Earnings release
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July 21, 2026 Capital City Bank Group, Inc. Reports Second Quarter 2026 Results TALLAHASSEE, Fla., July 21, 2026 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $16.3 million, or $0.95 per diluted share, for the second quarter of 2026 compared to $15.8 million, or $0.92 per diluted share, for the first quarter of 2026, and $15.0 million, or $0.88 per diluted share, for the second quarter of 2025. Return on Assets was 1.48% and Return on Equity was 11.38% for the second quarter of 2026 compared to 1.45% and 11.30%, respectively for the first quarter of 2026, and 1.38% and 11.44%, respectively for the second quarter of 2025. QUARTER HIGHLIGHTS (2 nd Quarter 2026 versus 1 st Quarter 2026) Income Statement Tax-equivalent net interest income totaled $44.2 million compared to $42.9 million for the prior quarter and reflected one additional calendar day in the second quarter Net interest margin increased 11 basis points to 4.35% (earning asset yield increased 5 basis points and cost of funds decreased 6 basis points to 75 basis points) Credit loss provision increased $0.2 million - net loan charge-offs of 14 basis points (annualized) of average loans - allowance coverage ratio increased one basis point to 1.24% at June 30, 2026 Noninterest income increased $0.7 million, or 3.3%, driven by higher mortgage banking revenues and bank card fees Noninterest expense increased $1.3 million, or 3.1%, primarily due to a higher other expense of $0.9 million and occupancy expense of $0.3 million Balance Sheet Loan balances decreased $32.4 million, or 1.3% (average), and decreased $18.5 million, or 0.7% (end of period) Stable credit quality - total nonperforming assets of $13.4 million (30 basis points of total assets) at June 30, 2026, a $0.4 million increase over the prior quarter Deposit balances decreased $12.2 million, or 0.3% (average), and decreased $30.6 million, or 0.8% (end of period) due to the seasonal decrease in our public fund balances Tangible book value per diluted share (non-GAAP financial measure) increased $0.56, or 2.0% “We’re pleased with another strong quarter of performance and the momentum our team continues to build,” said William G. Smith, Jr., Chairman and CEO. “As we look to the
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second half of the year, we’ll remain focused on serving our clients’ financial needs, managing risk wisely and executing on the opportunities ahead. None of this happens without the dedication of our associates and the strong communities we’re privileged to serve.” Discussion of Operating Results Net Interest Income/Net Interest Margin Tax-equivalent net interest income for the second quarter of 2026 totaled $44.2 million, compared to $42.9 million for the first quarter of 2026, and $43.2 million for the second quarter of 2025. Compared to the first quarter of 2026, the increase was attributable to higher investment securities income and lower deposit interest expense, partially offset by lower loan interest income and overnight funds income due to lower average balances. The increase in investment securities income reflected new investment purchases at higher rates and higher balances as we deploy additional liquidity into the investment security portfolio. The increase over the second quarter of 2025 was also driven by the same aforementioned factors. One additional calendar day also contributed to the increase over the first quarter of 2026. For the first six months of 2026, tax-equivalent net interest income totaled $87.1 million compared to $84.8 million for the same period of 2025, primarily attributable to higher investment securities income and lower deposit interest expense, partially offset by lower loan interest income and overnight funds income. New investment purchases at higher yields and higher balances drove the increase in investment securities income. The decrease in deposit interest expense reflected lower public funds deposit balances and lower rates across our product lines. Lower average loan balances contributed to the decrease in loan interest income, while the decrease in overnight funds income reflected the deployment of more liquidity into the investment portfolio. Our net interest margin for the second quarter of 2026 was 4.35%, an increase of 11 basis points from the first quarter of 2026 and an increase of five basis points over the second quarter of 2025. For the first six months of 2026, our net interest margin increased by four basis points to 4.30% compared to the same period of 2025. The increase in net interest margin over all prior periods was largely attributable to a higher investment security yield driven by new purchases at higher rates and lower deposit costs. For the second quarter of 2026, our cost of funds was 75 basis points, a decrease of six basis points from the first quarter of 2026, and a decrease of seven basis points from the second quarter of 2025. Our cost of deposits (including noninterest bearing accounts) was 76 basis points, 81 basis points, and 81 basis points, respectively, for the same periods. Provision for Credit Losses We recorded a provision expense for credit losses of $0.9 million for the second quarter of 2026, compared to $0.7 million for the first quarter of 2026 and $0.6 million for the second quarter of 2025. For the first six months of 2026, we recorded a provision expense for credit losses of $1.6 million compared to $1.4 million for the first six months of 2025. Activity within the components of the provision (loans held for investment (“HFI”) and unfunded loan commitments) for each reported period is provided in the table on page 10. We discuss the various factors that impacted our provision expense for Loans HFI in further detail below
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under the heading Allowance for Credit Losses . Noninterest Income and Noninterest Expense Noninterest income for the second quarter of 2026 totaled $20.6 million, a $0.7 million, or 3.3%, increase over the first quarter of 2026 and a $0.6 million, or 2.9%, increase over the second quarter of 2025. The increase over the first quarter of 2026 was primarily attributable to increases in mortgage banking revenues of $0.4 million and bank card fees of $0.2 million. The increase in mortgage banking revenues was primarily due to higher production volume and the increase in bank card fees reflected higher card volume. The increase over the second quarter of 2025 was driven by increases in other income of $0.7 million, mortgage banking revenues of $0.5 million, and deposit fees of $0.3 million that were partially offset by a decrease in wealth management fees of $1.0 million. The increase in other income was primarily due to a higher level of other fees/commissions, bank owned life insurance income, and miscellaneous income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The decrease in wealth management fees was attributable to lower retail brokerage fees, which reflects a decline in assets under management. For the first six months of 2026, noninterest income totaled $40.5 million, a $0.6 million, or 1.5%, increase over the same period of 2025, primarily attributable to increases in other income of $1.4 million, mortgage banking revenues of $0.9 million, and deposit fees of $0.9 million, that were partially offset by a decrease in wealth management fees of $2.7 million. The increase in other income was primarily attributable to a $0.5 million miscellaneous recovery and increases in other fees/commissions of $0.3 million, miscellaneous income of $0.2 million, and bank owned life insurance income of $0.1 million. The increase in mortgage banking revenues reflected a higher gain on sale margin. Higher service charge fees and commercial account analysis fees drove the increase in deposit fees. We are currently in the process of reviewing and updating our deposit product offerings against peer and industry best practices and we expect modifications will reduce related fee revenues beginning in the third quarter of 2026. The decrease in wealth management fees was attributable to the aforementioned decrease in retail brokerage assets under management and lower insurance commissions. Noninterest expense for the second quarter of 2026 totaled $42.6 million, a $1.3 million, or 3.1%, increase over the first quarter of 2026 and a $0.1 million, or 0.2%, increase over the second quarter of 2025. The increase over the first quarter of 2026 was primarily attributable to increases in other expense of $0.9 million and occupancy expense of $0.2 million. Increases in other real estate (ORE) expense of $0.4 million, travel/entertainment expense of $0.2 million, professional fees of $0.1 million, and miscellaneous expenses of $0.1 million drove the increase in other expense. The increase in occupancy expense was primarily attributable to higher FF&E maintenance agreement expense. The increase over the second quarter of 2025 reflected increases in other expense of $0.5 million and occupancy expense of $0.2 million that was partially offset by a $0.6 million decrease in compensation expense, including a $0.3 million decline in salary expense and $0.3 million decrease in associate benefits. For the first six months of 2026, noninterest expense totaled $84.0 million, a $2.8 million, or 3.4%, increase over the same period of 2025 and reflected increases in other expense of $3.4 million and occupancy expense of $0.6 million that was partially offset by a $1.2 million
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decrease in compensation expense. The increase in other expense was primarily due to a $4.2 million increase in ORE expense, which reflected a lower level of gains from the sale of properties, namely a large gain realized from the sale of our operations center building in 2025. Higher expense for charitable contributions of $0.6 million was partially offsetting. The increase in occupancy expense reflected higher expense for FF&E maintenance agreements and software licenses. The decrease in compensation expense reflected lower salary expense of $0.9 million and associate benefit expense of $0.3 million. Lower commission expense drove the decline in salary expense and the decrease in associate benefit expense was attributable to lower stock based compensation. Income Taxes We realized income tax expense of $5.0 million (effective rate of 23.4%) for the second quarter of 2026, compared to $4.8 million (effective rate of 23.5%) for the first quarter of 2026 and $5.0 million (effective rate of 24.9%) for the second quarter of 2025. For the first six months of 2026, we realized income tax expense of $9.8 million (effective rate of 23.4%) compared to $10.1 million (effective rate of 24.1%) for the same period of 2025. The effective rate for the second quarter of 2026 reflected a tax benefit related to an investment in a solar tax equity fund during the quarter and the effective rate for the first quarter of 2026 included a discrete item related to stock-based compensation. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 23.5% for 2026. Discussion of Financial Condition Earning Assets Average earning assets totaled $4.069 billion for the second quarter of 2026, a decrease of $21.0 million, or 0.5% from the first quarter of 2026, and an increase of $32.9 million, or 0.8% over the fourth quarter of 2025. Compared to the first quarter of 2026, the change in earning asset mix reflected a $42.6 million decrease in overnight funds and a $32.4 million decrease in loans held for investment, partially offset by a $48.2 million increase in investment securities and a $5.8 million increase in loans held for sale (“HFS”). Compared to the fourth quarter of 2025, the change reflected a $161.3 million increase in investment securities and a $6.2 million increase in loans HFS, partially offset by a $72.4 million decrease in overnight funds and a $62.2 million decrease in loans held for investment. Average loans HFI decreased by $32.4 million, or 1.3% from the first quarter of 2026, and decreased by $62.2 million, or 2.4% from the fourth quarter of 2025. Compared to the first quarter of 2026, the decline was primarily attributable to decreases in residential real estate loans of $14.4 million, commercial real estate loans of $14.4 million, and commercial loans of $5.2 million, partially offset by increases in home equity loans of $1.9 million. Compared to the fourth quarter of 2025, the decline was primarily attributable to decreases in residential real estate loans of $30.6 million, commercial real estate loans of $24.5 million, commercial loans of $6.6 million, construction loans of $4.1 million, consumer loans (primarily indirect auto) of $2.9 million, partially offset by an increase in home equity loans of $5.9 million. Loans HFI at June 30, 2026, decreased by $18.5 million, or 0.7% from March 31, 2026, and decreased by $46.2 million, or 1.8%, from December 31, 2025. Compared to March 31, 2026, the decline was primarily due to decreases in other loans of $9.7 million, construction
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loans of $7.5 million, and commercial real estate loans of $5.2 million, partially offset by increases in commercial loans of $2.3 million, and consumer loans (primarily indirect auto) of $1.3 million. Compared to December 31, 2025, the decline was primarily attributable to decreases in residential real estate loans of $22.8 million, commercial real estate loans of $18.1 million, commercial loans of $7.8 million, other loans of $2.1 million, consumer loans (primarily indirect auto) of $1.5 million, partially offset by increases in home equity loans of $3.6 million, and construction loans of $2.2 million. Allowance for Credit Losses At June 30, 2026, the allowance for credit losses for loans HFI totaled $31.0 million comparable to March 31, 2026 and December 31, 2025. Activity within the allowance is provided on Page 10. Net loan charge-offs were 14 basis points of average loans for the second quarter of 2026 versus 10 basis points for the first quarter of 2026 and 18 basis points for the fourth quarter of 2025. At June 30, 2026, the allowance represented 1.24% of loans HFI compared to 1.23% at March 31, 2026, and 1.22% at December 31, 2025. Credit Quality Nonperforming assets (nonaccrual loans and other real estate) totaled $13.4 million at June 30, 2026, compared to $13.0 million at March 31, 2026 and $10.5 million at December 31, 2025. At June 30, 2026, nonperforming assets as a percentage of total assets was 0.30%, compared to 0.29% at March 31, 2026 and 0.24% at December 31, 2025. Nonaccrual loans totaled $10.0 million at June 30, 2026, a $1.1 million decrease from March 31, 2026 and a $1.4 million increase over December 31, 2025. Other real estate totaled $3.4 million at June 30, 2026, a $1.6 million increase over March 31, 2026 and a $1.5 million increase over December 31, 2025. Further, classified loans totaled $29.8 million at June 30, 2026, a $15.3 million increase over March 31, 2026 and a $15.5 million increase over December 31, 2025. The increase over both prior periods reflected the downgrade of four commercial real estate relationships (two private schools totaling $9.8 million ($6.4 million and $3.4 million), hotel $2.0 million, funeral home $5.0 million). Deposits Average total deposits were $3.679 billion for the second quarter of 2026, a decrease of $12.2 million, or 0.3%, from the first quarter of 2026, and an increase of $31.3 million, or 0.9%, over the fourth quarter of 2025. Compared to the first quarter of 2026, the decrease was primarily attributable to lower public funds balances of $43.5 million (primarily NOW account balances) as those balances begin to seasonally decline in the second quarter, partially offset by higher core account balances of $31.3 million (primarily MMA and noninterest bearing checking). The increase over the fourth quarter of 2025 was primarily due to higher public funds balances of $56.1 million, partially offset by lower core deposit balances of $24.8 million. At June 30, 2026, total deposits were $3.721 billion, a decrease of $30.6 million, or 0.8% from March 31, 2026, and an increase of $58.7 million, or 1.6% over December 31, 2025. The decrease from March 31, 2026, was driven by lower public funds balances of $68.4 million (primarily NOW accounts), partially offset by an increase in core deposit balances of $37.8 million (primarily noninterest bearing accounts). The increase over December 31, 2025 was primarily due to core deposit growth of $151.9 million, partially offset by lower
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public funds balances of $93.2 million. Total public funds balances were $561.5 million at June 30, 2026, $629.9 million at March 31, 2026, and $654.7 million at December 31, 2025, respectively. Liquidity The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold, less FED funds purchased) sold position of $365.1 million in the second quarter of 2026 compared to $407.7 million in the first quarter of 2026 and $437.5 million in the fourth quarter of 2025. Compared to the first quarter of 2026, the variance reflected lower average deposits and the deployment of excess liquidity into the investment security portfolio. Compared to the fourth quarter of 2025, the variance was driven by the deployment of excess liquidity into the investment security portfolio. We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At June 30, 2026, the weighted-average maturity and duration of our portfolio were 2.95 years and 2.60 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $14.0 million. At June 30, 2026, we had the ability to generate approximately $1.721 billion (excludes overnight funds position of $413 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits. Capital Shareowners’ equity was $570.1 million at June 30, 2026 compared to $559.9 million at March 31, 2026 and $552.9 million at December 31, 2025. For the first six months of 2026, shareowners’ equity was positively impacted by net income attributable to shareowners of $32.1 million, the issuance of stock of $3.4 million, and stock compensation accretion of $0.9 million. Shareowners’ equity was reduced by common stock dividends of $9.2 million ($0.54 per share), repurchases of our common stock of $2.6 million (63,088 shares), net adjustments totaling $2.6 million related to transactions under our stock-based compensation plans, and an unfavorable net change of $4.8 million in accumulated other comprehensive loss due to an unfavorable fair value mark on the investment securities portfolio driven by higher bond rates in the second quarter. At June 30, 2026, our total risk-based capital ratio was 22.35%, compared to 21.62% at March 31, 2026 and 21.45% at December 31, 2025. Our common equity tier 1 capital ratio was 19.80%, 19.08%, and 18.56%, respectively, on these dates. Our leverage ratio was 11.96%, 11.65%, and 11.77%, respectively, on these dates. At June 30, 2026, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 11.03% at June 30, 2026, compared to 10.79% at both March 31, 2026, and December 31, 2025. If our unrealized held-to-maturity securities loss of $7.8 million (after-tax) was recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 10.85%.
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About Capital City Bank Group, Inc. Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.5 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, and securities brokerage services. Our bank subsidiary, Capital City Bank, was founded in 1895 and has 62 banking offices and 107 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit 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; supply-demand imbalances and general economic conditions affecting local real estate prices and a general deterioration in commercial real estate market fundamentals; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; increased competition and its effect on deposit fees; technological changes, including the impact of generative artificial intelligence; the costs and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; dispositions; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; action or inaction by the federal
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government, including tariffs or trade wars (including potential resulting reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), government intervention in the U.S. financial system; policies related to credit card interest rates, and legislative, regulatory or supervisory actions related to so-called “de- banking,” including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict (including impacts related to the conflicts in the Middle East and resulting disruptions to energy and other commodities markets and supply chains), terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our other filings with the SEC, which are available at the SEC’s internet site (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 We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because they allow investors to more easily compare our capital adequacy to other companies in the industry. Non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The GAAP to non-GAAP reconciliations are provided below. (Dollars in Thousands, except per share data) Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Shareowners' Equity (GAAP) $ 570,095 $ 559,912 $ 552,851 $ 540,635 $ 526,423 Less: Goodwill and Other Intangibles (GAAP) 89,095 89,095 89,095 89,095 92,693 Tangible Shareowners' Equity (non-GAAP) A 481,000 470,817 463,756 451,540 433,730 Total Assets (GAAP) 4,450,483 4,453,734 4,385,765 4,323,774 4,391,753 Less: Goodwill and Other Intangibles (GAAP) 89,095 89,095 89,095 89,095 92,693 Tangible Assets (non-GAAP) B $ 4,361,388 $ 4,364,639 $ 4,296,670 $ 4,234,679 $ 4,299,060 Tangible Common Equity Ratio (non-GAAP) A/B 11.03 % 10.79 % 10.79 % 10.66 % 10.09 % Actual Diluted Shares Outstanding (GAAP) C 17,135,824 17,114,954 17,154,586 17,115,336 17,097,986 Tangible Book Value per Diluted Share (non- GAAP) A/C $ 28.07 $ 27.51 $ 27.03 $ 26.38 $ 25.37
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CAPITAL CITY BANK GROUP, INC. EARNINGS HIGHLIGHTS Unaudited Three Months Ended Six Months Ended (Dollars in thousands, except per share data) Jun 30, 2026 Mar 31, 2026 Jun 30, 2025 Jun 30, 2026 Jun 30, 2025 EARNINGS Net Income Attributable to Common Shareowners $ 16,277 $ 15,817 $ 15,044 $ 32,094 $ 31,902 Diluted Net Income Per Share $ 0.95 $ 0.92 $ 0.88 $ 1.87 $ 1.87 PERFORMANCE Return on Average Assets (annualized) 1.48 % 1.45 % 1.38 % 1.47 % 1.48 % Return on Average Equity (annualized) 11.38 11.30 11.44 11.34 12.36 Net Interest Margin 4.35 4.24 4.30 4.30 4.26 Noninterest Income as % of Operating Revenue 31.79 31.77 31.67 31.78 32.03 Efficiency Ratio 65.76 % 65.89 % 67.26 % 65.83 % 65.13 % CAPITAL ADEQUACY Tier 1 Capital 21.10 % 20.37 % 18.38 % 21.10 % 18.38 % Total Capital 22.35 21.62 19.60 22.35 19.60 Leverage 11.96 11.65 11.14 11.96 11.14 Common Equity Tier 1 19.80 19.08 16.81 19.80 16.81 Tangible Common Equity ( 1) 11.03 10.79 10.09 11.03 10.09 Equity to Assets 12.81 % 12.57 % 11.99 % 12.81 % 11.99 % ASSET QUALITY Allowance as % of Non-Performing Loans 309.72 % 278.19 % 463.01 % 309.72 % 463.01 % Allowance as a % of Loans HFI 1.24 1.23 1.13 1.24 1.13 Net Charge-Offs as % of Average Loans HFI 0.14 0.10 0.09 0.12 0.09 Nonperforming Assets as % of Loans HFI and OREO 0.54 0.51 0.25 0.54 0.25 Nonperforming Assets as % of Total Assets 0.30 % 0.29 % 0.15 % 0.30 % 0.15 % STOCK PERFORMANCE High $ 51.04 $ 46.83 $ 39.82 $ 51.04 $ 39.82 Low 42.79 39.26 32.38 39.26 32.38 Close $ 49.42 $ 43.46 $ 39.35 $ 49.42 $ 39.35 Average Daily Trading Volume 95,532 100,149 27,397 97,821 25,988 (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 9. CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited 2026 2025 (Dollars in thousands) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter ASSETS Cash and Due From Banks $ 67,124 $ 64,214 $ 62,189 $ 68,397 $ 78,485 Funds Sold and Interest Bearing Deposits 412,609 424,756 467,782 397,502 394,917 Total Cash and Cash Equivalents 479,733 488,970 529,971 465,899 473,402 Investment Securities Available for Sale 853,608 800,550 643,922 577,333 533,457 Investment Securities Held to Maturity 304,460 353,296 377,446 404,659 462,599 Other Equity Securities 2,068 2,083 2,069 2,145 3,242 Total Investment Securities 1,160,136 1,155,929 1,023,437 984,137 999,298 Loans Held for Sale ("HFS"): 34,278 25,088 21,695 24,204 19,181
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Loans Held for Investment ("HFI"): Commercial, Financial, & Agricultural 172,536 170,268 180,341 179,018 180,008 Real Estate - Construction 149,127 156,630 146,920 156,756 174,115 Real Estate - Commercial 750,637 755,800 768,731 785,290 802,504 Real Estate - Residential 998,145 998,720 1,020,942 1,037,324 1,046,368 Real Estate - Home Equity 244,462 243,932 240,897 234,111 228,201 Consumer 180,859 179,515 182,327 185,847 197,483 Other Loans 2,668 12,347 4,748 2,283 1,552 Overdrafts 1,437 1,192 1,212 1,378 1,259 Total Loans Held for Investment 2,499,871 2,518,404 2,546,118 2,582,007 2,631,490 Allowance for Credit Losses (31,007 ) (30,999 ) (31,001 ) (30,202 ) (29,862 ) Loans Held for Investment, Net 2,468,864 2,487,405 2,515,117 2,551,805 2,601,628 Premises and Equipment, Net 81,148 77,670 79,457 79,748 79,906 Goodwill and Other Intangibles 89,095 89,095 89,095 89,095 92,693 Other Real Estate Owned 3,424 1,822 1,936 1,831 132 Other Assets 133,805 127,755 125,057 127,055 125,513 Total Other Assets 307,472 296,342 295,545 297,729 298,244 Total Assets $ 4,450,483 $ 4,453,734 $ 4,385,765 $ 4,323,774 $ 4,391,753 LIABILITIES Deposits: Noninterest Bearing Deposits $ 1,344,694 $ 1,299,933 $ 1,251,886 $ 1,303,786 $ 1,332,080 NOW Accounts 1,282,360 1,309,527 1,322,114 1,222,861 1,284,137 Money Market Accounts 418,342 432,874 390,888 405,846 408,666 Savings Accounts 511,000 516,149 503,485 500,323 504,331 Certificates of Deposit 164,613 193,134 193,939 182,096 175,639 Total Deposits 3,721,009 3,751,617 3,662,312 3,614,912 3,704,853 Repurchase Agreements 7,420 4,561 22,018 25,629 21,800 Other Short-Term Borrowings 39,487 28,715 28,074 14,615 12,741 Subordinated Notes Payable 33,303 33,303 42,582 42,582 42,582 Other Long-Term Borrowings 567 680 680 680 680 Other Liabilities 78,602 74,946 77,248 84,721 82,674 Total Liabilities 3,880,388 3,893,822 3,832,914 3,783,139 3,865,330 SHAREOWNERS' EQUITY Common Stock 171 171 171 171 171 Additional Paid-In Capital 40,821 39,854 41,650 40,067 39,527 Retained Earnings 531,291 519,632 508,443 499,176 487,665 Accumulated Other Comprehensive Income (Loss), Net of Tax (2,188 ) 255 2,587 1,221 (940 ) Total Shareowners' Equity 570,095 559,912 552,851 540,635 526,423 Total Liabilities, Temporary Equity and Shareowners' Equity $ 4,450,483 $ 4,453,734 $ 4,385,765 $ 4,323,774 $ 4,391,753 OTHER BALANCE SHEET DATA Earning Assets $ 4,106,894 $ 4,124,177 $ 4,059,032 $ 3,987,850 $ 4,044,886 Interest Bearing Liabilities 2,457,092 2,518,943 2,503,780 2,394,632 2,450,576 Book Value Per Diluted Share $ 33.27 $ 32.71 $ 32.23 $ 31.59 $ 30.79 Tangible Book Value Per Diluted Share ( 1) 28.07 27.51 27.03 26.38 25.37 Actual Basic Shares Outstanding 17,111 17,098 17,084 17,069 17,066 Actual Diluted Shares Outstanding 17,136 17,115 17,155 17,115 17,098 ( 1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 9.
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CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF OPERATIONS Unaudited 2026 2025 Six Months Ended June 30, (Dollars in thousands, except per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2026 2025 INTEREST INCOME Loans, including Fees $ 38,212 $ 38,254 $ 39,565 $ 40,279 $ 40,872 $ 76,466 $ 81,350 Investment Securities 10,260 9,055 7,768 7,188 6,678 19,315 12,486 Federal Funds Sold and Interest Bearing Deposits 3,366 3,711 4,382 3,964 3,909 7,077 7,405 Total Interest Income 51,838 51,020 51,715 51,431 51,459 102,858 101,241 INTEREST EXPENSE Deposits 6,933 7,395 7,544 7,265 7,405 14,328 14,788 Repurchase Agreements 61 73 134 158 156 134 320 Other Short-Term Borrowings 349 327 217 58 179 676 296 Subordinated Notes Payable 288 398 451 383 530 686 1,090 Other Long-Term Borrowings 9 10 9 10 5 19 16 Total Interest Expense 7,640 8,203 8,355 7,874 8,275 15,843 16,510 Net Interest Income 44,198 42,817 43,360 43,557 43,184 87,015 84,731 Provision for Credit Losses 919 712 1,995 1,881 620 1,631 1,388 Net Interest Income after Provision for Credit Losses 43,279 42,105 41,365 41,676 42,564 85,384 83,343 NONINTEREST INCOME Deposit Fees 5,656 5,598 5,811 5,877 5,320 11,254 10,381 Bank Card Fees 3,858 3,630 3,684 3,733 3,774 7,488 7,288 Wealth Management Fees 4,185 4,051 4,525 5,173 5,206 8,236 10,969 Mortgage Banking Revenues 4,660 4,252 4,155 4,794 4,190 8,912 8,010 Other 2,240 2,402 1,928 2,754 1,524 4,642 3,273 Total Noninterest Income 20,599 19,933 20,103 22,331 20,014 40,532 39,921 NONINTEREST EXPENSE Compensation 25,836 25,703 28,384 26,056 26,490 51,539 52,738 Occupancy, Net 7,319 7,083 7,052 7,037 7,071 14,402 13,864 Other 9,485 8,587 7,431 9,823 8,977 18,072 14,637 Total Noninterest Expense 42,640 41,373 42,867 42,916 42,538 84,013 81,239 OPERATING PROFIT 21,238 20,665 18,601 21,091 20,040 41,903 42,025 Income Tax Expense 4,961 4,848 4,896 5,141 4,996 9,809 10,123 NET INCOME $ 16,277 $ 15,817 $ 13,705 $ 15,950 $ 15,044 $ 32,094 $ 31,902 PER COMMON SHARE Basic Net Income $ 0.95 $ 0.92 $ 0.80 $ 0.93 $ 0.88 $ 1.88 $ 1.87 Diluted Net Income 0.95 0.92 0.80 0.93 0.88 1.87 1.87 Cash Dividend $ 0.27 $ 0.27 $ 0.26 $ 0.26 $ 0.24 $ 0.54 $ 0.48 AVERAGE SHARES Basic 17,101 17,129 17,070 17,068 17,056 17,115 17,042 Diluted 17,126 17,146 17,140 17,114 17,088 17,133 17,067 CAPITAL CITY BANK GROUP, INC. ALLOWANCE FOR CREDIT LOSSES ("ACL") AND CREDIT QUALITY Unaudited 2026 2025 Six Months Ended June 30, (Dollars in thousands, except per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2026 2025 ACL - HELD FOR INVESTMENT LOANS
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Balance at Beginning of Period $ 30,999 $ 31,001 $ 30,202 $ 29,862 $ 29,734 $ 31,001 $ 29,251 Provision for Credit Losses 904 635 1,984 1,550 718 1,539 1,801 Net Charge-Offs 896 637 1,185 1,210 590 1,533 1,190 Balance at End of Period $ 31,007 $ 30,999 $ 31,001 $ 30,202 $ 29,862 $ 31,007 $ 29,862 As a % of Loans HFI 1.24% 1.23% 1.22% 1.17% 1.13% 1.24% 1.13% As a % of Nonperforming Loans 309.72% 278.19% 360.69% 368.54% 463.01% 309.72% 463.01% ACL - UNFUNDED COMMITMENTS Balance at Beginning of Period 2,189 $ 2,107 $ 2,095 $ 1,738 $ 1,832 $ 2,107 $ 2,155 Provision for Credit Losses 8 82 12 357 (94 ) 90 (417 ) Balance at End of Period ( 1) 2,197 2,189 2,107 2,095 1,738 2,197 1,738 ACL - DEBT SECURITIES Provision for Credit Losses $ 7 $ (5 ) $ (1 ) $ (26 ) $ (4 ) $ 2 $ 4 CHARGE-OFFS Commercial, Financial and Agricultural $ 577 $ 300 $ 167 $ 373 $ 74 $ 877 $ 242 Real Estate - Construction - - - - - - - Real Estate - Commercial - - 4 - - - - Real Estate - Residential 38 - 67 12 49 38 57 Real Estate - Home Equity - 13 10 10 24 13 24 Consumer 613 852 925 954 914 1,465 1,779 Overdrafts 524 631 670 619 437 1,155 1,007 Total Charge-Offs $ 1,752 $ 1,796 $ 1,843 $ 1,968 $ 1,498 $ 3,548 $ 3,109 RECOVERIES Commercial, Financial and Agricultural $ 65 $ 74 $ 44 $ 95 $ 117 $ 139 $ 192 Real Estate - Construction - - - - - - - Real Estate - Commercial 7 84 29 8 6 91 9 Real Estate - Residential 27 77 8 13 65 104 184 Real Estate - Home Equity 4 10 6 10 42 14 51 Consumer 468 579 246 369 456 1,047 937 Overdrafts 285 335 325 263 222 620 546 Total Recoveries $ 856 $ 1,159 $ 658 $ 758 $ 908 $ 2,015 $ 1,919 NET CHARGE-OFFS $ 896 $ 637 $ 1,185 $ 1,210 $ 590 $ 1,533 $ 1,190 Net Charge-Offs as a % of Average Loans HFI ( 2) 0.14% 0.10% 0.18% 0.18% 0.09% 0.12% 0.09% CREDIT QUALITY Nonaccruing Loans $ 10,011 $ 11,143 $ 8,595 $ 8,195 $ 6,449 Other Real Estate Owned 3,424 1,822 1,936 1,831 132 Total Nonperforming Assets ("NPAs") $ 13,435 $ 12,965 $ 10,531 $ 10,026 $ 6,581 Past Due Loans 30-89 Days $ 2,680 $ 6,643 $ 7,017 $ 5,468 $ 4,523 Classified Loans Commercial, Financial and Agricultural 1,479 1,660 1,650 1,514 1,820 Real Estate - Construction 379 - - 718 - Real Estate - Commercial 21,638 6,374 5,897 11,745 12,212 Real Estate - Residential 3,825 3,497 3,601 8,348 8,237 Real Estate - Home Equity 1,461 2,003 1,957 3,043 4,995 Consumer 1,020 1,011 1,229 1,144 1,359 Total Classified Loans 29,802 14,545 14,334 26,512 28,623 Nonperforming Loans as a % of Loans HFI 0.40% 0.44% 0.34% 0.32% 0.25% NPAs as a % of Loans HFI and Other Real Estate 0.54% 0.51% 0.41% 0.39% 0.25% NPAs as a % of Total Assets 0.30% 0.29% 0.24% 0.23% 0.15% ( 1) Recorded in other liabilities. ( 2) Annualized .
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CAPITAL CITY BANK GROUP, INC. AVERAGE BALANCE AND INTEREST RATES Unaudited Second Quarter 2026 First Quarter 2026 Fourth Quarter 2025 Third Quarter 2025 (Dollars in thousands) Average Balance Interest Average Rate Average Balance Interest Average Rate Average Balance Interest Average Rate Average Balance ASSETS: Loans Held for Sale $ 30,505 $ 500 6.57 % $ 24,716 $ 404 6.63 % $ 24,261 $ 374 6.11 % $ 25,276 Loans Held for Investment ( 1) 2,505,875 37,751 6.04 2,538,318 37,886 6.05 2,568,073 39,230 6.06 2,606,213 Investment Securities Taxable Investment Securities 1,165,965 10,249 3.52 1,117,505 9,042 3.26 1,004,420 7,756 3.07 992,260 Tax-Exempt Investment Securities ( 1) 1,356 15 4.41 1,620 17 4.25 1,620 17 4.30 1,620 Total Investment Securities 1,167,321 10,264 3.52 1,119,125 9,059 3.26 1,006,040 7,773 3.08 993,880 Federal Funds Sold and Interest Bearing Deposits 365,126 3,366 3.70 407,679 3,711 3.69 437,536 4,382 3.97 356,161 Total Earning Assets 4,068,827 $ 51,881 5.11 % 4,089,838 $ 51,060 5.06 % 4,035,910 $ 51,759 5.08 % 3,981,530 Cash and Due From Banks 64,337 63,079 67,291 65,085 Allowance for Credit Losses (31,602 ) (31,545 ) (30,922 ) (30,342 ) Other Assets 305,809 297,532 294,757 301,678 Total Assets $ 4,407,371 $ 4,418,904 $ 4,367,036 $ 4,317,951 LIABILITIES: Noninterest Bearing Deposits $ 1,308,276 $ 1,282,988 $ 1,303,266 $ 1,314,560 NOW Accounts 1,263,616 $ 3,938 1.25 % 1,302,894 $ 4,221 1.31 % 1,235,961 $ 4,055 1.30 % 1,198,124 Money Market Accounts 419,983 1,857 1.77 403,340 1,752 1.76 415,577 1,977 1.89 416,656 Savings Accounts 513,815 100 0.08 509,351 132 0.10 501,080 157 0.12 503,189 Time Deposits 173,086 1,038 2.41 192,443 1,290 2.72 191,626 1,355 2.80 179,802 Total Interest Bearing Deposits 2,370,500 6,933 1.17 2,408,028 7,395 1.25 2,344,244 7,544 1.28 2,297,771 Total Deposits 3,678,776 6,933 0.76 3,691,016 7,395 0.81 3,647,510 7,544 0.82 3,612,331 Repurchase Agreements 10,917 61 2.24 15,789 73 1.88 20,690 134 2.57 21,966 Other Short-Term Borrowings 33,545 349 4.17 27,836 327 4.76 20,954 217 4.09 12,753 Subordinated Notes Payable 33,303 288 3.42 41,620 398 3.83 42,582 451 4.15 42,582 Other Long-Term Borrowings 660 9 5.78 680 10 5.68 680 9 5.55 681 Total Interest Bearing Liabilities 2,448,925 $ 7,640 1.25 % 2,493,953 $ 8,203 1.33 % 2,429,150 $ 8,355 1.36 % 2,375,753
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Other Liabilities 76,331 74,300 78,520 85,422 Total Liabilities 3,833,532 3,851,241 3,810,936 3,775,735 SHAREOWNERS' EQUITY: 573,839 567,663 556,100 542,216 Total Liabilities, Temporary Equity and Shareowners' Equity $ 4,407,371 $ 4,418,904 $ 4,367,036 $ 4,317,951 Interest Rate Spread $ 44,241 3.86 % $ 42,857 3.72 % $ 43,404 3.72 % Interest Income and Rate Earned ( 1) 51,881 5.11 51,060 5.06 51,759 5.08 Interest Expense and Rate Paid ( 2) 7,640 0.75 8,203 0.81 8,355 0.82 Net Interest Margin $ 44,241 4.35 % $ 42,857 4.24 % $ 43,404 4.26 % ( 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. For Information Contact: Jep Larkin Executive Vice President and Chief Financial Officer 850.402. 8450 Source: Capital City Bank Group