CAPITAL CITY BANK GROUP INC

(Dollars in Thousands, Except Per Share Data)

Interest Income

$

204,387

$

194,657

$

181,068

Net Interest Income

171,648

158,938

158,988

5,264

4,031

9,714

82,355

75,976

71,610

(1)

167,022

165,315

157,023

Pre-Tax Loss Attributable to Noncontrolling Interests

(2)

1,271

1,437

61,557

52,915

52,258

Per Common Share:

Basic Net Income

$

3.61

$

3.12

$

3.08

Diluted Net Income

3.60

3.12

3.07

Cash Dividends Declared

1.00

0.88

0.76

Diluted Book Value

32.23

29.11

25.92

Diluted Tangible Book Value

(3)

27.03

23.65

20.45

Performance Ratios:

Return on Average Assets

1.42

%

1.25

%

1.22

%

Return on Average Equity

11.51

11.18

12.40

Net Interest Margin (FTE)

4.28

4.08

4.05

Noninterest Income as % of Operating Revenues

32.42

32.34

31.05

Efficiency Ratio

65.71

70.30

67.99

Asset Quality:

Allowance for Credit Losses ("ACL")

$

31,001

$

29,251

$

29,941

ACL to Loans Held for Investment ("HFI")

1.22

%

1.10

%

1.10

%

Nonperforming Assets ("NPAs")

10,531

6,669

6,243

NPAs to Total

Assets

0.24

0.15

0.15

NPAs to Loans HFI plus OREO

0.41

0.25

0.23

ACL to Non-Performing Loans

360.69

464.14

479.70

Net Charge-Offs to Average Loans HFI

0.14

0.21

0.18

Capital Ratios:

Tier 1 Capital

20.20

%

17.46

%

15.37

%

Total Capital

21.45

18.64

16.57

Common Equity Tier 1 Capital

18.56

15.54

13.52

Tangible Common Equity

(3)

10.79

9.51

8.26

Leverage

11.77

11.05

10.30

Equity to Assets

12.61

11.45

10.24

Dividend Pay-Out

27.70

28.21

24.76

Averages for the Year:

$

2,622,877

$

2,706,461

$

2,656,394

4,010,875

3,897,580

3,933,800

3,651,351

3,597,438

3,669,612

Shareowners’ Equity

534,962

473,216

421,482

Year

-End Balances:

$

$

$

2,733,918

4,059,032

3,974,431

3,957,452

4,304,477

3,701,822

Shareowners’ Equity

552,851

495,317

440,625

Other Data:

Basic Average Shares Outstanding

17,055,328

16,942,788

16,987,167

Diluted Average Shares Outstanding

17,102,269

16,968,623

17,022,922

Shareowners of Record

(4)

1,027

1,080

Banking Locations

(4)

Headcount

(5)

(1)

For 2025 and 2023, includes pension settlement gains of $1.5

million and $0.3 million, respectively.

(2)

In 2023 and 2024, we owned 51% of Capital City Home Loans,

LLC, a consolidated entity. We

acquired the remaining 49% interest

on January 1, 2025.

(3)

Diluted tangible book value and tangible common equity ratio are

non-GAAP financial measures. For additional information,

including a reconciliation

to GAAP, refer

to page 44.

(4)

As of January 31st of the following year.

(5)

As of December 31, 2025.

NON-GAAP FINANCIAL MEASURES

We present a tangible

common equity ratio and a tangible book value per diluted share that, in each case,

removes the effect of

goodwill that resulted 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.

The generally accepted accounting

principles (“GAAP”) to non-GAAP reconciliation for selected year-to-date

financial data is provided below.

Non-GAAP Reconciliation - Selected Financial Data

(Dollars in Thousands, except per share data)

Shareowners' Equity (GAAP)

$

552,851

$

495,317

$

440,625

Less: Goodwill and Other Intangibles (GAAP)

89,095

92,773

92,933

Tangible Shareowners' Equity (non-GAAP)

A

463,756

402,544

347,692

Total Assets (GAAP)

4,304,477

Less: Goodwill and Other Intangibles (GAAP)

89,095

92,773

92,933

Tangible Assets (non-GAAP)

B

$

4,296,670

$

4,232,159

$

4,211,544

Tangible Common Equity Ratio (non-GAAP)

A/B

10.79%

9.51%

8.26%

Actual Diluted Shares Outstanding (GAAP)

C

17,154,586

17,018,122

17,000,758

Tangible Book Value

per Diluted Share (non-GAAP)

A/C

27.03

23.65

20.45

Discussion and Analysis of Financial Condition and Results of Operations