortgage Banking Revenues

4,252

3,820

Other

2,402

1,749

Total NoninterestIncome

19,933

19,907

NONINTEREST EXPENSE

Compensation

25,703

26,248

Occupancy, Net

7,083

6,793

Other

8,587

5,660

Total NoninterestExpense

41,373

38,701

INCOME BEFORE INCOME TAXES

20,665

21,985

Income Tax Expense

4,848

5,127

NET INCOME

$

15,817

$

16,858

BASIC NET INCOME PER SHARE

$

0.92

$

0.99

DILUTED NET INCOME PER SHARE

$

0.92

$

0.99

Average Basic SharesOutstanding

17,129

17,027

Average DilutedShares Outstanding

17,146

17,044

The accompanying Notes to Consolidated Financial Statements arean integral part of these statements.

7

CAPITAL CITY BANKGROUP,INC.

CONSOLIDATED STATEMENTSOF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended

March 31,

(Dollars in Thousands)

2026

2025

NET INCOME

$

15,817

$

16,858

Other comprehensive (loss) income, beforetax:

Investment Securities:

Change in net unrealized (loss) gain on securities available for sale

(3,033)

5,007

Amortization of unrealized losses on securities transferred from availablefor sale to held to maturity

108

498

Derivative:

Change in net unrealized (loss) gain on effective cash flowderivative

-

(704)

Amortization of terminated cash flow derivative gain

(198)

-

Other comprehensive (loss) income, beforetax

(3,123)

4,801

Deferred tax (benefit) expense related to other comprehensive income

(791)

1,202

Other comprehensive (loss) income, net of tax

(2,332)

3,599

TOTAL COMPREHENSIVEINCOME

$

13,485

$

20,457

The accompanying Notes to Consolidated Financial Statements arean integral part of these statements.

8

CAPITAL CITY BANKGROUP,INC.

CONSOLIDATED STATEMENTSOF CHANGES IN SHAREOWNERS' EQUITY

(Unaudited)

Accumulated

Other

Additional

Comprehensive

Shares

Common

Paid-In

Retained

Income (Loss),

(Dollars In Thousands, Except Share Data)

Outstanding

Stock

Capital

Earnings

Net of Taxes

Total

Balance, January 1, 2026

17,084,386

$

171

$

41,650

$

508,443

$

2,587

$

552,851

Net Income

-

-

-

15,817

-

15,817

Other Comprehensive Loss, net of tax

-

-

-

-

(2,332)

(2,332)

Cash Dividends ($

0.2700

per share)

-

-

-

(4,628)

-

(4,628)

Repurchase of Common Stock

(63,088)

-

(2,639)

-

-

(2,639)

Stock Based Compensation

-

-

501

-

-

501

Stock Compensation Plan Transactions, net

76,338

-

342

-

-

342

Balance, March 31, 2026

17,097,636

$

171

$

39,854

$

519,632

$

255

$

559,912

Balance, January 1, 2025

16,974,513

$

170

$

37,684

$

463,949

$

(6,486)

$

495,317

Net Income

-

-

-

16,858

-

16,858

Other Comprehensive Income, net of tax

-

-

-

-

3,599

3,599

Cash Dividends ($

0.2400

per share)

-

-

-

(4,092)

-

(4,092)

Stock Based Compensation

-

-

399

-

-

399

Stock Compensation Plan Transactions, net

80,274

1

493

-

-

494

Balance, March 31, 2025

17,054,787

$

171

$

38,576

$

476,715

$

(2,887)

$

512,575

9

CAPITAL CITY BANKGROUP,INC.

CONSOLIDATED STATEMENTSOF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

(Dollars in Thousands)

2026

2025

CASH FLOWS FROM OPERATINGACTIVITIES

Net Income Attributable to Common Shareowners

$

15,817

$

16,858

Adjustments to Reconcile Net Income to

Cash Provided by Operating Activities:

Provision for Credit Losses

712

768

Depreciation

1,816

1,810

Amortization of Premiums, Discounts and Fees, net

792

1,144

Amortization of Intangible Asset

-

40

Originations of Loans Held-for-Sale

(95,869)

(96,737)

Proceeds From Sales of Loans Held-for-Sale

100,722

105,196

Mortgage Banking Revenues

(4,252)

(3,820)

Net Additions for Capitalized Mortgage Servicing Rights

21

25

Stock Based Compensation

501

399

Net Tax Benefit fromStock Based Compensation

(132)

(154)

Deferred Income Taxes (Benefit)

593

(121)

Net Change in Operating Leases

(6)

49

Net Gain on Sales and Write-Downs of Other Real Estate Owned

(334)

(4,508)

Loss on Disposal of Premises and Equipment

-

46

Net (Increase) Decrease in Other Assets

(2,480)

2,388

Net Increase in Other Liabilities

(1,966)

(1,516)

Net Cash Provided By Operating Activities

15,935

21,867

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

Purchases

(61,632)

(20,438)

Proceeds from Payments, Maturities, and Calls

85,722

70,308

Securities Available forSale:

Purchases

(192,707)

(64,870)

Proceeds from Payments, Maturities, and Calls

33,102

11,683

Equity Securities:

Purchases

(60)

-

Net Decrease in Equity Securities

46

84

Purchases of Loans Held for Investment

(269)

(304)

Proceeds from Sales of Loans

12,254

13,641

Net Decrease (Increase) in Loans Held for Investment

9,793

(21,101)

Proceeds From Sales of Other Real Estate Owned

2,139

7,309

Purchases of Premises and Equipment

(1,279)

(2,382)

Net Cash Used In Investing Activities

(112,891)

(6,070)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

89,305

111,913

Net (Decrease) Increase in Short-TermBorrowings

(16,816)

8,896

Principal Payments of Subordinated Notes

(9,279)

-

Dividends Paid

(4,628)

(4,092)

Payments to Repurchase Common Stock

(2,639)

-

Proceeds from Issuance of Common Stock Under Purchase Plans

12

195

Net Cash Provided By Financing Activities

55,955

116,912

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(41,001)

132,709

Cash and Cash Equivalents at Beginning of Period

529,971

391,854

Cash and Cash Equivalents at End of Period

$

488,970

524,563

Supplemental Cash Flow Disclosures:

Interest Paid

$

8,443

$

8,356

Income Taxes Paid

$

-

$

-

Supplemental Noncash Items:

Loans and Premises Transferred to Other Real Estate Owned

$

1,691

$

2,566

Loans Transferred from Held for Investmentto Held for Sale, net

$

16,248

$

11,049

The accompanying Notes to Consolidated Financial Statements arean integral part of these statements.

10

CAPITAL CITY BANKGROUP,INC.

NOTES TO CONSOLIDATEDFINANCIAL STATEMENTS

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

A summary of fair values for assets and liabilities recorded at fairvalue on a recurring basis consisted of the following:

31

32

A summary of estimated fair values of significant financial instruments notrecorded at fair value consisted of the following:

33

34

Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSISOF FINANCIAL CONDITION AND RESULTSOF

OPERATIONS

Management's discussionand analysis ("MD&A") provides supplemental information, which sets forththe major factors that have

affected our financial condition and results of operationsand should be read in conjunction with the Consolidated Financial

Statements and related notes.The following information should provide a better understanding ofthe major factors and trends that

affect our earnings performance and financial condition,and how our performance during the first quarter of 2026 compares with prior

periods.Throughout this section, Capital City Bank Group, Inc., and subsidiaries, collectively,is referred to as "CCBG,""Company,"

"we," "us," or "our."

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including this MD&A section, contains"forward-looking statements"within the meaning of the

Private Securities Litigation Reform Act of 1995.These forward-looking statements include, among others, statements aboutour

beliefs, plans, objectives, goals, expectations, estimates and intentions that aresubject to significant risks and uncertainties and are

subject to change based on various factors, many of which are beyondour control.The words "may,""could," "should," "would,"

"believe," "anticipate," "contemplate," "estimate," "expect," "intend,""plan," "point to," "project," "target," "vision," "goal,"

"continue," "further," and similar expressionsare intended to identify forward-looking statements.

All forward-looking statements, by their nature, are subject to risks and uncertainties.Our actual future results may differ materially

from those set forth in our forward-looking statements.Please see the Introductory Note of this quarterly report on Form 10-Qas well

as the Introductory Note and

Item 1A. Risk Factors

of our 2025 Form 10-K, as updated in our subsequent quarterly reports filedon

Form 10-Q, and in our other filings made from time to time with the SEC after the dateof this report.

However, other factors besides those listed in ourQuarterly Report or in our Annual Report also could adversely affect ourresults,

and you should not consider any such list of factors to be a complete set of all potential risks oruncertainties.Any forward-looking

statements made by us or on our behalf speak only as of the date they are made.We do not undertake toupdate any forward-looking

statement, except as required by applicable law.

BUSINESS OVERVIEW

We are a financialholding company headquartered in Tallahassee,Florida, and we are the parent of our wholly owned subsidiary,

Capital City Bank (the "Bank" or "CCB").We offera broad array of products and services through a total of 62 full-service offices

and 107 ATMs/ITMslocated in Florida, Georgia, and Alabama.Through Capital City Home Loans, LLC ("CCHL"), we have 27

additional offices in the Southeast for our mortgage banking business.We providea 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 life insurance products,risk management and asset protection services.

Our profitability, likemost financial institutions, is dependent to a large extent upon netinterest income, which is the difference

between the interest and fees received on interest earning assets, such as loans andsecurities, and the interest paid on interest-bearing

liabilities, principally deposits and borrowings.Results of operations are also affected by the provision for credit losses, operating

expenses such as salaries and employee benefits, occupancy and otheroperating expenses including income taxes, and noninterest

income such as mortgage banking revenues, wealth management fees,deposit fees, and bank card fees.

We have includeda detailed discussion of our long-term strategic objectives as part of the MD&A sectionof our 2025 Form 10-K.

35

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

We present a tangiblecommon equity ratio and a tangible book value per diluted share that, in each case, removes theeffect of

goodwill and other intangibles that resulted from mergerand acquisition activity. Webelieve these measures are useful to investors

because they allow investors to more easily compare our capital adequacyto other companies in the industry.Non-GAAP financial

measures should not be considered alternatives to generally acceptedaccounting principles ("GAAP")-basis financial statements and

other bank holding companies may define or calculate these non-GAAP measuresor similar measures differently.

The GAAP to non-GAAP reconciliation for each quarter presented is providedbelow.

2026

2025

(Dollars in Thousands, except per share data)

First

Fourth

Third

Second

First

Shareowners' Equity (GAAP)

$

559,912

$

552,851

$

540,635

$

526,423

$

512,575

Less: Goodwill and Other Intangibles (GAAP)

89,095

89,095

89,095

92,693

92,733

Tangible Shareowners' Equity (non-GAAP)

A

470,817

463,756

451,540

433,730

419,842

Total Assets (GAAP)

4,453,734

4,385,765

4,323,774

4,391,753

4,461,233

Less: Goodwill and Other Intangibles (GAAP)

89,095

89,095

89,095

92,693

92,733

Tangible Assets (non-GAAP)

B

$

4,364,639

$

4,296,670

$

4,234,679

$

4,299,060

$

4,368,500

Tangible Common Equity Ratio (non-GAAP)

A/B

10.79%

10.79%

10.66%

10.09%

9.61%

Actual Diluted Shares Outstanding (GAAP)

C

17,114,954

17,154,586

17,115,336

17,097,986

17,072,330

Tangible Book Valueper Diluted Share (non-GAAP)

A/C

27.51

27.03

26.38

25.37

24.59

36

SELECTED QUARTERLYFINANCIAL DATA(UNAUDITED)

2026

2025

(Dollars in Thousands, Except Per Share Data)

First

Fourth

Third

Second

First

Summary of Operations

:

Interest Income

$

51,020

$

51,715

$

51,431

$

51,459

$

49,782

Interest Expense

8,203

8,355

7,874

8,275

8,235

Net Interest Income

42,817

43,360

43,557

43,184

41,547

Provision for Credit Losses

712

1,995

1,881

620

768

Net Interest Income After

Provision for Credit Losses

42,105

41,365

41,676

42,564

40,779

Noninterest Income

19,933

20,103

22,331

20,014

19,907

Noninterest Expense

41,373

42,867

42,916

42,538

38,701

Income Before Income Taxes

20,665

18,601

21,091

20,040

21,985

Income Tax Expense

4,848

4,896

5,141

4,996

5,127

Net Income Attributable to CCBG

15,817

13,705

15,950

15,044

16,858

Net Interest Income (FTE)

(1)

42,857

43,404

43,602

43,228

41,591

Per Common Share

:

Net Income Basic

$

0.92

$

0.80

$

0.93

$

0.88

$

0.99

Net Income Diluted

0.92

0.80

0.93

0.88

0.99

Cash Dividends Declared

0.27

0.26

0.26

0.24

0.24

Diluted Book Value

32.71

32.23

31.59

30.79

30.02

Diluted Tangible Book Value

(2)

27.51

27.03

26.38

25.37

24.59

Market Price:

High

46.83

45.63

44.69

39.82

38.27

Low

39.26

38.27

38.00

32.38

33.00

Close

43.46

42.57

41.79

39.35

35.96

Selected Average Balances

:

Investment Securities

$

1,119,125

$

1,006,040

$

993,880

$

1,007,981

$

982,330

Loans Held for Investment

2,538,318

2,568,073

2,606,213

2,652,572

2,665,910

Earning Assets

4,089,838

4,035,910

3,981,530

4,032,008

3,993,914

Total Assets

4,418,904

4,367,036

4,317,951

4,370,261

4,335,033

Deposits

3,691,016

3,647,510

3,612,331

3,680,707

3,665,482

Shareowners' Equity

567,663

556,100

542,216

527,583

513,401

Common Equivalent Average Shares:

Basic

17,129

17,070

17,068

17,056

17,027

Diluted

17,146

17,140

17,114

17,088

17,044

Performance Ratios:

Return on Average Assets (annualized)

1.45

%

1.25

%

1.47

%

1.38

%

1.58

%

Return on Average Equity (annualized)

11.30

9.78

11.67

11.44

13.32

Net Interest Margin (FTE)

4.24

4.26

4.34

4.30

4.22

Noninterest Income as % of Operating Revenue

31.77

31.68

33.89

31.67

32.39

Efficiency Ratio

65.89

67.50

65.09

67.26

62.93

Asset Quality:

Allowance for Credit Losses ("ACL")

$

30,999

$

31,001

$

30,202

$

29,862

$

29,734

Nonperforming Assets ("NPAs")

12,965

10,531

10,026

6,581

4,428

ACL to Loans HFI

1.23

%

1.22

%

1.17

%

1.13

%

1.12

%

NPAs to TotalAssets

0.29

0.24

0.23

0.15

0.10

NPAs to Loans HFI plus OREO

0.51

0.41

0.39

0.25

0.17

ACL to Non-Performing Loans

278.19

360.69

368.54

463.01

692.10

Net Charge-Offs to Average Loans HFI

0.10

0.18

0.18

0.09

0.09

Capital Ratios:

Tier 1 Capital

20.37

%

20.20

%

19.33

%

18.38

%

18.01

%

Total Capital

21.62

21.45

20.59

19.60

19.20

Common Equity Tier 1

19.08

18.56

17.73

16.81

16.08

Leverage

11.65

11.77

11.64

11.14

11.17

Tangible Common Equity

(2)

10.79

10.79

10.66

10.09

9.61

(1)

Fully Tax Equivalent.

(2)

Non-GAAP financial measure.See non-GAAP reconciliation on page 35.

37

FINANCIAL OVERVIEW

Results of Operations

Performance Summary

.Net income attributable to common shareowners of $15.8 million, or $0.92 per dilutedshare, for the first

quarter of 2026 compared to $13.7 million, or $0.80 per diluted share, forthe fourth quarter of 2025, and $16.9 million, or $0.99 per

diluted share, for the first quarter of 2025.

Net Interest Income

.Tax-equivalent netinterest income for the first quarter of 2026 totaled $42.9 million, compared to $43.4million

for the fourth quarter of 2025, and $41.6 million for the first quarter of2025. Compared to the fourth quarter of 2025, the decrease was

primarily driven by lower loan interest income due to lower averageloan balances and lower overnight funds income, partially offset

by higher investment securities income due to new investment purchases at higheryields and lower deposit interest expense. Twoless

calendar days contributed to the decline compared to the fourth quarterof 2025. Compared to the first quarter of 2025, the increase

was primarily attributable to higher investment securities income due to newinvestment purchases at higher yields and higher

overnight funds income due to higher average balances that outpaced a decreasein loan interest income due to lower average

balances. Our net interest margin for the first quarter of 2026 was 4.24%,a decrease of two basis points from the fourth quarter of

2025 and an increase of two basis points over the first quarter of 2025.

Provision and Allowance for CreditLosses.

For the first quarter of 2026, we recorded a provision expense for creditlosses of $0.7

million compared to $2.0 million for the fourth quarter of 2025 and $0.8million for the first quarter of 2025. Net loan charge-offs

were 10 basis points of average loans for the first quarter of 2026 versus 18 basis points for thefourth quarter of 2025 and 9 basis

points for the first quarter of 2025. At March 31, 2026, the allowance for credit losses forloans held for investment ("HFI") totaled

$31.0 million compared to $31.0 million at December 31, 2025and $29.7 million at March 31, 2025.

Noninterest Income

.Noninterest income for the first quarter of 2026 totaled $19.9 million, a $0.2 million, or0.8%, decrease from the

fourth quarter of 2025 and similar to the first quarter of 2025. The decrease fromthe fourth quarter of 2025 reflected a $0.5 million

decrease in wealth management fees and a $0.2 million decrease in deposit fees, partiallyoffset by a $0.5 million increase in other

income. Compared to the first quarter of 2025, a $1.7 million decrease in wealthmanagement fees was offset by a $0.7 million

increase in other income, a $0.5million increase in deposit related fees, and a $0.4 million increase in mortgagebanking revenues.

Noninterest Expense

.Noninterest expense for the first quarter of 2026 totaled $41.4 million, a $1.5 million, or 3.5%, decreasefrom

the fourth quarter of 2025 and a $2.7 million, or 6.9%, increase over the first quarterof 2025. The decrease from the fourth quarter of

2025 reflected a $2.7 million decrease in compensation expense (primarilyperformance-based incentives), partially offset bya $1.2

million increase in other expense (pension settlement gain in the fourth quarterof 2025).Compared to the first quarter of 2025, the

increase reflected a $2.9 million increase in other expense ($4.0million gain from the sale of bank owned property in the first quarter

of 2025) and a $0.3 million increase in occupancy expense, which was partiallyoffset by a $0.5 million decrease in compensation

expense.

Financial Condition

Earning Assets.

Average earning assets totaled$4.090 billion for the first quarter of 2026, an increase of $53.9 million,or 1.3%,over

the fourth quarter of 2025, and an increase of $95.9 million, or 2.4%, over thefirst quarter of 2025. Compared to the fourth quarter of

2025, the change in earning asset mix reflected a $113.1million increase in investment securities and a $0.5 million increase in loans

held for sale ("HFS"), partially offset by a $29.9 million decrease inovernight funds sold and a $29.8 million decrease in loans held

for investment. Compared to the first quarter of 2025, the increase was primarily attributableto a $136.8 million increase in

investment securities and an $86.7 million increase in overnight funds sold,partially offset by a $127.6 million decrease in loans held

for investment.

Loans.

Average loans HFI decreasedby $29.8 million, or 1.16%, from the fourth quarter of 2025, and decreased by $127.6million, or

4.8%,from the first quarter of 2025. Loans HFI at March 31, 2026, decreased by $27.7 million,or 1.1%, from December 31, 2025,

and decreased by $142.4 million, or 5.4%, from March 31, 2025.

Credit Quality

.Nonperforming assets (nonaccrual loans and other real estate) totaled $13.0million at March 31, 2026 compared to

$10.5 million at December 31, 2025 and $4.4 million at March 31, 2025.At March 31, 2026, nonperforming assets as a percentage of

total assets was 0.29%, compared to 0.24% at December 31, 2025 and 0.10%at March 31, 2025. Nonaccrual loans totaled $11.1

million at March 31, 2026, a $2.5 million increase over December 31, 2025and a $6.8 million increase over March 31, 2025. Other

real estate totaled $1.8 million at March 31, 2026 and reflected the addition of a bankingoffice property for $1.2 million during the

quarter. Further,classified loans totaled $14.5 million at March 31, 2026, a $0.2 million increase overDecember 31, 2025, and a $4.6

million decrease from March 31, 2025.

38

Deposits

.Average totaldeposits were $3.691 billion for the first quarter of 2026, an increase of $43.5 million,or 1.2%, over the

fourth quarter of 2025 and an increase of $25.5 million, or 0.7%, over the first quarterof 2025. At March 31, 2026, total deposits were

$3.752 billion, an increase of $89.3 million, or 2.4%, over December 31,2025, and a decrease of $32.3 million, or 0.9%, from March

31, 2025. Totalpublic funds balances were $629.9 million at March 31, 2026, $654.7 millionat December 31, 2025, and $648.0

million at March 31, 2025.

Capital

.At March 31, 2026, we were "well-capitalized"with a total risk-based capital ratio of 21.62% and a tangible commonequity

ratio (a non-GAAP financial measure) of 10.79% compared to21.45% and 10.79%, respectively,at December 31, 2025, and 19.20%

and 9.61%, respectively,at March 31, 2025.At March 31, 2026, all of our regulatory capital ratios exceeded the threshold tobe

"well-capitalized"under the Basel III capital standards.

RESULTSOF OPERATIONS

The following table provides a condensed summary of our results of operations- a discussion of the various components are discussed

in further detail below.

Three Months Ended

(Dollars in Thousands, except per share data)

March 31, 2026

December 31, 2025

March 31, 2025

Interest Income

$

51,020

$

51,715

$

49,782

Taxable Equivalent Adjustments

40

44

44

Total Interest Income (FTE)

51,060

51,759

49,826

Interest Expense

8,203

8,355

8,235

Net Interest Income (FTE)

42,857

43,404

41,591

Provision for Credit Losses

712

1,995

768

Taxable Equivalent Adjustments

40

44

44

Net Interest Income After Provision for Credit Losses

42,105

41,365

40,779

Noninterest Income

19,933

20,103

19,907

Noninterest Expense

41,373

42,867

38,701

Income Before Income Taxes

20,665

18,601

21,985

Income Tax Expense

4,848

4,896

5,127

Net Income Attributable to Common Shareowners

$

15,817

$

13,705

$

16,858

Basic Net Income Per Share

$

0.92

$

0.80

$

0.99

Diluted Net Income Per Share

$

0.92

$

0.80

$

0.99

Net Interest Income

Net interest income represents our single largest source of earningsand is equal to interest income and fees generated by earning assets

less interest expense paid on interest bearing liabilities.This information is provided on a "taxable equivalent" basis to reflect the tax-

exempt status of income earned on certain loans and state and local governmentdebt obligations.We provide ananalysis of our net

interest income including average yields and rates in TableI, "Average Balances &Interest Rates," on page 47.

Tax-equivalent netinterest income for the first quarter of 2026 totaled $42.9 million, compared to $43.4 millionfor the fourth quarter

of 2025, and $41.6 million for the first quarter of 2025. Compared tothe fourth quarter of 2025, the decrease was primarily driven by

lower loan interest income due to lower average loan balances and lowerovernight funds income, partially offset by higher investment

securities income due to new investment purchases at higher yields and lower depositinterest expense. Twoless calendar days

contributed to the decline compared to the fourth quarter of 2025.Compared to the first quarter of 2025, the increase was primarily

attributable to higher investment securities income due to new investmentpurchases at higher yields and higher overnight funds

income due to higher average balances that outpaced a decrease in loan interestincome due to lower average balances.

Our net interest margin for the first quarter of 2026 was 4.24%, a decreaseof two basis points from the fourth quarter of 2025 and an

increase of two basis points over the first quarter of 2025. Compared to the fourthquarter of 2025 the decrease was primarily

attributable to a lower overnight funds rate and lower average loan balances.Compared to the first quarter of 2025, the increase

reflected favorable investment securities repricing partially offset bya lower overnight funds rate and lower average loan balances. For

the first quarter of 2026, our cost of funds was 81 basis points, a decrease of onebasis point from the fourth quarter of 2025 and a

decrease of three basis points from the first quarter of 2025. Our cost of deposits (includingnoninterest bearing accounts) was 81 basis

points, 82 basis points, and 82 basis points, respectively,for the same periods.

39

Provision for Credit Losses

We recordeda provision expense for credit losses of $0.7 million for the first quarter of 2026,compared to $2.0 million for the fourth

quarter of 2025 and $0.8 million for the first quarter of 2025.For the first quarter of 2026, we recorded a provision expense of $0.6

million for loans HFI and a provision expense of $0.1million for unfunded loan commitments.See "Allowance for Credit Losses"

below for a discussion of the various factors that impacted our provisionexpense.

Noninterest Income

Noninterest income for the first quarter of 2026 totaled $19.9 million, a $0.2 million,or 0.8%, decrease from the fourth quarter of

2025 and similar to the first quarter of 2025. The decrease from the fourthquarter of 2025 reflected a $0.5 million decrease in wealth

management fees and a $0.2 million decrease in deposit fees, partially offsetby a $0.5 million increase in other income. The decline in

wealth management fees was primarily due to a decrease in retail brokeragefees. The increase in other income was due to a $0.5

million miscellaneous recovery.Compared to the first quarter of 2025, a $1.7 million decrease in wealth managementfees was offset

by a $0.7 million increase in other income, a $0.5 million increase in deposit relatedfees, and a $0.4 million increase in mortgage

banking revenues. The decline in wealth management fees was attributable toa decrease in retail brokerage assets under management

and lower insurance commission revenue due to the sale of our insurance subsidiaryin 2025. The increase in other income reflected

the aforementioned miscellaneous recovery of $0.5 million.

Noninterest income represented 28.1% of operating revenues (netinterest income plus noninterest income) in the first quarter of 2026

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

The table below reflects the major components of noninterest income.

Three Months Ended

(Dollars in Thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Deposit Fees

$

5,598

$

5,811

$

5,061

Bank Card Fees

3,630

3,684

3,514

Wealth ManagementFees

4,051

4,525

5,763

Mortgage Banking Revenues

4,252

4,155

3,820

Other

2,402

1,928

1,749

TotalNoninterest Income

$

19,933

$

20,103

$

19,907

Significant components of noninterest income are discussed in moredetail below.

Deposit Fees

.Deposit fees for the first quarter of 2026 totaled $5.6 million, a decrease of $0.2million, or 3.7%, from the fourth

quarter of 2025 and an increase of $0.5 million, or 10.6%, over the first quarter of2025. Compared to the fourth quarter of 2025, the

$0.2million decrease was attributable to lower overdraft fees.Compared to the first quarter of 2025, the increase reflected a $0.4

million increase in account service charges and $0.1 million increasein overdraft fees.

Bank Card Fees

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

quarter of 2025 and a $0.1 million, or 3.3%, increase over the first quarter of2025. The change across both periods primarily reflected

normal fluctuations in debit card usage, consistent with underlying consumerspending trends.

WealthManagement Fees

.Wealth management feestotaled $4.1 million for the first quarter of 2026, a decrease of $0.5 million, or

10.5%, from the fourth quarter of 2025 and a decrease of $1.7 million,or 29.7%, from the first quarter of 2025. The decrease from the

fourth quarter of 2025reflected lower retail brokerage fees of $0.3 million, trust fees of $0.1 million and insurancecommissions of

$0.1 million. The decrease from the first quarter of 2025 reflected lowerretail brokerage fees of $1.2 million and insurance

commission revenue of $0.7 million, partially offset by highertrust fees of $0.2million. The decline in insurance commission revenue

from both prior periods was due to the sale of our insurance subsidiary in2025. At March 31, 2026, total assets under management

were approximately $2.691 billion compared to $2.867 billionat December 31, 2025and $3.068 billion at March 31, 2025. Compared

to both prior periods, the decline was due to lower retail brokerage assets partially attributableto the sale of our insurance subsidiary

in 2025.

Mortgage Banking Revenues

.Mortgage banking revenues totaled $4.3 million for the first quarter of2026, an increase of $0.1

million, or 2.3%, over the fourth quarter of 2025 and an increase of $0.4million, or 11.3%, over the first quarter of 2025. Comparedto

first quarter of 2025, the increase was driven by a higher level of interest ratelocks and gain on sale margin.We provide a detailed

overview of our mortgage banking operation, including a detailed break-down of mortgage banking revenues, mortgage servicing

activity, and warehousefunding within Note 4 - Mortgage Banking Activities in the Notes to Consolidated FinancialStatements.

40

Other

.Other income totaled $2.4 million for the first quarter of 2026, an increase of$0.5 million, or 24.6%, over the fourth quarter of

2025 and an increase of $0.7 million, or 37.3%, over the first quarterof 2025. The increase across both periods is primarily due to a

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

Noninterest Expense

Noninterest expense for the first quarter of 2026 totaled $41.4 million, a $1.5 million,or 3.5%, decrease from the fourth quarter of

2025 and a $2.7 million, or 6.9%, increase over the first quarter of 2025. The decreasefrom the fourth quarter of 2025 reflected a $2.7

million decrease in compensation expense, partially offset by a $1.2million increase in other expense. The decrease in compensation

expense was primarily due to higher performance-based incentive pay of$2.6 million in the fourth quarter of 2025. The increase in

other expense reflected a $1.5 million pension plan settlement gainrecorded in the fourth quarter of 2025. Compared to the first

quarter of 2025, the increase reflected a $2.9 million increase in otherexpense and a $0.3 million increase in occupancy expense,

which was partially offset by a $0.5 million decrease in compensationexpense. The increase in other expense was primarily

attributable to a $4.1 million increase in other real estate expense that reflecteda gain from the sale of our operations center building

in the first quarter of 2025, partially offset by decreases in charitable contributions,professional fees, and other miscellaneous

expenses. The increase in occupancy expense was primarily attributable tohigher expense for maintenance agreements and software.

The decrease in compensation expense reflected a decrease in commissionexpense related to the sale of our insurance subsidiary.

The table below reflects the major components of noninterest expense.

Three Months Ended

(Dollars in Thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Salaries

$

21,372

$

23,054

$

21,883

Associate Benefits

4,331

5,330

4,365

Total Compensation

25,703

28,384

26,248

Premises

3,179

3,074

3,172

Equipment

3,904

3,978

3,621

Total Occupancy

7,083

7,052

6,793

Legal Fees

500

393

504

Professional Fees

1,305

1,055

1,622

Processing Services

2,433

2,145

2,469

Advertising

870

841

838

Telephone

820

835

719

Insurance - Other

732

751

732

Other Real Estate Owned, net

(321)

123

(4,470)

Pension - Other

(745)

(873)

(873)

Pension Settlement

-

(1,552)

-

Miscellaneous

2,993

3,713

4,119

Total Other

8,587

7,431

5,660

TotalNoninterest Expense

$

41,373

$

42,867

$

38,701

Significant components of noninterest expense are discussed in more detailbelow.

Compensation

.Compensation expense totaled $25.7 million for the first quarter of 2026, a decreaseof $2.7 million, or 9.4%, from the

fourth quarter of 2025 and a decrease of $0.5 million, or 2.1%, fromthe first quarter of 2025. Compared to the fourth quarter of 2025,

the decrease reflected a $1.7 million decrease in salary expense and $1.0million decrease in associate benefit expense, both primarily

due to higher performance-based incentive pay in the fourth quarterof 2025.Compared to the first quarter of 2025, the decrease was

driven by a $0.5 million decrease in salary expense due to lower commissionexpense related to the sale of our insurance subsidiary in

2025.

Occupancy.

Occupancy expense (including premises and equipment) totaled $7.1million for the first quarter of 2026, similar to the

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

was primarily attributable to higher expense for maintenance agreementsof $0.2 million and software licenses of $0.1 million.

41

Other

.Other noninterest expense totaled $8.6 million for the first quarter of2026, an increase of $1.2 million, or 15.6%, over the

fourth quarter of 2025 and an increase of $2.9 million, or 51.7% overthe first quarter of 2025. Compared to the fourth quarter of 2025,

the variance reflected a $1.5 million pension plan settlement gainrecorded in the fourth quarter of 2025. Compared to the first quarter

of 2025, the increase was primarily attributable to a $4.1 million increase in otherreal estate expense that reflected a gain from the

sale of our operations center building in the first quarter of 2025, partiallyoffset by decreases in charitable contributionsof $0.6

million, professional fees of $0.3 million, and other miscellaneous expensesof $0.5 million.

Our operating efficiency ratio (expressed as noninterestexpense as a percent of the sum of taxable-equivalent net interest income plus

noninterest income) was 65.89% for the first quarter of 2026 comparedto 67.50% for the fourth quarter of 2025 and 62.93% for the

first quarter of 2025. Compared to the fourth quarter of 2025, the ratio was favorablyimpacted by lower noninterest expense,

primarily performance-based compensation.Compared to the first quarter of 2025, the variance was unfavorably impacted dueto

lower noninterest expense in the first quarter of 2025, which includeda $4.4 million gain from the sale of our operations center

building.

Income Taxes

We realized incometax expense of $4.8 million (effective rate of 23.5%) for the first quarter of2026 compared to $4.9 million

(effective rate of 26.3%) for the fourth quarter of 2025 and $5.1million (effective rate of 23.3%) for the first quarter of 2025.

Compared to the fourth quarter of 2025, the variance in the effectivetax rate reflected discrete items for both quarters, including a

benefit in the first quarter of 2026 related to stock-based compensationand an expense in the fourth quarter of 2025 related to an

Internal Revenue Code ("IRC") Section 162(m) limitation for executive compensation.Absent discrete items or new tax credit

investments, we expect our annual effective tax rate toapproximate 24% for 2026.

FINANCIAL CONDITION

Average earningassets totaled $4.090 billion for the first quarter of 2026, an increase of $53.9 million,or 1.3%,over the fourth

quarter of 2025, and an increase of $95.9 million, or 2.4%,over the first quarter of 2025. Compared to the fourth quarter of 2025, the

change in earning asset mix reflected a $113.1 millionincrease in investment securities and a $0.5 million increase in loans held for

sale ("HFS"), partially offset by a $29.9 million decrease in overnightfunds sold and a $29.8 million decrease in loans HFI. Compared

to the first quarter of 2025, the increase was primarily attributable to a $136.8million increase in investment securities and an $86.7

million increase in overnight funds sold, partially offset by a $127.6million decrease in loans HFI.

Investment Securities

Average investmentstotaled $1,119.1 million in the first quarter of 2026, a$113.1 million, or 11.2%, increase over the fourth quarter

of 2025 and a $136.8 million, or 13.9% increase over the first quarter of2025. Our investment portfolio represented 27.4% of our

average earning assets for the first quarter of 2026 compared to 24.9% forthe fourth quarter of 2025 and 24.6% for the first quarter of

2025.For the remainder of 2026, we will continue to monitor our overall liquidity positionand market conditions to determine if cash

flow from the investment portfolio should be reinvested or utilized to supportloan growth.

The investment portfolio is a significant component of our operations and, as such,it functions as a key element of liquidity and

asset/liability management.Two types of classifications are approvedfor investment securities which are Available-for-Sale ("AFS")

and Held-to-Maturity ("HTM").At March 31, 2026, $800.6million, or 69.3%, of the investment portfolio was classified as AFS and

$353.3 million, or 30.6%, was classified as HTM. The average maturity of ourtotal portfolio at March 31, 2026 was 2.98 years

compared to 2.57 years at December 31, 2025 and 2.64 years at March31, 2025.The duration of our investment portfolio at March

31, 2026 was 2.64 years compared to 2.12 years at December 31, 2025 and2.10 years at March 31, 2025.Additional information on

unrealized gains/losses in the AFS and HTM portfolios is providedin Note 2 - Investment Securities.

We

determine the classification of a security at the time of acquisition basedon how the purchase will affect our asset/liability strategy

and future business plans and opportunities.

We

consider multiple factors in determining classification, includingregulatory capital

requirements, volatility in earnings or other comprehensive income,and liquidity needs. Securities in the AFS portfolio are recorded at

fair value with unrealized gains and losses associated with these securities recordednet of tax, in the accumulated other

comprehensive income component of shareowners' equity.HTM securities are acquired or owned with the intent of holdingthem to

maturity.HTM investments are measured at amortized cost.

We

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

securities for the purpose of recognizing gains and therefore we do notmaintain a trading portfolio.

42

At March 31, 2026, there were 790 positions (combined AFS and HTM)with unrealized pre-tax losses totaling $26.3 million.50 of

these positions are U.S. Treasury bondsand carry the full faith and credit of the U.S. Government.663 are U.S. government agency

securities issued by U.S. government sponsored entities.We believethe long history of no credit losses on government securities

indicates that the expectation of nonpayment of the amortized cost basis is effectivelyzero.At March 31, 2026, all collateralized

mortgage obligation securities, mortgage-backed securities, Small BusinessAdministration securities, U.S. Agency,and U.S. Treasury

bonds held were rated AA+ or higher.The remaining 77 positions (municipal securities and corporate bonds) havea credit

component.At March 31, 2026, corporate debt securities had an immaterial allowance for creditlosses.None of the securities held

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

Loans HFI

Average loansHFI decreased by $29.8 million, or 1.16%, from the fourth quarter of 2025, anddecreased by $127.6 million, or 4.7%,

from the first quarter of 2025. Compared to the fourth quarter of 2025, thedecline was primarily attributable to decreases in residential

real estate loans of $16.3 million, commercial real estate loans of $10.2 million,construction loans of $4.2 million consumer loans

(primarily indirect auto) or $2.3 million, and commercial loans of $1.5million, partially offset by an increase in home equity loans of

$4.0 million. Compared to the first quarter of 2025, the decline was primarilyattributable to declines in construction loans of $56.8

million, commercial real estate loans of $32.6 million, consumer loans (primarilyindirect auto) of $23.4 million, residential real estate

loans of $21.8 million, and commercial loans of $11.3million, partially offset by an increase in home equity loans of $19.1 million.

Loans HFI at March 31, 2026, decreased by $27.7 million, or 1.1%, from December31, 2025, and decreased by $142.4 million, or

5.4%, from March 31, 2025. Compared to December 31, 2025,the decline was primarily due to decreases in residential real estate

loans of $22.2 million, commercial real estate loans of $12.9 million, commercialloans of $10.1 million, other loans of $7.6 million

and consumer loans (primarily indirect auto) of $2.8 million, partiallyoffset by increases in construction loans of $9.7 million and

home equity loans of $3.0 million. Compared to the first quarter of 2025, the decreasewas primarily attributable to declines in

commercial real estate loans of $51.1 million, residential real estate loans of $41.9million, construction loans of $35.7 million,

consumer loans (primarily indirect auto) of $26.7 million, and commercialloans of $14.1 million, partially offset by an increase in

home equity loans of $17.9 million.

Without compromising our credit standards,changing our underwriting standards, or taking on inordinate interest rate risk,we

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

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $13.0million at March 31, 2026 compared to $10.5 million at

December 31, 2025 and $4.4 million at March 31, 2025. At March 31, 2026, nonperformingassets as a percentage of total assets was

0.29%, compared to 0.24% at December 31, 2025 and 0.10% at March 31, 2025.Nonaccrual loans totaled $11.1 million at March 31,

2026, a $2.5 million increase over December 31, 2025 and a $6.8 million increaseover March 31, 2025. The increase over December

31, 2025 was primarily attributable to the addition of four residential 1-4 familyreal estate loans totaling $1.9 million. Other real

estate totaled $1.8 million at March 31, 2026 and reflected the addition of a bankingoffice property for $1.2 million during the first

quarter of 2026. Further, classified loans totaled$14.5 million at March 31, 2026, a $0.2 million increase over December 31, 2025and

a $4.6 million decrease from March 31, 2025.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted fromthe loans' amortized cost basis to present the net amount

expected to be collected on the loans.The allowance for credit losses is adjusted by a credit loss provision which is reported in

earnings and reduced by the charge-offof loan amounts (net of recoveries).Loans are charged off against the allowance when

management believes the uncollectability of a loan balance is confirmed.Expected recoveries do not exceed the aggregate of amounts

previously charged-off and expected to be charged-off.Expected credit loss inherent in non-cancellable off-balance sheet credit

exposures is provided through the credit loss provision but recordedas a separate liability included in other liabilities.

Management estimates the allowance balance using relevant availableinformation, from internal and external sources relating to past

events, current conditions, and reasonable and supportable forecasts.Historical loan default and loss experience provides the basis for

the estimation of expected credit losses.Adjustments to historical loss information incorporate management'sview of current

conditions and forecasts.

43

At March 31, 2026, the allowance for credit losses for loans HFI totaled $31.0million comparable to $31.0 million and $29.7 million

at December 31, 2025 and at March 31, 2025, respectively.Activity within the allowance is provided in Note 3 - Loans Held for

Investment and Allowance for Credit Losses in the Notes to Consolidated FinancialStatements.The slight increase in the allowance

over March 31, 2025 was primarily attributable to utilization ofa higher forecasted unemployment rate in calculating loan loss rates.

Net loan charge-offs were 10 basis pointsof average loans for the first quarter of 2026 versus 18 basis points forthe fourth quarter of

2025 and 9 basis points for the first quarter of 2025. At March 31, 2026, theallowance represented 1.23% of loans HFI compared to

1.22% at December 31, 2025, and 1.12% at March 31, 2025.

At March 31, 2026, the allowance for credit losses for unfunded commitmentstotaled $2.2 million compared to $2.1 million and $1.8

million at December 31, 2025 and March 31, 2025, respectively.The change in the allowance for unfunded commitments from both

prior periods reflected variances in the level of unfunded loan commitments.The allowance for unfunded commitments is recorded in

other liabilities.

Deposits

Average totaldeposits were $3.691 billion for the first quarter of 2026, an increase of $43.5 million,or 1.2%, over the fourth quarter

of 2025 and an increase of $25.5 million, or 0.7%, over the first quarterof 2025. Compared to the fourth quarter of 2025, the increase

was primarily attributable to higher public funds balances of $99 million, drivenby seasonal inflows from municipal clients as they

receive their tax receipts beginning in late November,partially offset by declines in core deposits of $64 million (noninterestbearing

and interest bearing DDAs). The increase over the first quarter of 2025 was due to growthin both core deposit balances, and public

funds.

At March 31, 2026, total deposits were $3.752 billion, an increase of $89.3 million,or 2.4%, over December 31, 2025, and a decrease

of $32.3 million, or 0.9%, from March 31, 2025. The increase over December 31,2025, was driven by higher core deposit balances of

$103 million (primarily noninterest bearing and NOW accounts), partiallyoffset by a decrease in public funds balances of $25 million

(primarily NOW accounts). The decrease from March 31, 2025, was primarilydue to lower public funds balances (noninterest bearing

accounts). Total publicfunds balances were $629.9 million at March 31, 2026, $654.7 million at December31, 2025, and $648.0

million at March 31, 2025.

Business deposit transaction accounts classified as repurchase agreementsaveraged $15.8 million for the first quarter of 2026, a

decrease of $4.9 million from the fourth quarter of 2025 and a decreaseof $14.0 million from the first quarter of 2025. At March 31,

2026, repurchase agreement balances were $4.6 million comparedto $22.0 million at December 31, 2025 and $22.8 million at March

31, 2025.

We continueto closely monitor our cost of deposits and deposit mix as we manage through the current rateenvironment.

MARKET RISK AND INTEREST RATESENSITIVITY

Market Risk and Interest Rate Sensitivity

Overview.

Market risk arises from changes in interest rates, exchange rates,commodity prices, and equity prices.We have risk

management policies designed to monitor and limit exposure to marketrisk and we do not participate in activities that give rise to

significant market risk involving exchange rates, commodity prices, orequity prices.In asset and liability management activities, our

policies are designed to minimize structural interest rate risk.

Interest Rate Risk Management.

Our net income is largely dependent on net interest income.Net interest income is susceptible to

interest rate risk to the degree that interest-bearing liabilities matureor reprice on a different basis than interest-earning assets.When

interest-bearing liabilities mature or reprice more quicklythan interest-earning assets in a given period, a significant increase in

market rates of interest could adversely affect net interestincome.Similarly, when interest-earningassets mature or reprice more

quickly than interest-bearing liabilities, falling market interest rates couldresult in a decrease in net interest income.Net interest

income is also affected by changes in the portion of interest-earningassets that are funded by interest-bearing liabilities rather than by

other sources of funds, such as noninterest-bearing deposits and shareowners'equity.

44

We have establishedwhat we believe to be a comprehensive interest rate risk management policy,which is administered by

management's Asset Liability ManagementCommittee ("ALCO").The policy establishes limits of risk, which are quantitative

measures of the percentage change in net interest income (a measure of netinterest income at risk) and the fair value of equity capital

(a measure of economic value of equity ("EVE") at risk) resulting from a hypothetical changein interest rates for maturities from one

day to 30 years.We measure the potentialadverse impacts that changing interest rates may have on our short-termearnings, long-

term value, and liquidity by employing simulation analysis through the use ofcomputer modeling.The simulation model captures

optionality factors such as call features and interest rate caps and floorsembedded in investment and loan portfolio contracts.As with

any method of gauging interest rate risk, there are certain shortcomingsinherent in the interest rate modeling methodology used by

us.When interest rates change, actual movements in different categoriesof interest-earning assets and interest-bearing liabilities, loan

prepayments, and withdrawals of time and other deposits, may deviate significantlyfrom assumptions used in the model.Finally, the

methodology does not measure or reflect the impact that higher rates may haveon adjustable-rate loan clients' ability to service their

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

The statement of financial condition is subject to testing for both parallel andupward and downward shifts in interest rates (assuming

no balance sheet growth) to indicate the inherent interest rate risk. Weprepare a base case (assumes a static rate environment) and

several alternative interest rate simulations for various ranges of upward and downwardinterest rate changes. This analysis is prepared

quarterly and reported to ALCO, our Market Risk Oversight Committee ("MROC"), ourRisk Oversight Committee ("ROC") and the

Board of Directors. Wewill periodically augment our interest rate simulations with alternative interestrate scenarios that may include

various non-parallel shifts in interest rates, including a flattening or steepeningof the yield curve.

Our goal is to structure the statement of financial condition so that net interest earnings at risk over12-month and 24-month periods

and the economic value of equity at risk do not exceed policy guidelinesat the various interest rate shock levels. Weattempt to

achieve this goal by balancing, within policy limits, the volume of floating-rateliabilities with a similar volume of floating-rate assets,

by keeping the average maturity of fixed-rate asset and liability contractsreasonably matched, by managing the mix of our core

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

Analysis.

Measures of net interest income at risk produced by simulation analysis areindicators of an institution's short-term

performance in alternative rate environments.These measures are typically based upon a relatively brief period, and do not

necessarily indicate the long-term prospects or economic value of the institution.The following table presents our net interest income

simulation results for gradual 12-month and 24-month "ramp" scenariosapplied to the base scenario. The "ramp" scenario is a parallel

shift applied gradually over a 12-month period for the projected 12-monthand 24-month period on a pro rata basis.

ESTIMATED CHANGESIN NET INTEREST INCOME

As of March 31, 2026

% Change in NII

Policy Limit

Change in Interest Rates

12 Months

24 Months

12 Months

24 Months

+200 bp Ramp

5.0%

17.7%

-10.0%

-12.5%

+100 bp Ramp

2.5%

10.7%

-7.5%

-10.0%

-100 bp Ramp

-2.5%

-4.2%

-7.5%

-10.0%

-200 bp Ramp

-5.1%

-12.3%

-10.0%

-12.5%

As of December 31, 2025

% Change in NII

Policy Limit

Change in Interest Rates

12 Months

24 Months

12 Months

24 Months

+200 bp Ramp

5.3%

18.5%

-10.0%

-12.5%

+100 bp Ramp

2.0%

10.8%

-7.5%

-10.0%

-100 bp Ramp

-2.7%

-4.9%

-7.5%

-10.0%

-200 bp Ramp

-5.5%

-13.3%

-10.0%

-12.5%

The Net Interest Income ("NII") at Risk position of an instantaneous,parallel rate shock indicates that in the short-term (over the next

12 months), all rising rate environments will positively impact the netinterest margin of the Company,while declining rate

environmentswill have a negative impact on the net interest margin.Compared to the fourth quarter of 2025, these metrics became

more favorable in the declining rate scenarios due to the deployment of variablerate overnight funds into the investment securities

portfolio.The instantaneous parallel rate shock results over the next 12-monthand 24-month periods are within our prescribed policy

limits for all rate scenarios.

45

The measures of equity value at risk indicate our ongoing economic valueby considering the effects of changes in interest rates on all

of our cash flows by discounting the cash flows to estimate the present value ofassets and liabilities. The difference between these

discounted values of the assets and liabilities is the economic value of equity,which in theory approximates the fair value of our net

assets.

ESTIMATED CHANGESIN ECONOMIC VALUEOF EQUITY

% Change in EVE

EVE Ratio

Changes in Interest

Rates

March 31, 2026

December 31, 2025

Policy

Limit

March 31, 2026

December 31, 2025

Policy

Minimum

+200 bp Shock

9.5%

10.4%

-20.0%

26.5%

25.4%

5.0%

+100 bp Shock

6.2%

7.0%

-15.0%

25.3%

24.2%

5.0%

-100 bp Shock

-9.5%

-9.7%

-15.0%

20.9%

19.8%

5.0%

-200 bp Shock

-20.8%

-21.0%

-20.0%

18.0%

17.1%

5.0%

At March 31, 2026, the economic value of equity was favorablein all rising rate environments and unfavorable in the falling rate

environments.EVE was within prescribed tolerance levels as the EVE ratio (EVE/EVA)in all rate scenarios is greater than 5.0%.

Factors that can impact EVE values include the absolute level of rates, the overallstructure of the balance sheet (including liquidity

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

As the interest rate environment and the dynamics of the economy continue to change,additional simulations will be analyzed to

address not only the changing rate environment, but also the changein mix of our financial assets and liabilities measured over

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

LIQUIDITY AND CAPITALRESOURCES

Liquidity

In general terms, liquidity is a measurement of our ability to meet ourcash needs.Our objective in managing our liquidity is to

maintain our ability to meet loan commitments, purchase securities or repay deposits andother liabilities in accordance with their

terms, without an adverse impact on our current or future earnings.Our liquidity strategy is guided by policies that are formulated and

monitored by our ALCO and senior management, which take into accountthe marketability of assets, the sources and stability of

funding and the level of unfunded commitments.We regularly evaluateall of our various funding sources with an emphasis on

accessibility, stability,reliability and cost-effectiveness.Our principal source of funding has been our client deposits, supplemented

by our short-term and long-term borrowings, primarily from securities sold underrepurchase agreements, federal funds purchased and

FHLB borrowings.We believe that the cashgenerated from operations, our borrowing capacity and our access to capital resourcesare

sufficient to meet our future operating capital and funding requirements.

At March 31, 2026, we had the ability to generate approximately $1.651 billion (excludes overnight funds position of $425 million) in

additional liquidity through various sources including various federal fundspurchased lines, Federal Home Loan Bank borrowings, the

Federal Reserve Discount Window,and brokered deposits. Werecognize the importance of maintaining liquidity and have developed

a Contingent Liquidity Plan, which addresses various liquidity stress levels andour response and action based on the level of severity.

We periodicallytest our credit facilities for access to the funds but also understand that as the severityof the liquidity level increases

certain credit facilities may no longer be available.We conduct a liquiditystress test on a quarterly basis based on events that could

potentially occur at the Bank and report results to our ALCO, MROC, EROC, andBoard of Directors.We believe theliquidity

available to us at March 31, 2026 was sufficient to meet our on-goingneeds and execute our business strategy.

We also view ourinvestment portfolio as a liquidity source and have the option to pledge securities in ourportfolio as collateral for

borrowings or deposits, and/or to sell selected securities. Our portfolio consists ofdebt issued by the U.S. Treasury,U.S. governmental

agencies, municipal governments, and corporate entities. Additionalinformation on our investment portfolio is provided within Note 2

- Investment Securities.

The Bank maintained an average net overnight funds (i.e., deposits with banksplus FED funds sold, less FED funds purchased) sold

position of $407.7 million in the first quarter of 2026compared to $437.5 million in the fourth quarter of 2026 and $320.9 million in

the first quarter of 2025. Compared to both prior periods, the variancereflected higher average deposits and lower average loans and

the deployment of excess liquidity into the investment security portfolio.

46

We expect ourcapital expenditures will be approximately $10.0 million over the next 12 months,which will primarily consist of

construction of a new office, office remodeling,office equipment/furniture, and technology purchases.Management expects that

these capital expenditures will be funded with existing resources without impairingour ability to meet our on-going obligations.

Borrowings

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

2025 and $37.3 million for the first quarter of 2025.The variances compared to both prior periods were primarily due to mortgage

warehouse borrowing activity.Additional detail on warehouse borrowings is provided in Note 4 -Mortgage Banking Activities in the

Consolidated Financial Statements.

We have issued twojunior subordinated deferrable interest notes to our wholly ownedDelaware statutory trusts.The first note for

$30.9 million was issued to CCBG Capital Trust I inNovember 2004, of which $10 million was retired in April 2016.We made

principal payments on this note of $4.1 million and $5.1 million in the first quarterof 2026 and the second quarter of 2025,

respectively.The second note for $32.0 million was issued to CCBG Capital TrustII in May 2005. Wemade principal payments on

this note of $5.1 million each in the first quarter of 2026 and the second quarterof 2025. The interest payment for the CCBG Capital

Trust I borrowing is due quarterly and adjusts quarterlyto a variable rate of three-month CME TermSOFR (secured overnight

financing rate) plus a margin of 1.90%. This notematures on December 31, 2034. The interest payment for the CCBG Capital TrustII

borrowing is due quarterly and adjusts quarterly to a variable interest rate basedon three-month CME TermSOFR plus a margin of

1.80%.This note matures on June 15, 2035.The proceeds from these borrowings were used to partially fund acquisitions.Under the

terms of each junior subordinated deferrable interest note, in the event of default orif we elect to defer interest on the note, we may

not, with certain exceptions, declare or pay dividends or make distributions on ourcapital stock or purchase or acquire any of our

capital stock.

The Company previously maintained a derivative cash flow hedge ofour interest rate risk related to our subordinated debt. The

notional amount of the derivative is $30 million ($10 million of theCCBG Capital Trust I borrowing and $20 million of the CCBG

Capital Trust II borrowing).In October 2025, the interest rate swaps were terminated.Additional detail on the interest rate swap

agreement is provided in Note 5 - Derivatives in the Consolidated FinancialStatements.

Capital

Our capital ratios are presented in the Selected Quarterly Financial Datatable on page 36.At March 31, 2026, our regulatory capital

ratios exceeded the threshold to be designated as "well-capitalized"under the Basel III capital standards.

Shareowners' equity was $559.9 million at March 31, 2026 compared to $552.9million at December 31, 2025 and $512.6 million at

March 31, 2025. For the first three months of 2026, shareowners' equitywas positively impacted by net income attributable to

shareowners of $15.8 million, the issuance of stock of $2.8 million, andstock compensation accretion of $0.5 million. Shareowners'

equity was reduced by a common stock dividend of $4.6 million ($0.27 pershare), repurchases of our common stock of $2.6 million

(63,088 shares), net adjustments totaling $2.6 million related to transactionsunder our stock-based compensation plans, and a net $2.3

million decrease in the accumulated other comprehensive gain. Thenet unfavorable change in accumulated other comprehensive gain

was primarily due to a $2.2 million increase in the investment securities loss.

At March 31, 2026, our total risk-based capital ratio was 21.62% comparedto 21.45% at December 31, 2025 and 19.20% at March 31,

2025. Our common equity tier 1 capital ratio was 19.08%, 18.56%, and 16.08%,respectively, onthese dates. Our leverage ratio was

11.65%, 11.77%,and 11.17%, respectively,on these dates. At March 31, 2026, all our regulatory capital ratios exceeded the

thresholds to be designated as "well-capitalized" under the Basel III capitalstandards. Further, our tangible commonequity ratio (non-

GAAP financial measure) was 10.79% at March 31, 2026 and December 31, 2025,compared to 9.61% at March 31, 2025. If our

unrealized held-to-maturity securities loss of $7.2 million (after-tax)were recognized in accumulated other comprehensive loss, our

adjusted tangible capital ratio would be 10.62%.

Our tangible capital ratio is also impacted by the recording of our unfunded pensionliability through other comprehensive income in

accordance with Accounting Standards CodificationTopic 715. At March 31, 2026and December 31, 2025, the net pension asset

reflected in other comprehensive income was $9.4 million comparedto $9.7 million at March 31, 2025. This liability is re-measured

annually on December 31

st

based on an actuarial calculation of our pension liability.Significant assumptions used in calculating the

liability include the weighted average discount rate used to measure the presentvalue of the pension liability,the weighted average

expected long-term rate of return on pension plan assets, and the assumed rate ofannual compensation increases, all of which will

vary when re-measured. The discount rate assumption used to calculatethe pension liability is subject to long-term corporate bond

rates at December 31

st

. These assumptions and sensitivities are discussed in the section entitled "Critical AccountingPolicies and

Estimates" in Part II, Item7. Management'sDiscussion and Analysis of Financial Condition and Results of Operations, ofour 2025

Form 10-K.

47

OFF-BALANCE SHEET ARRANGEMENTS

We are a partyto financial instruments with off-balance sheet risks in the normalcourse of business to meet the financing needs of our

clients.

At March 31, 2026, we had $669.7 million in commitments to extend creditand $7.5 million in standby letters of credit.

Commitments to extend credit are agreements to lend to a client so long as there is no violation ofany condition established in the

contract.Commitments generally have fixed expiration dates or other terminationclauses and may require payment of a fee.Since

many of the commitments are expected to expire without being drawn upon,the total commitment amounts do not necessarily

represent future cash requirements.Standby letters of credit are conditional commitments issued by us to guaranteethe performance

of a client to a third party.We use the same creditpolicies in establishing commitments and issuing letters of credit as we do for on-

balance sheet instruments.

If commitments arising from these financial instruments continue to requirefunding at historical levels, management does not

anticipate that such funding will adversely impact our ability to meet our on-goingobligations.In the event these commitments

require funding in excess of historical levels, management believes currentliquidity, advances available from theFHLB and the

Federal Reserve, and investment security maturities provide a sufficientsource of funds to meet these commitments.

Certain agreements provide that the commitments are unconditionallycancellable by the bank and for those agreements no allowance

for credit losses has been recorded.

We

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

unconditionally cancellable by the Bank, which is included in otherliabilities on the Consolidated Statements of Financial Condition

and totaled $2.2 million at March 31, 2026.

CRITICAL ACCOUNTING POLICIES

Our significant accounting policies are described in Note 1 to the ConsolidatedFinancial Statements included in our 2025 Form 10-K.

The preparation of our Consolidated Financial Statementsin accordance with GAAP and reporting practices applicable to the banking

industry requires us to make estimates and assumptions that affectthe reported amounts of assets, liabilities, revenues and expenses,

and to disclose contingent assets and liabilities.Actual results could differ from those estimates.

We have identifiedaccounting for (i) the allowance for credit losses, (ii) goodwill,(iii) pension assumptions, and (iv) income taxes as

our most critical accounting policies and estimates in that they are importantto the portrayal of our financial condition and results, and

they require our subjective and complex judgment as a result of the need to make estimates aboutthe effects of matters that are

inherently uncertain.These accounting policies, including the nature of the estimates and types of assumptionsused, are described

throughout this Item 2, Management'sDiscussion and Analysis of Financial Condition and Results of Operations, andPart II, Item 7,

Management's Discussion and Analysisof Financial Condition and Results of Operations includedin our 2025 Form 10-K.

48

TABLE I

AVERAGEBALANCES & INTEREST RATES

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

Average

Average

Average

Average

Average

Average

(Dollars in Thousands)

Balances

Interest

Rate

Balances

Interest

Rate

Balances

Interest

Rate

Assets:

Loans Held for Sale

$

24,716

$

404

6.63

%

$

24,261

$

374

6.11

%

$

24,726

$

490

8.04

%

Loans Held for Investment

(1)(2)

2,538,318

37,886

6.05

2,568,073

39,230

6.06

2,665,910

40,029

6.09

Taxable Securities

1,117,505

9,042

3.26

1,004,420

7,756

3.07

981,485

5,802

2.38

Tax-Exempt Securities

(2)

1,620

17

4.25

1,620

17

4.30

845

9

4.32

Interest Bearing Deposits

407,679

3,711

3.69

437,536

4,382

3.97

320,948

3,496

4.42

Total Earning Assets

4,089,838

51,060

5.06

%

4,035,910

51,759

5.08

%

3,993,914

49,826

5.06

%

Cash & Due From Banks

63,079

67,291

73,467

Allowance For Credit Losses

(31,545)

(30,922)

(30,008)

Other Assets

297,532

294,757

297,660

TOTAL ASSETS

$

4,418,904

$

4,367,036

$

4,335,033

Liabilities:

Noninterest Bearing Deposits

$

1,282,988

$

1,303,266

$

1,317,425

NOW Accounts

1,302,894

$

4,221

1.31

%

1,235,961

$

4,055

1.30

%

1,249,955

$

3,854

1.25

%

Money Market Accounts

403,340

1,752

1.76

415,577

1,977

1.89

420,059

2,187

2.11

Savings Accounts

509,351

132

0.10

501,080

157

0.12

507,676

176

0.14

Other Time Deposits

192,443

1,290

2.72

191,626

1,355

2.80

170,367

1,166

2.78

Total Interest Bearing Deposits

2,408,028

7,395

1.25

2,344,244

7,544

1.28

2,348,057

7,383

1.28

Total Deposits

3,691,016

7,395

0.81

3,647,510

7,544

0.82

3,665,482

7,383

0.82

Repurchase Agreements

15,789

73

1.88

20,690

134

2.57

29,821

164

2.23

Short-Term Borrowings

27,836

327

4.76

20,954

217

4.09

7,437

117

6.39

Subordinated Notes Payable

41,620

398

3.83

42,582

451

4.15

52,887

560

4.23

Other Long-Term Borrowings

680

10

5.68

680

9

5.55

794

11

5.68

Total Interest Bearing Liabilities

2,493,953

8,203

1.33

%

2,429,150

8,355

1.36

%

2,438,996

8,235

1.37

%

Other Liabilities

74,300

78,520

65,211

TOTAL LIABILITIES

3,851,241

3,810,936

3,821,632

TOTAL SHAREOWNERS' EQUITY

567,663

556,100

513,401

TOTAL LIABILITIES, TEMPORARY

AND SHAREOWNERS' EQUITY

$

4,418,904

$

4,367,036

$

4,335,033

Interest Rate Spread

3.72

%

3.72

%

3.69

%

Net Interest Income

$

42,857

$

43,404

$

41,591

Net Interest Margin

(3)

4.24

%

4.26

%

4.22

%

(1)

Average Balances include net loan fees, discounts and premiums and nonaccrual loans.Interest income includes net loan costs of $0.4 million forthe three months ended

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

(2)

Interest income includes the effects of taxable equivalent adjustmentsusing a 21% tax rate.

(3)

Taxable equivalent net interest income divided by average earning assets.

49

Item 3.QUANTITATIVEAND QUALITATIVEDISCLOSURES ABOUT MARKET RISK

See "Market Risk and Interest Rate Sensitivity" in Management'sDiscussion and Analysis of Financial Condition and Results of

Operations, above, which is incorporated herein by reference.Management has determined that no additional disclosures are

necessary to assess changes in information about market risk that have occurredsince December 31, 2025.

Item 4.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

At March 31, 2026, the end of the period covered by this Form 10-Q, our management,including our Chief Executive Officer and

Chief Financial Officer, evaluatedthe effectiveness of our disclosure controls and procedures (as definedin Rule 13a-15(e) under the

Securities Exchange Act of 1934).Based upon that evaluation, our Chief Executive Officer and ChiefFinancial Officer concluded

that, as of the end of the period covered by this report,our disclosure controls and procedures were effective.

Our management, including our Chief Executive Officerand Chief Financial Officer, has reviewedour internal control over financial

reporting (as defined in Rule 13a-15(f) under the Securities ExchangeAct of 1934). During the quarter ended March 31, 2026, there

have been no significant changes in our internal control over financial reportingduring our most recently completed fiscal quarter that

have materially affected, or are reasonably likely to materiallyaffect, our internal control over financial reporting.

PARTII.OTHER INFORMATION

Item 1.Legal Proceedings

We are partyto lawsuits arising out of the normal course of business.In management's opinion, there is no known pending litigation,

the outcome of which would, individually or in the aggregate, have a material effecton our consolidated results of operations,

financial position, or cash flows.

Item 1A.Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully considerthe factors discussed in Part I,

Item 1A. "Risk Factors" in our 2025 Form 10-K, as updated in our subsequentquarterly reports. The risks described in our 2025 Form

10-K, and our subsequent quarterly reports are not the only risks facing us.Additional risks and uncertainties not currently known to

us or that we currently deem to be immaterial also may materially adversely affectour business, financial condition and/or operating

results.

Item 2.Unregistered Sales of Equity Securities and Use ofProceeds

Purchases of Equity Securities by the Issuer andAffiliated Purchasers

The following table contains information about all purchases made by,or on behalf of, us and any affiliated purchaser (as definedin

Rule 10b-18(a)(3) under the Exchange Act) of shares or other units of any class ofour equity securities that is registered pursuant to

Section 12 of the Exchange Act.

Totalnumber

Average

Totalnumber of shares

Maximum Number of shares

of shares

price paid

purchased under our

remaining for purchase under

Period

purchased

per share

share repurchase program

(1)

our share repurchase program

January 1, 2026 to

January 31, 2026

-

-

-

676,561

February 1, 2026 to

February 28, 2026

7,713

41.83

7,713

668,848

March 1, 2026 to

March 31, 2026

55,375

41.84

55,375

613,473

Total

63,088

$41.84

63,088

613,473

50

(1)

The information reported in this row relates to shares that were repurchasedduring the first quarter of 2026 through the Capital

City Bank Group, Inc. Share Repurchase Program ("the Program"),effective February 1, 2024, that was publicly announced on

February 2, 2024 and that expires on February 1, 2029, under whichwe were authorized to repurchase up to 750,000 shares of

our common stock.Under the Program, shares may be repurchased by the Company from time to time in the openmarket or

through private transactions, as market conditions warrant.The program does not obligate the Company to repurchase any

specified number of shares of its common stock.No shares are repurchased outside of the Program.

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosure

Not Applicable.

Item 5.Other Information

(c) Rule 10b5-1 Trading Plans

During the three months ended March 31, 2026, none of our directors or officers(as defined in Rule 16a-1(f) under the Exchange Act)

adopted

, modified or

terminated

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

satisfy the affirmative defense conditions of Rule 10b5-1(c)under the Exchange Act or any "

non-Rule

10b5-1

trading arrangement" as

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

51

Item 6.Exhibits

(A)Exhibits

3.1

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

the Registrant's

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

3.2

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

Form 8-K (filed

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

31.1

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

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

31.2

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

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

32.1

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

to 18 U.S.C. Section 1350.

32.2

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

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

101.SCHXBRL TaxonomyExtension Schema Document

101.CALXBRL TaxonomyExtension Calculation Linkbase Document

101.LABXBRL TaxonomyExtension Label Linkbase Document

101.PREXBRL TaxonomyExtension Presentation Linkbase Document

101.DEFXBRL TaxonomyExtension Definition Linkbase Document

104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

52

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant hasduly caused this Report to be signed on its

behalf by the undersigned Chief Financial Officer hereunto dulyauthorized.

CAPITAL CITYBANK GROUP,INC.

(Registrant)

/s/ Jeptha E. Larkin

Jeptha E. Larkin

Executive Vice Presidentand Chief Financial Officer

(Mr. Larkin is the Principal FinancialOfficer and has

been duly authorized to sign on behalf of the Registrant)

Date: April 28, 2026