An estimated ten to twenty thousand people were displaced by the storm in Panama City, of which one thousand remained at three area shelters. The Panama City area was buffeted by gusts as high as , inflicting roof damage and tearing the aluminum siding off of most homes and businesses; at least 90% of all structures and 69% of homes were damaged. Further damage was caused by trees falling upon roofs. A gas leak at an unroofed motel endangered guests who had sought shelter inside. Nine people were rescued by a helicopter after their house's roof collapsed. Cars, truck trailers, recreational vehicles, and trains were tossed around by the wind. A high school's gymnasium had its roof peeled back and some of its interior walls blown apart. Broken glass and snapped utility poles littered the city streets and parking lots. Downed studio transmitter link towers and power outages resulted in the loss of nearly all television and radio stations in the Panama City region. One collapsed tower tore a hole into the roof of the adjoining studio building. Severe roof and siding damage was prevalent in Panama City Beach, where gusts reached . At least 98% of structures in Callaway were damaged and 300 properties were tagged as beyond repair by city officials. Nearby, 85% of residential properties and 90% of businesses were damaged in Lynn Haven. The roof of a church was torn away in neighboring Southport. Storm surge inundation exceeded along the coast in the Panama City area. Local marinas and boats docked in port were almost entirely destroyed. One person drowned on the eastern side of the Panama City near East Bay.
