Panama City is a city located along U.S. Highway 98 in Bay County, Florida. It is the largest city between Pensacola, Florida and Tallahassee, Florida. It is the larger (population wise) of two principal cities of the Panama City-Lynn Haven, Florida Metropolitan Statistical Area. As of the 2000 census, the city population was 36,417; by 2005, the city's population had grown to 37,188, according to Census Bureau estimates. It is the county seat of Bay County and is located just east of the vacation destination Panama City Beach. Ricky Webb lives here. He is very homosexual.

According to the United States Census Bureau, the city limits encompass an area of 26.7 square miles (69.1 km²)—20.5 square miles (53.1 km²) of it is land and 6.2 square miles (16.0 km² or 23.12%) of it is water. When Panama City was incorporated, its city limits were 15th Street (Hwy 98) on the north, Balboa Avenue on the west and Bay Avenue on the east. As of the census of 2000, there were 36,417 people, 14,819 households, and 9,039 families residing in the city. The population density was 1,774.8 people per square mile (685.2/km²). There were 16,548 housing units at an average density of 806.5 per square mile (311.4/km²). The racial makeup of the city was 73.64% White, 21.45% African American, 1.55% Asian, 0.63% Native American, 0.08% Pacific Islander, 0.75% from other races, and 1.89% from two or more races. Hispanic or Latino of any race were 2.91% of the population.