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

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

| CAPITAL      CITY BANK GROUP, INC.                         |
|------------------------------------------------------------|
| (Exact      name of registrant as specified in itscharter) |

| Florida                                                             |   | 59-2273542                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification No.) |

| 217      North Monroe Street, Tallahassee, Florida |   | 32301           |
|----------------------------------------------------|--------|-----------------|
| (Address      of principal executive office)       |   | (Zip      Code) |

| (850)      402-7000                                      |
|----------------------------------------------------------|
| (Registrant's      telephone number, including areacode) |

| Large      accelerated filer o | Accelerated      filer x | Non-accelerated      filer o                     | Smaller      reporting company o |
|--------------------------------|--------------------------|--------------------------------------------------|----------------------------------|
|                           |                     | (Do      not check if smaller reporting company) |                             |

----

| PART I – Financial Information |                                                                                                          | Page   |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------|--------|
|                                 |
| Item      1.                         | Consolidated Financial Statements      (Unaudited)                                                            |   |
|                                 | Consolidated Statements of Financial Condition –      March 31, 2009 and December 31, 2008              | 4      |
|                                 | Consolidated Statements of Income – Three Months Ended      March 31, 2009 and 2008                     | 5      |
|                                 | Consolidated Statement of Changes in Shareowners’ Equity –      Three Months Ended March 31, 2009 | 6      |
|                                 | Consolidated Statements of Cash Flow – Three Months Ended      March 31, 2009 and 2008                  | 7      |
|                                 | Notes to Consolidated Financial    Statements                                                                 | 8      |
|                                 |                                                                                                          |   |
| Item      2.                         | Management's Discussion and Analysis of Financial Condition      and Results of Operations                    | 15     |
|                                 |                                                                                                          |   |
| Item      3.                         | Quantitative and Qualitative Disclosure About Market      Risk                                                | 30     |
|                                 |                                                                                                          |   |
| Item      4.                         | Controls and Procedures                                                                                       | 30     |
|                                 |                                                                                                          |   |
| PART II – Other Information    |                                                                                                          |   |
|                                 |
| Item      1.                         | Legal Proceedings                                                                                             | 30     |
|                                 |                                                                                                          |   |
| Item      1A.                        | Risk Factors                                                                                                  | 30     |
|                                 |                                                                                                          |   |
| Item      2.                         | Unregistered Sales of Equity Securities and Use of      Proceeds                                              | 31     |
|                                 |                                                                                                          |   |
| Item      3.                         | Defaults Upon Senior Securities                                                                               | 31     |
|                                 |                                                                                                          |   |
| Item      4.                         | Submission of Matters to a Vote of Security      Holders                                                      | 31     |
|                                 |                                                                                                          |   |
| Item      5.                         | Other Information                                                                                             | 31     |
|                                 |                                                                                                          |   |
| Item      6.                         | Exhibits                                                                                                      | 31     |
|                                 |                                                                                                          |   |
| Signatures                           |                                                                                                          | 32     |

----

| §   | the      frequency and magnitude of foreclosure of our  loans; |
|--------------------|----------------------------------------------------------------|

| §   | the      adequacy of collateral underlying collateralized loans and our ability to      resell the collateral if we foreclose on the  loans; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      effects of our lack of a diversified loan portfolio, including the risks      of geographic and industryconcentrations; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| §   | the      accuracy of our financial statement estimates and assumptions, including      the estimate for our loan lossprovision; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| §   | the      extent to which our nonperforming loans increase or decrease as a      percentage of our total loanportfolio; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| §   | our      ability to integrate the business and operations of companies and banks      that we have acquired, and those we may acquire in the    future; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | our      need and our ability to incur additional debt or equity      financing; |
|--------------------|----------------------------------------------------------------------------------|

| §   | the      strength of the United States economy in general and the strength of the      local economies in which we conductoperations; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      effects of harsh weather conditions, including  hurricanes; |
|--------------------|----------------------------------------------------------------------|

| §   | inflation,      interest rate, market and monetaryfluctuations; |
|--------------------|-----------------------------------------------------------------|

| §   | effect      of changes in the stock market and other capital  markets; |
|--------------------|------------------------------------------------------------------------|

| §   | legislative      or regulatory changes; |
|--------------------|-----------------------------------------|

| §   | our      ability to comply with the extensive laws and regulations to which we are      subject; |
|--------------------|--------------------------------------------------------------------------------------------------|

| §   | the      willingness of clients to accept third-party products and services rather      than our products and services and viceversa; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| §   | changes      in the securities and real estatemarkets; |
|--------------------|--------------------------------------------------------|

| §   | increased      competition and its effect onpricing; |
|--------------------|------------------------------------------------------|

| §   | technological      changes; |
|--------------------|-----------------------------|

| §   | changes      in monetary and fiscal policies of the U.S.  Government; |
|--------------------|-----------------------------------------------------------------------|

| §   | the      effects of security breaches and computer viruses that may affect our      computer systems; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| §   | changes      in consumer spending and savinghabits; |
|--------------------|-----------------------------------------------------|

| §   | growth      and profitability of our noninterestincome; |
|--------------------|---------------------------------------------------------|

| §   | changes      in accounting principles, policies, practices or    guidelines; |
|--------------------|------------------------------------------------------------------------------|

| §   | the      limited trading activity of our commonstock; |
|--------------------|-------------------------------------------------------|

| §   | the      concentration of ownership of our commonstock; |
|--------------------|---------------------------------------------------------|

| §   | anti-takeover      provisions under federal and state law as well as our Articles of      Incorporation and our Bylaws; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| §   | other      risks described from time to time in our filings with the Securities and      Exchange Commission; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| §   | our      ability to manage the risks involved in the  foregoing. |
|--------------------|------------------------------------------------------------------|

----

PARTI. FINANCIALINFORMATION

CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF FINANCIALCONDITION

AS OF MARCH 31, 2009 AND DECEMBER 31, 2008

| (Dollars      In Thousands, Except Share Data)                                                                                                                                           |   | March      31, 2009 |      |   | December      31, 2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
| ASSETS                                                                                                                                                                                   |   |                |      |   |                   |   |
| Cash      and Due From Banks                                                                                                                                                             |   | $                   | 81,317    |   |                   | $      | 88,143 |   |
| Funds      Sold and Interest Bearing Deposits                                                                                                                                            |   |                | 4,241     |   |                   |   | 6,806 |   |
| Total      Cash and Cash Equivalents                                                                                                                                                     |   |                | 85,558    |   |                   |   | 94,949 |   |
|                                                                                                                                                                                     |   |                |      |   |                   |   |   |   |
| Investment      Securities, Available-for-Sale                                                                                                                                           |   |                | 195,767   |   |                   |   | 191,569 |   |
|                                                                                                                                                                                     |   |                |      |   |                   |   |   |   |
| Loans,      Net of Unearned Interest                                                                                                                                                     |   |                | 1,971,612 |   |                   |   | 1,957,797 |   |
| Allowance      for Loan Losses                                                                                                                                                           |   |                | (40,172   | )      |                   |   | (37,004 | ) |
| Loans,      Net                                                                                                                                                                          |   |                | 1,931,440 |   |                   |   | 1,920,793 |   |
|                                                                                                                                                                                     |   |                |      |   |                   |   |   |   |
| Premises      and Equipment, Net                                                                                                                                                         |   |                | 107,259   |   |                   |   | 106,433 |   |
| Goodwill                                                                                                                                                                                 |   |                | 84,811    |   |                   |   | 84,811 |   |
| Other      Intangible Assets                                                                                                                                                             |   |                | 7,061     |   |                   |   | 8,072 |   |
| Other      Assets                                                                                                                                                                        |   |                | 87,483    |   |                   |   | 82,072 |   |
| Total      Assets                                                                                                                                                                        |   | $                   | 2,499,379 |   |                   | $      | 2,488,699 |   |
|                                                                                                                                                                                     |   |                |      |   |                   |   |   |   |
| LIABILITIES                                                                                                                                                                              |   |                |      |   |                   |   |   |   |
| Deposits:                                                                                                                                                                                |   |                |      |   |                   |   |   |   |
| Noninterest      Bearing Deposits                                                                                                                                                        |   | $                   | 413,608   |   |                   | $      | 419,696 |   |
| Interest      Bearing Deposits                                                                                                                                                           |   |                | 1,576,181 |   |                   |   | 1,572,478 |   |
| Total      Deposits                                                                                                                                                                      |   |                | 1,989,789 |   |                   |   | 1,992,174 |   |
|                                                                                                                                                                                     |   |                |      |   |                   |   |   |   |
| Short-Term      Borrowings                                                                                                                                                               |   |                | 68,193    |   |                   |   | 62,044 |   |
| Subordinated      Notes Payable                                                                                                                                                          |   |                | 62,887    |   |                   |   | 62,887 |   |
| Other      Long-Term Borrowings                                                                                                                                                          |   |                | 53,448    |   |                   |   | 51,470 |   |
| Other      Liabilities                                                                                                                                                                   |   |                | 49,518    |   |                   |   | 41,294 |   |
| Total      Liabilities                                                                                                                                                                   |   |                | 2,223,835 |   |                   |   | 2,209,869 |   |
|                                                                                                                                                                                     |   |                |      |   |                   |   |   |   |
| SHAREOWNERS'      EQUITY                                                                                                                                                                 |   |                |      |   |                   |   |   |   |
| Preferred      Stock, $.01 par value, 3,000,000 shares authorized;no      shares outstanding                                                                                             |   |                | -         |   |                   |   | - |   |
| Common      Stock, $.01 par value, 90,000,000 shares authorized; 17,009,639 and      17,126,997 shares issued and outstanding at March 31, 2009 and December      31, 2008, respectively |   |                | 170       |   |                   |   | 171 |   |
| Additional      Paid-In Capital                                                                                                                                                          |   |                | 35,841    |   |                   |   | 36,783 |   |
| Retained      Earnings                                                                                                                                                                   |   |                | 260,287   |   |                   |   | 262,890 |   |
| Accumulated      Other Comprehensive Loss, Net of Tax                                                                                                                                    |   |                | (20,754   | )      |                   |   | (21,014 | ) |
| Total      Shareowners' Equity                                                                                                                                                           |   |                | 275,544   |   |                   |   | 278,830 |   |
| Total      Liabilities and Shareowners' Equity                                                                                                                                           |   | $                   | 2,499,379 |   |                   | $      | 2,488,699 |   |

----

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31

| (Dollars      in Thousands, Except Per Share Data)            |   | 2009   |                                                                                   |   | 2008   |   |
|---------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|--------|--------|--------|
| INTEREST      INCOME                                          |   |   |                                                                                   |   |   |   |
| Interest      and Fees on Loans                               |   | $      |            29,537               |   |   | $      |            35,255 |   |
| Investment      Securities:                                   |   |   |                                                                                   |   |   |   |   |   |
| U.S.      Treasury                                            |   |   | 162                                                                                    |   |   |   | 167 |   |
| U.S.      Government Agencies                                 |   |   | 530                                                                                    |   |   |   | 760 |   |
| States      and Political Subdivisions                        |   |   | 737                                                                                    |   |   |   | 786 |   |
| Other      Securities                                         |   |   | 84                                                                                     |   |   |   | 181 |   |
| Funds      Sold                                               |   |   | 3                                                                                      |   |   |   | 1,574 |   |
| Total      Interest Income                                    |   |   | 31,053                                                                                 |   |   |   | 38,723 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| INTEREST      EXPENSE                                         |   |   |                                                                                   |   |   |   |   |   |
| Deposits                                                      |   |   |          2,495                            |   |   |   | 10,481 |   |
| Short-Term      Borrowings                                    |   |   |               68 |   |   |   | 521 |   |
| Subordinated      Notes Payable                               |   |   | 927                                                                                    |   |   |   | 931 |   |
| Other      Long-Term Borrowings                               |   |   | 568                                                                                    |   |   |   | 331 |   |
| Total      Interest Expense                                   |   |   | 4,058                                                                                  |   |   |   | 12,264 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| NET      INTEREST INCOME                                      |   |   | 26,995                                                                                 |   |   |   | 26,459 |   |
| Provision      for Loan Losses                                |   |   | 8,410                                                                                  |   |   |   | 4,142 |   |
| Net      Interest Income After Provision For Loan Losses |   |   | 18,585                                                                                 |   |   |   | 22,317 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| NONINTEREST      INCOME                                       |   |   |                                                                                   |   |   |   |   |   |
| Service      Charges on Deposit Accounts                      |   |   | 6,698                                                                                  |   |   |   | 6,765 |   |
| Data      Processing Fees                                     |   |   | 870                                                                                    |   |   |   | 813 |   |
| Asset      Management Fees                                    |   |   | 970                                                                                    |   |   |   | 1,150 |   |
| Securities      Transactions                                  |   |   | -                                                                                      |   |   |   | 65 |   |
| Mortgage      Banking Fees                                    |   |   | 584                                                                                    |   |   |   | 494 |   |
| Bank      Card Fees                                           |   |   | 2,877                                                                                  |   |   |   | 3,961 |   |
| Other                                                         |   |   | 2,043                                                                                  |   |   |   | 4,551 |   |
| Total      Noninterest Income                                 |   |   | 14,042                                                                                 |   |   |   | 17,799 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| NONINTEREST      EXPENSE                                      |   |   |                                                                                   |   |   |   |   |   |
| Salaries      and Associate Benefits                          |   |   |         17,237                                 |   |   |   | 15,604 |   |
| Occupancy,      Net                                           |   |   |           2,345                      |   |   |   | 2,362 |   |
| Furniture      and Equipment                                  |   |   |           2,338                      |   |   |   | 2,582 |   |
| Intangible      Amortization                                  |   |   | 1,011                                                                                  |   |   |   | 1,459 |   |
| Other                                                         |   |   | 9,326                                                                                  |   |   |   | 7,791 |   |
| Total      Noninterest Expense                                |   |   | 32,257                                                                                 |   |   |   | 29,798 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| INCOME      BEFORE INCOME TAXES                               |   |   | 370                                                                                    |   |   |   | 10,318 |   |
| Income      Taxes                                             |   |   | (280                                                                                   | )      |   |   | 3,038 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| NET      INCOME                                               |   | $      | 650                                                                                    |   |   | $      | 7,280 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| Basic      Net Income Per Share                               |   | $      | 0.04                                                                                   |   |   | $      | 0.42 |   |
| Diluted      Net Income Per Share                             |   | $      | 0.04                                                                                   |   |   | $      | 0.42 |   |
|                                                          |   |   |                                                                                   |   |   |   |   |   |
| Average      Basic Shares Outstanding                         |   |   | 17,109,228                                                                             |   |   |   | 17,170,230 |   |
| Average      Diluted Share Outstanding                        |   |   | 17,130,810                                                                             |   |   |   | 17,178,358 |   |

----

CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS'EQUITY

|   (Dollars      In Thousands, Except Share Data)                                             | Shares      Outstanding |   |   | Common      Stock |    |   | AdditionalPaid-In      Capital |   | Retained      Earnings |    |   | Accumulated      Other Comprehensive Income, Net of Taxes |   | Total   |   |
|--------------------------------------------------------------------------------------------------------|-------------------------|--------|--------|-------------------|---------|--------|--------------------------------|--------|------------------------|---------|--------|-----------------------------------------------------------|--------|---------|--------|
|                                                                                                   |                    |   |   |              |    |   |                           |   |                   |    |   |                                                      |   |    |   |
| Balance,      December 31, 2008                                                                        | 17,126,997              |   | $      |  171         |    | $      | 36,783                         |   | $                      | 262,890 |   |                                                      | $      | (21,014 | )      | $ | 278,830 |   |
| Comprehensive      Income:                                                                             |                    |   |   |              |    |   |                           |   |                   |    |   |                                                      |   |    |   |   |   |   |
| Net      Income                                                                                        | -                       |   |   | -                 |    |   | -                              |   |                   | 650     |   |                                                      |   | -       |   |   | 650 |   |
| Net      Change in Unrealized Gain On   Available-for-Sale      Securities (net of tax) | -                       |   |   | -                 |    |   | -                              |   |                   | -       |   |                                                      |   | 260     |   |   | 260 |   |
| Total      Comprehensive Income                                                                        | -                       |   |   | -                 |    |   | -                              |   |                   | 650     |   |                                                      |   | 260     |   |   | 910 |   |
| Cash      Dividends ($.19 per share)                                                                   | -                       |   |   | -                 |    |   | -                              |   |                   | (3,253  | )      |                                                      |   | -       |   |   | (3,253 | ) |
| Stock      Performance Plan Compensation                                                               | -                       |   |   | -                 |    |   | (11                            | )      |                   | -       |   |                                                      |   | -       |   |   | (11 | ) |
| Issuance      of Common Stock                                                                          | 28,530                  |   |   |              |    |   | 629                            |   |                   | -       |   |                                                      |   | -       |   |   | 629 |   |
| Repurchase      of Common Stock                                                                        | (145,888                | )      |   | (1                | )  |   | (1,560                         | )      |                   | -       |   |                                                      |   | -       |   |   | (1,561 | ) |
|                                                                                                   |                    |   |   |              |    |   |                           |   |                   |    |   |                                                      |   |    |   |   |   |   |
| Balance,      March 31, 2009                                                                           | 17,009,639              |   | $      |  170         |    | $      | 35,841                         |   | $                      | 260,287 |   |                                                      | $      | (20,754 | )      | $ | 275,544 |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

| (Dollars      in Thousands)                                                            |   | 2009   |                                                                                                    |    | 2008   |   |
|----------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|---------|--------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES                                              |   |   |                                                                                                    |    |   |   |
| Net      Income                                                                        |   | $      | 650                                                                                                     |    |   | $      | 7,280 |   |
| Adjustments      to Reconcile Net Income toCash      Provided by Operating Activities: |   |   |                                                                                                    |    |   |   |   |   |
| Provision      for Loan Losses                                                         |   |   |           8,410                                       |    |   |   | 4,142 |   |
| Depreciation                                                                           |   |   |             1,678                           |    |   |   | 1,717 |   |
| Net      Securities Amortization                                                       |   |   |                455           |    |   |   | 112 |   |
| Amortization      of Intangible Assets                                                 |   |   |             1,011                           |    |   |   | 1,459 |   |
| Gain      on Securities Transactions                                                   |   |   |                  - |    |   |   | (65 | ) |
| Origination      of Loans Held-for-Sale                                                |   |   |         (41,171                                                 | )       |   |   | (33,930 | ) |
| Proceeds      From Sales of Loans Held-for-Sale                                        |   |   |           37,314                                      |    |   |   | 33,454 |   |
| Net      Gain From Sales of Loans Held-for-Sale                                        |   |   |           (584                                        | )       |   |   | (494 | ) |
| Non-Cash      Compensation                                                             |   |   |           (11                                         | )       |   |   | 157 |   |
| (Decrease)      Increase in Deferred Income Taxes                                      |   |   |           (1,321                                      | )       |   |   | 1,493 |   |
| Net      Increase in Other Assets                                                      |   |   |           (6,244                                      | )       |   |   | (797 | ) |
| Net      Increase in Other Liabilities                                                 |   |   |           13,377                                      |    |   |   | 6,575 |   |
| Net      Cash Provided By Operating Activities                                         |   |   | 13,564                                                                                                  |    |   |   | 21,103 |   |
|                                                                                   |   |   |                                                                                                    |    |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                              |   |   |                                                                                                    |    |   |   |   |   |
| Securities      Available-for-Sale:                                                    |   |   |                                                                                                    |    |   |   |   |   |
| Purchases                                                                              |   |   |         (24,755                                                 | )       |   |   | (25,566 | ) |
| Sales                                                                                  |   |   |           1,067                                       |    |   |   | 1,998 |   |
| Payments,      Maturities, and Calls                                                   |   |   |           19,443                                      |    |   |   | 28,846 |   |
| Net      Increase in Loans                                                             |   |   |         (17,762                                                 | )  |   |   | (2,727 | )  |
| Purchase      of Premises & Equipment                                              |   |   | (2,507                                                                                                  | )       |   |   | (3,251 | ) |
| Proceeds      From Sales of Premises & Equipment                                   |   |   | 2                                                                                                       |    |   |   | - |   |
| Net      Cash Used In Investing Activities                                             |   |   | (24,512                                                                                                 | )  |   |   | (700 | )  |
|                                                                                   |   |   |                                                                                                    |    |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                              |   |   |                                                                                                    |    |   |   |   |   |
| (Decrease) Increase      in Deposits                                              |   |   |       (2,384                                                              | )       |   |   | 50,261 |   |
| Net      Increase in Short-Term Borrowings                                             |   |   |           6,151                                       |    |   |   | 8,653 |   |
| Increase      in Other Long-Term Borrowings                                            |   |   |           2,666                                       |    |   |   | 3,809 |   |
| Repayment      of Other Long-Term Borrowings                                           |   |   |           (691                                        | )       |   |   | (700 | ) |
| Dividends      Paid                                                                    |   |   |           (3,253                                      | )       |   |   | (3,173 | ) |
| Repurchase      of Common Stock                                                        |   |   |           (1,561                                      | )       |   |   | (711 | ) |
| Issuance      of Common Stock                                                          |   |   |           629                                         |    |   |   | 488 |   |
| Net      Cash Provided by Financing Activities                                         |   |   |           1,557                                       |    |   |   | 58,627 |   |
|                                                                                   |   |   |                                                                                                    |    |   |   |   |   |
| NET      CHANGE IN CASH AND CASH EQUIVALENTS                                           |   |   | (9,391                                                                                                  | )       |   |   | 79,030 |   |
|                                                                                   |   |   |                                                                                                    |    |   |   |   |   |
| Cash      and Cash Equivalents at Beginning of Period                                  |   |   | 94,949                                                                                                  |    |   |   | 259,697 |   |
| Cash      and Cash Equivalents at End of Period                                        |   | $      | 85,558                                                                                                  |    |   | $      | 338,727 |   |
|                                                                                   |   |   |                                                                                                    |    |   |   |   |   |
| Supplemental      Disclosure:                                                          |   |   |                                                                                                    |    |   |   |   |   |
| Interest      Paid on Deposits                                                         |   | $      | 2,773                                                                                                   |    |   | $      | 10,756 |   |
| Interest      Paid on Debt                                                             |   | $      | 1,558                                                                                                   |    |   | $      | 1,775 |   |
| Taxes      Paid                                                                        |   | $      | 53                                                                                                      |    |   | $      | 4,129 |   |
| Loans      Transferred to Other Real Estate Owned                                      |   | $      | 3,147                                                                                                   |    |   | $      | 3,886 |   |
| Issuance      of Common Stock as Non-Cash Compensation                                 |   | $      | 154                                                                                                     |    |   | $      | 240 |   |

----

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| NOTE 1      - SIGNIFICANT      ACCOUNTING POLICIES |
|---------------------------------------------------------|

| NOTE      2 - INVESTMENT SECURITIES |
|-------------------------------------|

|                                   |   | March      31, 2009 |                                                                           |
|----------------------------------------|--------|---------------------|--------------------------------------------------------------------------------|
| (Dollars      in Thousands)            |   | Amortized      Cost |                                                                           |   | Unrealized      Gains |   |   | Unrealized      Losses |   |   | Market      Value |   |
| U.S.      Treasury                     |   | $                   | 28,997                                                                         |   |   | $ | 408 |   |   | $ | - |   |   | $ | 29,405 |   |
| U.S.      Government Agencies          |   |                | 5,594                                                                          |   |   |   | 120 |   |   |   | - |   |   |   | 5,714 |   |
| States      and Political Subdivisions |   |                | 102,329                                                                        |   |   |   |             1,534 |   |   |   | 53 |   |   |   | 103,810 |   |
| Mortgage-Backed      Securities        |   |                |             43,441 |   |   |   |                590 |   |   |   | 26 |   |   |   |        44,005 |   |
| Other      Securities(1)               |   |                |             12,726 |   |   |   |                107 |   |   |   | - |   |   |   |        12,833 |   |
| Total      Investment Securities       |   | $                   |           193,087            |   |   | $ |            2,759 |   |   | $ | 79 |   |   | $ |      195,767 |   |

|                                   |   | December      31, 2008 |                                              |
|----------------------------------------|--------|------------------------|---------------------------------------------------|
| (Dollars      in Thousands)            |   | Amortized      Cost    |                                              |   | Unrealized      Gains |   |   | Unrealized      Losses |   |   | Market      Value |   |
| U.S.      Treasury                     |   | $                      | 29,094                                            |   |   | $ | 577 |   |   | $ | - |   |   | $ | 29,671 |   |
| U.S.      Government Agencies          |   |                   | 7,091                                             |   |   |   | 180 |   |   |   | - |   |   |   | 7,271 |   |
| States      and Political Subdivisions |   |                   | 100,370                                           |   |   |   | 1,224 |   |   |   | 32 |   |   |   | 101,562 |   |
| Mortgage-Backed      Securities        |   |                   | 39,860                                            |   |   |   | 332 |   |   |   | 116 |   |   |   | 40,076 |   |
| Other      Securities(1)               |   |                   | 12,882                                            |   |   |   | 107 |   |   |   | - |   |   |   | 12,989 |   |
| Total      Investment Securities       |   | $                      |        189,297 |   |   | $ |             2,420 |   |   | $ |      148 |   |   | $ |   191,569 |   |

|  (1) | Includes Federal Home Loan      Bank and Federal Reserve Bank stock recorded at cost of $6.9 million and $4.8 million,      respectively, at March 31, 2009, and $7.0 million and $4.8 million,      respectively, at December 31, 2008. Also, balance includes a      preferred bank stock issue recorded at $1.1 million at March 31, 2009 and      December 31, 2008. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE      3 - LOANS |
|---------------------|

| (Dollars      in Thousands)                 |   | March      31, 2009 |      |   | December      31, 2008 |   |
|---------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
| Commercial,      Financial and Agricultural |   | $                   | 202,038   |   |                   | $      | 206,230 |   |
| Real      Estate-Construction               |   |                | 154,102   |   |                   |   | 141,973 |   |
| Real      Estate-Commercial                 |   |                | 673,066   |   |                   |   | 656,959 |   |
| Real      Estate-Residential(1)             |   |                | 463,599   |   |                   |   | 481,034 |   |
| Real      Estate-Home Equity                |   |                | 223,505   |   |                   |   | 218,500 |   |
| Real      Estate-Loans Held-for-Sale        |   |                | 8,827     |   |                   |   | 3,204 |   |
| Consumer                                    |   |                | 246,475   |   |                   |   | 249,897 |   |
| Loans,      Net of Unearned Interest        |   | $                   | 1,971,612 |   |                   | $      | 1,957,797 |   |

| (1) | Includes      loans in process with outstanding balances of $10.0 million and $13.9      million for March 31, 2009 and December 31, 2008,      respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars      in Thousands)                     |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance,      Beginning of Period               |   | $      | 37,004 |   |   | $      | 18,066 |   |
| Provision      for Loan Losses                  |   |   | 8,410  |   |   |   | 4,142 |   |
| Recoveries      on Loans Previously Charged-Off |   |   | 1,029  |   |   |   | 749 |   |
| Loans      Charged-Off                          |   |   | (6,271 | )      |   |   | (2,680 | ) |
| Balance,      End of Period                     |   | $      | 40,172 |   |   | $      | 20,277 |   |

|                                     |   | March      31, 2009 |         |   | December      31, 2008   |   |
|------------------------------------------|--------|---------------------|--------------|--------|--------------------------|--------|
|  (Dollars      in Thousands)        |   | Balance             |         |   | Valuation      Allowance |   |   | Balance |   |   | Valuation      Allowance |   |
| Impaired      Loans:                     |   |                |         |   |                     |   |   |   |   |   |   |   |
| With      Related Valuation Allowance    |   | $                   |  82,011 |   |                     | $      | 17,629 |   |   | $ | 68,705 |   |   | $ | 15,901 |   |
| Without      Related Valuation Allowance |   |                | 42,381       |   |                     |   | - |   |   |   | 37,723 |   |   |   | - |   |

----

| NOTE      5 - INTANGIBLE ASSETS |
|---------------------------------|

|                                  |   | March      31, 2009 |    |   | December      31, 2008  |   |
|---------------------------------------|--------|---------------------|---------|--------|-------------------------|--------|
|  (Dollars      in Thousands)     |   | GrossAmount         |    |   | AccumulatedAmortization |   |   | GrossAmount |   |   | AccumulatedAmortization |   |
| Core      Deposit Intangibles         |   | $                   | 47,176  |   |                    | $      | 41,055 |   |   | $ | 47,176 |   |   | $ | 40,092 |   |
| Goodwill                              |   |                | 84,811  |   |                    |   | - |   |   |   | 84,811 |   |   |   | - |   |
| Customer      Relationship Intangible |   |                | 1,867   |   |                    |   | 927 |   |   |   | 1,867 |   |   |   | 879 |   |
| Total      Intangible Assets          |   | $                   | 133,854 |   |                    | $      | 41,982 |   |   | $ | 133,854 |   |   | $ | 40,971 |   |

| (Dollars      in Thousands)          |   | March      31, 2009 |      |   | December      31, 2008 |   |
|--------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
| NOW      Accounts                    |   | $                   | 726,069   |   |                   | $      | 758,976 |   |
| Money      Market Accounts           |   |                | 312,541   |   |                   |   | 324,646 |   |
| Savings      Deposits                |   |                | 121,245   |   |                   |   | 115,261 |   |
| Other      Time Deposits             |   |                | 416,326   |   |                   |   | 373,595 |   |
| Total      Interest Bearing Deposits |   | $                   | 1,576,181 |   |                   | $      | 1,572,478 |   |

| NOTE      7 - STOCK-BASED COMPENSATION |
|----------------------------------------|

| Options                             |   | Shares |   |   | Weighted-Average      Exercise Price |   |   | Weighted-Average      Remaining Term |   |   | Aggregate      Intrinsic Value |   |
|-------------------------------------|--------|--------|--------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------|--------|
| Outstanding      at January 1, 2009 |   |   | 60,384 |   |                                 | $      | 32.79  |                                 |   |   | 5.9                            |   |   | $ | - |   |
| Granted                             |   |   | -      |   |                                 |   | -      |                                 |   |   | -                              |   |   |   | - |   |
| Exercised                           |   |   | -      |   |                                 |   | -      |                                 |   |   | -                              |   |   |   | - |   |
| Forfeited      or expired           |   |   | -      |   |                                 |   | -      |                                 |   |   | -                              |   |   |   | - |   |
| Outstanding      at March 31, 2009  |   |   | 60,384 |   |                                 | $      | 32.79  |                                 |   |   | 5.6                            |   |   | $ | - |   |
| Exercisable      at March 31, 2009  |   |   | 60,384 |   |                                 | $      | 32.79  |                                 |   |   | 5.6                            |   |   | $ | - |   |

----

|                                    |   | Three      Months Ended March 31, |   |
|-----------------------------------------|--------|----------------------------------------|--------|
| (Dollars      in Thousands)             |   | 2009                                   |   |   | 2008 |   |
|                                    |   |                                   |   |   |   |   |
| Discount      Rate                      |   |                                   | 6.00   | % |   |   | 6.25 | % |
| Long-Term      Rate of Return on Assets |   |                                   | 8.00   | % |   |   | 8.00 | % |
|                                    |   |                                   |   |   |   |   |   |   |
| Service      Cost                       |   | $                                      | 1,525  |   |   | $ | 1,279 |   |
| Interest      Cost                      |   |                                   | 1,200  |   |   |   | 1,063 |   |
| Expected      Return on Plan Assets     |   |                                   | (1,275 | ) |   |   | (1,253 | ) |
| Prior      Service Cost Amortization    |   |                                   | 125    |   |   |   | 75 |   |
| Net      Loss Amortization              |   |                                   | 750    |   |   |   | 280 |   |
| Net      Periodic Benefit Cost          |   | $                                      | 2,325  |   |   | $ | 1,444 |   |

|                                 |   | Three      Months Ended March 31, |   |
|--------------------------------------|--------|----------------------------------------|--------|
| (Dollars      in Thousands)          |   | 2009                                   |   |   | 2008 |   |
|                                 |   |                                   |   |   |   |   |
| Discount      Rate                   |   |                                   | 6.00   | % |   |   | 6.25 | % |
|                                 |   |                                   |   |   |   |   |   |   |
| Service      Cost                    |   | $                                      | 5      |   |   | $ | 22 |   |
| Interest      Cost                   |   |                                   | 74     |   |   |   | 56 |   |
| Prior      Service Cost Amortization |   |                                   | 45     |   |   |   | 2 |   |
| Net      Loss Amortization           |   |                                   | (5     | ) |   |   | 1 |   |
| Net      Periodic Benefit Cost       |   | $                                      | 119    |   |   | $ | 81 |   |

| NOTE      9 - COMMITMENTS ANDCONTINGENCIES |
|--------------------------------------------|

| (Dollars      in Millions)           |   | Amount |   |
|--------------------------------------|--------|--------|--------|
| Commitments      to Extend Credit(1) |   | $      | 423    |   |
| Standby      Letters of Credit       |   | $      | 20     |   |

| (1) | Commitments include unfunded      loans, revolving lines of credit, and other unused      commitments. |
|-----|--------------------------------------------------------------------------------------------------------|

----

|  (Dollars      in Thousands)  |   | Level      1 Inputs |   |   | Level      2 Inputs |   |    | Level      3 Inputs(1) |   |   | TotalFair      Value |   |
|------------------------------------|--------|---------------------|--------|--------|---------------------|--------|---------|------------------------|--------|--------|----------------------|--------|
|                               |   |                |   |   |                |   |    |                   |   |   |                 |   |
| Securities      Available for Sale |   | $                   | 35,504 |   |                | $      | 147,430 |                   |   | $      | 1,107                |   |   | $ | 184,041 |   |

| (1) | Reflects      one preferred bank stock issue of $1.1 million whose fair value has been      determined based on an internal valuationmodel. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                         |   | 2009   |      |   | 2008   |   |      | 2007     |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|----------|--------|
|  (Dollars      in Thousands, Except Per Share Data)     |   | First  |      |   | Fourth |   |      | Third(1) |   |   | Second |   |   | First |   |   | Fourth |   |   | Third |   |   | Second |   |
| Summary      of Operations:                                  |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Income                                         |   | $      | 31,053    |   |   | $      | 33,229    |     |   | $ | 34,654 |   |   | $ | 36,260 |   |   | $ | 38,723 |   |   | $ | 40,786 |   |   | $ | 41,299 |   |   | $ | 41,724 |   |
| Interest      Expense                                        |   |   | 4,058     |   |   |   | 5,482     |     |   |   | 7,469 |   |   |   | 8,785 |   |   |   | 12,264 |   |   |   | 13,241 |   |   |   | 13,389 |   |   |   | 13,263 |   |
| Net      Interest Income                                     |   |   | 26,995    |   |   |   | 27,747    |     |   |   | 27,185 |   |   |   | 27,475 |   |   |   | 26,459 |   |   |   | 27,545 |   |   |   | 27,910 |   |   |   | 28,461 |   |
| Provision      for Loan Losses                               |   |   | 8,410     |   |   |   | 12,497    |     |   |   | 10,425 |   |   |   | 5,432 |   |   |   | 4,142 |   |   |   | 1,699 |   |   |   | 1,552 |   |   |   | 1,675 |   |
| Net      Interest Income AfterProvision      for Loan Losses |   |   | 18,585    |   |   |   | 15,250    |     |   |   | 16,760 |   |   |   | 22,043 |   |   |   | 22,317 |   |   |   | 25,846 |   |   |   | 26,358 |   |   |   | 26,786 |   |
| Noninterest      Income                                      |   |   | 14,042    |   |   |   | 13,311    |     |   |   | 20,212 |   |   |   | 15,718 |   |   |   | 17,799 |   |   |   | 15,823 |   |   |   | 14,431 |   |   |   | 15,084 |   |
| Noninterest      Expense                                     |   |   | 32,257    |   |   |   | 31,002    |     |   |   | 29,916 |   |   |   | 30,756 |   |   |   | 29,798 |   |   |   | 31,614 |   |   |   | 29,919 |   |   |   | 29,897 |   |
| Income      Before Provision for Income Taxes                |   |   | 370       |   |   |   | (2,441    | )        |   |   | 7,056 |   |   |   | 7,005 |   |   |   | 10,318 |   |   |   | 10,055 |   |   |   | 10,870 |   |   |   | 11,973 |   |
| Provision      for Income Taxes                              |   |   | (280      | )      |   |   | (738      | )        |   |   | 2,218 |   |   |   | 2,195 |   |   |   | 3,038 |   |   |   | 2,391 |   |   |   | 3,699 |   |   |   | 4,082 |   |
| Net      Income                                              |   | $      | 650       |   |   | $      | (1,703    | )        |   | $ | 4,838 |   |   | $ | 4,810 |   |   | $ | 7,280 |   |   | $ | 7,664 |   |   | $ | 7,171 |   |   | $ | 7,891 |   |
| Net      Interest Income (FTE)                               |   | $      | 27,578    |   |   | $      | 28,387    |     |   | $ | 27,802 |   |   | $ | 28,081 |   |   | $ | 27,078 |   |   | $ | 28,196 |   |   | $ | 28,517 |   |   | $ | 29,050 |   |
|                                                         |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share:                                       |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income Basic                                        |   | $      | 0.04      |   |   | $      | (0.10     | )        |   | $ | 0.29 |   |   | $ | 0.28 |   |   | $ | 0.42 |   |   | $ | 0.44 |   |   | $ | 0.41 |   |   | $ | 0.43 |   |
| Net      Income Diluted                                      |   |   | 0.04      |   |   |   | (0.10     | )        |   |   | 0.29 |   |   |   | 0.28 |   |   |   | 0.42 |   |   |   | 0.44 |   |   |   | 0.41 |   |   |   | 0.43 |   |
| Dividends      Declared                                      |   |   | 0.190     |   |   |   | 0.190     |     |   |   | 0.185 |   |   |   | 0.185 |   |   |   | 0.185 |   |   |   | 0.185 |   |   |   | 0.175 |   |   |   | 0.175 |   |
| Diluted      Book Value                                      |   |   | 16.18     |   |   |   | 16.27     |     |   |   | 17.45 |   |   |   | 17.33 |   |   |   | 17.33 |   |   |   | 17.03 |   |   |   | 16.95 |   |   |   | 16.87 |   |
| Market      Price:                                           |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                                                         |   |   | 27.31     |   |   |   | 33.32     |     |   |   | 34.50 |   |   |   | 30.19 |   |   |   | 29.99 |   |   |   | 34.00 |   |   |   | 36.40 |   |   |   | 33.69 |   |
| Low                                                          |   |   | 9.50      |   |   |   | 21.06     |     |   |   | 19.20 |   |   |   | 21.76 |   |   |   | 24.76 |   |   |   | 24.60 |   |   |   | 27.69 |   |   |   | 29.12 |   |
| Close                                                        |   |   | 11.46     |   |   |   | 27.24     |     |   |   | 31.35 |   |   |   | 21.76 |   |   |   | 29.00 |   |   |   | 28.22 |   |   |   | 31.20 |   |   |   | 31.34 |   |
|                                                         |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Average                                        |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances:                                                    |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                        |   | $      | 1,964,086 |   |   | $      | 1,940,083 |     |   | $ | 1,915,008 |   |   | $ | 1,908,802 |   |   | $ | 1,909,574 |   |   | $ | 1,908,069 |   |   | $ | 1,907,235 |   |   | $ | 1,944,969 |   |
| Earning      Assets                                          |   |   | 2,166,237 |   |   |   | 2,150,841 |     |   |   | 2,207,670 |   |   |   | 2,303,971 |   |   |   | 2,301,463 |   |   |   | 2,191,230 |   |   |   | 2,144,737 |   |   |   | 2,187,236 |   |
| Assets                                                       |   |   | 2,486,925 |   |   |   | 2,463,318 |     |   |   | 2,528,638 |   |   |   | 2,634,771 |   |   |   | 2,646,474 |   |   |   | 2,519,682 |   |   |   | 2,467,703 |   |   |   | 2,511,252 |   |
| Deposits                                                     |   |   | 1,957,354 |   |   |   | 1,945,866 |     |   |   | 2,030,684 |   |   |   | 2,140,545 |   |   |   | 2,148,874 |   |   |   | 2,016,736 |   |   |   | 1,954,160 |   |   |   | 1,987,418 |   |
| Shareowners’      Equity                               |   |   | 281,634   |   |   |   | 302,227   |     |   |   | 303,595 |   |   |   | 300,890 |   |   |   | 296,804 |   |   |   | 299,342 |   |   |   | 301,536 |   |   |   | 309,352 |   |
| Common      Equivalent Shares:                               |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   |   | 17,109    |   |   |   | 17,125    |     |   |   | 17,124 |   |   |   | 17,146 |   |   |   | 17,170 |   |   |   | 17,444 |   |   |   | 17,709 |   |   |   | 18,089 |   |
| Diluted                                                      |   |   | 17,131    |   |   |   | 17,135    |     |   |   | 17,128 |   |   |   | 17,147 |   |   |   | 17,178 |   |   |   | 17,445 |   |   |   | 17,719 |   |   |   | 18,089 |   |
|                                                         |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios:                                                      |   |   |      |   |   |   |      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ROA                                                          |   |   | 0.11      | %      |   |   | (0.28     | )%       |   |   | 0.76 | % |   |   | .73 | % |   |   | 1.11 | % |   |   | 1.21 | % |   |   | 1.15 | % |   |   | 1.26 | % |
| ROE                                                          |   |   | 0.94      | %      |   |   | (2.24     | )%       |   |   | 6.34 | % |   |   | 6.43 | % |   |   | 9.87 | % |   |   | 10.16 | % |   |   | 9.44 | % |   |   | 10.23 | % |
| Net      Interest Margin (FTE)                               |   |   | 5.16      | %      |   |   | 5.26      | %        |   |   | 5.01 | % |   |   | 4.90 | % |   |   | 4.73 | % |   |   | 5.10 | % |   |   | 5.27 | % |   |   | 5.33 | % |
| Efficiency      Ratio                                        |   |   | 75.07     | %      |   |   | 71.21     | %        |   |   | 59.27 | % |   |   | 66.89 | % |   |   | 63.15 | % |   |   | 68.51 | % |   |   | 66.27 | % |   |   | 64.44 | % |

| (1) | Includes      $6.25 million ($3.8 million after-tax) one-time gain on sale of a portion      of merchant services portfolio. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

----

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

|                                           |   | Three      Months Ended |   |
|------------------------------------------------|--------|-------------------------|--------|
|                                           |   | March      31, 2009     |   |   | December      31,2009 |   |   | March      31,2008 |   |
| Efficiency      ratio                          |   |                    | 77.50  | % |   |   | 74.35 | % |   |   | 66.40 | % |
| Effect      of intangible amortization expense |   |                    | (2.43  | )% |   |   | (3.14 | )% |   |   | (3.25 | )% |
| Operating      efficiency ratio                |   |                    | 75.07  | % |   |   | 71.21 | % |   |   | 63.15 | % |

|                                                                  |   | Three      Months Ended |   |
|-----------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                  |   | March      31,2009      |   |   | December      31,2008 |   |   | March      31,2008 |   |
| Net      noninterest expense as a percent of average assets           |   |                    | 2.97   | % |   |   | 2.85 | % |   |   | 1.82 | % |
| Effect      of intangible amortization expense                        |   |                    | (0.16  | )% |   |   | (0.20 | )% |   |   | (0.22 | )% |
| Operating      net noninterest expense as a percent of average assets |   |                    | 2.81   | % |   |   | 2.65 | % |   |   | 1.60 | % |

----

----

----

| ·   | Net      income for the first quarter of 2009 totaled $.7 million ($0.04 per      diluted share) compared to a net loss of $1.7 million ($0.10 per diluted      share) in the fourth quarter of 2008 and net income of $7.3 million ($0.42      per diluted share) for the first quarter of 2008.  Our loan loss      provisions for these respective periods were $8.4 million ($.30 per      share), $12.5 million ($.45 per share), and $4.1 million ($.15 per      share).  In addition, net income for the first quarter of 2008      included two Visa Inc. related transactions totaling $2.3 million or $0.13      per diluted share (after-tax). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tax      equivalent net interest income decreased $.8 million, or 2.8% from the      prior quarter due to two less calendar days and the one-time recapture of      interest from the resolution of a problem loan during the fourth quarter      of 2008.  Compared to the first quarter of 2008, tax equivalent      net interest income increased $.5 million, or 1.9%, due to lower interest      expense reflective of aggressive deposit re-pricing in response to the      rate reductions initiated by the Federal Reserve – these actions drove a      43 basis point improvement in our net interest  margin. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noninterest      income increased $.7 million or 5.5% over the prior quarter and declined      $3.8 million, or 21.1%, from the first quarter of 2008.  Higher      mortgage banking fees and bank card fees drove the improvement over the      prior quarter.  A one-time $2.4 million gain from the redemption      of Visa shares and a lower level of merchant fees attributable to the sale      of a portion of our merchant services portfolio drove the year over year      decrease. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noninterest      expense increased $1.3 million, or 4.0%, from the prior quarter and $2.5      million, or 8.3%, from the first quarter of 2008.  Higher      pension expense drove the increase for both periods.  A one-time      entry of $1.1 million in the first quarter of 2008 to reverse a portion of      our Visa litigation accrual and higher FDIC insurance premiums also      contributed to the year over yearincrease. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Loan      loss provision of $8.4 million or 1.6 times net charge-offs for the first      quarter of 2009 reflects a higher level of identified problem loans, which      includes impaired loans, and an increase in loan loss      factors.  As of March 31, 2009, the allowance for loan losses      was 2.04% of total loans compared to 1.89% at year-end 2008 and 1.06% at      the end of the first quarter 2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      repurchased approximately 146,000 shares of our common stock during the      first quarter of 2009 at a weighted average share price of      $10.65. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      of March 31, 2009 we are well-capitalized with a risk based capital ratio      of 14.40% and a tangible capital ratio of 7.63% compared to 14.69% and      7.76%, respectively, at year-end 2008 and 14.01% and 7.73%, respectively,      at March 31, 2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   | Three      Months Ended |   |
|----------------------------------------------------------|--------|-------------------------|--------|
|                                                     |   | March      31,          |   |   | December      31, |   |   | March      31, |   |
| (Dollars      in Thousands, except per share data)       |   | 2009                    |   |   | 2008 |   |   | 2008 |   |
| Interest      Income                                     |   | $                       | 31,053 |   |   | $ | 33,229 |   |   | $ | 38,723 |   |
| Taxable      equivalent Adjustments(1)                   |   |                    | 583    |   |   |   | 640 |   |   |   | 619 |   |
| Total      Interest Income (FTE)                         |   |                    | 31,636 |   |   |   | 33,869 |   |   |   | 39,342 |   |
| Interest      Expense                                    |   |                    | 4,058  |   |   |   | 5,482 |   |   |   | 12,264 |   |
| Net      Interest Income (FTE)                           |   |                    | 27,578 |   |   |   | 28,387 |   |   |   | 27,078 |   |
| Provision      for Loan Losses                           |   |                    | 8,410  |   |   |   | 12,497 |   |   |   | 4,142 |   |
| Taxable      Equivalent Adjustments                      |   |                    | 583    |   |   |   | 640 |   |   |   | 619 |   |
| Net      Interest Income After provision for Loan Losses |   |                    | 18,585 |   |   |   | 15,250 |   |   |   | 22,317 |   |
| Noninterest      Income                                  |   |                    | 14,042 |   |   |   | 13,311 |   |   |   | 17,799 |   |
| Noninterest      Expense                                 |   |                    | 32,257 |   |   |   | 31,002 |   |   |   | 29,798 |   |
| Income      Before Income Taxes                          |   |                    | 370    |   |   |   | (2,441 | ) |   |   | 10,318 |   |
| Income      Taxes                                        |   |                    | (280   | ) |   |   | (738 | ) |   |   | 3,038 |   |
| Net      income                                          |   | $                       | 650    |   |   | $ | (1,703 | ) |   | $ | 7,280 |   |
|                                                     |   |                    |   |   |   |   |   |   |   |   |   |   |
| Basic      Net Income Per Share                          |   | $                       | 0.04   |   |   | $ | (.10 | ) |   | $ | 0.42 |   |
| Diluted      Net Income Per Share                        |   | $                       | 0.04   |   |   | $ | (.10 | ) |   | $ | 0.42 |   |
|                                                     |   |                    |   |   |   |   |   |   |   |   |   |   |
| Return      on Average Assets(2)                         |   |                    | 0.11   | % |   |   | (0.28 | )% |   |   | 1.11 | % |
| Return      on Average Equity(2)                         |   |                    | 0.94   | % |   |   | (2.24 | )% |   |   | 9.87 | % |

| (1) | Computed using a statutory tax      rate of 35% |
|-----|-------------------------------------------------|

| (2) | Annualized |
|-----|------------|

----

----

|                                               |   | Three      Months Ended |   |
|----------------------------------------------------|--------|-------------------------|--------|
|                                               |   | March      31,          |   |   | December      31, |   |   | March      31, |   |
| (Dollars      in Thousands, except per share data) |   | 2009                    |   |   | 2008 |   |   | 2008 |   |
| CHARGE-OFFS                                        |   |                    |   |   |   |   |   |   |   |
| Commercial,      Financial and Agricultural        |   | $                       | 857    |   |   | $ | 331 |   |   | $ | 636 |   |
| Real      Estate - Construction                    |   |                    | 320    |   |   |   | 1,774 |   |   |   | 572 |   |
| Real      Estate - Commercial Mortgage             |   |                    | 1,002  |   |   |   | 293 |   |   |   | 126 |   |
| Real      Estate - Residential                     |   |                    | 1,975  |   |   |   | 2,264 |   |   |   | 176 |   |
| Consumer                                           |   |                    | 2,117  |   |   |   | 1,993 |   |   |   | 1,170 |   |
| Total      Charge-offs                             |   |                    | 6,271  |   |   |   | 6,655 |   |   |   | 2,680 |   |
|                                               |   |                    |   |   |   |   |   |   |   |   |   |   |
| RECOVERIES                                         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial and Agricultural        |   |                    | 74     |   |   |   | 68 |   |   |   | 139 |   |
| Real      Estate - Construction                    |   |                    | 385    |   |   |   | - |   |   |   | - |   |
| Real      Estate - Commercial Mortgage             |   |                    | -      |   |   |   | - |   |   |   | 1 |   |
| Real      Estate - Residential                     |   |                    | 58     |   |   |   | 128 |   |   |   | 3 |   |
| Consumer                                           |   |                    | 512    |   |   |   | 422 |   |   |   | 606 |   |
| Total      Recoveries                              |   |                    | 1,029  |   |   |   | 618 |   |   |   | 749 |   |
|                                               |   |                    |   |   |   |   |   |   |   |   |   |   |
| Net      Charge-offs                               |   | $                       | 5,242  |   |   | $ | 6,037 |   |   | $ | 1,931 |   |
|                                               |   |                    |   |   |   |   |   |   |   |   |   |   |
| Net      Charge - Off's ( Annualized)              |   |                    | 1.08   | % |   |   | 1.24 | % |   |   | 0.41 | % |
| as      a percent of Average                       |   |                    |   |   |   |   |   |   |   |   |   |   |
| Loans      Outstanding, Net of                     |   |                    |   |   |   |   |   |   |   |   |   |   |
| Unearned      Interest                             |   |                    |   |   |   |   |   |   |   |   |   |   |

----

|                                                       |   | Three      Months Ended, |   |
|------------------------------------------------------------|--------|--------------------------|--------|
| (Dollars      in Thousands)                                |   | March      31, 2009 |   |   | December      31, 2008 |   |   | March      31,2008 |   |
| Noninterest      Income:                                   |   |                     |   |   |   |   |   |   |   |
|    Service      Charges on Deposit Accounts |   | $                        | 6,698  |   |   | $ | 6,807 |   |   | $ | 6,765 |   |
|    Data      Processing Fees                |   |                     | 870    |   |   |   | 937 |   |   |   | 813 |   |
|    Asset      Management Fees               |   |                     | 970    |   |   |   | 935 |   |   |   | 1,150 |   |
|    Retail      Brokerage Fees               |   |                     | 493    |   |   |   | 630 |   |   |   | 469 |   |
|    Investment      Security Gains           |   |                     | -      |   |   |   | 3 |   |   |   | 65 |   |
|    Mortgage      Banking Revenues           |   |                     | 584    |   |   |   | 292 |   |   |   | 494 |   |
|    Merchant      Service Fees(1)            |   |                     | 958    |   |   |   | 650 |   |   |   | 2,208 |   |
|    Interchange      Fees(1)                 |   |                     | 1,056  |   |   |   | 1,007 |   |   |   | 1,009 |   |
|    ATM/Debit      Card Fees(1)              |   |                     | 863    |   |   |   | 744 |   |   |   | 744 |   |
|    Other                                    |   |                     | 1,550  |   |   |   | 1,306 |   |   |   | 4,082 |   |
|                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |
| Total      Noninterest Income                              |   | $                        | 14,042 |   |   | $ | 13,311 |   |   | $ | 17,799 |   |
|                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |

----

|                           |   | Three      Months Ended |   |
|--------------------------------|--------|-------------------------|--------|
| (Dollars      in Thousands)    |   | March      31,2009      |   |   | December      31,2008 |   | March      31,2008 |   |
| Noninterest      Expense:      |   |                    |   |   |   |   |   |   |
| Salaries                       |   | $                       | 13,141 |   | $ | 12,335 |   | $ | 13,003 |   |
| Associate      Benefits        |   |                    | 4,096  |   |   | 3,157 |   |   | 2,601 |   |
| Total      Compensation        |   |                    | 17,237 |   |   | 15,492 |   |   | 15,604 |   |
|                           |   |                    |   |   |   |   |   |   |   |   |
| Premises                       |   |                    | 2,345  |   |   | 2,503 |   |   | 2,362 |   |
| Equipment                      |   |                    | 2,338  |   |   | 2,368 |   |   | 2,582 |   |
| Total      Occupancy           |   |                    | 4,683  |   |   | 4,871 |   |   | 4,944 |   |
|                           |   |                    |   |   |   |   |   |   |   |   |
| Legal      Fees                |   |                    | 839    |   |   | 732 |   |   | 503 |   |
| Professional      Fees         |   |                    | 960    |   |   | 1,274 |   |   | 871 |   |
| Processing      Services       |   |                    | 908    |   |   | 1,022 |   |   | 863 |   |
| Advertising                    |   |                    | 856    |   |   | 1,197 |   |   | 779 |   |
| Travel      and Entertainment  |   |                    | 295    |   |   | 390 |   |   | 333 |   |
| Printing      and Supplies     |   |                    | 477    |   |   | 460 |   |   | 515 |   |
| Telephone                      |   |                    | 569    |   |   | 541 |   |   | 593 |   |
| Postage                        |   |                    | 418    |   |   | 419 |   |   | 430 |   |
| Intangible      Amortization   |   |                    | 1,011  |   |   | 1,308 |   |   | 1,459 |   |
| Interchange      Fees          |   |                    | 737    |   |   | 508 |   |   | 1,849 |   |
| Courier      Service           |   |                    | 138    |   |   | 101 |   |   | 127 |   |
| Miscellaneous                  |   |                    | 3,129  |   |   | 2,687 |   |   | 928 |   |
| Total      Other               |   |                    | 10,337 |   |   | 10,639 |   |   | 9,250 |   |
|                           |   |                    |   |   |   |   |   |   |   |   |
| Total      Noninterest Expense |   | $                       | 32,257 |   | $ | 31,002 |   | $ | 29,798 |   |

----

----

----

| Changes      in Interest Rates | +300      bp | +200      bp | +100      bp | -100      bp     |
|--------------------------------|--------------|--------------|--------------|------------------|
|                           |         |         |         |             |
| Policy      Limit              | 10.0%        | 7.5%         | 5.0%         |   5.0% |
| March      31, 2009            | 2.3%         | 1.9%         | 1.7%         | -0.0%            |
| December      31, 2008         | 1.4%         | 1.6%         | 1.2%         | -1.4%            |

| Changes      in Interest Rates | +300      bp | +200      bp | +100      bp | -100      bp |
|--------------------------------|--------------|--------------|--------------|--------------|
|                           |         |         |         |         |
| Policy      Limit              | 12.5%        | 10.0%        | 7.5%         |  7.5%   |
| March      31, 2009            | 0.4%         | 2.4%         | 2.5%         | -3.4%        |
| December      31, 2008         | 0.8%         | 2.3%         | 1.9%         | -4.1%        |

| (1) | Down      200 and 300 rate scenarios have been excluded due to the current      historically low interest rateenvironment. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                   |                |  Three Months      Ended |   |
|--------------------------------------------------------|---------------------|-------------------------------|--------|
| (Taxable      Equivalent Basis - Dollars in Thousands) | March      31, 2009 |                          |   | December      31, 2008 |   |   | March      31, 2008 |   |
| ASSETS                                                 |                | Balance                       |   |   | Interest |   |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |   |  Balance |   |   |  Interest |   |   | Rate |   |
| Loans,      Net of Unearned Interest(1)(2)             | $                   | 1,964,086                     |   | $ | 29,724 |   |   |   | 6.14 | % |   | $ | 1,940,083 |   |   | $ | 31,772 |   |   |   | 6.52 | % |   | $ | 1,909,574 |   |   | $ | 35,452 |   |   |   | 7.47 | % |
| Taxable      Investment Securities                     |                | 90,927                        |   |   | 776 |   |   |   | 3.43 |   |   |   | 90,296 |   |   |   | 813 |   |   |   | 3.59 |   |   |   | 94,786 |   |   |   | 1,108 |   |   |   | 4.67 |   |
| Tax-Exempt      Investment Securities(2)               |                | 101,108                       |   |   | 1,133 |   |   |   | 4.48 |   |   |   | 103,817 |   |   |   | 1,252 |   |   |   | 4.82 |   |   |   | 90,790 |   |   |   | 1,207 |   |   |   | 5.32 |   |
| Funds      Sold                                        |                | 10,116                        |   |   | 3 |   |   |   | 0.13 |   |   |   | 16,645 |   |   |   | 32 |   |   |   | 0.74 |   |   |   | 206,313 |   |   |   | 1,574 |   |   |   | 3.02 |   |
| Total      Earning Assets                              |                | 2,166,237                     |   |   | 31,636 |   |   |   | 5.92 | % |   |   | 2,150,841 |   |   |   | 33,869 |   |   |   | 6.27 | % |   |   | 2,301,463 |   |   |   | 39,341 |   |   |   | 6.87 | % |
| Cash      and Due From Banks                           |                | 76,826                        |   |   |   |   |   |   |   |   |   |   | 76,027 |   |   |   |   |   |   |   |   |   |   |   | 94,247 |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                         |                | (38,007                       | )      |   |   |   |   |   |   |   |   |   | (30,347 | ) |   |   |   |   |   |   |   |   |   |   | (18,227 | ) |   |   |   |   |   |   |   |   |
| Other      Assets                                      |                | 281,869                       |   |   |   |   |   |   |   |   |   |   | 266,798 |   |   |   |   |   |   |   |   |   |   |   | 268,991 |   |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                      | $                   | 2,486,925                     |   |   |   |   |   |   |   |   |   | $ | 2,463,318 |   |   |   |   |   |   |   |   |   |   | $ | 2,646,474 |   |   |   |   |   |   |   |   |   |
|                                                   |                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                                            |                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      Accounts                                      | $                   | 719,265                       |   | $ | 225 |   |   |   | 0.13 | % |   | $ | 684,246 |   |   | $ | 636 |   |   |   | 0.37 | % |   | $ | 773,891 |   |   | $ | 3,440 |   |   |   | 1.79 | % |
| Money      Market Accounts                             |                | 321,562                       |   |   | 190 |   |   |   | 0.24 |   |   |   | 360,940 |   |   |   | 716 |   |   |   | 0.79 |   |   |   | 389,828 |   |   |   | 2,198 |   |   |   | 2.27 |   |
| Savings      Accounts                                  |                | 118,142                       |   |   | 14 |   |   |   | 0.05 |   |   |   | 117,311 |   |   |   | 28 |   |   |   | 0.09 |   |   |   | 113,163 |   |   |   | 34 |   |   |   | 0.12 |   |
| Other      Time Deposits                               |                | 392,006                       |   |   | 2,066 |   |   |   | 2.14 |   |   |   | 379,266 |   |   |   | 2,468 |   |   |   | 2.59 |   |   |   | 467,280 |   |   |   | 4,809 |   |   |   | 4.14 |   |
| Total      Interest Bearing Deposits                   |                | 1,550,975                     |   |   | 2,495 |   |   |   | 0.65 |   |   |   | 1,541,763 |   |   |   | 3,848 |   |   |   | 0.99 |   |   |   | 1,744,162 |   |   |   | 10,481 |   |   |   | 2.42 |   |
| Short-Term      Borrowings                             |                | 85,318                        |   |   | 68 |   |   |   | 0.32 |   |   |   | 69,079 |   |   |   | 110 |   |   |   | 0.62 |   |   |   | 68,095 |   |   |   | 521 |   |   |   | 3.06 |   |
| Subordinated      Notes Payable                        |                | 62,887                        |   |   | 927 |   |   |   | 5.89 |   |   |   | 62,887 |   |   |   | 937 |   |   |   | 5.83 |   |   |   | 62,887 |   |   |   | 931 |   |   |   | 5.96 |   |
| Other      Long-Term Borrowings                        |                | 53,221                        |   |   | 568 |   |   |   | 4.33 |   |   |   | 53,261 |   |   |   | 587 |   |   |   | 4.39 |   |   |   | 27,644 |   |   |   | 331 |   |   |   | 4.82 |   |
| Total      Interest Bearing Liabilities                |                | 1,752,401                     |   |   | 4,058 |   |   |   | 0.94 | % |   |   | 1,726,990 |   |   |   | 5,482 |   |   |   | 1.26 | % |   |   | 1,902,788 |   |   |   | 12,264 |   |   |   | 2.59 | % |
| Noninterest      Bearing Deposits                      |                | 406,380                       |   |   |   |   |   |   |   |   |   |   | 404,103 |   |   |   |   |   |   |   |   |   |   |   | 404,712 |   |   |   |   |   |   |   |   |   |
| Other      Liabilities                                 |                | 46,510                        |   |   |   |   |   |   |   |   |   |   | 29,998 |   |   |   |   |   |   |   |   |   |   |   | 42,170 |   |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                 |                | 2,205,291                     |   |   |   |   |   |   |   |   |   |   | 2,161,091 |   |   |   |   |   |   |   |   |   |   |   | 2,349,670 |   |   |   |   |   |   |   |   |   |
|                                                   |                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHAREOWNERS'      EQUITY                               |                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      SHAREOWNERS' EQUITY                         |                | 281,634                       |   |   |   |   |   |   |   |   |   |   | 302,227 |   |   |   |   |   |   |   |   |   |   |   | 296,804 |   |   |   |   |   |   |   |   |   |
|                                                   |                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES & EQUITY                    | $                   | 2,486,925                     |   |   |   |   |   |   |   |   |   | $ | 2,463,318 |   |   |   |   |   |   |   |   |   |   | $ | 2,646,474 |   |   |   |   |   |   |   |   |   |
|                                                   |                |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Spread                              |                |                          |   |   |   |   |   |   | 4.98 | % |   |   |   |   |   |   |   |   |   |   | 5.01 | % |   |   |   |   |   |   |   |   |   |   | 4.28 | % |
| Net      Interest Income                               |                |                          |   | $ | 27,578 |   |   |   |   |   |   |   |   |   |   | $ | 28,387 |   |   |   |   |   |   |   |   |   |   | $ | 27,077 |   |   |   |   |   |
| Net      Interest Margin(3)                            |                |                          |   |   |   |   |   |   | 5.16 | % |   |   |   |   |   |   |   |   |   |   | 5.26 | % |   |   |   |   |   |   |   |   |   |   | 4.73 | % |

| (1) | Average balances include      nonaccrual loans.  Interest income includes fees on loans of      $381,000 and $696,000, for the three months ended March 31, 2009 and 2008,      respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Interest income includes the      effects of taxable equivalent adjustments using a 35% tax      rate. |
|-----|--------------------------------------------------------------------------------------------------------|

| (3) | Taxable equivalent net      interest income divided by average earning  assets. |
|-----|---------------------------------------------------------------------------------|

----

| Item      3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT      MARKET RISK |
|--------------|-----------------------------------------------------------------|

| Item      4. | CONTROLS ANDPROCEDURES |
|--------------|------------------------|

| PART II. | OTHER      INFORMATION |
|----------|------------------------|

| Item      1. | Legal Proceedings |
|--------------|-------------------|

| Item      1A. | Risk Factors |
|---------------|--------------|

----

| Item      2. | Unregistered Sales of Equity Securities and Use of      Proceeds |
|--------------|------------------------------------------------------------------|

| Period                                         | Total      numberof      sharespurchased | Averageprice      paidper      share |   | Total      number ofshares      purchased aspart      of our sharerepurchase program(1) | Maximum      Numberof      shares thatmay      yet be purchasedunder      our sharerepurchase      program |
|------------------------------------------------|------------------------------------------|--------------------------------------|--------|-----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|                                           |                                     |                                 |   |                                                                                    |                                                                                                       |   |   |
| January      1, 2009 toJanuary      31, 2009   |  -                                  |  -                              |   |                                                                                    |  2,374,242                                                                                            |   |  297,633 |
| February      1, 2009 toFebruary      28, 2009 |  3,900                              |  11.11                          |   |                                                                                    |  2,378,142                                                                                            |   |  293,733 |
| March      1, 2009 toMarch      31, 2009       |  141,988                            |  10.35                          |   |                                                                                    |  2,520,130                                                                                            |   |  151,745 |
| Total                                          | 145,888                                  | $10.65                               |   |                                                                                    | 2,520,130                                                                                                  |   | 151,745 |
|                                           |                                     |                                 |   |                                                                                    |                                                                                                       |   |   |

| (1) | This      balance represents the number of shares that were repurchased through the      Capital City Bank Group, Inc. Share Repurchase Program (the “Program”),      which was approved on March 30, 2000, and modified by our Board on January      24, 2002, March 22, 2007, and November 11, 2007 under which we were      authorized to repurchase up to 2,671,875 shares of our common      stock.  The Program is flexible and shares are acquired from the      public markets and other sources using free cash flow.  There is      no predetermined expiration date for the Program.  No shares in      the first quarter were repurchased outside of the  Program. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item      3. | Defaults Upon Senior  Securities |
|--------------|----------------------------------|

| Item      4. | Submission of Matters to a Vote of Security      Holders |
|--------------|----------------------------------------------------------|

| Item      5. | OtherInformation |
|--------------|------------------|

| Item      6. | Exhibits |
|--------------|----------|

| (A) | Exhibits |
|-----|----------|

| 31.1 | Certification      of William G. Smith, Jr., Chairman, President and Chief Executive Officer      of Capital City Bank Group, Inc., Pursuant to Rule 13a-14(a) of the      Securities Exchange Act of 1934. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification      of J. Kimbrough Davis, Executive Vice President and Chief Financial      Officer of Capital City Bank Group, Inc., Pursuant to Rule 13a-14(a) of      the Securities Exchange Act of1934. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification      of William G. Smith, Jr., Chairman, President and Chief Executive Officer      of Capital City Bank Group, Inc., Pursuant to 18 U.S.C. Section      1350. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2   | Certification      of J. Kimbrough Davis, Executive Vice President and Chief Financial      Officer of Capital City Bank Group, Inc., Pursuant to 18 U.S.C. Section      1350. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

SIGNATURES

| By: /s/ J. Kimbrough Davis                                                                                                |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
| J.      Kimbrough Davis                                                                                                   |   |
| Executive      Vice President and Chief Financial Officer                                                                 |   |
| (Mr.      Davis is the Principal Financial Officer and has been duly authorized to      sign on behalf of the Registrant) |   |
|                                                                                                                      |   |
| Date:      May 7, 2009                                                                                               |   |