CAPITAL CITY BANK GROUP INC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM10-Q

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

For the Quarterly Period EndedSeptember 30, 2025

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)

Florida59-2273542 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

217 North Monroe Street,Tallahassee,Florida32301 (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 classTrading Symbol(s)Name of each exchange on which registered Common Stock, Par value $0.01CCBGNasdaq 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 October 31, 2025,17,068,825shares of the Registrant’s Common Stock, $.01 par value, were outstanding.

CAPITAL CITY BANK GROUP, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED SEPTEMBER 30, 2025

TABLE OF CONTENTS| PART I – Financial Information | | Page |
| --- | --- | --- |
| Item 1.Consolidated Financial Statements (Unaudited) | | |
| | Consolidated Statements of Financial Condition – September 30, 2025 and December 31, 2024 | 5 |
| | Consolidated Statements of Income – Three and Nine Months Ended September 30, 2025 and 2024 | 6 |
| | Consolidated Statements of Comprehensive Income (Loss) – Three and Nine Months Ended September 30, 2025 and 2024 | 7 |
| | Consolidated Statements of Changes in Shareowners’ Equity – Three and Nine Months Ended September 30, 2025 and 2024 | 8 |
| | Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2025 and 2024 | 9 |
| | Notes to Consolidated Financial Statements | 10 |
| Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations | | 33 |
| Item 3.Quantitative and Qualitative Disclosure About Market Risk | | 50 |
| Item 4.Controls and Procedures | | 50 |
| PART II – Other Information | | |
| Item 1. | Legal Proceedings | 50 |
| Item 1A. | Risk Factors | 50 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 50 |
| Item 3. | Defaults Upon Senior Securities | 50 |
| Item 4. | Mine Safety Disclosure | 50 |
| Item 5. | Other Information | 50 |
| Item 6. | Exhibits | 51 |
| Signatures | | 52 |

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,” “contemplate,” “estimate,” “expect,” “intend,” “plan,” “point to,” “project,” “target,” “vision,” “goal,” “continue,” “further,” and similar expressions are 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.

Our ability to achieve our financial objectives could be adversely affected by the factors discussed in detail in Part II, Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q and in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as updated in our subsequent quarterly reports filed on Form 10-Q, as well as, among other factors:

●The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board;
●Inflation, interest rate, market and monetary fluctuations;
●Local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact;
●The costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals;
●The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply;
●The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters;
●The accuracy of our financial statement estimates and assumptions;
●Changes in the financial performance and/or condition of our borrowers;
●Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs;
●Changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
●Changes in our liquidity position;
●The timely development and acceptance of new products and services and perceived overall value of these products and services by users;
●Changes in consumer spending, borrowing, and saving habits;
●Greater than expected costs or difficulties related to the integration of new products and lines of business;
●Technological changes;
●The 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;
●Acquisitions and integration of acquired businesses;
●Dispositions (including the impact from the sale of our insurance subsidiary), acquisitions and integration of acquired businesses;
●Impairment of our goodwill or other intangible assets;
●Changes in the reliability of our vendors, internal control systems, or information systems;
●Our ability to increase market share and control expenses;
●Our ability to attract and retain qualified employees;
●Changes in our organization, compensation, and benefit plans;
●The soundness of other financial institutions;
●Volatility and disruption in national and international financial and commodity markets;
●Changes in the competitive environment in our markets and among banking organizations and other financial service providers;
●Action or inaction by the federal government, including 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, 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;
●The limited trading activity and concentration of ownership of our common stock; and ●Other factors and risks described under “Risk Factors” herein and in any of the Company’s subsequent reports filed with the SEC and available on its website at www.sec.gov.

However, other factors besides those listed inItem 1A Risk Factorsor 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.

PART I.FINANCIAL INFORMATION

Item 1.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION| | September 30, | December 31, |
| --- | --- | --- |
| (Dollars in Thousands, Except Par Value) | 2025 | 2024 |
| ASSETS | | |
| Cash and Due From Banks | $68,397 | $70,543 |
| Federal Funds Sold and Interest Bearing Deposits | 397,502 | 321,311 |
| Total Cash and Cash Equivalents | 465,899 | 391,854 |

Investment Securities, Available for Sale, at fair value (amortized cost of $		592,323	577,333	403,345
Investment Securities, Held to Maturity (fair value of $	394,125and $	544,460)	404,659	567,155
Equity Securities			2,145	2,399
Total Investment Securities			984,137	972,899

Loans Held For Sale, at fair value24,20428,672| Loans Held for Investment | 2,582,007 | 2,651,550 |
| --- | --- | --- |
| Allowance for Credit Losses | ( 30,202 ) | ( 29,251 ) |
| Loans Held for Investment, Net | 2,551,805 | 2,622,299 |

Premises and Equipment, Net	79,748		81,952
Goodwill and Other Intangibles	89,095		92,773
Other Real Estate Owned		1,831	367
Other Assets	127,055		134,116
Total Assets	$4,323,774	$	4,324,932

Deposits:
Noninterest Bearing Deposits	$1,303,786	$1,306,254
Interest Bearing Deposits	2,311,126	2,365,723
Total Deposits	3,614,912	3,671,977

Short-Term Borrowings	40,244	28,304
Subordinated Notes Payable	42,582	52,887
Other Long-Term Borrowings	680	794
Other Liabilities	84,721	75,653
Total Liabilities	3,783,139	3,829,615

SHAREOWNERS’ EQUITY
Preferred Stock, $	0.01par value;	3,000,000	shares authorized;	noshares issued and outstanding			-		-
Common Stock, $	0.01par value;	90,000,000	shares authorized;	17,068,650	and16,974,513
shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively							171	170
Additional Paid-In Capital						40,067		37,684
Retained Earnings						499,176		463,949
Accumulated Other Comprehensive Income (Loss), net of tax							1,221	( 6,486 )
Total Shareowners’	Equity					540,635		495,317
Total Liabilities and Shareowners’ Equity						$4,323,774	$	4,324,932

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

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months EndedNine Months Ended

September 30,September 30, (Dollars in Thousands, Except Per Share Data)2025202420252024| INTEREST INCOME | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Loans, including Fees | $40,279 | $ | 41,659$ | 121,629 | $123,480 | |
| Investment Securities: | | | | | | |
| Taxable | 7,175 | | 4,149 | 19,644 | 12,385 | |
| Tax Exempt | | 13 | 6 | 30 | | 18 |
| Funds Sold and Interest Bearing Deposits | 3,964 | | 3,514 | 11,369 | 9,031 | |
| Total Interest Income | 51,431 | | 49,328 | 152,672 | 144,914 | |

INTEREST EXPENSE
Deposits	7,265	8,223	22,053	24,396
Short-Term Borrowings	216	273	832	798
Subordinated Notes Payable	383	610	1,473	1,868
Other Long-Term Borrowings	10	11	26	17
Total Interest Expense	7,874	9,117	24,384	27,079

NET INTEREST INCOME	43,557	40,211	128,288	117,835
Provision for Credit Losses	1,881	1,206	3,269	3,330
Net Interest Income After Provision For Credit Losses	41,676	39,005	125,019	114,505

NONINTEREST INCOME
Deposit Fees	5,877	5,512	16,258	16,139
Bank Card Fees	3,733	3,624	11,021	11,010
Wealth Management Fees	5,173	4,770	16,142	13,891
Mortgage Banking Revenues	4,794	3,966	12,804	11,225
Other	2,754	1,641	6,027	4,951
Total Noninterest Income	22,331	19,513	62,252	57,216

NONINTEREST EXPENSE
Compensation	26,056	25,800	78,794	74,613
Occupancy, Net	7,037	7,098	20,901	21,089
Other	9,823	10,023	24,460	27,831
Total Noninterest Expense	42,916	42,921	124,155	123,533

INCOME BEFORE INCOME TAXES	21,091	15,597	63,116	48,188
Income Tax Expense	5,141	2,980	15,264	9,705

NET INCOME	15,950	12,617	47,852	38,483
Loss Attributable to Noncontrolling Interests	-	501	-	1,342

NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS$15,950$13,118$47,852$39,825

BASIC NET INCOME PER SHARE$0.93$0.77$2.81$2.35 DILUTED NET INCOME PER SHARE$0.93$0.77$2.80$2.35| Average Common Basic Shares Outstanding | 17,068 | 16,943 | 17,050 | 16,942 |
| --- | --- | --- | --- | --- |
| Average Common Diluted Shares Outstanding | 17,114 | 16,979 | 17,083 | 16,966 |

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

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)| | September 30, | | September 30, | |
| --- | --- | --- | --- | --- |
| (Dollars in Thousands) | 2025 | 2024 | 2025 | 2024 |
| NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS | $15,950 | $13,118 | $47,852 | $39,825 |

Investment Securities:
Change in net unrealized loss on securities available for sale	2,932	9,505	10,676	9,099
Amortization of unrealized losses on securities transferred from
available for sale to held to maturity	202	785	1,044	2,521
Derivative:
Change in net unrealized gain on effective cash flow derivative	( 253 )	( 1,261 )	( 1,442 )	( 873 )
Other comprehensive income, before tax	2,881	9,029	10,278	10,747
Deferred tax expense related to other comprehensive income	720	2,435	2,571	2,683
Other comprehensive income, net of tax	2,161	6,594	7,707	8,064
TOTAL COMPREHENSIVE INCOME	$18,111	$19,712	$55,559	$47,889

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

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS’ EQUITY

(Unaudited)| | | | | Additional | | | Comprehensiv | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Shares | Common | Paid-In | Retained | | (Loss) Income,e | | |
| (Dollars In Thousands, Except Share Data) | | Outstanding | Stock | Capital | Earnings | | Net of Taxes | | Total |
| Balance, July 1, 2025 | | 17,066,395 | $171 | $39,527 | $ | 487,665 | $ | ( 940 )$ | 526,423 |
| Net Income Attributable to Common Shareowners | | | - | - | - | 15,950 | | - | 15,950 |
| Other Comprehensive Income, net of tax | | | - | - | - | - | | 2,161 | 2,161 |
| Cash Dividends ($ | 0.2600per share) | | - | - | - | ( 4,439 ) | | - | ( 4,439 ) |
| Stock Based Compensation | | | - | - | 448 | - | | - | 448 |
| Stock Compensation Plan Transactions, net | | 2,255 | | - | 92 | - | | - | 92 |
| Balance, September 30, 2025 | | 17,068,650 | $171 | $40,067 | $ | 499,176 | $ | 1,221$ | 540,635 |

Balance, July 1, 2024			16,941,553	$169	$35,547	$	445,959	$( 20,676 )	$	460,999
Net Income Attributable to Common Shareowners				-	-	-	13,118		-	13,118
Reclassification to Temporary Equity		(1)		-	-	-	( 838 )		-	( 838 )
Other Comprehensive Income, net of tax				-	-	-	-		6,594	6,594
Cash Dividends ($	0.2300per share)			-	-	-	( 3,897 )		-	( 3,897 )
Stock Based Compensation				-	-	425	-		-	425
Stock Compensation Plan Transactions, net			2,817		-	98	-		-	98
Balance, September 30, 2024			16,944,370	$169	$36,070	$	454,342	$( 14,082 )	$	476,499

Balance, January 1, 2025		16,974,513	$170	$37,684	$	463,949	$	( 6,486 )$	495,317
Net Income Attributable to Common Shareowners			-	-	-	47,852		-	47,852
Other Comprehensive Income, net of tax			-	-	-	-		7,707	7,707
Cash Dividends ($	0.7400per share)		-	-	-	( 12,625 )		-	( 12,625 )
Stock Based Compensation			-	-	1,373	-		-	1,373
Stock Compensation Plan Transactions, net		94,137		1	1,010	-		-	1,011
Balance, September 30, 2025		17,068,650	$171	$40,067	$	499,176	$	1,221$	540,635

Balance, January 1, 2024			16,950,222	$170	$36,326	$	426,275	$( 22,146 )	$	440,625
Net Income Attributable to Common Shareowners				-	-	-	39,825		-	39,825
Reclassification to Temporary Equity		(1)		-	-	-	( 751 )		-	( 751 )
Other Comprehensive Income, net of tax				-	-	-	-		8,064	8,064
Cash Dividends ($	0.6500per share)			-	-	-	( 11,007 )		-	( 11,007 )
Repurchase of Common Stock			( 82,540 )		-	( 2,330 )	-		-	( 2,330 )
Stock Based Compensation				-	-	1,139	-		-	1,139
Stock Compensation Plan Transactions, net			76,688		( 1 )	935	-		-	934
Balance, September 30, 2024			16,944,370	$169	$36,070	$	454,342	$( 14,082 )	$	476,499

(1) Adjustments to redemption value for non-controlling interest in Capital City Home Loans, LLC ("CCHL")
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)| | Nine Months Ended September 30, | | | |
| --- | --- | --- | --- | --- |
| (Dollars in Thousands) | 2025 | | 2024 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | |
| Net Income Attributable to Common Shareowners | $ | 47,852 | $ | 39,825 |
| Adjustments to Reconcile Net Income to | | | | |
| Cash Provided by Operating Activities: | | | | |
| Provision for Credit Losses | | 3,269 | | 3,330 |
| Depreciation | | 5,548 | | 5,798 |
| Amortization of Premiums, Discounts and Fees, net | | 3,403 | | 3,130 |
| Amortization of Intangible Asset | | 107 | | 120 |
| Gain on Sale of Subsidiary | | ( 773 ) | | - |
| Originations of Loans Held-for-Sale | | ( 332,760 ) | | ( 366,700 ) |
| Proceeds From Sales of Loans Held-for-Sale | | 350,882 | | 369,063 |
| Mortgage Banking Revenues | | ( 12,804 ) | | ( 11,225 ) |
| Net Additions for Capitalized Mortgage Servicing Rights | | 48 | | ( 138 ) |
| Stock Compensation | | 1,373 | | 1,139 |
| Net Tax Benefit from Stock-Based Compensation | | ( 154 ) | | - |
| Deferred Income Taxes | | 2,429 | | 1,400 |
| Net Change in Operating Leases | | 14 | | 208 |
| Net (Gain) Loss on Sales and Write-Downs of Other Real Estate Owned | | ( 4,514 ) | | 1 |
| Net Decrease in Other Assets | | 3,770 | | 1,738 |
| Net Increase in Other Liabilities | | 8,364 | | 4,645 |
| Net Cash Provided By Operating Activities | | 76,054 | | 52,334 |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | |
| Securities Held to Maturity: | | | | |
| Purchases | | ( 66,697 ) | | ( 20,287 ) |
| Proceeds from Payments, Maturities, and Calls | | 228,784 | | 83,657 |
| Securities Available for Sale: | | | | |
| Purchases | | ( 225,039 ) | | ( 49,436 ) |
| Proceeds from Payments, Maturities, and Calls | | 60,899 | | 55,229 |
| Equity Securities: | | | | |
| Purchases | | ( 60 ) | | - |
| Net Decrease in Equity Securities | | 1,191 | | 158 |
| Purchases of Loans Held for Investment | | ( 958 ) | | ( 302 ) |
| Proceeds from Sales of Loans | | 39,802 | | 31,462 |
| Net Decrease in Loans Held for Investment | | 23,666 | | 19,779 |
| Net Cash Received for Divestitures | | 2,375 | | - |
| Proceeds From Sales of Other Real Estate Owned | | 7,340 | | 33 |
| Purchases of Premises and Equipment | | ( 5,967 ) | | ( 6,442 ) |
| Net Cash Provided by Investing Activities | | 65,336 | | 113,851 |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | |
| Net Decrease in Deposits | | ( 57,065 ) | | ( 122,745 ) |
| Net Increase in Short-Term Borrowings | | 11,940 | | 1,729 |
| Redemption of Subordinated Notes | | ( 10,305 ) | | - |
| Net Increase in Other Long-Term Borrowings | | - | | 677 |
| Dividends Paid | | ( 12,625 ) | | ( 11,007 ) |
| Payments to Repurchase Common Stock | | - | | ( 2,330 ) |
| Proceeds from Issuance of Common Stock Under Purchase Plans | | 710 | | 634 |
| Net Cash Used In Financing Activities | | ( 67,345 ) | | ( 133,042 ) |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | | 74,045 | | 33,143 |
| Cash and Cash Equivalents at Beginning of Period | | 391,854 | | 312,067 |
| Cash and Cash Equivalents at End of Period | $ | 465,899 | | 345,210 |
| Supplemental Cash Flow Disclosures:Interest Paid | $ | 24,148 | $ | 26,143 |
| Income Taxes Paid | $ | 8,700 | $ | 5,741 |
| Supplemental Noncash Items: | | | | |
| Loans and Premises Transferred to Other Real Estate Owned | $ | 4,290 | $ | 683 |
| Loans Transferred from Held for Investment to Held for Sale, net | $ | 40,652 | $ | 25,640 |

CAPITAL CITY BANK GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BUSINESS AND BASIS OF PRESENTATION Nature of Operations . Capital City Bank Group, Inc. (“CCBG” or the “Company”) provides a full range of banking and banking- related services to individual and corporate clients through its wholly owned subsidiary, Capital City Bank (“CCB” or the “Bank”), with banking offices located in Florida, Georgia, and Alabama. The Company is subject to competition from other financial institutions, is subject to regulation by certain government agencies and undergoes periodic examinations by those regulatory authorities. Basis of Presentation . The consolidated financial statements in this Quarterly Report on Form 10-Q include the accounts of CCBG and CCB. All material inter-company transactions and accounts have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year’s presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Consolidated Statement of Financial Condition at December 31, 2024 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s 2024 Form 10-K.

Accounting Standards Updates Proposed Accounting Standards , ASU No. 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” Accounting Standards Update (“ASU”) 2023-06 is intended to clarify or improve disclosure and presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements and align the requirements in the FASB accounting standard codification with the SEC’s regulations. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will not become effective for any entities. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements. ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU 2023-09 is intended to enhance transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. Retrospective application in all prior periods is permitted. ASU 2023-09 is effective for the Company as of January 1, 2025. The Company is currently evaluating the impact of the incremental income taxes information that will be required to be disclosed within its Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent annual reports. ASU No. 2023-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220- 40): Disaggregation of Income Statement Expenses.” ASU 2024-03 introduces new requirements to disclose additional information about certain types of expenses, including employee compensation, depreciation, intangible asset amortization, and selling expenses. ASU 2024-03 is effective for the Company as of January 1, 2026. The Company is currently evaluating the impact of the incremental disclosures that will be required under the standard. ASU 2025-06, “Intangibles - Goodwill and Other -Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” The ASU updates accounting for internal-use software by shifting from a stage-based model to a principles-based approach aligned with modern development. Key provisions include new capitalization criteria based on authorization, funding commitment, and probable completion, removal of development stages, integrated website guidance, and enhanced disclosures. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements and disclosures.

NOTE 2 – INVESTMENT SECURITIES Investment Portfolio Composition . The following table summarizes the amortized cost and related fair value of investment securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”) and the corresponding amounts of gross unrealized gains and losses. Available for Sale Amortized Unrealized Unrealized Allowance for Fair (Dollars in Thousands) Cost Gains Losses Credit Losses Value September 30, 2025 U.S. Government Treasury $ 272,030 $ 1,567 $ 283 $ - $ 273,314 U.S. Government Agency 165,774 59 3,148 - 162,685 States and Political Subdivisions 37,525 42 2,319 - 35,248 Mortgage-Backed Securities (1) 61,225 1 8,286 - 52,940 Corporate Debt Securities 47,672 - 2,580 ( 43 ) 45,049 Other Securities (2) 8,097 - - - 8,097 Total $ 592,323 $ 1,669 $ 16,616 $ ( 43 ) $ 577,333 December 31, 2024 U.S. Government Treasury $ 106,710 $ 25 $ 934 $ - $ 105,801 U.S. Government Agency 148,666 39 5,578 - 143,127 States and Political Subdivisions 43,212 - 3,827 ( 3 ) 39,382 Mortgage-Backed Securities (1) 66,379 - 10,902 - 55,477 Corporate Debt Securities 55,970 - 4,444 ( 64 ) 51,462 Other Securities (2) 8,096 - - - 8,096 Total $ 429,033 $ 64 $ 25,685 $ ( 67 ) $ 403,345 Held to Maturity Amortized Unrealized Unrealized Fair (Dollars in Thousands) Cost Gains Losses Value September 30, 2025 U.S. Government Treasury $ 170,612 $ - $ 1,348 $ 169,264 Mortgage-Backed Securities (1) 234,047 625 9,811 224,861 Total $ 404,659 $ 625 $ 11,159 $ 394,125 December 31, 2024 U.S. Government Treasury $ 368,005 $ - $ 6,476 $ 361,529 Mortgage-Backed Securities (1) 199,150 16 16,235 182,931 Total $ 567,155 $ 16 $ 22,711 $ 544,460

(1) Comprised of residential mortgage-backed securities. (2) Includes Federal Home Loan Bank and Federal Reserve Bank stock, recorded at cost of $ 3.0 million and $ 5.1 million, respectively, at September 30, 2025 and at December 31, 2024.

At September 30, 2025 and December 31, 2024, the investment portfolio had $ 2.1 million and $ 2.4 million, respectively, in equity securities. These securities do not have a readily determinable fair value and were not credit impaired. Securities with an amortized cost of $ 442.6 million and $ 489.5 million at September 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes. The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required to own capital stock in the FHLB based generally upon the balances of residential and commercial real estate loans, and FHLB advances. The Bank’s investment in FHLB stock, which is included in other securities is pledged to secure FHLB advances. No ready market exists for this stock, and it has no quoted fair value; however, redemption of this stock has historically been at par value. As a member of the Federal Reserve Bank of Atlanta, the Bank is required to maintain stock in the Federal Reserve Bank of Atlanta based on a specified ratio relative to the Bank’s capital. Federal Reserve Bank stock is carried at cost.

Investment Sales. There were no sales of investment securities for the three and nine months ended September 30, 2025 and 2024. Maturity Distribution . At September 30, 2025, the Company’s investment securities had the following maturity distribution based on contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Mortgage-backed securities, certain amortizing U.S. government agency securities and other securities are shown separately because they are not due at a certain maturity date.

Available for Sale Held to Maturity (Dollars in Thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 89,433 $ 88,479 $ 170,612 $ 169,264 Due after one year through five years 306,889 304,548 - - Due after five year through ten years 12,896 11,675 - - Mortgage-Backed Securities 61,225 52,940 234,047 224,861 U.S. Government Agency 113,783 111,594 - - Other Securities 8,097 8,097 - - Total $ 592,323 $ 577,333 $ 404,659 $ 394,125

Unrealized Losses on Investment Securities. The following table summarizes the available for sale and held to maturity investment securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position:

Less Than Greater Than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses September 30, 2025 Available for Sale U.S. Government Treasury $ 14,604 $ 43 $ 11,832 $ 240 $ 26,436 $ 283 U.S. Government Agency 68,734 456 82,855 2,692 151,589 3,148 States and Political Subdivisions 1,876 124 31,747 2,195 33,623 2,319 Mortgage-Backed Securities 36 - 52,861 8,286 52,897 8,286 Corporate Debt Securities - - 43,522 2,580 43,522 2,580 Total $ 85,250 $ 623 $ 222,817 $ 15,993 $ 308,067 $ 16,616 Held to Maturity U.S. Government Treasury - - 169,264 1,348 169,264 1,348 Mortgage-Backed Securities 17,694 93 113,104 9,718 130,798 9,811 Total $ 17,694 $ 93 $ 282,368 $ 11,066 $ 300,062 $ 11,159 December 31, 2024 Available for Sale U.S. Government Treasury $ 81,363 $ 318 $ 14,510 $ 616 $ 95,873 $ 934 U.S. Government Agency 33,155 184 100,844 5,394 133,999 5,578 States and Political Subdivisions 2,728 164 36,654 3,663 39,382 3,827 Mortgage-Backed Securities 54 - 55,409 10,902 55,463 10,902 Corporate Debt Securities 3,093 249 48,369 4,195 51,462 4,444 Total $ 120,393 $ 915 $ 255,786 $ 24,770 $ 376,179 $ 25,685 Held to Maturity U.S. Government Treasury - - 361,529 6,476 361,529 6,476 Mortgage-Backed Securities 58,230 1,000 119,353 15,235 177,583 16,235 Total $ 58,230 $ 1,000 $ 480,882 $ 21,711 $ 539,112 $ 22,711

At September 30, 2025, there were 750 positions (combined AFS and HTM) with unrealized pre-tax losses totaling $ 27.8 million. 33 of these positions are U.S. Treasury bonds and carry the full faith and credit of the U.S. Government. 634 are U.S. government agency securities issued by U.S. government sponsored entities. We believe the long history of no credit losses on government securities indicates that the expectation of nonpayment of the amortized cost basis is effectively zero. At September 30, 2025, all collateralized mortgage obligation securities, mortgage -backed securities, Small Business Administration securities, U.S. Agency, and U.S. Treasury bonds held were AAA rated. The remaining 83 positions (municipal securities and corporate bonds) have a credit component. At September 30, 2025, corporate debt securities had an allowance for credit losses of $ 43,000 and municipal securities had an allowance of less than $ 1,000 . No ne of the securities held by the Company were past due or in nonaccrual status at September 30, 2025.

Credit Quality Indicators The Company monitors the credit quality of its investment securities through various risk management procedures, including the monitoring of credit ratings. A majority of the debt securities in the Company’s investment portfolio were issued by a U.S. government entity or agency and are either explicitly or implicitly guaranteed by the U.S. government. The Company believes the long history of no credit losses on these securities indicates that the expectation of nonpayment of the amortized cost basis is effectively zero, even if the U.S. government were to technically default. Further, certain municipal securities held by the Company have been pre-refunded and secured by government guaranteed treasuries. Therefore, for the aforementioned securities, the Company does no t assess or record expected credit losses due to the zero loss assumption. The Company monitors the credit quality of its municipal and corporate securities portfolio via credit ratings which are updated on a quarterly basis. On a quarterly basis, municipal and corporate securities in an unrealized loss position are evaluated to determine if the loss is attributable to credit related factors and if an allowance for credit loss is needed.

NOTE 3 – LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES Loan Portfolio Composition . The composition of the held for investment (“HFI”) loan portfolio was as follows:

(Dollars in Thousands) September 30, 2025 December 31, 2024 Commercial, Financial and Agricultural $ 179,018 $ 189,208 Real Estate – Construction 156,756 219,994 Real Estate – Commercial Mortgage 785,290 779,095 Real Estate – Residential (1) 1,039,607 1,042,504 Real Estate – Home Equity 234,111 220,064 Consumer (2) 187,225 200,685 Loans Held For Investment, Net of Unearned Income $ 2,582,007 $ 2,651,550

(1) Includes loans in process balances of $ 2.6 million and $ 13.6 million at September 30, 2025 and December 31, 2024, respectively. (2) Includes overdraft balances of $ 1.4 million and $ 1.2 million at September 30, 2025 and December 31, 2024, respectively.

Net deferred loan costs, which include premiums on purchased loans, included in loans were $ 8.5 million at September 30, 2025 and $ 8.3 million at December 31, 2024. Accrued interest receivable on loans which is excluded from amortized cost totaled $ 9.8 million at September 30, 2025 and $ 10.3 million at December 31, 2024, and is reported separately in Other Assets. The Company has pledged a blanket floating lien on all 1-4 family residential mortgage loans, commercial real estate mortgage loans, and home equity loans to support available borrowing capacity at the FHLB of Atlanta and has pledged a blanket floating lien on all consumer loans, commercial loans, and construction loans to support available borrowing capacity at the Federal Reserve Bank of Atlanta.

Allowance for Credit Losses . The methodology for estimating the amount of credit losses reported in the allowance for credit losses (“ACL”) has two basic components: first, an asset-specific component involving loans that do not share risk characteristics and the measurement of expected credit losses for such individual loans; and second, a pooled component for expected credit losses for pools of loans that share similar risk characteristics. This allowance methodology is discussed further in Note 1 – Significant Accounting Policies in the Company’s 2024 Form 10-K. The following table details the activity in the allowance for credit losses by portfolio segment. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Commercial, Real Estate Financial, Real Estate Commercial Real Estate Real Estate (Dollars in Thousands) Agricultural Construction Mortgage Residential Home Equity Consumer Total Three Months Ended September 30, 2025 Beginning Balance $ 1,425 $ 1,811 $ 6,256 $ 15,264 $ 2,014 $ 3,092 $ 29,862 Provision for Credit Losses 370 ( 352 ) 268 164 200 900 1,550 Charge-Offs ( 373 ) - - ( 12 ) ( 10 ) ( 1,573 ) ( 1,968 ) Recoveries 95 - 8 13 10 632 758 Net (Charge-Offs) Recoveries ( 278 ) - 8 1 - ( 941 ) ( 1,210 ) Ending Balance $ 1,517 $ 1,459 $ 6,532 $ 15,429 $ 2,214 $ 3,051 $ 30,202 Nine Months Ended September 30, 2025 Beginning Balance $ 1,514 $ 2,384 $ 5,867 $ 14,568 $ 1,952 $ 2,966 $ 29,251 Provision for Credit Losses 331 ( 925 ) 648 733 235 2,329 3,351 Charge-Offs ( 615 ) - - ( 69 ) ( 34 ) ( 4,359 ) ( 5,077 ) Recoveries 287 - 17 197 61 2,115 2,677 Net (Charge-Offs) Recoveries ( 328 ) - 17 128 27 ( 2,244 ) ( 2,400 ) Ending Balance $ 1,517 $ 1,459 $ 6,532 $ 15,429 $ 2,214 $ 3,051 $ 30,202 Three Months Ended September 30, 2024 Beginning Balance $ 1,575 $ 1,751 $ 6,076 $ 14,788 $ 1,865 $ 3,164 $ 29,219 Provision for Credit Losses 134 442 547 ( 240 ) ( 49 ) 1,045 1,879 Charge-Offs ( 331 ) - ( 3 ) - ( 23 ) ( 1,926 ) ( 2,283 ) Recoveries 176 - 5 88 59 693 1,021 Net (Charge-Offs) Recoveries ( 155 ) - 2 88 36 ( 1,233 ) ( 1,262 ) Ending Balance $ 1,554 $ 2,193 $ 6,625 $ 14,636 $ 1,852 $ 2,976 $ 29,836 Nine Months Ended September 30, 2024 Beginning Balance $ 1,482 $ 2,502 $ 5,782 $ 15,056 $ 1,818 $ 3,301 $ 29,941 Provision for Credit Losses 809 ( 309 ) 618 ( 551 ) 13 3,310 3,890 Charge-Offs ( 1,013 ) - ( 3 ) ( 17 ) ( 99 ) ( 5,746 ) ( 6,878 ) Recoveries 276 - 228 148 120 2,111 2,883 Net (Charge-Offs) Recoveries ( 737 ) - 225 131 21 ( 3,635 ) ( 3,995 ) Ending Balance $ 1,554 $ 2,193 $ 6,625 $ 14,636 $ 1,852 $ 2,976 $ 29,836

For the nine months ended September 30, 2025, the allowance for loans HFI increased by $ 0.9 million and reflected a provision expense of $ 3.4 million and net loan charge-offs of $ 2.4 million. The increase in the allowance over December 31, 2024 was primarily attributable to qualitative factor adjustments that were partially offset by lower loan balances. For the nine months ended September 30, 2024, the allowance for loans HFI decreased by $ 0.1 million and reflected a provision expense of $ 3.9 million and net loan charge-offs of $ 4.0 million. The decrease in the allowance was primarily due to lower loan balances offset by higher loss rates and loan grade migration. Four unemployment forecast scenarios were utilized to estimate probability of default and are weighted based on management’s estimate of probability. See Note 8 – Commitments and Contingencies for information on the allowance for off-balance sheet credit commitments.

Loan Portfolio Aging. A loan is defined as a past due loan when one full payment is past due or a contractual maturity is over 30 days past due (“DPD”). The following table presents the aging of the amortized cost basis in accruing past due loans by class of loans.

30-59 60-89 90 + Total Total Nonaccrual Total (Dollars in Thousands) DPD DPD DPD Past Due Current Loans Loans September 30, 2025 Commercial, Financial and Agricultural $ 274 $ 24 $ - $ 298 $ 177,354 $ 1,366 $ 179,018 Real Estate – Construction - - - - 156,756 - 156,756 Real Estate – Commercial Mortgage 832 400 - 1,232 782,051 2,007 785,290 Real Estate – Residential 406 1,154 - 1,560 1,035,791 2,256 1,039,607 Real Estate – Home Equity 406 18 - 424 231,849 1,838 234,111 Consumer 1,669 285 - 1,954 184,543 728 187,225 Total $ 3,587 $ 1,881 $ - $ 5,468 $ 2,568,344 $ 8,195 $ 2,582,007 December 31, 2024 Commercial, Financial and Agricultural $ 340 $ 50 $ - $ 390 $ 188,781 $ 37 $ 189,208 Real Estate – Construction - - - - 219,994 - 219,994 Real Estate – Commercial Mortgage 719 100 - 819 777,710 566 779,095 Real Estate – Residential 185 498 - 683 1,038,694 3,127 1,042,504 Real Estate – Home Equity 122 - - 122 218,160 1,782 220,064 Consumer 2,154 143 - 2,297 197,598 790 200,685 Total $ 3,520 $ 791 $ - $ 4,311 $ 2,640,937 $ 6,302 $ 2,651,550

Nonaccrual Loans . Loans are generally placed on nonaccrual status if principal or interest payments become 90 days past due and/or management deems the collectability of the principal and/or interest to be doubtful. Loans are returned to accrual status when the principal and interest amounts contractually due are brought current or when future payments are reasonably assured. The following table presents the amortized cost basis of loans in nonaccrual status and loans past due over 90 days and still on accrual by class of loans.

September 30, 2025 December 31, 2024 Nonaccrual Nonaccrual Nonaccrual Nonaccrual With No With 90 + Days With No With 90 + Days (Dollars in Thousands) ACL ACL Still Accruing ACL ACL Still Accruing Commercial, Financial and Agricultural $ 1,210 $ 156 $ - $ - $ 37 $ - Real Estate – Construction - - - - - - Real Estate – Commercial Mortgage 1,780 227 - 427 139 - Real Estate – Residential 1,452 804 - 2,046 1,081 - Real Estate – Home Equity 1,614 224 - 509 1,273 - Consumer - 728 - - 790 - Total Nonaccrual Loans $ 6,056 $ 2,139 $ - $ 2,982 $ 3,320 $ -

Collateral Dependent Loans. The following table presents the amortized cost basis of collateral-dependent loans.
September 30, 2025 December 31, 2024 Real Estate Non Real Estate Real Estate Non Real Estate (Dollars in Thousands) Secured Secured Secured Secured Commercial, Financial and Agricultural $ - $ 1,210 $ - $ 39 Real Estate – Construction - - - - Real Estate – Commercial Mortgage 1,780 - 427 - Real Estate – Residential 2,180 - 2,476 - Real Estate – Home Equity 1,614 - 651 - Consumer - - - 55 Total Collateral Dependent Loans $ 5,574 $ 1,210 $ 3,554 $ 94

A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the sale or operation of the underlying collateral. The Bank’s collateral dependent loan portfolio is comprised primarily of real estate secured loans, collateralized by either residential or commercial collateral types. The loans are carried at fair value based on current values determined by either independent appraisals or internal evaluations, adjusted for selling costs or other amounts to be deducted when estimating expected net sales proceeds.

Residential Real Estate Loans In Process of Foreclosure . At September 30, 2025, the Company had $ 0.9 million of 1-4 family residential real estate loans for which formal foreclosure proceedings were in process, compared to $ 0.5 million at December 31, 2024. Modifications to Borrowers Experiencing Financial Difficulty. Occasionally, the Company may modify loans to borrowers who are experiencing financial difficulty. Loan modifications to borrowers in financial difficulty are loans in which the Company has granted an economic concession to the borrower that it would not otherwise consider. In these instances, as part of a work-out alternative, the Company will make concessions including the extension of the loan term, a principal moratorium, a reduction in the interest rate, or a combination thereof. The impact of the modifications and defaults are factored into the allowance for credit losses on a loan-by-loan basis. Thus, specific reserves are established based upon the results of either a discounted cash flow analysis or the underlying collateral value, if the loan is deemed to be collateral dependent. A modified loan classification can be removed if the borrower’s financial condition improves such that the borrower is no longer in financial difficulty, the loan has not had any forgiveness of principal or interest, and the loan is subsequently refinanced or restructured at market terms and qualifies as a new loan. At September 30, 2025, the Company maintained two modified commercial mortgage loans to borrowers experiencing financial difficulty. One loan for $ 2.5 million was provided a 6-month interest only extension in exchange for additional collateral and was current with no payment delay. A second loan for $ 0.3 million was provided a below market interest rate and extended repayment terms and was 30 days past due at September 30, 2025. No other new modifications to borrowers experiencing financial difficulty were made during the nine months ended September 30, 2025 and 2024.

Credit Risk Management . The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures designed to maximize loan income within an acceptable level of risk. Management and the Board of Directors review and approve these policies and procedures on a regular basis (at least annually). Reporting systems are used to monitor loan originations, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans. Management and the Credit Risk Oversight Committee periodically review the Company’s lines of business to monitor asset quality trends and the appropriateness of credit policies. In addition, total borrower exposure limits are established and concentration risk is monitored. As part of this process, the overall composition of the portfolio is reviewed to gauge diversification of risk, client concentrations, industry group, loan type, geographic area, or other relevant classifications of loans. Specific segments of the loan portfolio are monitored and reported to the Board on a quarterly basis and have strategic plans in place to supplement Board approved credit policies governing exposure limits and underwriting standards. Detailed below are the types of loans within the Company’s loan portfolio and risk characteristics unique to each. Commercial, Financial, and Agricultural – Loans in this category are primarily made based on identified cash flows of the borrower with consideration given to underlying collateral and personal or other guarantees. Lending policy establishes debt service coverage ratio limits that require a borrower’s cash flow to be sufficient to cover principal and interest payments on all new and existing debt. The majority of these loans are secured by the assets being financed or other business assets such as accounts receivable, inventory, or equipment. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy guidelines.

Real Estate Construction – Loans in this category consist of short-term construction loans, revolving and non-revolving credit lines and construction/permanent loans made to individuals and investors to finance the acquisition, development, construction or rehabilitation of real property. These loans are primarily made based on identified cash flows of the borrower or project and generally secured by the property being financed, including 1-4 family residential properties and commercial properties that are either owner- occupied or investment in nature. These properties may include either vacant or improved property. Construction loans are generally based upon estimates of costs and value associated with the completed project. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy guidelines. The disbursement of funds for construction loans is made in relation to the progress of the project and as such these loans are closely monitored by on- site inspections. Real Estate Commercial Mortgage – Loans in this category consists of commercial mortgage loans secured by property that is either owner-occupied or investment in nature. These loans are primarily made based on identified cash flows of the borrower or project with consideration given to underlying real estate collateral and personal guarantees. Lending policy establishes debt service coverage ratios and loan to value ratios specific to the property type. Collateral values are determined based upon third party appraisals and evaluations. Real Estate Residential – Residential mortgage loans held in the Company’s loan portfolio are made to borrowers that demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current income, employment status, current assets, and other financial resources, credit history, and the value of the collateral. Collateral consists of mortgage liens on 1-4 family residential properties. Collateral values are determined based upon third party appraisals and evaluations. The Company does not originate sub-prime loans. Real Estate Home Equity – Home equity loans and lines are made to qualified individuals for legitimate purposes generally secured by senior or junior mortgage liens on owner-occupied 1-4 family homes or vacation homes. Borrower qualifications include favorable credit history combined with supportive income and debt ratio requirements and combined loan to value ratios within established policy guidelines. Collateral values are determined based upon third party appraisals and evaluations. Consumer Loans – This loan portfolio includes personal installment loans, direct and indirect automobile financing, and overdraft lines of credit. The majority of the consumer loan category consists of direct and indirect automobile loans. Lending policy establishes maximum debt to income ratios, minimum credit scores, and includes guidelines for verification of applicants’ income and receipt of credit reports.

Credit Quality Indicators . As part of the ongoing monitoring of the Company’s loan portfolio quality, management categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment performance, credit documentation, and current economic and market trends, among other factors. Risk ratings are assigned to each loan and revised as needed through established monitoring procedures for individual loan relationships over a predetermined amount and review of smaller balance homogenous loan pools. The Company uses the definitions noted below for categorizing and managing its criticized loans. Loans categorized as “Pass” do not meet the criteria set forth below and are not considered criticized. Special Mention – Loans in this category are presently protected from loss, but weaknesses are apparent which, if not corrected, could cause future problems. Loans in this category may not meet required underwriting criteria and have no mitigating factors. More than the ordinary amount of attention is warranted for these loans. Substandard – Loans in this category exhibit well-defined weaknesses that would typically bring normal repayment into jeopardy. These loans are no longer adequately protected due to well-defined weaknesses that affect the repayment capacity of the borrower. The possibility of loss is much more evident and above average supervision is required for these loans. Doubtful – Loans in this category have all the weaknesses inherent in a loan categorized as Substandard, with the characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Performing/Nonperforming – Loans within certain homogenous loan pools (home equity and consumer) are not individually reviewed, but are monitored for credit quality via the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following tables summarize gross loans held for investment at September 30, 2025 and December 31, 2024 and current period gross write-offs for the nine months ended September 30, 2025 and 12 months ended December 31, 2024 by years of origination and internally assigned credit risk ratings (refer to Credit Risk Management section for detail on risk rating system).

(Dollars in Thousands) Term Loans by Origination Year Revolving As of September 30, 2025 2025 2024 2023 2022 2021 Prior Loans Total Commercial, Financial, Agriculture: Pass $ 28,710 $ 27,329 $ 25,719 $ 26,672 $ 13,671 $ 9,439 $ 41,051 $ 172,591 Special Mention - - 2,851 81 9 250 1,722 4,913 Substandard - - 130 82 19 42 1,241 1,514 Total $ 28,710 $ 27,329 $ 28,700 $ 26,835 $ 13,699 $ 9,731 $ 44,014 $ 179,018 Current-Period Gross Writeoffs $ - $ 148 $ 60 $ 327 $ 58 $ 1 $ 21 $ 615 Real Estate - Construction: Pass $ 50,730 $ 63,161 $ 10,010 $ 14,284 $ 53 $ 190 $ 15,022 $ 153,450 Special Mention - - - 2,588 - - - 2,588 Substandard - - 718 - - - - 718 Total $ 50,730 $ 63,161 $ 10,728 $ 16,872 $ 53 $ 190 $ 15,022 $ 156,756 Real Estate - Commercial Mortgage: Pass $ 74,048 $ 82,444 $ 108,719 $ 180,457 $ 95,397 $ 162,220 $ 25,699 $ 728,984 Special Mention 3,885 - 5,550 23,406 3,948 6,663 1,143 44,595 Substandard 384 1,402 99 3,808 860 5,158 - 11,711 Total $ 78,317 $ 83,846 $ 114,368 $ 207,671 $ 100,205 $ 174,041 $ 26,842 $ 785,290 Real Estate - Residential: Pass $ 115,780 $ 133,764 $ 286,851 $ 326,723 $ 62,441 $ 92,274 $ 9,682 $ 1,027,515 Special Mention - - - - 975 277 401 1,653 Substandard - 3,866 - 1,309 1,314 3,782 168 10,439 Total $ 115,780 $ 137,630 $ 286,851 $ 328,032 $ 64,730 $ 96,333 $ 10,251 $ 1,039,607 Current-Period Gross Writeoffs $ - $ - $ 59 $ - $ - $ 10 $ - $ 69 Real Estate - Home Equity: Performing $ 1,600 $ 9 $ 439 $ 19 $ 109 $ 638 $ 229,459 $ 232,273 Nonperforming 74 - - - - - 1,764 1,838 Total $ 1,674 $ 9 $ 439 $ 19 $ 109 $ 638 $ 231,223 $ 234,111 Current-Period Gross Writeoffs $ - $ - $ - $ - $ - $ 10 $ 24 $ 34 Consumer: Performing $ 51,487 $ 24,496 $ 31,429 $ 36,559 $ 26,315 $ 6,955 $ 9,256 $ 186,497 Nonperforming 195 115 69 280 61 8 - 728 Total $ 51,682 $ 24,611 $ 31,498 $ 36,839 $ 26,376 $ 6,963 $ 9,256 $ 187,225 Current-Period Gross Writeoffs $ 1,872 $ 202 $ 792 $ 933 $ 352 $ 109 $ 99 $ 4,359

(Dollars in Thousands) Term Loans by Origination Year Revolving As of December 31, 2024 2024 2023 2022 2021 2020 Prior Loans Total Commercial, Financial, Agriculture: Pass $ 35,596 $ 36,435 $ 37,506 $ 18,433 $ 4,610 $ 9,743 $ 41,720 $ 184,043 Special Mention 435 3,979 261 9 - - 76 4,760 Substandard - - 193 12 58 71 71 405 Total $ 36,031 $ 40,414 $ 37,960 $ 18,454 $ 4,668 $ 9,814 $ 41,867 $ 189,208 Current-Period Gross Writeoffs $ 9 $ 548 $ 500 $ 111 $ 160 $ 1 $ 183 $ 1,512 Real Estate - Construction: Pass $ 105,148 $ 73,615 $ 29,821 $ 53 $ - $ 185 $ 8,288 $ 217,110 Special Mention 1,555 - 1,329 - - - - 2,884 Total $ 106,703 $ 73,615 $ 31,150 $ 53 $ - $ 185 $ 8,288 $ 219,994 Current-Period Gross Writeoffs $ - $ - $ 47 $ - $ - $ - $ - $ 47 Real Estate - Commercial Mortgage: Pass $ 77,561 $ 110,183 $ 207,574 $ 109,863 $ 87,369 $ 122,272 $ 26,324 $ 741,146 Special Mention 171 2,913 17,031 - 2,253 4,402 530 27,300 Substandard - 2,463 3,403 869 2,508 1,305 101 10,649 Total $ 77,732 $ 115,559 $ 228,008 $ 110,732 $ 92,130 $ 127,979 $ 26,955 $ 779,095 Current-Period Gross Writeoffs $ - $ - $ - $ - $ - $ - $ 3 $ 3 Real Estate - Residential: Pass $ 165,050 $ 316,521 $ 358,851 $ 71,423 $ 31,169 $ 76,921 $ 11,872 $ 1,031,807 Special Mention - 265 - 1,104 468 534 521 2,892 Substandard - 528 1,450 1,446 1,295 2,918 168 7,805 Total $ 165,050 $ 317,314 $ 360,301 $ 73,973 $ 32,932 $ 80,373 $ 12,561 $ 1,042,504 Current-Period Gross Writeoffs $ - $ 13 $ - $ - $ - $ 48 $ - $ 61 Real Estate - Home Equity: Performing $ 801 $ 521 $ 30 $ 119 $ 9 $ 821 $ 215,981 $ 218,282 Nonperforming - - - - - - 1,782 1,782 Total $ 801 $ 521 $ 30 $ 119 $ 9 $ 821 $ 217,763 $ 220,064 Current-Period Gross Writeoffs $ - $ - $ - $ - $ - $ - $ 132 $ 132 Consumer: Performing $ 32,293 $ 44,995 $ 55,942 $ 42,002 $ 10,899 $ 4,116 $ 9,648 $ 199,895 Nonperforming 10 174 321 156 58 71 - 790 Total $ 32,303 $ 45,169 $ 56,263 $ 42,158 $ 10,957 $ 4,187 $ 9,648 $ 200,685 Current-Period Gross Writeoffs $ 2,562 $ 1,605 $ 2,088 $ 897 $ 237 $ 76 $ 162 $ 7,627

NOTE 4 – MORTGAGE BANKING ACTIVITIES The Company’s mortgage banking activities include mandatory delivery loan sales, forward sales contracts used to manage residential loan pipeline price risk, utilization of warehouse lines to fund secondary market residential loan closings, and residential mortgage servicing. Residential Mortgage Loan Production The Company originates, markets, and services conventional and government-sponsored residential mortgage loans. Generally, conforming fixed rate residential mortgage loans are held for sale in the secondary market and non-conforming and adjustable-rate residential mortgage loans may be held for investment. The volume of residential mortgage loans originated for sale and secondary market prices are the primary drivers of origination revenue. Residential mortgage loan commitments are generally outstanding for 30 to 90 days, which represents the typical period from commitment to originate a residential mortgage loan to when the closed loan is sold to an investor. Residential mortgage loan commitments are subject to both credit and price risk. Credit risk is managed through underwriting policies and procedures, including collateral requirements, which are generally accepted by the secondary loan markets. Price risk is primarily related to interest rate fluctuations and is partially managed through forward sales of residential mortgage-backed securities (primarily to-be announced securities, or TBAs) or mandatory delivery commitments with investors. The unpaid principal balance of residential mortgage loans held for sale, notional amounts of derivative contracts related to residential mortgage loan commitments, such as interest rate lock commitments (“IRLC’s”) and forward contract sales and their related fair values are set forth below.

September 30, 2025 December 31, 2024 Unpaid Principal Unpaid Principal (Dollars in Thousands) Balance/Notional Fair Value Balance/Notional Fair Value Residential Mortgage Loans Held for Sale $ 23,481 24,204 $ 28,117 $ 28,672 Residential Mortgage Loan Commitments ("IRLCs") (1) 29,911 607 15,000 248 Forward Sales Contracts (1) 27,000 11 16,000 96 (1) Recorded in other assets at fair value.

At September 30, 2025, the Company had no residential mortgage loans held for sale 30-89 days past due or on nonaccrual status. At December 31, 2024, the Company had no residential mortgage loans held for sale 30-89 days past due or on nonaccrual status. Mortgage banking revenue was as follows:

Three Months Ended September 30, Nine Months Ended September 30, (Dollars in Thousands) 2025 2024 2025 2024 Net realized gains on sales of mortgage loans $ 3,871 $ 3,664 $ 10,356 $ 8,499 Net change in unrealized gain on mortgage loans held for sale 130 143 302 312 Net change in the fair value of IRLC's ( 45 ) ( 135 ) 359 32 Net change in the fair value of forward sales contracts 199 ( 52 ) ( 85 ) 212 Pair-Offs on net settlement of forward sales contracts ( 234 ) ( 383 ) ( 404 ) ( 173 ) Mortgage servicing rights additions 40 50 84 292 Net origination fees 833 679 2,192 2,051 Total mortgage banking revenues $ 4,794 $ 3,966 $ 12,804 $ 11,225

Residential Mortgage Servicing The Company may retain the right to service residential mortgage loans sold. The unpaid principal balance of loans serviced for others is the primary driver of servicing revenue. The following represents a summary of mortgage servicing rights.

(Dollars in Thousands) September 30, 2025 December 31, 2024 Number of residential mortgage loans serviced for others 464 504 Outstanding principal balance of residential mortgage loans serviced for others $ 121,767 $ 135,416 Weighted average interest rate 5.74 % 5.86 % Remaining contractual term (in months) 353 348

Conforming conventional loans serviced by the Company are sold to Federal National Mortgage Association (“FNMA”) on a non- recourse basis, whereby foreclosure losses are generally the responsibility of FNMA and not the Company. The government loans serviced by the Company are secured through the Government National Mortgage Association (“GNMA”), whereby the Company is insured against loss by the Federal Housing Administration or partially guaranteed against loss by the Veterans Administration. At September 30, 2025, the servicing portfolio balance consisted of the following loan types: FNMA ( 61.4 %), GNMA ( 4.3 %), and private investor ( 34.3 %). FNMA and private investor loans are structured as actual/actual payment remittance. At September 30, 2025 and December 31, 2024, the Company did no t have delinquent residential mortgage loans in GNMA pools serviced by the Company. The right to repurchase these loans and the corresponding liability has been recorded in other assets and other liabilities, respectively, in the Consolidated Statements of Financial Condition. The Company had no repurchases for the three months ended September 30, 2025 and 2024, and $ 0.3 million and no repurchases in the nine months ended September 30, 2025 and 2024, respectively, of GNMA delinquent or defaulted mortgage loans with the intention to modify their terms and include the loans in new GNMA pools. Activity in the capitalized mortgage servicing rights was as follows:

Three Months Ended September 30, Nine Months Ended September 30, (Dollars in Thousands) 2025 2024 2025 2024 Beginning balance $ 889 $ 965 $ 933 $ 831 Additions due to loans sold with servicing retained 40 50 84 292 Deletions and amortization ( 44 ) ( 46 ) ( 132 ) ( 154 ) Ending balance $ 885 $ 969 $ 885 $ 969

The Company did no t record any permanent impairment losses on mortgage servicing rights for the three or nine months ended September 30, 2025 or 2024. The key unobservable inputs used in determining the fair value of the Company’s mortgage servicing rights were as follows:

September 30, 2025 December 31, 2024 Minimum Maximum Minimum Maximum Discount rates 9.50 % 12.00 % 9.50 % 12.00 % Annual prepayment speeds 9.83 % 18.89 % 9.14 % 18.88 % Cost of servicing (per loan) $ 85 $ 95 $ 85 $ 95

Changes in residential mortgage interest rates directly affect the prepayment speeds used in valuing the Company’s mortgage servicing rights. A separate third party model is used to estimate prepayment speeds based on interest rates, housing turnover rates, estimated loan curtailment, anticipated defaults, and other relevant factors. The weighted average annual prepayment speed was 13.09 % at September 30, 2025 and 13.44 % at December 31, 2024.

Warehouse Line Borrowings The Company has the following warehouse lines of credit and master repurchase agreements with various financial institutions at September 30, 2025.

Amounts (Dollars in Thousands) Outstanding $ 20 million master repurchase agreement without defined expiration. Interest is at the SOFR rate plus 2.25 % to 3.25 % , with a floor rate of 3.25 % to 4.25 % . A cash pledge deposit of $ 0.1 million is required by the lender. $ 326 $ 25 million warehouse line of credit agreement expiring in June 2026 . Interest is at the SOFR plus 2.50 % to 3.00 % . 14,289 Total Warehouse Borrowings $ 14,615

Warehouse line borrowings are classified as short-term borrowings. At December 31, 2024, warehouse line borrowings totaled $ 1.9 million. At September 30, 2025, the Company had residential mortgage loans held for sale pledged as collateral under the above warehouse lines of credit and master repurchase agreements. The above agreements also contain covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquid assets, and maximum debt to net worth ratio, as defined in the agreements. The Company was in compliance with all significant debt covenants at September 30, 2025.

NOTE 5 – DERIVATIVES The Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s subordinated debt. Cash Flow Hedges of Interest Rate Risk Interest rate swaps with notional amounts totaling $ 30 million at September 30, 2025 were designed as a cash flow hedge for subordinated debt. Under the swap arrangement, the Company will pay a fixed interest rate of 2.50 % and receive a variable interest rate based on three-month CME Term SOFR (secured overnight financing rate). For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (“AOCI”) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate subordinated debt. The following table reflects the cash flow hedges included in the consolidated statements of financial condition

Statement of Financial Notional Fair Weighted Average (Dollars in Thousands) Condition Location Amount Value Maturity (Years) September 30, 2025 Interest rate swaps related to subordinated debt Other Assets $ 30,000 $ 3,877 4.8 December 31, 2024 Interest rate swaps related to subordinated debt Other Assets $ 30,000 $ 5,319 5.5

The following table presents the change in net gains (losses) recorded in AOCI and the consolidated statements of income related to the cash flow derivative instruments (interest rate swaps related to subordinated debt).

Change in Gain Amount of Gain (Loss) Recognized (Loss) Reclassified (Dollars in Thousands) Category in AOCI from AOCI to Income Three months ended September 30, 2025 Interest expense $ ( 189 ) $ 303 Three months ended September 30, 2024 Interest expense ( 941 ) 377 Nine months ended September 30, 2025 Interest expense $ ( 1,076 ) $ 899 Nine months ended September 30, 2024 Interest expense ( 652 ) 1,128

The Company had a collateral liability of $ 4.0 million and $ 5.5 million at September 30, 2025 and December 31, 2024, respectively. On October 4, 2025, the Company terminated the interest rate swap related to subordinated debt and will amortize an unrecognized gain of $ 3.8 million over the remaining life of the swap agreement.

NOTE 6 – LEASES Operating leases in which the Company is the lessee are recorded as operating lease right of use (“ROU”) assets and operating liabilities, included in other assets and liabilities, respectively, on its Consolidated Statements of Financial Condition. The Company’s operating leases primarily relate to banking offices with remaining lease terms from less than one to 40 years. The Company’s leases are not complex and do not contain residual value guarantees, variable lease payments, or significant assumptions or judgments made in applying the requirements of Topic 842. Operating leases with an initial term of 12 months or less are not recorded on the Consolidated Statements of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term. At September 30, 2025, the operating lease ROU assets and liabilities were $ 26.9 million and $ 27.5 million, respectively. At December 31, 2024, ROU assets and liabilities were $ 24.9 million and $ 25.5 million, respectively. The Company recognized $ 0.1 million of rental income during the nine months ended September 30, 2025 for a lease that terminated in February 2025. The Company does not have any finance leases. The table below summarizes our lease expense and other information related to the Company’s operating leases.

Three Months Ended Nine Months Ended September 30, September 30, (Dollars in Thousands) 2025 2024 2025 2024 Operating lease expense $ 928 $ 841 $ 2,689 $ 2,509 Short-term lease expense 171 229 722 618 Total lease expense $ 1,099 $ 1,070 $ 3,411 $ 3,127 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 882 $ 1,095 $ 2,676 $ 2,315 Right-of-use assets obtained in exchange for new operating lease liabilities 44 29 4,041 69 Weighted average remaining lease term — operating leases (in years) 15.7 16.7 15.7 16.7 Weighted average discount rate — operating leases 3.7 % 3.5 % 3.7 % 3.5 %

The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) September 30, 2025 2025 $ 896 2026 3,591 2027 3,387 2028 3,102 2029 2,880 2030 and thereafter 21,293 Total $ 35,149 Less: Interest ( 7,601 ) Present Value of Lease liability $ 27,548

A related party is the lessor in a land lease with the Company. The payments under the lease agreement provide for annual lease payments of approximately $ 0.1 million annually through December 2033, and thereafter, increase by 5 % every 10 years until 2053 at which time the rent amount will adjust based on reappraisal of the parcel rental value. The Company then has four successive options to extend the lease for five years each with rental increases of 5% at each extension. The aggregate remaining obligation of the lease totaled $ 2.1 million at September 30, 2025. Further, in accordance with this lease agreement, the Company made a $ 0.2 million payment in July 2025 to the lessor as reimbursement for a portion of the costs related to the development of subject property to support the construction of a new banking office by the Company.

NOTE 7 - EMPLOYEE BENEFIT PLANS The Company has a defined benefit pension plan covering substantially all full-time and eligible part-time associates and a Supplemental Executive Retirement Plan (“SERP”) and a Supplemental Executive Retirement Plan II (“SERP II”) covering its executive officers. The defined benefit plan was amended in December 2019 to remove plan eligibility for new associates hired after December 31, 2019. The SERP II was adopted by the Company’s Board on May 21, 2020 and covers certain executive officers that were not covered by the SERP. The components of the net periodic benefit cost for the Company’s qualified benefit pension plan were as follows:

Three Months Ended September 30, Nine Months Ended September 30, (Dollars in Thousands) 2025 2024 2025 2024 Service Cost $ 861 $ 929 $ 2,581 $ 2,786 Interest Cost 1,676 1,524 5,029 4,572 Expected Return on Plan Assets ( 2,265 ) ( 2,029 ) ( 6,794 ) ( 6,087 ) Net Loss Amortization ( 413 ) 41 ( 1,240 ) 123 Net Periodic Benefit Cost $ ( 141 ) $ 465 $ ( 424 ) $ 1,394 Discount Rate 5.82 % 5.29 % 5.82 % 5.29 % Long-term Rate of Return on Assets 6.75 % 6.75 % 6.75 % 6.75 %

The components of the net periodic benefit cost for the Company’s SERP and SERP II were as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in Thousands) 2025 2024 2025 2024 Service Cost $ 11 $ 9 $ 34 $ 27 Interest Cost 131 114 395 341 Prior Service Cost Amortization 25 - 76 - Net Loss Amortization ( 30 ) ( 71 ) ( 88 ) ( 210 ) Net Periodic Benefit Cost $ 137 $ 52 $ 417 $ 158 Discount Rate 5.57 % 5.11 % 5.57 % 5.11 %

The service cost component of net periodic benefit cost is reflected in compensation expense in the accompanying statements of income. The other components of net periodic cost are included in “other” within the noninterest expense category in the Consolidated Statements of Income.

NOTE 8 - COMMITMENTS AND CONTINGENCIES Lending Commitments . The Company is a party to financial instruments with off-balance sheet risks in the normal course of business to meet the financing needs of its clients. These financial instruments consist of commitments to extend credit and standby letters of credit. The Company’s maximum exposure to credit loss under standby letters of credit and commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in establishing commitments and issuing letters of credit as it does for on-balance sheet instruments. The amounts associated with the Company’s off-balance sheet obligations were as follows:

September 30, 2025 December 31, 2024 (Dollars in Thousands) Fixed Variable Total Fixed Variable Total Commitments to Extend Credit (1) $ 187,658 $ 517,663 $ 705,321 $ 184,223 $ 479,191 $ 663,414 Standby Letters of Credit 7,114 - 7,114 7,287 - 7,287 Total $ 194,772 $ 517,663 $ 712,435 $ 191,510 $ 479,191 $ 670,701

(1) Commitments include unfunded loans, revolving lines of credit, and off-balance sheet residential loan commitments.

Commitments to extend credit are agreements to lend to a client so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses 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 the Company to guarantee the performance of a client to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities. In general, management does not anticipate any material losses as a result of participating in these types of transactions. However, any potential losses arising from such transactions are reserved for in the same manner as management reserves for its other credit facilities. For both on- and off-balance sheet financial instruments, the Company requires collateral to support such instruments when it is deemed necessary. The Company evaluates each client’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include deposits held in financial institutions; U.S. Treasury securities; other marketable securities; real estate; accounts receivable; property, plant and equipment; and inventory. The allowance for credit losses for off-balance sheet credit commitments that are not unconditionally cancellable by the bank is adjusted as a provision for credit loss expense and is recorded in other liabilities. The following table shows the activity in the allowance.

Three Months Ended September 30, Nine Months Ended September 30, (Dollars in Thousands) 2025 2024 2025 2024 Beginning Balance $ 1,738 $ 3,139 $ 2,155 $ 3,191 Provision for Credit Losses 357 ( 617 ) ( 60 ) ( 669 ) Ending Balance $ 2,095 $ 2,522 $ 2,095 $ 2,522

Other Commitments. In the normal course of business, the Company enters into lease commitments which are classified as operating leases. See Note 6 – Leases for additional information on the maturity of the Company’s operating lease commitments. The Company has an outstanding commitment of up to $ 1.0 million in a bank tech venture capital fund focused on finding and funding technology solutions for community banks. At September 30, 2025, the amount remaining to be funded for the bank tech venture capital commitment was $ 0.3 million. Contingencies . The Company is a party to lawsuits and claims arising out of the normal course of business. In management's opinion, there are no known pending claims or litigation, the outcome of which would, individually or in the aggregate, have a material effect on the consolidated results of operations, financial position, or cash flows of the Company.

Indemnification Obligation . The Company is a member of the Visa U.S.A. network. Visa U.S.A member banks are required to indemnify the Visa U.S.A. network for potential future settlement of certain litigation (the “Covered Litigation”) that relates to several antitrust lawsuits challenging the practices of Visa and MasterCard International. In 2008, the Company, as a member of the Visa U.S.A. network, obtained Class B shares of Visa, Inc. upon its initial public offering. Since its initial public offering, Visa, Inc. has funded a litigation reserve for the Covered Litigation resulting in a reduction in the Class B shares held by the Company. In 2011, the Company sold its remaining Class B shares. Associated with this sale, the Company entered into a swap contract with the purchaser of the shares that requires a payment to the counterparty in the event that Visa, Inc. makes subsequent revisions to the conversion ratio. Conversion ratio payments and ongoing fixed quarterly charges are reflected in earnings in the period incurred. Fixed charges included in the swap liability are payable quarterly until the litigation reserve is fully liquidated and at which time the aforementioned swap contract will be terminated. Quarterly fixed payments are approximately $ 0.2 million. There was a $ 0.2 million counterparty payment accrued and payable at September 30, 2025 due to a revision to the share conversion rate related to additional funding by VISA of the merchant litigation reserve.

NOTE 9 – FAIR VALUE MEASUREMENTS The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. Accounting Standards Codification Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date . ● Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from, or corroborated, by market data by correlation or other means . ● Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis Securities Available for Sale. U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. Other securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, credit information and the bond’s terms and conditions, among other things. In general, the Company does not purchase securities that have a complicated structure. The Company’s entire portfolio consists of traditional investments, nearly all of which are U.S. Treasury obligations, federal agency bullet or mortgage pass-through securities, or general obligation or revenue-based municipal bonds. Pricing for such instruments is easily obtained. At least annually, the Company will validate prices supplied by the independent pricing service by compari ng them to prices obtained from an independent third-party source. Equity Securities. Investment securities classified as equity securities are carried at cost and the share of earnings or losses is reported through net income as an adjustment to the investment balance. These securities are not readily marketable and therefore are classified as a Level 3 input within the fair value hierarchy. Loans Held for Sale . The fair value of residential mortgage loans held for sale based on Level 2 inputs is determined, when possible, using either quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used by other market participants. The Company has elected the fair value option accounting for its held for sale loans.

Mortgage Banking Derivative Instruments. The fair values of interest rate lock commitments (“IRLCs”) are derived by valuation models incorporating market pricing for instruments with similar characteristics, commonly referred to as best execution pricing, or investor commitment prices for best effort IRLCs which have unobservable inputs, such as an estimate of the fair value of the servicing rights expected to be recorded upon sale of the loans, net estimated costs to originate the loans, and the pull-through rate, and are therefore classified as Level 3 within the fair value hierarchy. The fair value of forward sale commitments is based on observable market pricing for similar instruments and are therefore classified as Level 2 within the fair value hierarchy. Interest Rate Swap. The Company’s derivative positions are classified as Level 2 within the fair value hierarchy and are valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers. The fair value derivatives are determined using discounted cash flow models. Fair Value Swap . The Company entered into a stand-alone derivative contract with the purchaser of its Visa Class B shares. The valuation represents the amount due and payable to the counterparty based upon the revised share conversion rate, if any, during the period. The Company’s derivative positions are classified as Level 2 within the fair value hierarchy and use actively quoted or observable market input values from external market data providers. There was a $ 0.2 million counterparty payment accrued and payable at September 30, 2025 and no amount payable at December 31, 2024. A summary of fair values for assets and liabilities recorded at fair value on a recurring basis consisted of the following:

Level 1 Level 2 Level 3 Total Fair (Dollars in Thousands) Inputs Inputs Inputs Value September 30, 2025 ASSETS: Securities Available for Sale: U.S. Government Treasury $ 273,314 $ - $ - $ 273,314 U.S. Government Agency - 162,685 - 162,685 States and Political Subdivisions - 35,248 - 35,248 Mortgage-Backed Securities - 52,940 - 52,940 Corporate Debt Securities - 45,049 - 45,049 Equity Securities - - 2,145 2,145 Loans Held for Sale - 24,204 - 24,204 Interest Rate Swap Derivative - 3,877 - 3,877 Forward Sales Contracts - 11 - 11 Residential Mortgage Loan Commitments ("IRLCs") - - 607 607 December 31, 2024 ASSETS: Securities Available for Sale: U.S. Government Treasury $ 105,801 $ - $ - $ 105,801 U.S. Government Agency - 143,127 - 143,127 States and Political Subdivisions - 39,382 - 39,382 Mortgage-Backed Securities - 55,477 - 55,477 Corporate Debt Securities - 51,462 - 51,462 Equity Securities - - 2,399 2,399 Loans Held for Sale - 28,672 - 28,672 Interest Rate Swap Derivative - 5,319 - 5,319 Forward Sales Contracts - 96 - 96 Residential Mortgage Loan Commitments ("IRLCs") - - 248 248

Mortgage Banking Activities . The Company had Level 3 issuances and transfers related to mortgage banking activities of $ 6.1 million and $ 13.0 million, respectively, for the nine months ended September 30, 2025, and $ 5.9 million and $ 11.0 million, respectively, for the nine months ended September 30, 2024. Issuances are valued based on the change in fair value of the underlying mortgage loan from inception of the IRLC to the Consolidated Statement of Financial Condition date, adjusted for pull-through rates and costs to originate. IRLCs transferred out of Level 3 represent IRLCs that were funded and moved to mortgage loans held for sale, at fair value. Assets Measured at Fair Value on a Non-Recurring Basis Certain assets are measured at fair value on a non-recurring basis (i.e., the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances). An example would be assets exhibiting evidence of impairment. The following is a description of valuation methodologies used for assets measured on a non-recurring basis. Collateral Dependent Loans . Impairment for collateral dependent loans is measured using the fair value of the collateral less selling costs. The fair value of collateral is determined by an independent valuation or professional appraisal in conformance with banking regulations. Collateral values are estimated using Level 3 inputs due to the volatility in the real estate market, and the judgment and estimation involved in the real estate appraisal process. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. Valuation techniques are consistent with those techniques applied in prior periods. Collateral-dependent loans had a carrying value of $ 6.8 million with valuation allowance of less than $ 0.1 million at September 30, 2025 and a carrying value of $ 3.6 million and a $ 0.1 million valuation allowance at December 31, 2024. Other Real Estate Owned . During the first nine months of 2025, certain foreclosed assets, upon initial recognition, were measured and reported at fair value through a charge-off to the allowance for credit losses based on the fair value of the foreclosed asset less estimated cost to sell. The fair value of the foreclosed asset is determined by an independent valuation or professional appraisal in conformance with banking regulations. On an ongoing basis, we obtain updated appraisals on foreclosed assets and realize valuation adjustments as necessary. The fair value of foreclosed assets is estimated using Level 3 inputs due to the judgment and estimation involved in the real estate valuation process. Mortgage Servicing Rights . Residential mortgage loan servicing rights are evaluated for impairment at each reporting period based upon the fair value of the rights as compared to the carrying amount. Fair value is determined by a third party valuation model using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). The fair value is estimated using Level 3 inputs, including a discount rate, weighted average prepayment speed, and the cost of loan servicing. Further detail on the key inputs utilized are provided in Note 4 – Mortgage Banking Activities. At each of September 30, 2025 and December 31, 2024, there was no valuation allowance for loan servicing rights. Assets and Liabilities Disclosed at Fair Value The Company is required to disclose the estimated fair value of financial instruments, both assets and liabilities, for which it is practical to estimate fair value and the following is a description of valuation methodologies used for those assets and liabilities. Cash and Short-Term Investments. The carrying amount of cash and short-term investments is used to approximate fair value, given the short time frame to maturity and as such assets do not present unanticipated credit concerns. Securities Held to Maturity . Securities held to maturity are valued in accordance with the methodology previously noted in the caption “Assets and Liabilities Measured at Fair Value on a Recurring Basis – Securities Available for Sale.” Other Equity Securities. Other equity securities are accounted for under the equity method (Topic 323) and recorded at cost. These securities are not readily marketable securities and are reflected in Other Assets on the Statement of Financial Condition. Loans. The loan portfolio is segregated into categories and the fair value of each loan category is calculated using present value techniques based upon projected cash flows and estimated discount rates. The values reported reflect the incorporation of a liquidity discount to meet the objective of “exit price” valuation. Deposits. The fair value of Noninterest Bearing Deposits, NOW Accounts, Money Market Accounts and Savings Accounts are the amounts payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using present value techniques and rates currently offered for deposits of similar remaining maturities. Subordinated Notes Payable. The fair value of each note is calculated using present value techniques, based upon projected cash flows and estimated discount rates as well as rates being offered for similar obligations.

Short-Term and Long-Term Borrowings. The fair value of each note is calculated using present value techniques, based upon projected cash flows and estimated discount rates as well as rates being offered for similar debt. A summary of estimated fair values of significant financial instruments not recorded at fair value consisted of the following:

September 30, 2025 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 68,397 $ 68,397 $ - $ - Fed Funds Sold and Interest Bearing Deposits 397,502 397,502 - - Investment Securities, Held to Maturity 404,659 169,264 224,861 - Other Equity Securities (1) 2,848 - 2,848 - Mortgage Servicing Rights 885 - - 1,412 Loans, Net of Allowance for Credit Losses 2,551,805 - - 2,357,689 LIABILITIES: Deposits $ 3,614,912 $ - $ 2,993,838 $ - Short-Term Borrowings 40,244 - 40,244 - Subordinated Notes Payable 42,582 - 38,971 - Long-Term Borrowings 680 - 680 -

December 31, 2024 Carrying Level 1 Level 2 Level 3 (Dollars in Thousands) Value Inputs Inputs Inputs ASSETS: Cash $ 70,543 $ 70,543 $ - $ - Fed Funds Sold and Interest Bearing Deposits 321,311 321,311 - - Investment Securities, Held to Maturity 567,155 361,529 182,931 - Other Equity Securities (1) 2,848 - 2,848 - Mortgage Servicing Rights 933 - - 1,616 Loans, Net of Allowance for Credit Losses 2,622,299 - - 2,457,883 LIABILITIES: Deposits $ 3,671,977 $ - $ 3,046,926 $ - Short-Term Borrowings 28,304 - 28,304 - Subordinated Notes Payable 52,887 - 42,530 - Long-Term Borrowings 794 - 794 -

(1) Accounted for under the equity method – not readily marketable securities – reflected in other assets. All non-financial instruments are excluded from the above table. The disclosures also do not include goodwill. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The amounts allocated to accumulated other comprehensive income (loss) are presented in the table below.

Accumulated Securities Other Available Interest Rate Retirement Comprehensive (Dollars in Thousands) for Sale Swap Plans (Loss) Income Balance as of January 1, 2025 $ ( 20,179 ) $ 3,971 $ 9,722 $ ( 6,486 ) Other comprehensive income (loss) during the period 8,783 ( 1,076 ) - 7,707 Balance as of September 30, 2025 $ ( 11,396 ) $ 2,895 $ 9,722 $ 1,221 Balance as of January 1, 2024 $ ( 25,691 ) $ 3,970 $ ( 425 ) $ ( 22,146 ) Other comprehensive income during the period 8,716 ( 652 ) - 8,064 Balance as of September 30, 2024 $ ( 16,975 ) $ 3,318 $ ( 425 ) $ ( 14,082 )

Note 11 - SEGMENT REPORTING The Company operates a single reportable business segment that is comprised of commercial banking within the states of Florida, Georgia, and Alabama. The Company’s chief executive officer is deemed the Chief Operating Decision Maker (“CODM”). The CODM evaluates the financial performance of the Company by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company’s single reporting segment and in the determination of allocating resources. The CODM uses consolidated net income to benchmark the Company against peers and to evaluate performance and allocate resources. Significant revenue and expense categories evaluated by the CODM are consistent with the presentation of the Consolidated Statement of Income and components of other noninterest expense.

Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

Management’s discussion and analysis (“MD&A”) provides supplemental information, which sets forth the major factors that have affected our financial condition and results of operations and should be read in conjunction with the Consolidated Financial Statements and related notes. The following information should provide a better understanding of the major factors and trends that affect our earnings performance and financial condition, and how our performance during the third quarter of 2025 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 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,” “contemplate,” “estimate,” “expect,” “intend,” “plan,” “point to,” “project,” “target,” “vision,” “goal,” “continue,” “further,” and similar expressions are 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-Q as well as the Introductory Note andItem 1A. Risk Factorsof our 2024 Form 10-K, as updated in our subsequent quarterly reports filed on Form 10-Q, and in our other filings made from time to time with the SEC after the date of this report.

However, other factors besides those listed in our Quarterly Report or in our Annual Report 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.

BUSINESS OVERVIEW

We are a financial holding company headquartered in Tallahassee, Florida, and we are the parent of our wholly owned subsidiary, Capital City Bank (the “Bank” or “CCB”). We offer a broad array of products and services through a total of 62 full-service offices and 108 ATMs/ITMs located in Florida, Georgia, and Alabama. Through Capital City Home Loans, LLC (“CCHL”), we have 28 additional offices in the Southeast for our mortgage banking business. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including life insurance products , risk management and asset protection services.

Our profitability, like most financial institutions, is dependent to a large extent upon net interest income, which is the difference between the interest and fees received on interest earning assets, such as loans and securities, 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 other operating expenses including income taxes, and noninterest income such as mortgage banking revenues, wealth management fees, deposit fees, and bank card fees.

We have included a detailed discussion of our long-term strategic objectives as part of the MD&A section of our 2024 Form 10-K.

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

We present a tangible common equity ratio and a tangible book value per diluted share that, in each case, removes the effect of goodwill and other intangibles 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. Non-GAAP financial measures should not be considered alternatives to generally accepted accounting principles (“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 reconciliation for each quarter presented is provided below.| | | | 2025 | | | 2024 | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in Thousands, except per share data) | | Third | Second | First | Fourth | Third | |
| Shareowners' Equity (GAAP) | $ | 540,635 | $526,423 | $512,575 | $495,317 | $476,499 | |
| Less: Goodwill and Other Intangibles (GAAP) | | 89,095 | 92,693 | 92,733 | 92,773 | 92,813 | |
| Tangible Shareowners' Equity (non-GAAP) | A | 451,540 | 433,730 | 419,842 | 402,544 | 383,686 | |
| Total Assets (GAAP) | | 4,323,774 | 4,391,753 | 4,461,233 | 4,324,932 | 4,225,316 | |
| Less: Goodwill and Other Intangibles (GAAP) | | 89,095 | 92,693 | 92,733 | 92,773 | 92,813 | |
| Tangible Assets (non-GAAP) | B$ | 4,234,679 | $4,299,060 | $4,368,500 | $4,232,159 | $4,132,503 | |
| Tangible Common Equity Ratio (non-GAAP) | A/B | 10.66% | 10.09% | 9.61% | 9.51% | 9.28% | |
| Actual Diluted Shares Outstanding (GAAP) | C17,115,336 | | 17,097,986 | 17,072,330 | 17,018,122 | 16,980,686 | |
| Tangible Book Value per Diluted Share (non-GAAP) | A/C | 26.38 | 25.37 | 24.59 | 23.65 | | 22.60 |

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)| | | | | 2025 | | | | 2024 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in Thousands, Except Per Share Data) | | Third | | Second | First | | Fourth | Third | |
| Summary of Operations | : | | | | | | | | |
| Interest Income | | $51,431 | $ | 51,459 | $49,782 | $ | 49,743 | $ | 49,328 |
| Interest Expense | | 7,874 | | 8,275 | | 8,235 | 8,640 | | 9,117 |
| Net Interest Income | | 43,557 | | 43,184 | 41,547 | | 41,103 | | 40,211 |
| Provision for Credit Losses | | 1,881 | | 620 | | 768 | 701 | | 1,206 |
| Net Interest Income After | | | | | | | | | |
| Provision for Credit Losses | | 41,676 | | 42,564 | 40,779 | | 40,402 | | 39,005 |
| Noninterest Income | | 22,331 | | 20,014 | 19,907 | | 18,760 | | 19,513 |
| Noninterest Expense | | 42,916 | | 42,538 | 38,701 | | 41,782 | | 42,921 |
| Income Before Income Taxes | | 21,091 | | 20,040 | 21,985 | | 17,380 | | 15,597 |
| Income Tax Expense | | 5,141 | | 4,996 | | 5,127 | 4,219 | | 2,980 |
| (Income) Loss Attributable to NCI | | | - | - | | - | (71) | | 501 |
| Net Income Attributable to CCBG | | 15,950 | | 15,044 | 16,858 | | 13,090 | | 13,118 |
| Net Interest Income (FTE) | (1) | 43,602 | | 43,228 | 41,591 | | 41,150 | | 40,260 |

Per Common Share	:
Net Income Basic		$0.93	$0.88	$	0.99$	0.77$	0.77
Net Income Diluted		0.93	0.88		0.99	0.77	0.77
Cash Dividends Declared		0.26	0.24		0.24	0.23	0.23
Diluted Book Value		31.59	30.79		30.02	29.11	28.06
Diluted Tangible Book Value	(2)	26.38	25.37		24.59	23.65	22.60
Market Price:
High		44.69	39.82		38.27	40.86	36.67
Low		38.00	32.38		33.00	33.00	26.72
Close		41.79	39.35		35.96	36.65	35.29

Selected Average Balances
Investment Securities	$993,880	$1,007,981	$982,330	$915,202	$908,456
Loans Held for Investment	2,606,213	2,652,572	2,665,910	2,677,396	2,693,533
Earning Assets	3,981,530	4,032,008	3,993,914	3,921,900	3,883,414
Total Assets	4,317,951	4,370,261	4,335,033	4,259,669	4,215,862
Deposits	3,612,331	3,680,707	3,665,482	3,600,424	3,572,034
Shareowners’ Equity	542,216	527,583	513,401	491,143	480,137
Common Equivalent Average Shares:
Basic	17,068	17,056	17,027	16,946	16,943
Diluted	17,114	17,088	17,044	16,990	16,979

Performance Ratios:
Return on Average Assets (annualized)	1.47%	1.38%	1.58%	1.22%	1.24%
Return on Average Equity (annualized)	11.67	11.44	13.32	10.60	10.87
Net Interest Margin (FTE)	4.34	4.30	4.22	4.17	4.12
Noninterest Income as % of Operating Revenue	33.89	31.67	32.39	31.34	32.67
Efficiency Ratio	65.09	67.26	62.93	69.74	71.81

Asset Quality:
Allowance for Credit Losses (“ACL”)	$30,202	$	29,862	$29,734	$	29,251	$29,836
Nonperforming Assets (“NPAs”)	10,026		6,581		4,428	6,669	7,242
ACL to Loans HFI	1.17	%	1.13%		1.12%	1.10%	1.11	%
NPAs to Total Assets	0.23		0.15		0.10	0.15	0.17
NPAs to Loans HFI plus OREO	0.39		0.25		0.17	0.25	0.27
ACL to Non-Performing Loans	368.54		463.01	692.10		464.14	452.64
Net Charge-Offs to Average Loans HFI	0.18		0.09		0.09	0.25	0.19

Capital Ratios:
Tier 1 Capital		19.33%	18.38%	18.01%	17.46%	16.77%
Total Capital		20.59	19.60	19.20	18.64	17.97
Common Equity Tier 1		17.73	16.81	16.08	15.54	14.88
Leverage		11.64	11.14	11.17	11.05	10.89
Tangible Common Equity	(2)	10.66	10.09	9.61	9.51	9.28

(1)Fully Tax Equivalent.
(2)Non-GAAP financial measure. See non-GAAP reconciliation on page 34.
35

FINANCIAL OVERVIEW

Results of Operations

Performance Summary.Net income attributable to common shareowners of $16.0 million, or $0.93 per diluted share, for the third

quarter of 2025 compared to $15.0 million, or $0.88 per diluted share, for the second quarter of 2025, and $13.1 million, or $0.77 per diluted share, for the third quarter of 2024. For the first nine months of 2025, net income attributable to common shareowners totaled $47.9 million, or $2.80 per diluted share, compared to net income of $39.8 million, or $2.35 per diluted share, for the same period of 2024.

Net Interest Income.Tax-equivalent net interest income for the third quarter of 2025 totaled $43.6 million compared to $43.2 million

for the second quarter of 2025 and $40.3 million for the third quarter of 2024. Compared to the second quarter of 2025, the increase was driven by a $0.5 million increase in investment securities income, a $0.4 million decrease in interest expense, and a $0.1 million increase in overnight funds income, partially offset by a $0.6 million decrease in loan income. One additional calendar day in the third quarter of 2025 contributed to the improvement. Compared to the third quarter of 2024, the increase was primarily due to a $3.0 million increase in investment securities income, a $1.2 million decrease in interest expense, and a $0.5 million increase in overnight funds income, partially offset by a $1.4 million decrease in loan income. For the first nine months of 2025, tax-equivalent net interest income totaled $128.4 million compared to $118.0 million for the same period of 2024, with the increase primarily attributable to a $7.3 million increase in investment securities income, a $2.3 million increase in overnight funds income, and a $2.3 million decrease in deposit interest expense, partially offset by a $1.9 million decrease in loan income.

Provision and Allowance for Credit Losses.We recorded a provision expense for credit losses of $1.9 million for the third quarter of 2025 compared to $0.6 million for the second quarter of 2025 and $1.2 million for the third quarter of 2024. For the first nine months of 2025, we recorded a provision expense for credit losses of $3.3 million which was comparable to the same period of 2024. At September 30, 2025, the allowance for credit losses for loans HFI totaled $30.2 million (1.17% of loans HFI) compared to $29.9 million (1.13% of loans HFI) at June 30, 2025 and $29.3 million at December 31, 2024 (1.10% of loans HFI).

Noninterest Income. Noninterest income for the third quarter of 2025 totaled $22.3 million compared to $20.0 million for the second quarter of 2025 and $19.5 million for the third quarter of 2024. The $2.3 million, or 11.6%, increase over the second quarter of 2025

was primarily due to a $1.2 million increase in other income, a $0.6 million increase in mortgage banking revenues, and a $0.6 million increase in deposit fees. The increase in other income was primarily due to a $0.7 million gain from the sale of our insurance subsidiary (Capital City Strategic Wealth) in the third quarter of 2025, and to a lesser extent higher miscellaneous income. Compared to the third quarter of 2024, the $2.8 million, or 14.4%, increase was primarily due to a $1.1 million increase in other income, a $0.8 million increase in mortgage banking revenues, a $0.4 million increase in wealth management fees, and a $0.4 million increase in deposit fees. The increase in other income reflected the aforementioned gain from the sale of our insurance subsidiary. For the first nine months of 2025, noninterest income totaled $62.3 million compared to $57.2 million for the same period of 2024, primarily attributable to a $2.2 million increase in wealth management fees, a $1.6 million increase in mortgage banking revenues, and a $1.1 million increase in other income. The increase in other income reflected the aforementioned gain from the sale of our insurance subsidiary and higher miscellaneous income.

Noninterest Expense.Noninterest expense for the third quarter of 2025 totaled $42.9 million compared to $42.5 million for the second

quarter of 2025 and $42.9 million for the third quarter of 2024. The $0.4 million, or 0.9%, increase over the second quarter of 2025 reflected a $0.8 million increase in other expense that was partially offset by a $0.4 million decrease in compensation expense.
Compared to the third quarter of 2024, a $0.3 million increase in compensation expense was offset by a $0.2 million decrease in other expense and a $0.1 million decline in occupancy expense. For the first nine months of 2025, noninterest expense totaled $124.2 million compared to $123.5 million for the same period of 2024 with the $0.6 million, or 0.5%, increase primarily due to a $4.2 million increase in compensation expense that was partially offset by a $3.4 million decrease in other expense and a $0.2 million decrease in occupancy expense.

Financial Condition

Earning Assets.Average earning assets totaled $3.982 billion for the third quarter of 2025, a decrease of $50.5 million, or 1.3%, from

the second quarter of 2025, and an increase of $59.6 million, or 1.5%, over the fourth quarter of 2024. Compared to the second quarter of 2025, the change in the earning asset mix reflected a $46.4 million decrease in loans HFI and a $14.1 million decrease in investment securities, partially offset by a $7.4 million increase in overnight funds sold and a $2.6 million increase in loans held for sale (“HFS”). Compared to the fourth quarter of 2024, the change in earning asset mix reflected a $78.7 million increase in investment securities and a $57.9 million increase in overnight funds sold, partially offset by a $71.2 million decrease in loans HFI and a $5.8 million decrease in loans HFS.

Loans.Average loans HFI decreased $46.4 million, or 1.8%, from the second quarter of 2025 and decreased $71.2 million, or 2.7%, from the fourth quarter of 2024. Loans HFI at September 30, 2025, decreased $49.5 million, or 1.9%, from June 30, 2025, and decreased $69.5 million, or 2.6%, from December 31, 2024.

Credit Quality. Nonperforming assets (nonaccrual loans and other real estate) totaled $10.0 million at September 30, 2025 compared to $6.6 million at June 30, 2025 and $6.7 million at December 31, 2024. At September 30, 2025, nonperforming assets as a

percentage of total assets was 0.23%, compared to 0.15% at June 30, 2025 and 0.15% at December 31, 2024. Nonaccrual loans totaled $8.2 million at September 30, 2025, a $1.7 million increase over June 30, 2025 and a $1.9 million increase over December 31, 2024. Further, classified loans totaled $26.5 million at September 30, 2025, a $2.1 million decrease from June 30, 2025 and a $6.6 million increase over December 31, 2024.

Deposits. Average total deposits were $3.612 billion for the third quarter of 2025, a decrease of $68.4 million, or 1.86%, from the second quarter of 2025 and an increase of $11.9 million, or 0.33%, over the fourth quarter of 2024. At September 30, 2025, total deposits were $3.615 billion, a decrease of $89.9 million, or 2.4%, from June 30, 2025, and a decrease of $57.1 million, or 1.6%, from December 31, 2024. Public funds totaled $497.9 million at September 30, 2025, $596.6 million at June 30, 2025, and $660.9 million at December 31, 2024.

Capital. At September 30, 2025, we were “well-capitalized” with a total risk-based capital ratio of 20.59% and a tangible common equity ratio (a non-GAAP financial measure) of 10.66% compared to 19.60% and 10.09%, respectively, at June 30, 2025, and 18.64% and 9.51%, respectively, at December 31, 2024. At September 30, 2025, all of our regulatory capital ratios exceeded the threshold to be “well-capitalized” under the Basel III capital standards.

RESULTS OF OPERATIONS| | | Three Months Ended | | | Nine Months Ended | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | September 30, | June 30, | September 30, | | September 30, | September 30, | |
| (Dollars in Thousands, except per share data) | 2025 | 2025 | | 2024 | 2025 | | 2024 |
| Interest Income | $51,431 | $ | 51,459$ | 49,328 | $152,672 | $ | 144,914 |
| Taxable Equivalent Adjustments | | 45 | 44 | 49 | | 133 | 194 |
| Total Interest Income (FTE) | 51,476 | | 51,503 | 49,377 | 152,805 | | 145,108 |
| Interest Expense | 7,874 | | 8,275 | 9,117 | 24,384 | | 27,079 |
| Net Interest Income (FTE) | 43,602 | | 43,228 | 40,260 | 128,421 | | 118,029 |
| Provision for Credit Losses | 1,881 | | 620 | 1,206 | 3,269 | | 3,330 |
| Taxable Equivalent Adjustments | | 45 | 44 | 49 | | 133 | 194 |
| Net Interest Income After Provision for Credit Losses | 41,676 | | 42,564 | 39,005 | 125,019 | | 114,505 |
| Noninterest Income | 22,331 | | 20,014 | 19,513 | 62,252 | | 57,216 |
| Noninterest Expense | 42,916 | | 42,538 | 42,921 | 124,155 | | 123,533 |
| Income Before Income Taxes | 21,091 | | 20,040 | 15,597 | 63,116 | | 48,188 |
| Income Tax Expense | 5,141 | | 4,996 | 2,980 | 15,264 | | 9,705 |
| Pre-Tax Loss Attributable to Noncontrolling Interest | | - | - | 501 | | - | 1,342 |
| Net Income Attributable to Common Shareowners | $15,950 | $ | 15,044$ | 13,118 | $47,852 | $ | 39,825 |

Basic Net Income Per Share	$	0.93$	0.88$	0.77$	2.81$	2.35
Diluted Net Income Per Share	$	0.93$	0.88$	0.77$	2.80$	2.35

Net Interest Income

Net interest income represents our single largest source of earnings and 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 taxexempt status of income earned on certain loans and state and local government debt obligations. We provide an analysis of our net interest income including average yields and rates in Table I, “Average Balances & Interest Rates,” on page 49.

Tax-equivalent net interest income for the third quarter of 2025 totaled $43.6 million compared to $43.2 million for the second quarter of 2025 and $40.3 million for the third quarter of 2024. Compared to the second quarter of 2025, the increase was driven by a $0.5 million increase in investment securities income, a $0.4 million decrease in interest expense, and a $0.1 million increase in overnight funds income, partially offset by a $0.6 million decrease in loan income. One additional calendar day in the third quarter of 2025 contributed to the improvement. Compared to the third quarter of 2024, the increase was primarily due to a $3.0 million increase in investment securities income, a $1.2 million decrease in interest expense, and a $0.5 million increase in overnight funds income, partially offset by a $1.4 million decrease in loan income. New investment purchases at higher yields drove the increase in investment securities income for both prior period comparisons. Further, the decrease in deposit interest expense from both prior periods reflected the gradual decrease in our deposit rates. The decrease in loan income compared to both prior periods was due to lower loan balances that was partially offset by favorable rate repricing.

For the first nine months of 2025, tax-equivalent net interest income totaled $128.4 million compared to $118.0 million for the same period of 2024, with the increase primarily attributable to a $7.3 million increase in investment securities income, a $2.3 million increase in overnight funds income, and a $2.3 million decrease in deposit interest expense. New investment purchases at higher yields drove the increase in investment securities income. Higher average deposit balances contributed to the increase in overnight funds income. The decrease in deposit interest expense reflected the aforementioned decrease in our deposit rates. The decrease in loan income was due to lower loan balances that was partially offset by favorable rate repricing.

Our net interest margin for the third quarter of 2025 was 4.34%, an increase of four basis points over the second quarter of 2025 and an increase of 22 basis points over the third quarter of 2024. For the month of September 2025, our net interest margin was 4.41%. For the first nine months of 2025, our net interest margin of 4.28% reflected a 23-basis point increase over the same period of 2024. The improvement in net interest margin over all prior periods reflected a higher yield in the investment portfolio, driven by new purchases at higher yields, and lower deposit costs. For the third quarter of 2025, our cost of funds was 78 basis points, a decrease of four basis points from the second quarter of 2025 and a 15-basis point decrease from the third quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 80 basis points, 81 basis points, and 92 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $1.9 million for the third quarter of 2025 compared to $0.6 million for the second quarter of 2025 and $1.2 million for the third quarter of 2024. For the first nine months of 2025, we recorded a provision expense for credit losses of $3.3 million which was comparable to the same period of 2024. For the third quarter of 2025, the provision reflected an expense of $1.5 million for loans HFI and a $0.4 million expense for unfunded loan commitments. This compares to a $0.7 million expense for loans HFI, and a benefit of $0.1 million for unfunded loan commitments in the second quarter of 2025, and a $1.9 million expense for loans HFI, $0.6 million benefit for unfunded loan commitments, and a $0.1 million expense for debt securities in the third quarter of 2024. For the first nine months of 2025, the provision reflected a $3.4 million expense for loans HFI and a $0.1 million benefit for unfunded loan commitments compared to a $3.9 million expense for loans HFI, a $0.7 million benefit for unfunded loan commitments, and a $0.1 million benefit for debt securities for the first nine months of 2024. We discuss the various factors that impacted our provision expense in further detail below under the heading Allowance for Credit Losses.

Noninterest Income

Noninterest income for the third quarter of 2025 totaled $22.3 million compared to $20.0 million for the second quarter of 2025 and $19.5 million for the third quarter of 2024. The $2.3 million, or 11.6%, increase over the second quarter of 2025 was primarily due to a $1.2 million increase in other income, a $0.6 million increase in mortgage banking revenues, and a $0.6 million increase in deposit fees. The increase in other income was primarily due to a $0.7 million gain from the sale of our insurance subsidiary (Capital City Strategic Wealth) in the third quarter of 2025, and to a lesser extent higher miscellaneous income. The increase in mortgage revenues was driven by an increase in the gain on sale margin for loan sales. Fee adjustments made late in the second quarter of 2025 contributed to the increase in deposit fees and miscellaneous income. Compared to the third quarter of 2024, the $2.8 million, or 14.4%, increase was primarily due to a $1.1 million increase in other income, a $0.8 million increase in mortgage banking revenues, a $0.4 million increase in wealth management fees, and a $0.4 million increase in deposit fees. The increase in other income reflected the aforementioned gain from the sale of our insurance subsidiary and higher miscellaneous income. Higher production volume and gain on sale margin drove the improvement in mortgage banking revenues. The increase in wealth management fees was primarily due to higher retail brokerage fees. The aforementioned fee adjustments drove the improvement in deposit fees.

For the first nine months of 2025, noninterest income totaled $62.3 million compared to $57.2 million for the same period of 2024, primarily attributable to a $2.2 million increase in wealth management fees, a $1.6 million increase in mortgage banking revenues, and a $1.1 million increase in other income. The increase in wealth management fees reflected increases in trust fees of $1.1 million and retail brokerage fees of $1.0 million attributable to a combination of new business and higher account valuations. A fee increase implemented in early 2025 also contributed to the increase in trust fees. Higher production volume and gain on sale margin drove the improvement in mortgage banking revenues. The increase in other income reflected the aforementioned gain from the sale of our insurance subsidiary and higher miscellaneous income.

Noninterest income represented 33.9% of operating revenues (net interest income plus noninterest income) in the third quarter of 2025 compared to 31.7% in the second quarter of 2025 and 32.7% in the third quarter of 2024. For the first nine months of 2025, noninterest income represented 32.7% of operating revenues comparable to the same period of 2024.

The table below reflects the major components of noninterest income.| | | Three Months Ended | | | | Nine Months Ended | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | September 30, | | June 30, | September 30, | September 30, | | September 30, | |
| (Dollars in Thousands) | 2025 | | 2025 | 2024 | | 2025 | 2024 | |
| Deposit Fees | $ | 5,877$ | 5,320 | $ | 5,512$ | 16,258 | $16,139 | |
| Bank Card Fees | | 3,733 | 3,774 | | 3,624 | 11,021 | 11,010 | |
| Wealth Management Fees | | 5,173 | 5,206 | | 4,770 | 16,142 | 13,891 | |
| Mortgage Banking Revenues | | 4,794 | 4,190 | | 3,966 | 12,804 | 11,225 | |
| Other | | 2,754 | 1,524 | | 1,641 | 6,027 | | 4,951 |
| Total Noninterest Income | $22,331 | $ | 20,014 | $19,513 | $ | 62,252 | $57,216 | |

Significant components of noninterest income are discussed in more detail below.

Deposit Fees. Deposit fees for the third quarter of 2025 totaled $5.9 million, an increase of $0.6 million, or 10.5%, over the second quarter of 2025, and an increase of $0.4 million, or 6.6%, over the third quarter of 2024. For the first nine months of 2025, deposit fees totaled $16.3 million, a $0.1 million, or 0.7%, increase over the same period of 2024. Compared to all prior periods the increases were primarily due to service charge fee adjustments made late in the second quarter of 2025.

Bank Card Fees. Bank card fees for the third quarter of 2025 totaled $3.7 million, comparable to the second quarter of 2025, and $0.1 million, or 3.0%, increase over the third quarter of 2024. For the first nine months of 2025, bank card fees totaled $11.0 million, comparable to the same period of 2024.

Wealth Management Fees. Wealth management fees include trust fees through Capital City Trust (i.e., managed accounts and

trusts/estates), and retail brokerage fees through Capital City Investments (i.e., investment, insurance products, and retirement accounts). In September 2025, we sold our subsidiary, Capital City Strategic Wealth, which provided the sale of life insurance, risk management and asset protection services. Wealth management fees for the third quarter of 2025 totaled $5.2 million, comparable to the second quarter of 2025 and a $0.4 million, or 8.4%, increase over the third quarter of 2024. For the first nine months of 2025, wealth management fees totaled $16.1 million, an increase of $2.2 million, or 16.2%, over the same period of 2024, and reflected a $1.1 million increase in trust fees, a $1.0 million increase in retail brokerage fees, and a $0.1 million increase in insurance commission revenue. At September 30, 2025, total assets under management were approximately $3.244 billion compared to $3.192 billion at June 30, 2025, and $3.049 billion at December 31, 2024. Compared to the prior periods, the growth in assets under management was primarily due to new retail brokerage accounts and to a lesser extent new managed trust accounts. A fee increase in first quarter of 2025 also contributed to the increase in trust fees compared to the prior year periods .

Mortgage Banking Revenues.Mortgage banking revenues totaled $4.8 million for the third quarter of 2025, an increase of $0.6

million, or 14.4%, over the second quarter of 2025 and an increase of $0.8 million, or 20.9%, over the third quarter of 2024. For the first nine months of 2025, mortgage banking revenues totaled $12.8 million compared to $11.2 million for the same period of 2024.
The increase compared to the second quarter of 2025 was attributable to a higher gain on sale margin for loan sales. Higher production volume and gain on sale margin drove the improvement over both prior year periods. We provide a detailed overview of our mortgage banking operation, including a detailed break-down of mortgage banking revenues, mortgage servicing activity, and warehouse funding within Note 4 – Mortgage Banking Activities in the Notes to Consolidated Financial Statements.

Other. Other income totaled $2.8 million for the third quarter of 2025, an increase of $1.2 million, or 80.7%, over the second quarter of 2025, and an increase of $1.1 million, or 67.8%, over the third quarter of 2024. For the first nine months of 2025, other income totaled $6.0 million, a $1.1 million, or 21.7%, increase over the same period of 2024. Compared to all prior periods, the increase was primarily due to a $0.7 million gain from the sale of our insurance subsidiary (Capital City Strategic Wealth) in the third quarter of 2025 and to a lesser extent higher miscellaneous income.

Noninterest Expense

Noninterest expense for the third quarter of 2025 totaled $42.9 million compared to $42.5 million for the second quarter of 2025 and $42.9 million for the third quarter of 2024. The $0.4 million, or 0.9%, increase over the second quarter of 2025 reflected a $0.8 million increase in other expense that was partially offset by a $0.4 million decrease in compensation expense. The increase in other expense was driven by higher miscellaneous expenses of $0.7 million and professional fees of $0.1 million. The decrease in compensation was primarily due to lower performance-based compensation (cash and stock incentives). Compared to the third quarter of 2024, a $0.3 million increase in compensation expense was offset by a $0.2 million decrease in other expense and a $0.1 million decline in occupancy expense.

For the first nine months of 2025, noninterest expense totaled $124.2 million compared to $123.5 million for the same period of 2024 with the $0.6 million, or 0.5%, increase primarily due to a $4.2 million increase in compensation expense that was partially offset by a $3.4 million decrease in other expense and a $0.2 million decrease in occupancy expense. The increase in compensation was due to a $2.6 million increase in salary expense and a $1.6 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $1.3 million, base salaries of $0.6 million (merit based), and commissions of $0.7 million (retail brokerage and mortgage). The increase in associate benefit expense was attributable to a higher cost for associate insurance. The decrease in other expense was primarily due to a $4.5 million decrease in other real estate expense due to higher gains from the sale of banking facilities, and a $1.4 million decrease in miscellaneous expense (non-service component of pension expense), partially offset by increases in processing expense of $1.4 million (outsource of core processing system), charitable contribution expense of $0.8 million, and professional fees of $0.3 million.

		Three Months Ended				Nine Months Ended
	September 30,		June 30,	September 30,	September 30,		September 30,
(Dollars in Thousands)	2025		2025	2024		2025	2024
Salaries	$21,740	$	22,013	$21,637	$	65,636	$62,995
Associate Benefits		4,316	4,477		4,163	13,158	11,618
Total Compensation	26,056		26,490	25,800		78,794	74,613

Premises	3,176	3,272	3,245	9,620	9,461
Equipment	3,861	3,799	3,853	11,281	11,628
Total Occupancy	7,037	7,071	7,098	20,901	21,089

Legal Fees	491	480	407	1,474	1,272
Professional Fees	1,621	1,518	1,869	4,761	4,467
Processing Services	2,475	2,491	2,260	7,434	6,030
Advertising	711	801	654	2,350	2,320
Telephone	762	714	692	2,195	2,119
Insurance – Other	750	757	737	2,239	2,401
Other Real Estate Owned, net	18	21	46	(4,431)	83
Pension - Other	(871)	(872)	(419)	(2,616)	(1,256)
Miscellaneous	3,866	3,067	3,777	11,054	10,395
Total Other	9,823	8,977	10,023	24,460	27,831

Total Noninterest Expense$42,916$42,538$42,921$124,155$123,533

Significant components of noninterest expense are discussed in more detail below.

Compensation.Compensation expense totaled $26.1 million for the third quarter of 2025, a $0.4 million, or 1.6%, decrease from the

second quarter of 2025 and a $0.3 million, or 1.0%, increase over the third quarter of 2024. The decrease from the second quarter of 2025 reflected a $0.3 million decrease in salary expense and a $0.1 million decrease in associate benefit expense, both due to lower performance-based compensation (cash incentives and stock compensation) . Compared to the third quarter of 2024, the increase reflected a $0.1 million increase in salary expense and a $0.2 million increase in associate benefit expense. The increase in salary expense was primarily attributable to a $0.2 million increase in cash incentive s, a $0.2 million increase in commissions, and a $0.1 million increase in 401K matching expense, that was partially offset by a $0.3 million decrease in base salaries. The increase in associate benefit expense was primarily due to an increase in stock compensation expense.

For the first nine months of 2025, compensation expense totaled $78.8 million compared to $74.6 million for the same period of 2024 with the $4.2 million increase attributable to a $2.6 million increase in salary expense and a $1.6 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $1. 3 million, commissions of $0.7 million (retail brokerage and mortgage), and base salaries of $0.6 million (merit-based). The increase in associate benefit expense was primarily due to higher cost for associate insurance.

Occupancy. Occupancy expense totaled $7.0 million for the third quarter of 2025, a $0.1 million, or 0.5%, decrease from the second

quarter of 2025 and a $0.1 million, or 0.9%, decrease from the third quarter of 202 4. For the first nine months of 2025, occupancy expense totaled $20.9 million compared to $21.1 million for the same period of 2024. Lower property expenses related to our operations center that was sold in 2024 was partially offset by higher banking office lease expense drove the variance for the prior period comparisons.

Other. Other expense totaled $9.8 million for the third quarter of 2025 compared to $9.0 million for the second quarter of 2025 and

$10.0 million for the third quarter of 2024. For the first nine months of 2025, other expense totaled $24.5 million compared to $27.8 million for the same period of 2024. Compared to the second quarter of 2025, the $0.8 million increase was an increase in miscellaneous expense which reflected a non-routine expense related to our VISA share swap due to additional funding of VISA’s litigation reserve, a higher level of other losses, and an increase in expense for our residential mortgage sale indemnification reserve.
The $3.3 million increase for the nine-month comparison was primarily due to a $4.5 million decrease in other real estate expense and a $1.4 million decrease in pension-other expense, that was partially offset by $1.4 million increase in processing expense, a $0.8 million increase in charitable contribution expense, and a $0.3 million increase in professional fees. The decrease in other real estate expense was attributable to a gain from the sale of our operations center building in the first quarter of 2025. The decrease in otherpension expense reflected lower expense for the non-service component of pension expense which reflected strong asset returns in the plan. The outsourcing of our core processing system in mid-2024 drove the increase in processing expense.

Our operating efficiency ratio (expressed as noninterest expense as a percentage of the sum of taxable-equivalent net interest income plus noninterest income) improved to 65.09% for the third quarter of 2025 compared to 67.26% for the second quarter of 2025 and 71.81% for the third quarter of 2024. For the first nine months of 2025, this ratio was 65.11% compared to 70.49% for the same period of 2024.

Income Taxes

We realized income tax expense of $5.1 million (effective rate of 24.4%) for the third quarter of 2025 compared to $5.0 million (effective rate of 24.9%) for the second quarter of 2025 and $3.0 million (effective rate of 19.1%) for the third quarter of 2024. For the first nine months of 2025, we realized income tax expense of $15.3 million (effective rate of 24.2%) compared to $9.7 million (effective rate of 20.1%) for the same period of 2024. A lower level of tax benefit accrued from a solar tax credit equity fund drove the increase in our effective tax rate compared to the prior year periods. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.

FINANCIAL CONDITION

Average earning assets totaled $3.982 billion for the third quarter of 2025, a decrease of $50.5 million, or 1.3%, from the second quarter of 2025, and an increase of $59.6 million, or 1.5%, over the fourth quarter of 2024. The change for both prior periods was driven by variances in deposit balances (see below –Deposits). Compared to the second quarter of 2025, the change in the earning

asset mix reflected a $46.4 million decrease in loans HFI and a $14.1 million decrease in investment securities, partially offset by a $7.4 million increase in overnight funds sold and a $2.6 million increase in loans held for sale. Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $78.7 million increase in investment securities and a $57.9 million increase in overnight funds sold, partially offset by a $71.2 million decrease in loans HFI and a $5.8 million decrease in loans HFS.

Investment Securities

Average investments totaled $993.9 million in the third quarter of 2025, a $14.1 million, or 1.4%, decrease from the second quarter of 2025 and a $78.7 million, or 8.6% increase over the fourth quarter of 2024. Our investment portfolio represented 25.0% of our average earning assets for the third quarter of 2025 compared to 25.0% for the second quarter of 2025 and 23.3% for the fourth quarter of 2024. For the remainder of 2025, we will continue to monitor our overall liquidity position and market conditions to determine if cash flow from the investment portfolio should be reinvested or allowed to flow into overnight funds.

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 approved for investment securities which are Available -for-Sale (“AFS”)
and Held-to-Maturity (“HTM”). At September 30, 2025, $577.3 million, or 58.7%, of the investment portfolio was classified as AFS and $404.7 million, or 41.1%, was classified as HTM. The average maturity of our total portfolio at September 30, 2025 was 2.70 years compared to 2.66 years at June 30, 2025 and 2.54 years at December 31, 2024. The duration of our investment portfolio at September 30, 2025 was 2.15 years compared to 2.14 years at June 30, 2025 and 2.19 years at December 31, 2024. Additional information on unrealized gains/losses in the AFS and HTM portfolios is provided in Note 2 – Investment Securities.

Wedetermine the classification of a security at the time of acquisition based on how the purchase will affect our asset/liability strategy and future business plans and opportunities.Weconsider multiple factors in determining classification, including regulatory 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 recorded net of tax, in the accumulated other comprehensive income component of shareowners’ equity. HTM securities are acquired or owned with the intent of holding them to maturity. HTM investments are measured at amortized cost.Wedo not trade, nor do we presently intend to begin trading investment securities for the purpose of recognizing gains and therefore we do not maintain a trading portfolio.

At September 30, 2025, there were 750 positions (combined AFS and HTM) with unrealized pre-tax losses totaling $27.8 million. 33 of these positions are U.S. Treasury bonds and carry the full faith and credit of the U.S. Government. 634 are U.S. government agency securities issued by U.S. government sponsored entities. We believe the long history of no credit losses on government securities indicates that the expectation of nonpayment of the amortized cost basis is effectively zero. At September 30, 2025, all collateralized mortgage obligation securities, mortgage -backed securities, Small Business Administration securities, U.S. Agency, and U.S. Treasury bonds held were rated AA+ or higher. The remaining 83 positions (municipal securities and corporate bonds) have a credit component. At September 30, 2025, corporate debt securities had an allowance for credit losses of $43,000 and municipal securities had an allowance of less than $1,000. None of the securities held by the Company were past due or in nonaccrual status at September 30, 2025.

Loans HFI

Average loans HFI decreased by $46.4 million, or 1.8%, from the second quarter of 2025 and decreased by $71.2 million, or 2.7%, from the fourth quarter of 2024. Compared to the second quarter of 2025, the decline reflected decreases in construction loans of $22.4 million, consumer loans (primarily indirect auto) of $10.4 million, commercial real estate loans of $8.7 million, residential real estate loans of $2.9 million, and commercial loans of $2.7 million, partially offset by a $2.0 million increase in home equity loans.
Compared to the fourth quarter of 2024, the decline was primarily attributable to decreases in construction loans of $55.6 million, consumer loans (primarily auto indirect loans) of $14.4 million, commercial loans of $11.9 million and commercial real estate loans of $6.8 million, partially offset by increases in home equity loans of $12.8 million and residential real estate loans of $7.0 million.

Loans HFI at September 30, 2025, decreased by $49.5 million, or 1.9%, from June 30, 2025, and decreased by $69.5 million, or 2.6%, from December 31, 2024. Compared to June 30, 2025, the decline was primarily due to decreases in construction loans of $17.4 million, commercial real estate loans of $17.2 million, consumer loans (primarily indirect auto) of $11.6 million, and residential real estate loans of $9.0 million, partially offset by a $5.9 million increase in home equity loans. Compared to December 31, 2024, the decrease was primarily attributable to decreases in construction loans of $63.2 million, consumer loans (primarily indirect auto) of $13.6 million, and commercial loans of $10.2 million, partially offset by increases in home equity loans of $14.0 million, residential real estate loans of $8.8 million, and commercial real estate loans of $6.2 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 $10.0 million at September 30, 2025, compared to $6.6 million at June 30, 2025, and $6.7 million at December 31, 2024. At September 30, 2025, nonperforming assets as a percentage of total assets was 0.23%, compared to 0.15% at June 30, 2025 and 0.15% at December 31, 2024. Nonaccrual loans totaled $8.2 million at September 30, 2025, a $1.7 million increase over June 30, 2025 and a $1.9 million increase over December 31, 2024 with the increase over both periods primarily attributable to two home equity loans totaling $1.8 million. Classified loans totaled $26.5 million at September 30, 2025, a $2.1 million decrease from June 30, 2025, and a $6.6 million increase over December 31, 2024. The increase over December 31, 2024 was primarily due to the downgrade of four residential real estate loans totaling $4.2 million and two commercial real estate loans totaling $4.3 million.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the 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-off of 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 recorded as a separate liability included in other liabilities.

Management estimates the allowance balance using relevant available information, 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’s view of current conditions and forecasts.

At September 30, 2025, the allowance for credit losses for loans HFI totaled $30.2 million compared to $29.9 million at June 30, 2025 and $29.3 million at December 31, 2024. Activity within the allowance is provided in Note 3 – Loans Held for Investment and Allowance for Credit Losses in the Notes to Consolidated Financial Statements. The increase in the allowance over June 30, 2025 and December 31, 2024 was primarily attributable to qualitative factor adjustments that were partially offset by lower loan balances. At September 30, 2025, the allowance represented 1.17% of loans HFI compared to 1.13% at June 30, 2025, and 1.10% at December 31, 2024.

At September 30, 2025, the allowance for credit losses for unfunded commitments totaled $2.1 million compared to $1.7 million and $2.2 million at June 30, 2025 and December 31, 2024, 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 total deposits were $3.612 billion for the third quarter of 2025, a decrease of $68.4 million, or 1.86%, from the second quarter of 2025 and an increase of $11.9 million, or 0.33%, over the fourth quarter of 2024. Compared to the second quarter of 2025, the decrease was attributable to lower public funds balances (primarily NOW accounts) due to the seasonal reduction in those balances, partially offset by higher core deposit balances (primarily noninterest bearing checking, money market accounts, and certificates of deposit). The increase over the fourth quarter of 2024 reflected strong growth in core deposit balances, partially offset by the seasonal decline in public fund balances.

At September 30, 2025, total deposits were $3.615 billion, a decrease of $89.9 million, or 2.4%, from June 30, 2025, and a decrease of $57.1 million, or 1.6%, from December 31, 2024. The decrease compared to both prior periods was due to a decline in public fund deposits, partially offset by growth in our core deposits. Public funds totaled $497.9 million at September 30, 2025, $596.6 million at June 30, 2025, and $660.9 million at December 31, 2024.

Business deposit transaction accounts classified as repurchase agreements averaged $22.0 million for the third quarter of 2025, a decrease of $0.6 million from the second quarter of 2025 and a decrease of $6.1 million from the fourth quarter of 2024. At September 30, 2025, repurchase agreement balances were $25.6 million compared to $21.8 million at June 30, 2025 and $26.2 million at December 31, 2024.

We continue to closely monitor our cost of deposits and deposit mix as we manage through the current rate environment.

MARKET RISK AND INTEREST RATE SENSITIVITY

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 market risk and we do not participate in activities that give rise to significant market risk involving exchange rates, commodity prices, or equity 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 mature or reprice on a different basis than interest-earning assets. When

interest-bearing liabilities mature or reprice more quickly than interest-earning assets in a given period, a significant increase in market rates of interest could adversely affect net interest income. Similarly, when interest-earning assets mature or reprice more quickly than interest-bearing liabilities, falling market interest rates could result in a decrease in net interest income. Net interest income is also affected by changes in the portion of interest-earning assets that are funded by interest-bearing liabilities rather than by other sources of funds, such as noninterest-bearing deposits and shareowners’ equity.

We have established what we believe to be a comprehensive interest rate risk management policy, which is administered by management’s Asset Liability Management Committee (“ALCO”). The policy establishes limits of risk, which are quantitative measures of the percentage change in net interest income (a measure of net interest income at risk) and the fair value of equity capital (a measure of economic value of equity (“EVE”) at risk) resulting from a hypothetical change in interest rates for maturities from one day to 30 years. We measure the potential adverse impacts that changing interest rates may have on our short-term earnings, longterm value, and liquidity by employing simulation analysis through the use of computer modeling. The simulation model captures optionality factors such as call features and interest rate caps and floors embedded in investment and loan portfolio contracts. As with any method of gauging interest rate risk, there are certain shortcomings inherent in the interest rate modeling methodology used by us. When interest rates change, actual movements in different categories of interest-earning assets and interest-bearing liabilities, loan prepayments, and withdrawals of time and other deposits, may deviate significantly from assumptions used in the model. Finally, the methodology does not measure or reflect the impact that higher rates may have on 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 interest rate shock possibilities to indicate the inherent interest rate risk.
We apply instantaneous, parallel rate shocks to the base case in 100 basis point (bp) increments ranging from down 400bp to up 400bps at least once per quarter, with the analysis reported to ALCO, our Market Risk Oversight Committee (“MROC”), our Enterprise Risk Oversight Committee (“EROC”) and the Board of Directors. We augment our interest rate shock analysis with alternative interest rate scenarios on a quarterly basis that may include ramps, and a flattening or steepening of the yield curve (nonparallel shift). In addition, more frequent forecasts may be produced when interest rates are particularly uncertain or when other business conditions so dictate.

Our goal is to structure the statement of financial condition so that net interest earnings at risk over 12-month and 24-month periods and the economic value of equity at risk do not exceed policy guidelines at the various interest rate shock levels. We attempt to achieve this goal by balancing, within policy limits, the volume of floating-rate liabilities with a similar volume of floating-rate assets, by keeping the average maturity of fixed-rate asset and liability contracts reasonably matched, by managing the mix of our core deposits, and by adjusting our rates to market conditions on a continuing basis.

Analysis.Measures of net interest income at risk produced by simulation analysis are indicators 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.

ESTIMATED CHANGES IN NET INTEREST INCOME| Percentage Change (12-month shock) | | +400 bp | +300 bp | +200 bp | +100 bp | -100 bp | -200 bp | -300 bp | -400 bp |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Policy Limit | -15.0% | -12.5% | -10.0% | -7.5% | -7.5% | -10.0% | -12.5% | -15.0% |
| | September 30, 2025 | 18.9% | 14.2% | 9.5% | 4.9% | -5.3% | -11.3% | -17.9% | -23.8% |
| | June 30, 2025 | 19.2% | 14.4% | 9.6% | 5.0% | -5.3% | -11.1% | -17.5% | -23.3% |

	+400 bp	+300 bp	+200 bp	+100 bp	-100 bp	-200 bp	-300 bp	-400 bp
Policy Limit	-17.5%	-15.0%	-12.5%	-10.0%	-10.0%	-12.5%	-15.0%	-17.5%
September 30, 2025	37.7%	29.5%	21.1%	13.1%	-5.1%	-15.9%	-28.1%	-39.1%
June 30, 2025	39.3%	31.0%	22.5%	14.4%	-3.8%	-14.4%	-26.2%	-37.0%

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 net interest margin of the Company, while declining rate environments will have a negative impact on the net interest margin. Compared to the second quarter of 2025, these metrics became slightly less favorable primarily due to a change in asset mix favoring variable rate overnight funds, making us more asset sensitive with slightly more exposure to falling rates. The instantaneous parallel rate shock results over the next 12-month and 24-month periods are outside of policy in the rates down 200 bps, 300 bps, and 400 bps scenarios largely due to the limited ability to decrease deposit rates the full extent of this rate change.

The measures of equity value at risk indicate our ongoing economic value by considering the effects of changes in interest rates on all of our cash flows by discounting the cash flows to estimate the present value of assets 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 CHANGES IN ECONOMIC VALUE OF EQUITY| Changes in Interest Rates | +400 bp | +300 bp | +200 bp | +100 bp | -100 bp | -200 bp | -300 bp | -400 bp |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Policy Limit | -30.0% | -25.0% | -20.0% | -15.0% | -15.0% | -20.0% | -25.0% | -30.0% |
| September 30, 2025 | 34.2% | 27.6% | 19.6% | 10.5% | -12.0% | -24.7% | -36.2% | -40.7% |
| June 30, 2025 | 29.4% | 23.9% | 17.1% | 9.2% | -11.5% | -23.9% | -34.8% | -40.8% |

EVE Ratio (policy minimum 5.0%)32.1%30.0%27.7%25.2%19.4%16.3%13.6%12.5%

At September 30, 2025, the economic value of equity was favorable in all rising rate environments and unfavorable in the falling rate environments. EVE is currently in compliance with policy in all rate scenarios as the EVE ratio exceeds the policy minimum of 5.0% in each shock scenario.

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 change in mix of our financial assets and liabilities measured over multiple years, to help assess the risk to the Company.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

In general terms, liquidity is a measurement of our ability to meet our cash needs. Our objective in managing our liquidity is to maintain our ability to meet loan commitments, purchase securities or repay deposits and other 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 account the marketability of assets, the sources and stability of funding and the level of unfunded commitments. We regularly evaluate all 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 under repurchase agreements, federal funds purchased and FHLB borrowings. We believe that the cash generated from operations, our borrowing capacity and our access to capital resources are sufficient to meet our future operating capital and funding requirements.

At September 30, 2025, we had the ability to generate approximately $1.625 billion (excludes overnight funds position of $398 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits. We recognize the importance of maintaining liquidity and have developed a Contingent Liquidity Plan, which addresses various liquidity stress levels and our response and action based on the level of severity. We periodically test our credit facilities for access to the funds, but also understand that as the severity of the liquidity level increases that certain credit facilities may no longer be available. We conduct a liquidity stress test on a quarterly basis based on events that could potentially occur at the Bank and report results to our ALCO, MROC, EROC, and Board of Directors. We believe the liquidity available to us at September 30, 2025 was sufficient to meet our on-going needs and execute our business strategy.

We also view our investment portfolio as a liquidity source and have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. Additional information on our investment portfolio is provided within Note 2 – Investment Securities.

The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $356.2 million in the third quarter of 2025 compared to $348.8 million in the second quarter of 2025 and $298.3 million in the fourth quarter of 2024. Compared to the second quarter of 2025, the slight increase reflected lower average loan and investment security balances, partially offset by lower average deposit balances. The increase over the fourth quarter of 2024 was primarily due to lower average loan balances.

We expect our capital 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 impairing our ability to meet our on-going obligations.

Borrowings

Average short -term borrowings totaled $34.7 million for the third quarter of 2025 compared to $33.1 million for the second quarter of 2025 and $34.5 million for the fourth quarter of 2024. 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 two junior subordinated deferrable interest notes to our wholly owned Delaware statutory trusts. The first note for $30.9 million was issued to CCBG Capital Trust I in November 2004, of which $10 million was retired in April 2016. In the second quarter of 2025, we made a principal payment of $5.1 million on this note. The second note for $32.0 million was issued to CCBG Capital Trust II in May 2005. In the second quarter of 2025, we made a principal payment of $5.1 million on this note. The interest payment for the CCBG Capital Trust I borrowing is due quarterly and adjusts quarterly to a variable rate of three-month CME Term SOFR (secured overnight financing rate) plus a margin of 1.90%. This note matures on December 31, 2034. The interest payment for the CCBG Capital Trust II borrowing is due quarterly and adjusts quarterly to a variable interest rate based on three-month CME Term SOFR 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 or if we elect to defer interest on the note, we may not, with certain exceptions, declare or pay dividends or make distributions on our capital stock or purchase or acquire any of our capital stock.

In the second quarter of 2020, we entered into a derivative cash flow hedge of our interest rate risk related to our subordinated debt.
The notional amount of the derivative is $30 million ($10 million of the CCBG Capital Trust I borrowing and $20 million of the CCBG Capital Trust II borrowing). The interest rate swap agreement requires CCBG to pay fixed and receive variable (three-month CME Term SOFR plus spread) and has an average all-in fixed rate of 2.50% for 10 years. Additional detail on the interest rate swap agreement is provided in Note 5 – Derivatives in the Consolidated Financial Statements.

Capital

Our capital ratios are presented in the Selected Quarterly Financial Data table on page 35. At September 30, 2025, our regulatory capital ratios exceeded the threshold to be designated as “well-capitalized” under the Basel III capital standards.

Shareowners’ equity was $540.6 million at September 30, 2025, compared to $526.4 million at June 30, 2025, and $495.3 million at December 31, 2024. For the first nine months of 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $47.9 million, a net $7.7 million decrease in the accumulated other comprehensive loss, the issuance of common stock of $2.9 million, and stock compensation accretion of $1.4 million. The net favorable change in accumulated other comprehensive loss reflected a $8.8 million decrease in the investment securities loss that was partially offset by a $1.1 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by common stock dividends of $12.6 million ($0.74 per share) and net adjustments totaling $2.0 million related to transactions under our stock compensation plans.

At September 30, 2025, our total risk-based capital ratio was 20.59% compared to 19.60% at June 30, 2025, and 18.64% at December 31, 2024. Our common equity tier 1 capital ratio was 17.73%, 16.81%, and 15.54%, respectively, on these dates. Our leverage ratio was 11.64%, 11.14%, and 11.05%, respectively, on these dates. At September 30, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 10.66% at September 30, 2025, compared to 10.09% and 9.51% at June 30, 2025, and December 31, 2024, respectively.

Our tangible capital ratio is also impacted by the recording of our unfunded pension liability through other comprehensive income in accordance with Accounting Standards Codification Topic 715. At September 30, 2025, the net pension asset reflected in other comprehensive income was $9.7 million comparable to June 30, 2025 and December 31, 2024. This liability is re-measured annually on December 31stbased 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 present value of the pension liability, the weighted average expected long-term rate of return on pension plan assets, and the assumed rate of annual compensation increases, all of which will vary when re-measured. The discount rate assumption used to calculate the pension liability is subject to long-term corporate bond rates at December 31st. These assumptions and sensitivities are discussed in the section entitled “Critical Accounting Policies and Estimates” in Part II, Item7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our 2024 Form 10-K.

OFF-BALANCE SHEET ARRANGEMENTS

We are a party to financial instruments with off-balance sheet risks in the normal course of business to meet the financing needs of our clients.

At September 30, 2025, we had $705.3 million in commitments to extend credit and $7.1 million in standby letters of credit.
Commitments to extend credit are agreements to lend to a client so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses 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 guarantee the performance of a client to a third party. We use the same credit policies in establishing commitments and issuing letters of credit as we do for onbalance sheet instruments.

If commitments arising from these financial instruments continue to require funding at historical levels, management does not anticipate that such funding will adversely impact our ability to meet our on-going obligations. In the event these commitments require funding in excess of historical levels, management believes current liquidity, advances available from the FHLB and the Federal Reserve, and investment security maturities provide a sufficient source of funds to meet these commitments.

Certain agreements provide that the commitments are unconditionally cancellable by the bank and for those agreements no allowance for credit losses has been recorded.Wehave recorded an allowance for credit losses on loan commitments that are not unconditionally cancellable by the Bank, which is included in other liabilities on the Consolidated Statements of Financial Condition and totaled $2.1 million at September 30, 2025.

CRITICAL ACCOUNTING POLICIES

Our significant accounting policies are described in Note 1 to the Consolidated Financial Statements included in our 2024 Form 10-K.
The preparation of our Consolidated Financial Statements in accordance with GAAP and reporting practices applicable to the banking industry requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and to disclose contingent assets and liabilities. Actual results could differ from those estimates.

We have identified accounting 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 important to 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 about the effects of matters that are inherently uncertain. These accounting policies, including the nature of the estimates and types of assumptions used, are described throughout this Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Form 10-K.

TABLE I

AVERAGE BALANCES & INTEREST RATES (UNAUDITED)| | | | | Three Months Ended September 30, | | | | | | Nine Months Ended September 30, | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | 2025 | | | | 2024 | | | 2025 | | | 2024 | | |
| | | Average | | Average | | Average | | Average | Average | | Average | Average | | Average | |
| (Dollars in Thousands) | | Balances | Interest | | Rate | Balances | Interest | Rate | Balances | Interest | Rate | Balances | Interest | | Rate |
| Assets: | | | | | | | | | | | | | | | |
| Loans Held for Sale | | $25,276 | $ | 425 | 6.68%$ | 24,570 | $720 | 7.49%$ | 24,226 | $1,390 | 7.67% | $26,050 | $ | 1,800 | 6.22% |
| Loans Held for Investment | (1)(2) | 2,606,213 | | 39,894 | 6.07 | 2,693,533 | 40,985 | 6.09 | 2,641,346 | 120,359 | 6.09 | 2,716,220 | 121,864 | | 6.02 |
| Taxable Securities | | 992,260 | | 7,175 | 2.88 | 907,610 | 4,148 | 1.82 | 993,460 | 19,644 | 2.64 | 926,241 | | 12,385 | 1.78 |
| Tax-Exempt Securities | (2) | 1,620 | | 18 | 4.44 | 846 | 10 | 4.33 | 1,313 | 43 | 4.43 | | 848 | 28 | 4.34 |
| Federal Funds Sold and Interest BearingDeposits | | 356,161 | | 3,964 | 4.42 | 256,855 | 3,514 | 5.44 | 342,094 | 11,369 | 4.44 | 220,056 | | 9,031 | 5.48 |
| Total Earning Assets | | 3,981,530 | | 51,476 | 5.12% | 3,883,414 | 49,377 | 5.06% | 4,002,439 | 152,805 | 5.10% | 3,889,415 | 145,108 | | 4.98% |
| Cash & Due From Banks | | 65,085 | | | | 70,994 | | | 68,074 | | | 73,843 | | | |
| Allowance For Credit Losses | | (30,342) | | | | (29,905) | | | (30,282) | | | (29,833) | | | |
| Other Assets | | 301,678 | | | | 291,359 | | | 300,788 | | | 292,762 | | | |
| TOTAL ASSETS | | $4,317,951 | | | $ | 4,215,862 | | $ | 4,341,019 | | | $4,226,187 | | | |
| Liabilities: | | | | | | | | | | | | | | | |
| Noninterest Bearing Deposits | | 1,314,560 | | | | 1,332,305 | | | 1,324,753 | | | 1,340,981 | | | |
| NOW Accounts | | $1,198,124 | $ | 3,782 | 1.25%$ | 1,145,544 | $4,087 | 1.42%$ | 1,224,402 | $11,386 | 1.24% | $1,184,596 | $ | 13,009 | 1.47% |
| Money Market Accounts | | 416,656 | | 2,090 | 1.99 | 418,625 | 2,694 | 2.56 | 422,817 | 6,617 | 2.09 | 393,294 | | 7,431 | 2.52 |
| Savings Accounts | | 503,189 | | 159 | 0.13 | 512,098 | 180 | 0.14 | 506,255 | 509 | 0.13 | 523,573 | | 544 | 0.14 |
| Other Time Deposits | | 179,802 | | 1,234 | 2.72 | 163,462 | 1,262 | 3.07 | 174,418 | 3,541 | 2.71 | 153,991 | | 3,412 | 2.96 |
| Total Interest Bearing Deposits | | 2,297,771 | | 7,265 | 1.25 | 2,239,729 | 8,223 | 1.46 | 2,327,892 | 22,053 | 1.27 | 2,255,454 | | 24,396 | 1.44 |
| Total Deposits | | 3,612,331 | | 7,265 | 0.80 | 3,572,034 | 8,223 | 0.92 | 3,652,645 | 22,053 | 0.81 | 3,596,435 | | 24,396 | 0.91 |
| Repurchase Agreements | | 21,966 | | 158 | 2.86 | 27,126 | 221 | 3.24 | 24,752 | 478 | 2.58 | 26,619 | | 639 | 3.21 |
| Other Short-Term Borrowings | | 12,753 | | 58 | 1.82 | 2,673 | 52 | 7.63 | 10,251 | 354 | 4.62 | 4,334 | | 159 | 4.88 |
| Subordinated Notes Payable | | 42,582 | | 383 | 3.52 | 52,887 | 610 | 4.52 | 49,113 | 1,473 | 3.95 | 52,887 | | 1,868 | 4.64 |
| Other Long-Term Borrowings | | | 681 | 10 | 5.55 | 795 | 11 | 5.55 | 755 | 26 | 4.50 | | 447 | 17 | 5.16 |
| Total Interest Bearing Liabilities | | 2,375,753 | | 7,874 | 1.32% | 2,323,210 | 9,117 | 1.56% | 2,412,763 | 24,384 | 1.35% | 2,339,741 | | 27,079 | 1.55% |
| Other Liabilities | | 85,422 | | | | 73,767 | | | 75,664 | | | 71,574 | | | |
| TOTAL LIABILITIES | | 3,775,735 | | | | 3,729,282 | | | 3,813,180 | | | 3,752,296 | | | |
| Temporary Equity | | | - | | | 6,443 | | | - | | | 6,694 | | | |

TOTAL SHAREOWNERS’ EQUITY542,216480,137527,839467,197

TOTAL LIABILITIES, TEMPORARY AND SHAREOWNERS’ EQUITY$4,317,951$4,215,862$4,341,019$4,226,187

Interest Rate Spread3.81%3.49%3.75%3.43% Net Interest Income$43,602$40,260$128,421$118,029 Net Interest Margin(3)4.34%4.12%4.28%4.05% (1)Average Balances include net loan fees, discounts and premiums and nonaccrual loans. Interest income includes loan costs of $0.4 million and $1.1 million for the three and nine months ended September 30, 2025, and loan cost of $0.2 and $0.5 million for the three and nine month periods ended September 30, 2024.
(2)Interest income includes the effects of taxable equivalent adjustments using a 21% Federal tax rate.
(3)Taxable equivalent net interest income divided by average earning assets.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See “Market Risk and Interest Rate Sensitivity” in Management’s Discussion 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 occurred since December 31, 2024.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

At September 30, 2025, the end of the period covered by this Form 10-Q, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, our Chief Executive Officer and Chief Financial 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 Officer and Chief Financial Officer, has reviewed our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934). During the quarter ended September 30, 2025, there have been no significant changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are party to 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 effect on 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 consider the factors discussed in Part I, Item 1A. “Risk Factors” in our 2024 Form 10-K, as updated in our subsequent quarterly reports. The risks described in our 2024 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 affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds None.

Item 3. Defaults Upon Senior Securities None.

Item 4. Mine Safety Disclosure Not Applicable.

Item 5. Other Information

During the three months ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act)adopted, modified orterminatedany contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule10b5-1trading arrangement” as defined in Item 408(c) of Regulation S-K.

Item 6. Exhibits

(A) Exhibits

3.1Amended and Restated Articles of Incorporation - incorporated herein by reference to Exhibit 3.1 ofthe Registrant’s Form 8-K (filed 5/3/21) (No. 000-13358).

3.2Amended and Restated Bylaws - incorporated herein by reference to Exhibit 3.1 of the Registrant’sForm 8-K (filed 12/20/2024) (No. 000-13358).

31.1Certification 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.
31.2Certification 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.
32.1Certification of William G. Smith, Jr., Chairman and Chief Executive Officer of Capital City Bank Group, Inc., Pursuant to 18 U.S.C. Section 1350.
32.2Certification 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.SCH XBRL Taxonomy Extension Schema Document 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document 101.LAB XBRL Taxonomy Extension Label Linkbase Document 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document 101.DEF XBRL Taxonomy Extension Definition Linkbase Document 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned Chief Financial Officer hereunto duly authorized.

CAPITAL CITY BANK GROUP, INC.
(Registrant)

/s/ Jeptha E. Larkin Jeptha E. Larkin Executive Vice President and Chief Financial Officer (Mr. Larkin is the Principal Financial Officer and has been duly authorized to sign on behalf of the Registrant)

Date: October 31, 2025

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