| 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 – September 30,      2009 and December 31, 2008             | 4      |
|                                      | Consolidated Statements of Income – Three and Nine Months Ended      September 30, 2009 and 2008           | 5      |
|                                      | Consolidated Statement of Changes in Shareowners’ Equity –      Nine Months Ended September 30, 2009 | 6      |
|                                      | Consolidated Statements of Cash Flow – Nine Months Ended      September 30, 2009 and 2008                  | 7      |
|                                      | Notes to Consolidated Financial    Statements                                                                    | 8      |
|                                      |                                                                                                             |   |
| Item      2.                              | Management's Discussion and Analysis of Financial Condition      and Results of Operations                       | 20     |
|                                      |                                                                                                             |   |
| Item      3.                              | Quantitative and Qualitative Disclosure About Market      Risk                                                   | 35     |
|                                      |                                                                                                             |   |
| Item      4.                              | Controls and Procedures                                                                                          | 35     |
|                                      |                                                                                                             |   |
| PART      II – Other Information    |                                                                                                             |   |
|                                      |
| Item      1.                              | Legal Proceedings                                                                                                | 35     |
|                                      |                                                                                                             |   |
| Item      1A.                             | Risk Factors                                                                                                     | 35     |
|                                      |                                                                                                             |   |
| Item      2.                              | Unregistered Sales of Equity Securities and Use of      Proceeds                                                 | 35     |
|                                      |                                                                                                             |   |
| Item      3.                              | Defaults Upon Senior Securities                                                                                  | 35     |
|                                      |                                                                                                             |   |
| Item      4.                              | Submission of Matters to a Vote of Security      Holders                                                         | 35     |
|                                      |                                                                                                             |   |
| Item      5.                              | Other Information                                                                                                | 35     |
|                                      |                                                                                                             |   |
| Item      6.                              | Exhibits                                                                                                         | 36     |
|                                      |                                                                                                             |   |
| Signatures                                |                                                                                                             | 37     |
|                                      |                                                                                                             |   |
| Exhibit Index                             |                                                                                                             | 38     |

| §   | 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; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| §   | the      effects of federal and state banking laws on our ability to declare and      pay dividends; |
|--------------------|------------------------------------------------------------------------------------------------------|

| §   | 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. |
|--------------------|------------------------------------------------------------------|

----

Item1.               CONSOLIDATEDFINANCIAL STATEMENTS (Unaudited

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

| (Dollars      In Thousands, Except Share Data)                                                                                                                                               |   | September      30, 2009 |      |   | December      31, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
| ASSETS                                                                                                                                                                                       |   |                    |      |   |                   |   |
| Cash      and Due From Banks                                                                                                                                                                 |   | $                       | 79,275    |   |                   | $      | 88,143 |   |
| Federal      Funds Sold and Interest Bearing Deposits                                                                                                                                        |   |                    | 828       |   |                   |   | 6,806 |   |
| Total      Cash and Cash Equivalents                                                                                                                                                         |   |                    | 80,103    |   |                   |   | 94,949 |   |
|                                                                                                                                                                                         |   |                    |      |   |                   |   |   |   |
| Investment      Securities, Available-for-Sale                                                                                                                                               |   |                    | 183,944   |   |                   |   | 191,569 |   |
|                                                                                                                                                                                         |   |                    |      |   |                   |   |   |   |
| Loans,      Net of Unearned Interest                                                                                                                                                         |   |                    | 1,958,032 |   |                   |   | 1,957,797 |   |
| Allowance      for Loan Losses                                                                                                                                                               |   |                    | (45,401   | )      |                   |   | (37,004 | ) |
| Loans,      Net                                                                                                                                                                              |   |                    | 1,912,631 |   |                   |   | 1,920,793 |   |
|                                                                                                                                                                                         |   |                    |      |   |                   |   |   |   |
| Premises      and Equipment, Net                                                                                                                                                             |   |                    | 111,797   |   |                   |   | 106,433 |   |
| Goodwill                                                                                                                                                                                     |   |                    | 84,811    |   |                   |   | 84,811 |   |
| Other      Intangible Assets                                                                                                                                                                 |   |                    | 5,040     |   |                   |   | 8,072 |   |
| Other      Assets                                                                                                                                                                            |   |                    | 113,611   |   |                   |   | 82,072 |   |
| Total      Assets                                                                                                                                                                            |   | $                       | 2,491,937 |   |                   | $      | 2,488,699 |   |
|                                                                                                                                                                                         |   |                    |      |   |                   |   |   |   |
| LIABILITIES                                                                                                                                                                                  |   |                    |      |   |                   |   |   |   |
| Deposits:                                                                                                                                                                                    |   |                    |      |   |                   |   |   |   |
| Noninterest      Bearing Deposits                                                                                                                                                            |   | $                       | 397,943   |   |                   | $      | 419,696 |   |
| Interest      Bearing Deposits                                                                                                                                                               |   |                    | 1,552,047 |   |                   |   | 1,572,478 |   |
| Total      Deposits                                                                                                                                                                          |   |                    | 1,949,990 |   |                   |   | 1,992,174 |   |
|                                                                                                                                                                                         |   |                    |      |   |                   |   |   |   |
| Short-Term      Borrowings                                                                                                                                                                   |   |                    | 103,711   |   |                   |   | 62,044 |   |
| Subordinated      Notes Payable                                                                                                                                                              |   |                    | 62,887    |   |                   |   | 62,887 |   |
| Other      Long-Term Borrowings                                                                                                                                                              |   |                    | 50,665    |   |                   |   | 51,470 |   |
| Other      Liabilities                                                                                                                                                                       |   |                    | 56,269    |   |                   |   | 41,294 |   |
| Total      Liabilities                                                                                                                                                                       |   |                    | 2,223,522 |   |                   |   | 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; 17,032,337 and      17,126,997 shares issued and outstanding at September 30, 2009 and      December 31, 2008, respectively |   |                    | 170       |   |                   |   | 171 |   |
| Additional      Paid-In Capital                                                                                                                                                              |   |                    | 36,065    |   |                   |   | 36,783 |   |
| Retained      Earnings                                                                                                                                                                       |   |                    | 253,104   |   |                   |   | 262,890 |   |
| Accumulated      Other Comprehensive Loss, Net of Tax                                                                                                                                        |   |                    | (20,924   | )      |                   |   | (21,014 | ) |
| Total      Shareowners' Equity                                                                                                                                                               |   |                    | 268,415   |   |                   |   | 278,830 |   |
| Total      Liabilities and Shareowners' Equity                                                                                                                                               |   | $                       | 2,491,937 |   |                   | $      | 2,488,699 |   |

----

CONSOLIDATED STATEMENTS OF INCOME

|                                                          |   | Three      Months Ended |                                                                                                               |   | Nine      Months Ended |   |                                                                                                               |
|---------------------------------------------------------------|--------|-------------------------|--------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------------------------------------------------------------------------------------------------------------------|
| (Dollars      in Thousands, Except Per Share Data)            |   | 2009                    |                                                                                                               |   | 2008                   |   |                                                                                                               | 2009 |   |   | 2008 |   |
| INTEREST      INCOME                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |
| Interest      and Fees on Loans                               |   | $                       |                   29,463 |   |                   | $      |                   32,435 |   |   | $ | 88,742 |   |   | $ | 101,112 |   |
| Investment      Securities:                                   |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| U.S.      Treasuries                                          |   |                    | 125                                                                                                                |   |                   |   | 218                                                                                                                |   |   |   | 444 |   |   |   | 566 |   |
| U.S.      Government Agencies                                 |   |                    | 440                                                                                                                |   |                   |   | 588                                                                                                                |   |   |   | 1,471 |   |   |   | 2,014 |   |
| States      and Political Subdivisions                        |   |                    | 641                                                                                                                |   |                   |   | 803                                                                                                                |   |   |   | 2,073 |   |   |   | 2,372 |   |
| Other      Securities                                         |   |                    | 117                                                                                                                |   |                   |   | 135                                                                                                                |   |   |   | 285 |   |   |   | 495 |   |
| Federal      Funds Sold                                       |   |                    | 1                                                                                                                  |   |                   |   | 475                                                                                                                |   |   |   | 5 |   |   |   | 3,078 |   |
| Total      Interest Income                                    |   |                    | 30,787                                                                                                             |   |                   |   | 34,654                                                                                                             |   |   |   | 93,020 |   |   |   | 109,637 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| INTEREST      EXPENSE                                         |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| Deposits                                                      |   |                    | 2,626                                                                                                              |   |                   |   | 5,815                                                                                                              |   |   |   | 7,621 |   |   |   | 23,458 |   |
| Short-Term      Borrowings                                    |   |                    | 113                                                                                                                |   |                   |   | 230                                                                                                                |   |   |   |              269 |   |   |   |           1,047 |   |
| Subordinated      Notes Payable                               |   |                    | 936                                                                                                                |   |                   |   | 936                                                                                                                |   |   |   | 2,794 |   |   |   | 2,798 |   |
| Other      Long-Term Borrowings                               |   |                    | 560                                                                                                                |   |                   |   | 488                                                                                                                |   |   |   | 1,694 |   |   |   | 1,215 |   |
| Total      Interest Expense                                   |   |                    | 4,235                                                                                                              |   |                   |   | 7,469                                                                                                              |   |   |   | 12,378 |   |   |   | 28,518 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| NET      INTEREST INCOME                                      |   |                    | 26,552                                                                                                             |   |                   |   | 27,185                                                                                                             |   |   |   | 80,642 |   |   |   | 81,119 |   |
| Provision      for Loan Losses                                |   |                    | 12,347                                                                                                             |   |                   |   | 10,425                                                                                                             |   |   |   | 29,183 |   |   |   | 19,999 |   |
| Net      Interest Income After Provision For Loan Losses |   |                    | 14,205                                                                                                             |   |                   |   | 16,760                                                                                                             |   |   |   | 51,459 |   |   |   | 61,120 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| NONINTEREST      INCOME                                       |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| Service      Charges on Deposit Accounts                      |   |                    | 7,099                                                                                                              |   |                   |   | 7,110                                                                                                              |   |   |   | 20,959 |   |   |   | 20,935 |   |
| Data      Processing                                          |   |                    | 914                                                                                                                |   |                   |   | 873                                                                                                                |   |   |   | 2,680 |   |   |   | 2,498 |   |
| Asset      Management Fees                                    |   |                    | 960                                                                                                                |   |                   |   | 1,025                                                                                                              |   |   |   | 2,860 |   |   |   | 3,300 |   |
| Securities      Transactions                                  |   |                    | 4                                                                                                                  |   |                   |   | 27                                                                                                                 |   |   |   | 10 |   |   |   | 122 |   |
| Mortgage      Banking Fees                                    |   |                    | 663                                                                                                                |   |                   |   | 331                                                                                                                |   |   |   | 2,149 |   |   |   | 1,331 |   |
| Bank      Card Fees                                           |   |                    | 2,398                                                                                                              |   |                   |   | 2,431                                                                                                              |   |   |   | 7,940 |   |   |   | 10,300 |   |
| Gain      on Sale of Portion of Merchant Services Portfolio   |   |                    | -                                                                                                                  |   |                   |   | 6,250                                                                                                              |   |   |   | - |   |   |   | 6,250 |   |
| Other                                                         |   |                    | 2,266                                                                                                              |   |                   |   | 2,165                                                                                                              |   |   |   | 6,382 |   |   |   | 8,993 |   |
| Total      Noninterest Income                                 |   |                    | 14,304                                                                                                             |   |                   |   | 20,212                                                                                                             |   |   |   | 42,980 |   |   |   | 53,729 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| NONINTEREST      EXPENSE                                      |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| Salaries      and Associate Benefits                          |   |                    | 15,660                                                                                                             |   |                   |   | 15,417                                                                                                             |   |   |   | 48,946 |   |   |   | 46,339 |   |
| Occupancy,      Net                                           |   |                    | 2,455                                                                                                              |   |                   |   | 2,373                                                                                                              |   |   |   | 7,340 |   |   |   | 7,226 |   |
| Furniture      and Equipment                                  |   |                    | 2,193                                                                                                              |   |                   |   | 2,369                                                                                                              |   |   |   | 6,835 |   |   |   |          7,534 |   |
| Intangible      Amortization                                  |   |                    | 1,011                                                                                                              |   |                   |   | 1,459                                                                                                              |   |   |   | 3,032 |   |   |   | 4,376 |   |
| Other                                                         |   |                    | 10,296                                                                                                             |   |                   |   | 8,298                                                                                                              |   |   |   | 30,649 |   |   |   | 24,995 |   |
| Total      Noninterest Expense                                |   |                    | 31,615                                                                                                             |   |                   |   | 29,916                                                                                                             |   |   |   | 96,802 |   |   |   | 90,470 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| INCOME      BEFORE INCOME TAXES                               |   |                    | (3,106)                                                                                                            |   |                   |   | 7,056                                                                                                              |   |   |   | (2,363) |   |   |   | 24,379 |   |
| Income      Tax (Benefit) Expense                             |   |                    | (1,618)                                                                                                            |   |                   |   | 2,218                                                                                                              |   |   |   | (2,299) |   |   |   | 7,451 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| NET      (LOSS) INCOME                                        |   | $                       | (1,488)                                                                                                            |   |                   | $      | 4,838                                                                                                              |   |   | $ | (64) |   |   | $ | 16,928 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| Basic      Net Income Per Share                               |   | $                       | (0.08)                                                                                                             |   |                   | $      | 0.29                                                                                                               |   |   | $ | 0.00 |   |   | $ | 0.99 |   |
| Diluted      Net Income Per Share                             |   | $                       | (0.08)                                                                                                             |   |                   | $      | 0.29                                                                                                               |   |   | $ | 0.00 |   |   | $ | 0.99 |   |
|                                                          |   |                    |                                                                                                               |   |                   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |
| Average      Basic Shares Outstanding                         |   |                    | 17,024,423                                                                                                         |   |                   |   | 17,123,967                                                                                                         |   |   |   | 17,047,464 |   |   |   | 17,146,780 |   |
| Average      Diluted Shares Outstanding                       |   |                    | 17,024,908                                                                                                         |   |                   |   | 17,127,949                                                                                                         |   |   |   | 17,048,030 |   |   |   | 17,149,392 |   |

----

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      Loss                                                                                          | -                       |   |   | -                 |    |   | -                              |   |                   | (64)    |   |                                                      |   | -       |   |   | (64) |   |
| Net      Change in Unrealized Gain On   Available-for-Sale      Securities (net of tax) | -                       |   |   | -                 |    |   | -                              |   |                   | -       |   |                                                      |   | 90      |   |   | 90 |   |
| Total      Comprehensive Income                                                                        | -                       |   |   | -                 |    |   | -                              |   |                   |    |   |                                                      |   |    |   |   | 26 |   |
| Cash      Dividends ($.570 per share)                                                                  | -                       |   |   | -                 |    |   | -                              |   |                   | (9,722  | )      |                                                      |   | -       |   |   | (9,722 | ) |
| Stock      Performance Plan Compensation                                                               | -                       |   |   | -                 |    |   | (15                            | )      |                   | -       |   |                                                      |   | -       |   |   | (15 | ) |
| Issuance      of Common Stock                                                                          | 51,228                  |   |   | -                 |    |   | 996                            |   |                   | -       |   |                                                      |   | -       |   |   | 996 |   |
| Repurchase      of Common Stock                                                                        | (145,888                | )      |   | (1                | )  |   | (1,560                         | )      |                   | -       |   |                                                      |   | -       |   |   | (1,561 | ) |
|                                                                                                   |                    |   |   |              |    |   |                           |   |                   |    |   |                                                      |   |    |   |   |   |   |
| Balance,      September 30, 2009                                                                       | 17,032,337              |   | $      |  170         |    | $      | 36,065                         |   | $                      | 253,10  |   |                                                      | $      | (20,924 | )      | $ | 268,415 |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

| (Dollars      in Thousands)                                                            |   | 2009   |                                                                                                                |    | 2008   |   |
|----------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|---------|--------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES                                              |   |   |                                                                                                                |    |   |   |
| Net      Income                                                                        |   | $      | (64                                                                                                                 | )  |   | $      | 16,928 |   |
| Adjustments      to Reconcile Net Income toCash      Provided by Operating Activities: |   |   |                                                                                                                |    |   |   |   |   |
| Provision      for Loan Losses                                                         |   |   |          29,183                                                        |    |   |   | 19,999 |   |
| Depreciation                                                                           |   |   |            5,015                                             |    |   |   | 5,173 |   |
| Net      Securities Amortization                                                       |   |   |            1,692                                             |    |   |   | 616 |   |
| Amortization      of Intangible Assets                                                 |   |   |            3,032                                             |    |   |   | 4,376 |   |
| Gain      on Sale of Portion of Merchant Services Portfolio                            |   |   |               -                               |    |   |   | (6,250 | ) |
| Proceeds      From Sale of Portion of Merchant Services Portfolio                      |   |   |               -                               |    |   |   | 6,250 |   |
| Gain      on Securities Transactions                                                   |   |   |               (10                             | )       |   |   | (122 | ) |
| Origination      of Loans Held-for-Sale                                                |   |   |      (129,263                                                                              | )       |   |   | (87,612 | ) |
| Proceeds      From Sales of Loans Held-for-Sale                                        |   |   |        130,564                                                                   |    |   |   | 90,927 |   |
| Net      Gain From Sales of Loans Held-for-Sale                                        |   |   |          (2,149                                                        | )       |   |   | (1,331 | ) |
| Non-Cash      Compensation                                                             |   |   |                    - |    |   |   | 19 |   |
| Increase      in Deferred Income Taxes                                                 |   |   |            4,443                                             |    |   |   | 1,081 |   |
| Net      (Increase) Decrease in Other Assets                                           |   |   |             (6,907                                      | )       |   |   | 10,818 |   |
| Net      Increase (Decrease) in Other Liabilities                                      |   |   |          17,929                                                        |    |   |   | (10,283 | ) |
| Net      Cash Provided By Operating Activities                                         |   |   |          53,465                                                        |    |   |   | 50,589 |   |
|                                                                                   |   |   |                                                                                                                |    |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                              |   |   |                                                                                                                |    |   |   |   |   |
| Securities      Available-for-Sale:                                                    |   |   |                                                                                                                |    |   |   |   |   |
| Purchases                                                                              |   |   |        (54,347                                                                   | )       |   |   | (75,528 | ) |
| Sales                                                                                  |   |   |            2,806                                             |    |   |   | 10,490 |   |
| Payments,      Maturities, and Calls                                                   |   |   |          57,687                                                        |    |   |   | 61,504 |   |
| Net      Increase in Loans                                                             |   |   |        (52,470                                                                   | )  |   |   | (26,672 | )  |
| Purchase      of Premises & Equipment                                              |   |   |        (10,381                                                                   | )       |   |   | (11,368 | ) |
| Proceeds      From Sales of Premises & Equipment                                   |   |   |        2                                                                         |    |   |   | - |   |
| Net      Cash Used In Investing Activities                                             |   |   |                (56,703                   | )  |   |   | (41,574 | )  |
|                                                                                   |   |   |                                                                                                                |    |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                              |   |   |                                                                                                                |    |   |   |   |   |
| Decrease      in Deposits                                                              |   |   |        (42,183                                                                   | )       |   |   | (179,561 | ) |
| Net      Increase (Decrease) in Short-Term Borrowings                                  |   |   |          41,385                                                        |    |   |   | (6,053 | ) |
| Increase      in Other Long-Term Borrowings                                            |   |   |                   2,666   |    |   |   | 28,526 |   |
| Repayment      of Other Long-Term Borrowings                                           |   |   |          (3,189                                                        | )       |   |   | (2,191 | ) |
| Dividends      Paid                                                                    |   |   |          (9,722                                                        | )       |   |   | (9,370 | ) |
| Repurchase      of Common Stock                                                        |   |   |          (1,561                                                        | )       |   |   | (2,414 | ) |
| Issuance      of Common Stock                                                          |   |   |          996                                                           |    |   |   | 832 |   |
| Net      Cash Provided by Financing Activities                                         |   |   |               (11,608                         | )  |   |   | (170,231 | ) |
|                                                                                   |   |   |                                                                                                                |    |   |   |   |   |
| NET      CHANGE IN CASH AND CASH EQUIVALENTS                                           |   |   | (14,846                                                                                                             | )       |   |   | (161,216 | ) |
|                                                                                   |   |   |                                                                                                                |    |   |   |   |   |
| Cash      and Cash Equivalents at Beginning of Period                                  |   |   | 94,949                                                                                                              |    |   |   | 259,697 |   |
| Cash      and Cash Equivalents at End of Period                                        |   | $      | 80,103                                                                                                              |    |   | $      | 98,481 |   |
|                                                                                   |   |   |                                                                                                                |    |   |   |   |   |
| Supplemental      Disclosure:                                                          |   |   |                                                                                                                |    |   |   |   |   |
| Interest      Paid on Deposits                                                         |   | $      | 7,775                                                                                                               |    |   | $      | 25,135 |   |
| Interest      Paid on Debt                                                             |   | $      | 4,763                                                                                                               |    |   | $      | 5,040 |   |
| Taxes      Paid                                                                        |   | $      | 5,667                                                                                                               |    |   | $      | 14,027 |   |
| Loans      Transferred to Other Real Estate Owned                                      |   | $      | 32,298                                                                                                              |    |   | $      | 5,788 |   |
| Issuance      of Common Stock as Non-Cash Compensation                                 |   | $      | 154                                                                                                                 |    |   | $      | 1 |   |

----

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

|                                        |   | September      30, 2009 |                                                                           |
|---------------------------------------------|--------|-------------------------|--------------------------------------------------------------------------------|
| (Dollars      in Thousands)                 |   | Amortized      Cost     |                                                                           |   | Unrealized      Gains |   |   | Unrealized      Losses |   |   | Market      Value |   |
| U.S.      Treasury                          |   | $                       | 22,318                                                                         |   |   | $ | 274 |   |   | $ | - |   |   | $ | 22,592 |   |
| U.S.      Government Agencies               |   |                    | 1,500                                                                          |   |   |   | 6 |   |   |   | - |   |   |   | 1,506 |   |
| States      and Political Subdivisions      |   |                    | 107,266                                                                        |   |   |   |             1,429 |   |   |   | 45 |   |   |   | 108,650 |   |
| Residential      Mortgage-Backed Securities |   |                    |             36,848 |   |   |   |                845 |   |   |   | 33 |   |   |   |        37,660 |   |
| Other      Securities(1)                    |   |                    |             13,536 |   |   |   |                - |   |   |   | - |   |   |   |        13,536 |   |
| Total      Investment Securities            |   | $                       |           181,468            |   |   | $ |            2,554 |   |   | $ | 78 |   |   | $ |      183,944 |   |

|                                        |   | 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 |   |
| Residential      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 $7.7 million and      $4.8 million, respectively, at September 30, 2009, and $7.0 million and      $4.8 million, respectively, at December 31, 2008. Also, balance includes a      bank preferred stock issue recorded at $1.0 million and $1.1 million at      September 30, 2009 and December 31, 2008,    respectively. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars      in Thousands)           |   | Amortized      Cost |                                                                                                                                              |   | Market      Value |   |
|---------------------------------------|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
| Due      in one year or less          |   | $                   |                  72,007                                      |   |              | $      |                 72,738 |   |
| Due      after one through five years |   |                |                  95,436                                      |   |              |   |                 97,169 |   |
| Due      after five through ten years |   |                |                    1,489                           |   |              |   |                   1,501 |   |
| Due      over ten years               |   |                |                         - |   |              |   |                         - |   |
| No      Maturity                      |   |                |                  12,536                                      |   |              |   |                 12,536 |   |
| Total      Investment Securities      |   | $                   | 181,468                                                                                                                                           |   |              | $      | 183,944 |   |

| (Dollars      in Thousands)                 |   | September      30, 2009 |      |   | December      31, 2008 |   |
|---------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
| Commercial,      Financial and Agricultural |   | $                       | 203,813   |   |                   | $      | 206,230 |   |
| Real      Estate-Construction               |   |                    | 128,476   |   |                   |   | 141,973 |   |
| Real      Estate-Commercial                 |   |                    | 704,595   |   |                   |   | 656,959 |   |
| Real      Estate-Residential(1)             |   |                    | 429,087   |   |                   |   | 481,034 |   |
| Real      Estate-Home Equity                |   |                    | 243,808   |   |                   |   | 218,500 |   |
| Real      Estate-Loans Held-for-Sale        |   |                    | 3,418     |   |                   |   | 3,204 |   |
| Consumer                                    |   |                    | 244,835   |   |                   |   | 249,897 |   |
| Loans,      Net of Unearned Interest        |   | $                       | 1,958,032 |   |                   | $      | 1,957,797 |   |

| (1) | Includes      loans in process with outstanding balances of $6.7 million and $13.9      million for September 30, 2009 and December 31, 2008,      respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars      in Thousands)                     |   | 2009   |    |   | 2008   |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Balance,      Beginning of Period               |   | $      | 37,004  |   |   | $      | 18,066 |   |
| Provision      for Loan Losses                  |   |   | 29,183  |   |   |   | 19,999 |   |
| Recoveries      on Loans Previously Charged-Off |   |   | 2,249   |   |   |   | 1,799 |   |
| Loans      Charged-Off                          |   |   | (23,035 | )      |   |   | (9,320 | ) |
| Balance,      End of Period                     |   | $      | 45,401  |   |   | $      | 30,544 |   |

|                                     |   | September      30, 2009 |   |   | December      31, 2008   |   |
|------------------------------------------|--------|-------------------------|--------|--------|--------------------------|--------|
|  (Dollars      in Thousands)        |   | Balance                 |   |   | Valuation      Allowance |   |   | Balance |   |   | Valuation      Allowance |   |
| Impaired      Loans:                     |   |                    |   |   |                     |   |   |   |   |   |   |   |
| With      Related Valuation Allowance    |   | $                       | 95,506 |   |                     | $      | 22,395 |   |   | $ | 68,705 |   |   | $ | 15,901 |   |
| Without      Related Valuation Allowance |   |                    | 25,507 |   |                     |   | - |   |   |   | 37,723 |   |   |   | - |   |

----

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

|                                  |   | September      30, 2009 |    |   | December      31, 2008  |   |
|---------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|  (Dollars      in Thousands)     |   | GrossAmount             |    |   | AccumulatedAmortization |   |   | GrossAmount |   |   | AccumulatedAmortization |   |
| Core      Deposit Intangibles         |   | $                       | 47,176  |   |                    | $      | 42,980 |   |   | $ | 47,176 |   |   | $ | 40,092 |   |
| Goodwill                              |   |                    | 84,811  |   |                    |   | - |   |   |   | 84,811 |   |   |   | - |   |
| Customer      Relationship Intangible |   |                    | 1,867   |   |                    |   | 1,023 |   |   |   | 1,867 |   |   |   | 879 |   |
| Total      Intangible Assets          |   | $                       | 133,854 |   |                    | $      | 44,003 |   |   | $ | 133,854 |   |   | $ | 40,971 |   |

| (Dollars      in Thousands)          |   | September      30, 2009 |      |   | December      31, 2008 |   |
|--------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
| NOW      Accounts                    |   | $                       | 687,679   |   |                   | $      | 758,976 |   |
| Money      Market Accounts           |   |                    | 301,662   |   |                   |   | 324,646 |   |
| Savings      Deposits                |   |                    | 122,040   |   |                   |   | 115,261 |   |
| Other      Time Deposits             |   |                    | 440,666   |   |                   |   | 373,595 |   |
| Total      Interest Bearing Deposits |   | $                       | 1,552,047 |   |                   | $      | 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 September 30, 2009 |   |   | 60,384 |   |                                 | $      | 32.79  |                                 |   |   | 5.1                            |   |   | $ | - |   |
| Exercisable      at September 30, 2009 |   |   | 60,384 |   |                                 | $      | 32.79  |                                 |   |   | 5.1                            |   |   | $ | - |   |

----

|                                    |   | Three      Months EndedSeptember      30, |   |   | Nine      Months EndedSeptember 30, |   |
|-----------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
| (Dollars      in Thousands)             |   | 2009                                      |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                    |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Discount      Rate                      |   |                                      | 6.00   | %      |                                     |   | 6.25 | % |   |   | 6.00 | % |   |   | 6.25 | % |
| Long-Term      Rate of Return on Assets |   |                                      | 8.00   | %      |                                     |   | 8.00 | % |   |   | 8.00 | % |   |   | 8.00 | % |
|                                    |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Service      Cost                       |   | $                                         | 1,398  |   |                                     | $      | 1,279 |   |   | $ | 4,194 |   |   | $ | 3,837 |   |
| Interest      Cost                      |   |                                      | 1,147  |   |                                     |   | 1,063 |   |   |   | 3,441 |   |   |   | 3,189 |   |
| Expected      Return on Plan Assets     |   |                                      | (1,265 | )      |                                     |   | (1,253 | ) |   |   | (3,795 | ) |   |   | (3,759 | ) |
| Prior      Service Cost Amortization    |   |                                      | 127    |   |                                     |   | 75 |   |   |   | 382 |   |   |   | 225 |   |
| Net      Loss Amortization              |   |                                      | 739    |   |                                     |   | 280 |   |   |   | 2,216 |   |   |   | 840 |   |
| Net      Periodic Benefit Cost          |   | $                                         | 2,146  |   |                                     | $      | 1,444 |   |   | $ | 6,438 |   |   | $ | 4,332 |   |

|                                 |   | Three      Months Ended September 30, |   |   | Nine      Months EndedSeptember      30, |   |
|--------------------------------------|--------|--------------------------------------------|--------|--------|------------------------------------------|--------|
| (Dollars      in Thousands)          |   | 2009                                       |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                 |   |                                       |   |   |                                     |   |   |   |   |   |   |   |
| Discount      Rate                   |   |                                       | 6.00   | %      |                                     |   | 6.25 | % |   |   | 6.00 | % |   |   | 6.25 | % |
|                                 |   |                                       |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Service      Cost                    |   | $                                          | 5      |   |                                     | $      | 22 |   |   | $ | 15 |   |   | $ | 66 |   |
| Interest      Cost                   |   |                                       | 45     |   |                                     |   | 56 |   |   |   | 134 |   |   |   | 168 |   |
| Prior      Service Cost Amortization |   |                                       | 45     |   |                                     |   | 2 |   |   |   | 135 |   |   |   | 6 |   |
| Net      Loss Amortization           |   |                                       | (88)   |   |                                     |   | 1 |   |   |   | (263) |   |   |   | 3 |   |
| Net      Periodic Benefit Cost       |   | $                                          | 7      |   |                                     | $      | 81 |   |   | $ | 21 |   |   | $ | 243 |   |

| NOTE      9 - COMMITMENTS AND CONTINGENCIES |
|---------------------------------------------|

| (Dollars      in Millions)           |   | Amount |   |
|--------------------------------------|--------|--------|--------|
| Commitments      to Extend Credit(1) |   | $      | 367    |   |
| Standby      Letters of Credit       |   | $      | 14     |   |

| (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 |   | $                   | 26,085 |   |                | $      | 144,323 |                   |   | $      | 1,000                |   |   | $ | 171,408 |   |

| (1) | Reflects      one bank preferred stock issue of $1.0 million with fair value based on an      internal valuation model. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   |                    |      |
|----------------------------------------------|--------|-------------------------|-----------|
|                                         |   | September      30, 2009 |      |   | December      31, 2008 |   |
| (Dollars      in Thousands)                  |   | CarryingValue           |      |   | EstimatedFairValue |   |   | CarryingValue |   |   | EstimatedFairValue |   |
| Financial      Assets:                       |   |                    |      |   |   |   |   |   |   |   |   |   |
| Cash                                         |   | $                       | 79,275    |   |   | $ | 79,275 |   |   | $ | 88,143 |   |   | $ | 88,143 |   |
| Short-Term      Investments                  |   |                    | 828       |   |   |   | 828 |   |   |   | 6,806 |   |   |   | 6,806 |   |
| Investment      Securities                   |   |                    | 183,944   |   |   |   | 183,944 |   |   |   | 191,569 |   |   |   | 191,569 |   |
| Loans,      Net of Allowance for Loan Losses |   |                    | 1,912,631 |   |   |   | 1,900,006 |   |   |   | 1,920,793 |   |   |   | 1,915,887 |   |
| Total      Financial Assets                  |   | $                       | 2,176,678 |   |   | $ | 2,164,053 |   |   | $ | 2,207,311 |   |   | $ | 2,202,405 |   |
|                                         |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities:                  |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                     |   | $                       | 1,949,990 |   |   | $ | 1,868,873 |   |   | $ | 1,992,174 |   |   | $ | 1,960,361 |   |
| Short-Term      Borrowings                   |   |                    | 103,711   |   |   |   | 102,665 |   |   |   | 62,044 |   |   |   | 61,799 |   |
| Subordinated      Notes Payable              |   |                    | 62,887    |   |   |   | 62,255 |   |   |   | 62,887 |   |   |   | 63,637 |   |
| Long-Term      Borrowings                    |   |                    | 50,665    |   |   |   | 53,110 |   |   |   | 51,470 |   |   |   | 57,457 |   |
| Total      Financial Liabilities             |   | $                       | 2,167,253 |   |   | $ | 2,086,903 |   |   | $ | 2,168,575 |   |   | $ | 2,143,254 |   |

----

----

----

|                                                         |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|  (Dollars      in Thousands, Except Per Share Data)     |   | Third  |      |   | Second |   |      | First  |   |   | Fourth |   |   | Third(1) |   |   | Second |   |   | First |   |   | Fourth |   |
| Summary      of Operations:                                  |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Income                                         |   | $      | 30,787    |   |   | $      | 31,180    |   |   | $ | 31,053 |   |   | $ | 33,229 |   |   | $ | 34,654 |   |   | $ | 36,260 |   |   | $ | 38,723 |   |   | $ | 40,786 |   |
| Interest      Expense                                        |   |   | 4,235     |   |   |   | 4,085     |   |   |   | 4,058 |   |   |   | 5,482 |   |   |   | 7,469 |   |   |   | 8,785 |   |   |   | 12,264 |   |   |   | 13,241 |   |
| Net      Interest Income                                     |   |   | 27,552    |   |   |   | 27,095    |   |   |   | 26,995 |   |   |   | 27,747 |   |   |   | 27,185 |   |   |   | 27,475 |   |   |   | 26,459 |   |   |   | 27,545 |   |
| Provision      for Loan Losses                               |   |   | 12,347    |   |   |   | 8,426     |   |   |   | 8,410 |   |   |   | 12,497 |   |   |   | 10,425 |   |   |   | 5,432 |   |   |   | 4,142 |   |   |   | 1,699 |   |
| Net      Interest Income AfterProvision      for Loan Losses |   |   | 14,205    |   |   |   | 18,669    |   |   |   | 18,585 |   |   |   | 15,250 |   |   |   | 16,760 |   |   |   | 22,043 |   |   |   | 22,317 |   |   |   | 25,846 |   |
| Noninterest      Income                                      |   |   | 14,304    |   |   |   | 14,634    |   |   |   | 14,042 |   |   |   | 13,311 |   |   |   | 20,212 |   |   |   | 15,718 |   |   |   | 17,799 |   |   |   | 15,823 |   |
| Noninterest      Expense                                     |   |   | 31,615    |   |   |   | 32,930    |   |   |   | 32,257 |   |   |   | 31,002 |   |   |   | 29,916 |   |   |   | 30,756 |   |   |   | 29,798 |   |   |   | 31,614 |   |
| Income      Before Provision for Income Taxes                |   |   | (3,106    | )      |   |   | 373       |   |   |   | 370 |   |   |   | (2,441 | ) |   |   | 7,056 |   |   |   | 7,005 |   |   |   | 10,318 |   |   |   | 10,055 |   |
| Provision      for Income Taxes                              |   |   | (1,618    | )      |   |   | (401      | )      |   |   | (280 | ) |   |   | (738 | ) |   |   | 2,218 |   |   |   | 2,195 |   |   |   | 3,038 |   |   |   | 2,391 |   |
| Net      Income                                              |   | $      | (1,488    | )      |   | $      | 774       |   |   | $ | 650 |   |   | $ | (1,703 | ) |   | $ | 4,838 |   |   | $ | 4,810 |   |   | $ | 7,280 |   |   | $ | 7,664 |   |
| Net      Interest Income (FTE)                               |   | $      | 27,128    |   |   | $      | 27,679    |   |   | $ | 27,578 |   |   | $ | 28,387 |   |   | $ | 27,802 |   |   | $ | 28,081 |   |   | $ | 27,078 |   |   | $ | 28,196 |   |
|                                                         |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share:                                       |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income Basic                                        |   | $      | (0.08     | )      |   | $      | 0.04      |   |   | $ | 0.04 |   |   | $ | (0.10 | ) |   | $ | 0.29 |   |   | $ | 0.28 |   |   | $ | 0.42 |   |   | $ | 0.44 |   |
| Net      Income Diluted                                      |   |   | (0.08     | )      |   |   | 0.04      |   |   |   | 0.04 |   |   |   | (0.10 | ) |   |   | 0.29 |   |   |   | 0.28 |   |   |   | 0.42 |   |   |   | 0.44 |   |
| Dividends      Declared                                      |   |   | 0.190     |   |   |   | 0.190     |   |   |   | 0.190 |   |   |   | 0.190 |   |   |   | 0.185 |   |   |   | 0.185 |   |   |   | 0.185 |   |   |   | 0.185 |   |
| Diluted      Book Value                                      |   |   | 15.76     |   |   |   | 16.03     |   |   |   | 16.18 |   |   |   | 16.27 |   |   |   | 17.45 |   |   |   | 17.33 |   |   |   | 17.33 |   |   |   | 17.03 |   |
| Market      Price:                                           |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                                                         |   |   | 17.10     |   |   |   | 17.35     |   |   |   | 27.31 |   |   |   | 33.32 |   |   |   | 34.50 |   |   |   | 30.19 |   |   |   | 29.99 |   |   |   | 34.00 |   |
| Low                                                          |   |   | 13.92     |   |   |   | 11.01     |   |   |   | 9.50 |   |   |   | 21.06 |   |   |   | 19.20 |   |   |   | 21.76 |   |   |   | 24.76 |   |   |   | 24.60 |   |
| Close                                                        |   |   | 14.20     |   |   |   | 16.85     |   |   |   | 11.46 |   |   |   | 27.24 |   |   |   | 31.35 |   |   |   | 21.76 |   |   |   | 29.00 |   |   |   | 28.22 |   |
|                                                         |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Average                                        |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances:                                                    |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                        |   | $      | 1,964,984 |   |   | $      | 1,974,197 |   |   | $ | 1,964,086 |   |   | $ | 1,940,083 |   |   | $ | 1,915,008 |   |   | $ | 1,908,802 |   |   | $ | 1,909,574 |   |   | $ | 1,908,069 |   |
| Earning      Assets                                          |   |   | 2,157,362 |   |   |   | 2,175,281 |   |   |   | 2,166,237 |   |   |   | 2,150,841 |   |   |   | 2,207,670 |   |   |   | 2,303,971 |   |   |   | 2,301,463 |   |   |   | 2,191,230 |   |
| Assets                                                       |   |   | 2,497,969 |   |   |   | 2,506,352 |   |   |   | 2,486,925 |   |   |   | 2,463,318 |   |   |   | 2,528,638 |   |   |   | 2,634,771 |   |   |   | 2,646,474 |   |   |   | 2,519,682 |   |
| Deposits                                                     |   |   | 1,950,170 |   |   |   | 1,971,190 |   |   |   | 1,957,354 |   |   |   | 1,945,866 |   |   |   | 2,030,684 |   |   |   | 2,140,545 |   |   |   | 2,148,874 |   |   |   | 2,016,736 |   |
| Shareowners’      Equity                               |   |   | 275,027   |   |   |   | 277,114   |   |   |   | 281,634 |   |   |   | 302,227 |   |   |   | 303,595 |   |   |   | 300,890 |   |   |   | 296,804 |   |   |   | 299,342 |   |
| Common      Equivalent Shares:                               |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   |   | 17,024    |   |   |   | 17,010    |   |   |   | 17,109 |   |   |   | 17,125 |   |   |   | 17,124 |   |   |   | 17,146 |   |   |   | 17,170 |   |   |   | 17,444 |   |
| Diluted                                                      |   |   | 17,025    |   |   |   | 17,010    |   |   |   | 17,131 |   |   |   | 17,135 |   |   |   | 17,128 |   |   |   | 17,147 |   |   |   | 17,178 |   |   |   | 17,445 |   |
|                                                         |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios:                                                      |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ROA                                                          |   |   | (0.24     | )%     |   |   | 0.12      | %      |   |   | 0.11 | % |   |   | (0.28 | )% |   |   | 0.76 | % |   |   | 0.73 | % |   |   | 1.11 | % |   |   | 1.21 | % |
| ROE                                                          |   |   | (2.15     | )%     |   |   | 1.12      | %      |   |   | 0.94 | % |   |   | (2.24 | )% |   |   | 6.34 | % |   |   | 6.43 | % |   |   | 9.87 | % |   |   | 10.16 | % |
| Net      Interest Margin (FTE)                               |   |   | 4.99      | %      |   |   | 5.11      | %      |   |   | 5.16 | % |   |   | 5.26 | % |   |   | 5.01 | % |   |   | 4.90 | % |   |   | 4.73 | % |   |   | 5.10 | % |
| Efficiency      Ratio                                        |   |   | 73.86     | %      |   |   | 75.44     | %      |   |   | 75.07 | % |   |   | 71.21 | % |   |   | 59.27 | % |   |   | 66.89 | % |   |   | 63.15 | % |   |   | 68.51 | % |

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

----

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

|                                                                  |   | Three      Months Ended |   | Nine      Months Ended |
|-----------------------------------------------------------------------|--------|-------------------------|--------|------------------------|
|                                                                  |   | September      30,      |   |                   | June      30, |   |   | September      30, |   |   | September      30, |   |   | September      30, |   |
|                                                                  |   | 2009                    |   |                   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Efficiency      ratio                                                 |   |                    | 76.30  | %                      |   |   | 77.83 | % |   |   | 62.31 | % |   |   | 77.24 | % |   |   | 66.19 | % |
| Effect      of intangible amortization expense                        |   |                    | (2.44  | )%                     |   |   | (2.39 | )% |   |   | (3.04 | )% |   |   | (2.42 | )% |   |   | (3.21 | )% |
| Operating      efficiency ratio                                       |   |                    | 73.86  | %                      |   |   | 75.44 | % |   |   | 59.27 | % |   |   | 74.82 | % |   |   | 62.98 | % |
|                                                                  |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      of operating net noninterest expense ratio:       |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Three      Months Ended |   | Nine      Months Ended |
|                                                                  |   | September      30,      |   |                   | June      30, |   |   | September      30, |   |   | September      30, |   |   | September      30, |   |
|                                                                  |   | 2009                    |   |                   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Net      noninterest expense as a percent of average assets           |   |                    | 2.75   | %                      |   |   | 2.93 | % |   |   | 1.53 | % |   |   | 2.88 | % |   |   | 1.89 | % |
| Effect      of intangible amortization expense                        |   |                    | (0.16  | )%                     |   |   | (0.16 | )% |   |   | (0.23 | )% |   |   | (0.16 | )% |   |   | (0.23 | )% |
| Operating      net noninterest expense as a percent of average assets |   |                    | 2.59   | %                      |   |   | 2.77 | % |   |   | 1.30 | % |   |   | 2.72 | % |   |   | 1.66 | % |
|                                                                  |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| ·   | For      the third quarter 2009, we realized a net loss of $1.5 million ($0.08 per      diluted share) compared to net income of $0.8 million ($0.04 per diluted      share) for the second quarter of 2009 and $4.8 million ($0.29 per diluted      share) for the third quarter of 2008.  For the first nine months      of 2009, we realized a net loss of $0.1 million ($0.00 per diluted share)      compared to net income of $16.9 million ($0.99 per diluted share) for the      comparable period of 2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      net loss reported for the third quarter of 2009 reflects a loan loss      provision of $12.3 million ($0.45 per diluted share) versus $8.4 million      ($0.30 per diluted share) in the second quarter of 2009 and $10.4 million      ($0.37 per diluted share) in the third quarter of      2008.  Earnings for the third quarter of 2008 also included a      $6.25 million gain ($0.22 per diluted share) from the sale of a portion of      the bank’s merchant servicesportfolio. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Year-to-date      2009 performance reflects a loan loss provision of $29.2 million ($1.05      per diluted share) and a special FDIC assessment of approximately $1.2      million ($0.04 per diluted share) recorded in the second      quarter.  Year-to-date earnings for 2008 reflect a loan loss      provision of $20.0 million ($0.72 per diluted share), a $6.25 million gain      ($0.22 per diluted share) from the sale of the bank’s merchant services      portfolio, and Visa related transactions, which had a favorable impact on      earnings of $3.5 million ($0.13 per diluted  share). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tax      equivalent net interest income for the third quarter of 2009 was $27.1      million compared to $27.7 million for the second quarter of 2009 and $27.8      million for the third quarter of 2008.  For the first nine      months of 2009, tax equivalent net interest income totaled $82.4 million      compared to $83.0 million in 2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noninterest      income decreased $0.3 million, or 2.3%, from the prior linked quarter due      to lower mortgage banking fees and merchant fees.  Year over      year, noninterest income declined $5.9 million, or 29.2%, and $10.7      million, or 20.0%, for the three and nine-month periods,      respectively.  For the three month period, a one-time $6.25      million gain from the sale of a portion of our merchant services portfolio      drove the unfavorable variance as well as lower merchant fee revenue      reflective of the sale that occurred in July 2008.  For the      nine-month period, the aforementioned one-time $6.25 million gain, lower      merchant fee revenue, as well as a $2.4 million gain from the redemption      of Visa shares realized in the first quarter of 2008 drove the unfavorable      year over year variance. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noninterest      expense decreased $1.3 million, or 4.0%, from the prior linked quarter due      primarily to lower compensation expense and FDIC insurance      expense.  Year over year, noninterest expense increased $1.7      million, or 5.7%, and $6.3 million, or 7.0%, for the three and nine-month      periods, respectively.  For the three month period, higher      expense for other real estate properties and legal expense, both      attributable to the increase in collection and foreclosure activity, drove      the unfavorable variance.  For the nine-month period, higher      expense for other real estate properties, legal expense, pension expense,      and higher FDIC insurance premiums, including a $1.2 million special      assessment, drove the unfavorable variance.  A one-time entry of      $1.1 million in the first quarter of 2008 to reverse a portion of our Visa      litigation accrual also contributed to the increase for the comparative      nine month period. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Loan      loss provision for the quarter was $12.3 million, as compared to $8.4      million for the prior linked quarter.  The higher loan loss      provision was driven by an increase in impaired loan reserves for newly      identified impaired loans, and to a lesser extent devaluation in real      estate collateral securing impaired loans, primarily related to land      development.  Year over year, the loan loss provision increased      $1.9 million and $9.2 million for the three and nine-month periods,      respectively, generally reflective of current depressed economic      conditions, and stress within our real estate markets, including property      devaluation.  As of September 30, 2009, the allowance for loan      losses was 2.32% of total loans and provided coverage of 41% of      nonperforming loans. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Average      earnings assets decreased $17.9 million, or 0.8%, from the second quarter      of 2009 and increased $6.5 million, or 0.3%, from the prior      year-end.  The decline from the prior linked quarter was      primarily attributable to a $9.2 million decline in loans reflective of      the migration of loans to the other real estate category, and a $7.4      million decrease in investment securities.  Compared to the      fourth quarter of 2008, the increase in earning assets primarily reflects      growth in the loan portfolio, which increased $24.9 million, or 1.3%,      partially offset by a reduction in investment securities and short-term      investments.  Average deposits declined by $21.0 million, or      1.1%, from the second quarter of 2009 and increased $4.3 million, or 0.2%,      from the fourth quarter of 2008,respectively. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      of September 30, 2009, we are well-capitalized with a risk based capital      ratio of 14.12% and a tangible capital ratio of 7.43% compared to 14.69%      and 7.76%, respectively, at year-end 2008 and 15.15% and 8.67%,      respectively, at September 30,2008. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   | Three      Months Ended      |   | Nine      Months Ended |
|----------------------------------------------------------|--------|------------------------------|--------|------------------------|
| (Dollars      in Thousands, except per share data)       |   | September      30, 2009 |   |                   | June      30, 2009 |   |   | September      30, 2008 |   |   | September      30, 2009 |   |   | September      30, 2008 |   |
| Interest      Income                                     |   | $                       | 30,787 |                   |   | $  | 31,180 |   |   | $  | 34,654 |   |   | $  | 93,020 |   |   | $  | 109,637 |   |
| Taxable      equivalent Adjustments                      |   |                         | 576    |                   |   |   | 584 |   |   |   | 617 |   |   |   | 1,743 |   |   |   | 1,841 |   |
| Total      Interest Income (FTE)                         |   |                         | 31,363 |                   |   |   | 31,764 |   |   |   | 35,271 |   |   |   | 94,763 |   |   |   | 111,478 |   |
| Interest      Expense                                    |   |                         | 4,235  |                   |   |   | 4,085 |   |   |   | 7,469 |   |   |   | 12,378 |   |   |   | 28,518 |   |
| Net      Interest Income (FTE)                           |   |                         | 27,128 |                   |   |   | 27,679 |   |   |   | 27,802 |   |   |   | 82,385 |   |   |   | 82,960 |   |
| Provision      for Loan Losses                           |   |                         | 12,347 |                   |   |   | 8,426 |   |   |   | 10,425 |   |   |   | 29,183 |   |   |   | 19,999 |   |
| Taxable      Equivalent Adjustments                      |   |                         | 576    |                   |   |   | 584 |   |   |   | 617 |   |   |   | 1,743 |   |   |   | 1,841 |   |
| Net      Interest Income After provision for Loan Losses |   |                         | 14,205 |                   |   |   | 18,669 |   |   |   | 16,760 |   |   |   | 51,459 |   |   |   | 61,120 |   |
| Noninterest      Income                                  |   |                         | 14,304 |                   |   |   | 14,634 |   |   |   | 20,212 |   |   |   | 42,980 |   |   |   | 53,729 |   |
| Noninterest      Expense                                 |   |                         | 31,615 |                   |   |   | 32,930 |   |   |   | 29,916 |   |   |   | 96,802 |   |   |   | 90,470 |   |
| Income      Before Income Taxes                          |   |                         | (3,106 | )                      |   |   | 373 |   |   |   | 7,056 |   |   |   | (2,363 | ) |   |   | 24,379 |   |
| Income      Taxes                                        |   |                         | (1,618 | )                      |   |   | (401 | ) |   |   | 2,218 |   |   |   | (2,299 | ) |   |   | 7,451 |   |
| Net      Income                                          |   | $                       | (1,488 | )                      |   | $  | 774 |   |   | $  | 4,838 |   |   | $  | (64 | ) |   | $  | 16,928 |   |
|                                                     |   |                         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      Net Income Per Share                          |   | $                            | (0.08  | )                      |   | $ | 0.04 |   |   | $ | 0.29 |   |   | $ | 0.00 |   |   | $ | 0.99 |   |
| Diluted      Net Income Per Share                        |   | $                            | (0.08  | )                      |   | $ | 0.04 |   |   | $ | 0.29 |   |   | $ | 0.00 |   |   | $ | 0.99 |   |
|                                                     |   |                         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on Average Equity                            |   |                         | (2.15  | )%                     |   |   | 1.12 | % |   |   | 6.34 | % |   |   | (0.03 | )% |   |   | 7.53 | % |
| Return      on Average Assets                            |   |                         | (.24   | )%                     |   |   | 0.12 | % |   |   | 0.76 | % |   |   | 0.00 | % |   |   | 0.87 | % |

----

----

|                                               |   | Three      Months Ended |   | Nine      Months Ended |
|----------------------------------------------------|--------|-------------------------|--------|------------------------|
| (Dollars      in Thousands, except per share data) |   | September      30, 2009 |   |                   | June      30, 2009 |   |   | September      30, 2008 |   |   | September      30,2009 |   |   | September      30, 2008 |   |
|                                               |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| CHARGE-OFFS                                        |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial and Agricultural        |   |  $                 | 633    |                   |   |  $ | 388 |   |   |  $ | 275 |   |   |  $ | 1,878 |   |   |  $ | 1,318 |   |
| Real      Estate – Construction              |   |                    | 2,315  |                   |   |   | 3,356 |   |   |   | 77 |   |   |   | 5,991 |   |   |   | 807 |   |
| Real      Estate - Commercial Mortgage             |   |                    | 1,707  |                   |   |   | 123 |   |   |   | (35) |   |   |   | 2,833 |   |   |   | 1,205 |   |
| Real      Estate – Residential               |   |                    | 3,394  |                   |   |   | 2,379 |   |   |   | 797 |   |   |   | 7,748 |   |   |   | 1,791 |   |
| Consumer                                           |   |                    | 1,324  |                   |   |   | 1,145 |   |   |   | 1,797 |   |   |   | 4,586 |   |   |   | 4,199 |   |
| Total      Charge-offs                             |   |                    | 9,373  |                   |   |   | 7,391 |   |   |   | 2,911 |   |   |   | 23,036 |   |   |   | 9,320 |   |
|                                               |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| RECOVERIES                                         |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial and Agricultural        |   |                    | 64     |                   |   |   | 84 |   |   |   | 68 |   |   |   | 222 |   |   |   | 263 |   |
| Real      Estate – Construction              |   |                    | 150    |                   |   |   | - |   |   |   | 4 |   |   |   | 535 |   |   |   | 4 |   |
| Real      Estate - Commercial Mortgage             |   |                    | 8      |                   |   |   | 1 |   |   |   | 1 |   |   |   | 9 |   |   |   | 15 |   |
| Real      Estate – Residential               |   |                    | 92     |                   |   |   | 51 |   |   |   | 6 |   |   |   | 202 |   |   |   | 33 |   |
| Consumer                                           |   |                    | 331    |                   |   |   | 439 |   |   |   | 433 |   |   |   | 1,281 |   |   |   | 1,484 |   |
| Total      Recoveries                              |   |                    | 645    |                   |   |   | 575 |   |   |   | 512 |   |   |   | 2,249 |   |   |   | 1,799 |   |
|                                               |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Charge-offs                               |   |  $                 | 8,728  |                   |   |  $ | 6,816 |   |   |  $ | 2,399 |   |   |  $ | 20,787 |   |   |  $ | 7,521 |   |
| Net      Charge - Offs ( Annualized)               |   |                    | 1.76   | %                      |   |   | 1.39 | % |   |   | 0.50 | % |   |   | 1.41 | % |   |   | 0.53 | % |
|    as      a percent of Average     |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans      Outstanding, Net of   |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unearned      Interest           |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                     |   | Three      Months Ended |   | Nine      Months Ended |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|------------------------|
| (Dollars      in Thousands)                                                                                                                              |   | September      30,2009  |   |                   | June      30,2009 |   |   | September      30, 2008 |   |   | September      30,2009 |   |   | September      30,2008 |   |
|                                                                                                                                                     |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      Income:                                                                                                                                 |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Service      Charges on Deposit Accounts                                                                                                                 |   |  $                 | 7,099  |                   |   |  $ | 7,162 |   |   |  $ | 7,110 |   |   |  $ | 20,959 |   |   |  $ | 20,935 |   |
| Data      Processing Fees                                                                                                                                |   |                    | 914    |                   |   |   | 896 |   |   |   | 873 |   |   |   | 2,680 |   |   |   | 2,498 |   |
| Asset      Management Fees                                                                                                                               |   |                    | 960    |                   |   |   | 930 |   |   |   | 1,025 |   |   |   | 2,860 |   |   |   | 3,300 |   |
| Retail      Brokerage Fees                                                                                                                               |   |                    | 765    |                   |   |   | 625 |   |   |   | 565 |   |   |   | 1,883 |   |   |   | 1,769 |   |
| Investment      Security Gains                                                                                                                           |   |                    | 4      |                   |   |   | 6 |   |   |   | 27 |   |   |   | 10 |   |   |   | 122 |   |
| Mortgage      Banking Fees                                                                                                                               |   |                    | 663    |                   |   |   | 902 |   |   |   | 331 |   |   |   | 2,149 |   |   |   | 1,331 |   |
| Merchant      Service Fees (1)                                                                                                                           |   |                    | 393    |                   |   |   | 663 |   |   |   | 616 |   |   |   | 2,014 |   |   |   | 4,898 |   |
| Interchange      Fees (1)                                                                                                                                |   |                    | 1,129  |                   |   |   | 1,118 |   |   |   | 1,073 |   |   |   | 3,303 |   |   |   | 3,158 |   |
| Gain      on Sale of Portion of      Merchant              Services      Portfolio |   |                    | -      |                   |   |   | - |   |   |   | 6,250 |   |   |   | - |   |   |   | 6,250 |   |
| ATM/Debit      Card Fees (1)                                                                                                                             |   |                    | 876    |                   |   |   | 884 |   |   |   | 742 |   |   |   | 2,623 |   |   |   | 2,244 |   |
| Other                                                                                                                                                    |   |                    | 1,501  |                   |   |   | 1,448 |   |   |   | 1,600 |   |   |   | 4,499 |   |   |   | 7,224 |   |
|                                                                                                                                                     |   |                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Noninterest Income                                                                                                                            |   |  $                 | 14,304 |                   |   |  $ | 14,634 |   |   |  $ | 20,212 |   |   |  $ | 42,980 |   |   |  $ | 53,729 |   |

----

|                                               |   | Three      Months Ended      |         | Nine      Months Ended |
|----------------------------------------------------|--------|------------------------------|--------------|------------------------|
| (Dollars      in Thousands, except per share data) |   | September      30, 2009 |         |                   | June      30, 2009 |   |   | September      30, 2008 |   |   | September      30, 2009 |   |   | September      30, 2008 |   |
|                                               |   |                         |         |                   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      Expense:                          |   |                         |         |                   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                                           |   |  $                      | 12,603       |                   |   |  $ | 12,337 |   |   |  $ | 12,616 |   |   |  $ | 38,081 |   |   |  $ | 38,246 |   |
| Associate      Benefits                            |   |                         | 3,057        |                   |   |   | 3,712 |   |   |   | 2,801 |   |   |   | 10,865 |   |   |   | 8,093 |   |
| Total      Compensation                            |   |                         | 15,660       |                   |   |   | 16,049 |   |   |   | 15,417 |   |   |   | 48,946 |   |   |   | 46,339 |   |
|                                               |   |                         |         |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Premises                                           |   |                         | 2,455        |                   |   |   | 2,540 |   |   |   | 2,373 |   |   |   | 7,340 |   |   |   | 7,226 |   |
| Equipment                                          |   |                         | 2,193        |                   |   |   | 2,304 |   |   |   | 2,369 |   |   |   | 6,835 |   |   |   | 7,534 |   |
| Total      Occupancy                               |   |                         | 4,648        |                   |   |   | 4,844 |   |   |   | 4,742 |   |   |   | 14,175 |   |   |   | 14,760 |   |
|                                               |   |                         |         |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Legal      Fees                                    |   |                         | 1,048        |                   |   |   | 827 |   |   |   | 531 |   |   |   | 2,713 |   |   |   | 1,507 |   |
| Professional      Fees                             |   |                         | 1,008        |                   |   |   | 931 |   |   |   | 990 |   |   |   | 2,899 |   |   |   | 2,809 |   |
| Processing      Services                           |   |                         | 903          |                   |   |   | 880 |   |   |   | 1,159 |   |   |   | 2,692 |   |   |   | 2,900 |   |
| Advertising                                        |   |                         | 727          |                   |   |   | 752 |   |   |   | 738 |   |   |   | 2,335 |   |   |   | 2,412 |   |
| Travel      and Entertainment                      |   |                         | 299          |                   |   |   | 234 |   |   |   | 326 |   |   |   | 827 |   |   |   | 1,000 |   |
| Printing      and Supplies                         |   |                         | 491          |                   |   |   | 464 |   |   |   | 480 |   |   |   | 1,432 |   |   |   | 1,517 |   |
| Telephone                                          |   |                         | 544          |                   |   |   | 547 |   |   |   | 688 |   |   |   | 1,659 |   |   |   | 1,982 |   |
| Postage                                            |   |                         | 401          |                   |   |   | 452 |   |   |   | 460 |   |   |   | 1,271 |   |   |   | 1,324 |   |
| Insurance      - Other                             |   |                         | 1,021        |                   |   |   | 2,192 |   |   |   | 329 |   |   |   | 4,079 |   |   |   | 724 |   |
| Intangible      Amortization                       |   |                         | 1,011        |                   |   |   | 1,010 |   |   |   | 1,459 |   |   |   | 3,032 |   |   |   | 4,376 |   |
| Interchange      Fees                              |   |                         | 363          |                   |   |   | 483 |   |   |   | 482 |   |   |   | 1,584 |   |   |   | 4,069 |   |
| Courier      Service                               |   |                         | 115          |                   |   |   | 111 |   |   |   | 120 |   |   |   | 364 |   |   |   | 365 |   |
| Other      Real Estate Owned                       |   |                         | 1,595        |                   |   |   | 1,296 |   |   |   | 543 |   |   |   | 3,638 |   |   |   | 763 |   |
| Miscellaneous                                      |   |                         | 1,781        |                   |   |   | 1,858 |   |   |   | 1,452 |   |   |   | 5,156 |   |   |   | 3,623 |   |
| Total      Other                                   |   |                         | 11,307       |                   |   |   | 12,037 |   |   |   | 9,757 |   |   |   | 33,681 |   |   |   | 29,371 |   |
|                                               |   |                         |         |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Noninterest Expense                |   |  $                      | 31,615  |                   |   |  $ | 32,930  |   |   |  $ | 29,916  |   |   |  $ | 96,802 |   |   |  $ | 90,470  |   |

----

----

----

----

| Changes      in Interest Rates |   |   | +300bp |   |   |   | +200bp |   |   |   | +100bp |   |   |   | -100bp |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Policy      Limit (±)     |   |   | 10.0%  |   |   | 7.5%   |   |   | 5.0%   |   |   | 5.0%   |
| September      30, 2009        |   |   | 2.8%   |   |   | 2.5%   |   |   | 1.5%   |   |   | 0.8%   |
| June      30, 2009             |   |   | 2.6%   |   |   | 2.6%   |   |   | 1.6%   |   |   | -0.0%  |

| Changes      in Interest Rates |   |   | +300bp |   |   |   | +200bp |   |   |   | +100bp |   |   |   | -100bp |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Policy      Limit (±)     |   |   | 12.5%  |   |   | 10.0%  |   |   | 7.5%   |   |   | 7.5%   |
| September      30, 2009        |   |   | 4.5%   |   |   | 7.1%   |   |   | 5.2%   |   |   | -6.9%  |
| June      30, 2009             |   |   | 0.3%   |   |   | 2.3%   |   |   | 2.4%   |   |   | -3.7%  |

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

----

----

----

----

|                                                   |   | Three      Months Ended September 30, |      | Nine      Months Ended September 30, |
|--------------------------------------------------------|--------|---------------------------------------|-----------|--------------------------------------|
|                                                   |   |                                  |      |                                 | 2009 |   |   |   |   |   |   |   |   |  2008 |   |   |   |   |   |   |   |   |  2009 |   |   |   |   |   |   |   |   |  2008 |   |   |   |   |
|                                                   |   | Average                               |      |                                 |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
| (Taxable      Equivalent Basis - Dollars in Thousands) |   | Balances                              |      |                                 | Interest |   |   | Rate |   |   | Balances |   |   | Interest |   |   | Rate |   |   | Balances |   |   | Interest |   |   | Rate |   |   | Balances |   |   | Interest |   |   | Rate |   |
|                                                   |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      Net of Unearned Interest(1)(2)             |   | $                                | 1,964,984 |                                 |   | $  | 29,695 |   |   |   | 6.00 | % |   | $  | 1,915,008 |   |   | $  | 32,622 |   |   |   | 6.78 | % |   | $  | 1,967,759 |   |   | $  | 89,373 |   |   |   | 6.07 | % |   | $  | 1,911,142 |   |   | $  | 101,684 |   |   |   | 7.11 | % |
| Taxable      Investment Securities(2)                  |   |                                  | 81,777    |                                 |   |   | 682 |   |   |   | 3.32 | % |   |   | 93,723 |   |   |   | 940 |   |   |   | 3.99% | % |   |   | 87,393 |   |   |   | 2,200 |   |   |   | 3.35 | % |   |   | 94,106 |   |   |   | 3,076 |   |   |   | 4.35 | % |
| Tax-Exempt      Investment Securities                  |   |                                  | 107,307   |                                 |   |   | 985 |   |   |   | 3.67 | % |   |   | 98,966 |   |   |   | 1,234 |   |   |   | 4.99 | % |   |   | 105,117 |   |   |   | 3,185 |   |   |   | 4.04 | % |   |   | 94,725 |   |   |   | 3,641 |   |   |   | 5.13 | % |
| Funds      Sold                                        |   |                                  | 3,294     |                                 |   |   | 1 |   |   |   | 0.11 | % |   |   | 99,973 |   |   |   | 475 |   |   |   | 1.86 | % |   |   | 5,992 |   |   |   | 5 |   |   |   | 0.12 | % |   |   | 170,831 |   |   |   | 3,077 |   |   |   | 2.37 | % |
| Total      Earning Assets                              |   |                                  | 2,157,362 |                                 |   |   | 31,363 |   |   |   | 5.77 | % |   |   | 2,207,670 |   |   |   | 35,271 |   |   |   | 6.36 | % |   |   | 2,166,261 |   |   |   | 94,763 |   |   |   | 5.85 | % |   |   | 2,270,804 |   |   |   | 111,478 |   |   |   | 6.55 | % |
| Cash      & Due From Banks                         |   |                                  | 76,622    |                                 |   |   |   |   |   |   |   |   |   |   | 77,309 |   |   |   |   |   |   |   |   |   |   |   | 78,271 |   |   |   |   |   |   |   |   |   |   |   | 84,552 |   |   |   |   |   |   |   |   |   |
| Allowance      For Loan Losses                         |   |                                  | (42,774   | )                                    |   |   |   |   |   |   |   |   |   |   | (22,851 | ) |   |   |   |   |   |   |   |   |   |   | (40,937 | ) |   |   |   |   |   |   |   |   |   |   | (20,554) | ) |   |   |   |   |   |   |   |   |
| Other      Assets                                      |   |                                  | 306,759   |                                 |   |   |   |   |   |   |   |   |   |   | 266,510 |   |   |   |   |   |   |   |   |   |   |   | 293,528 |   |   |   |   |   |   |   |   |   |   |   | 268,220 |   |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                      |   | $                                | 2,497,969 |                                 |   |   |   |   |   |   |   |   |   | $  | 2,528,638 |   |   |   |   |   |   |   |   |   |   | $  | 2,497,123 |   |   |   |   |   |   |   |   |   |   | $  | 2,603,022 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                           |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      Accounts                                      |   | $                                | 678,292   |                                 |   | $  | 257 |   |   |   | 0.15 | % |   | $  | 727,754 |   |   | $  | 1,443 |   |   |   | 0.79 | % |   | $  | 702,048 |   |   | $  | 731 |   |   |   | 0.14 | % |   | $  | 763,164 |   |   | $  | 6,818 |   |   |   | 1.19 | % |
| Money      Market Accounts                             |   |                                  | 301,230   |                                 |   |   | 281 |   |   |   | 0.37 | % |   |   | 369,544 |   |   |   | 1,118 |   |   |   | 1.20 | % |   |   | 306,858 |   |   |   | 663 |   |   |   | 0.29 | % |   |   | 378,756 |   |   |   | 4,526 |   |   |   | 1.60 | % |
| Savings      Accounts                                  |   |                                  | 122,934   |                                 |   |   | 15 |   |   |   | 0.05 | % |   |   | 117,970 |   |   |   | 30 |   |   |   | 0.10 | % |   |   | 121,389 |   |   |   | 44 |   |   |   | 0.05 | % |   |   | 116,112 |   |   |   | 93 |   |   |   | 0.11 | % |
| Other      Time Deposits                               |   |                                  | 430,944   |                                 |   |   | 2,073 |   |   |   | 1.91 | % |   |   | 410,101 |   |   |   | 3,224 |   |   |   | 3.13 | % |   |   | 413,641 |   |   |   | 6,183 |   |   |   | 2.00 | % |   |   | 440,019 |   |   |   | 12,021 |   |   |   | 3.65 | % |
| Total      Interest Bearing Deposits                   |   |                                  | 1,533,400 |                                 |   |   | 2,626 |   |   |   | 0.68 | % |   |   | 1,625,369 |   |   |   | 5,815 |   |   |   | 1.42 | % |   |   | 1,543,936 |   |   |   | 7,621 |   |   |   | 0.66 | % |   |   | 1,698,051 |   |   |   | 23,458 |   |   |   | 1.85 | % |
| Short-Term      Borrowings                             |   |                                  | 97,305    |                                 |   |   | 113 |   |   |   | 0.45 | % |   |   | 51,738 |   |   |   | 230 |   |   |   | 1.76 | % |   |   | 90,174 |   |   |   | 269 |   |   |   | 0.39 | % |   |   | 58,530 |   |   |   | 1,047 |   |   |   | 2.38 | % |
| Subordinated      Note Payable                         |   |                                  | 62,887    |                                 |   |   | 936 |   |   |   | 5.83 | % |   |   | 62,887 |   |   |   | 936 |   |   |   | 5.83 | % |   |   | 62,887 |   |   |   | 2,794 |   |   |   | 5.86 | % |   |   | 62,887 |   |   |   | 2,798 |   |   |   | 5.85 | % |
| Other      Long-Term Borrowings                        |   |                                  | 51,906    |                                 |   |   | 560 |   |   |   | 4.28 | % |   |   | 43,237 |   |   |   | 488 |   |   |   | 4.48 | % |   |   | 52,629 |   |   |   | 1,694 |   |   |   | 4.30 | % |   |   | 35,194 |   |   |   | 1,215 |   |   |   | 4.61 | % |
| Total      Interest Bearing Liabilities                |   |                                  | 1,745,498 |                                 |   |   | 4,235 |   |   |   | 0.96 | % |   |   | 1,783,231 |   |   |   | 7,469 |   |   |   | 1.67 | % |   |   | 1,749,626 |   |   |   | 12,378 |   |   |   | 0.95 | % |   |   | 1,854,662 |   |   |   | 28,518 |   |   |   | 2.05 | % |
| Noninterest      Bearing Deposits                      |   |                                  | 416,770   |                                 |   |   |   |   |   |   |   |   |   |   | 405,314 |   |   |   |   |   |   |   |   |   |   |   | 415,610 |   |   |   |   |   |   |   |   |   |   |   | 408,372 |   |   |   |   |   |   |   |   |   |
| Other      Liabilities                                 |   |                                  | 60,674    |                                 |   |   |   |   |   |   |   |   |   |   | 36,498 |   |   |   |   |   |   |   |   |   |   |   | 53,986 |   |   |   |   |   |   |   |   |   |   |   | 39,547 |   |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                 |   |                                  | 2,222,942 |                                 |   |   |   |   |   |   |   |   |   |   | 2,225,043 |   |   |   |   |   |   |   |   |   |   |   | 2,219,222 |   |   |   |   |   |   |   |   |   |   |   | 2,302,581 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHAREOWNER’S      EQUITY                         |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      SHAREOWNER’S EQUITY                   |   |                                  | 275,027   |                                 |   |   |   |   |   |   |   |   |   |   | 303,595 |   |   |   |   |   |   |   |   |   |   |   | 277,901 |   |   |   |   |   |   |   |   |   |   |   | 300,441 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND                             |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHAREOWNER      EQUITY                                 |   | $                                | 2,497,969 |                                 |   |   |   |   |   |   |   |   |   | $  | 2,528,638 |   |   |   |   |   |   |   |   |   |   | $  | 2,497,123 |   |   |   |   |   |   |   |   |   |   | $  | 2,603,022 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                                  |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Spread                              |   |                                  |      |                                 |   |   |   |   |   |   | 4.81 | % |   |   |   |   |   |   |   |   |   |   | 4.69 | % |   |   |   |   |   |   |   |   |   |   | 4.90 | % |   |   |   |   |   |   |   |   |   |   | 4.50 | % |
| Net      Interest Income                               |   |                                  |      |                                 |   | $  | 27,128 |   |   |   |   |   |   |   |   |   |   | $  | 27,802 |   |   |   |   |   |   |   |   |   |   | $  | 82,385 |   |   |   |   |   |   |   |   |   |   | $  | 82,960 |   |   |   |   |   |
| Net      Interest Margin(3)                            |   |                                  |      |                                 |   |   |   |   |   |   | 4.99 | % |   |   |   |   |   |   |   |   |   |   | 5.01 | % |   |   |   |   |   |   |   |   |   |   | 5.09 | % |   |   |   |   |   |   |   |   |   |   | 4.87 | % |

|  (1) | Average balances include      nonaccrual loans.  Interest income includes fees on loans of      $347,000 and $1.2 million, for the three and nine months ended September      30, 2009 versus $562,000 and $1.9 million for the comparable periods ended      September 30, 2008. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. | OTHERINFORMATION |
|---------------|------------------|

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

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

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

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

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

| Item      5. | Other      Information |
|--------------|------------------------|

----

| 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:      November 6, 2009                                                                                          |   |

----

EXHIBIT INDEX

| 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.3   | 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. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----