Capital City Bank Group Posts Strong 20% Net Income Jump

Ticker: CCBG · Form: 10-Q · Filed: Oct 31, 2025 · CIK: 726601

Sentiment: bullish

Topics: Regional Banking, Financial Performance, Net Income Growth, Wealth Management, Mortgage Banking, Shareholder Equity, Interest Income

TL;DR

**CCBG is crushing it with a 20% net income surge, making it a solid buy in a tough banking environment.**

AI Summary

Capital City Bank Group Inc. (CCBG) reported a strong financial performance for the nine months ended September 30, 2025, with net income attributable to common shareowners increasing by 20.1% to $47.85 million, up from $39.83 million in the same period of 2024. This growth was driven by a significant rise in net interest income, which climbed 8.8% to $128.29 million from $117.84 million year-over-year. Total interest income also increased to $152.67 million from $144.91 million, primarily due to higher taxable investment securities income, which rose to $19.64 million from $12.39 million. Noninterest income saw a substantial increase of 8.8% to $62.25 million, compared to $57.22 million in 2024, with wealth management fees growing to $16.14 million from $13.89 million and mortgage banking revenues increasing to $12.80 million from $11.23 million. The company's total assets remained stable at $4.32 billion, while total shareowners' equity improved by 9.1% to $540.64 million from $495.32 million at December 31, 2024, largely due to a positive shift in accumulated other comprehensive income (loss) to a gain of $1.22 million from a loss of $6.49 million. Loans held for investment, net, decreased slightly to $2.55 billion from $2.62 billion, and total deposits also saw a modest decline to $3.61 billion from $3.67 billion.

Why It Matters

This strong performance by Capital City Bank Group Inc. signals robust operational efficiency and effective capital management, which is crucial for investors seeking stable returns in the regional banking sector. The increase in net income and shareowners' equity, coupled with a positive shift in comprehensive income, suggests a healthy financial position, potentially making CCBG an attractive investment compared to competitors facing higher interest rate pressures. For employees, sustained profitability can lead to job security and potential growth opportunities. Customers benefit from a stable bank, ensuring reliable services and potentially competitive rates. In the broader market, CCBG's growth in wealth management and mortgage banking indicates resilience and adaptability in diverse revenue streams, setting a positive precedent for other regional banks.

Risk Assessment

Risk Level: low — The company's risk level is low, evidenced by a significant increase in net income attributable to common shareowners by 20.1% to $47.85 million for the nine months ended September 30, 2025. Additionally, the accumulated other comprehensive income (loss) shifted from a loss of $6.49 million at December 31, 2024, to a gain of $1.22 million at September 30, 2025, indicating improved financial health and reduced exposure to market fluctuations.

Analyst Insight

Investors should consider increasing their position in CCBG given the strong 20.1% net income growth and the positive shift in comprehensive income. The company's diversified revenue streams, particularly in wealth management and mortgage banking, suggest resilience and potential for continued growth in a competitive market.

Financial Highlights

debt To Equity
0.70
revenue
$190.54M
total Assets
$4.32B
total Debt
$43.24M
net Income
$47.85M
eps
$0.93
cash Position
$465.90M
revenue Growth
+8.8%

Revenue Breakdown

SegmentRevenueGrowth
Net Interest Income$128.29M+8.8%
Wealth Management Fees$16.14M+16.2%
Mortgage Banking Revenues$12.80M+13.9%
Total Noninterest Income$62.25M+8.8%

Key Numbers

Key Players & Entities

FAQ

What were Capital City Bank Group's net income figures for the nine months ended September 30, 2025?

Capital City Bank Group Inc. reported net income attributable to common shareowners of $47.85 million for the nine months ended September 30, 2025, a significant increase from $39.83 million in the same period of 2024.

How did Capital City Bank Group's net interest income change year-over-year?

Net interest income for Capital City Bank Group Inc. increased by 8.8% to $128.29 million for the nine months ended September 30, 2025, up from $117.84 million in the prior year.

What contributed to the increase in Capital City Bank Group's noninterest income?

Capital City Bank Group Inc.'s noninterest income rose by 8.8% to $62.25 million, driven by growth in wealth management fees to $16.14 million and mortgage banking revenues to $12.80 million for the nine months ended September 30, 2025.

What is the current status of Capital City Bank Group's accumulated other comprehensive income (loss)?

As of September 30, 2025, Capital City Bank Group Inc.'s accumulated other comprehensive income (loss) shifted to a gain of $1.22 million, a notable improvement from a loss of $6.49 million at December 31, 2024.

How has Capital City Bank Group's total shareowners' equity changed?

Total shareowners' equity for Capital City Bank Group Inc. increased by 9.1% to $540.64 million at September 30, 2025, compared to $495.32 million at December 31, 2024.

What are the key risks highlighted in Capital City Bank Group's 10-Q filing?

The 10-Q filing for Capital City Bank Group Inc. highlights risks such as changes in Federal Reserve Board interest rate policies, inflation, economic conditions, legal and regulatory developments, and the effects of cyber incidents, among others.

What is Capital City Bank Group's basic net income per share for the third quarter of 2025?

Capital City Bank Group Inc. reported basic net income per share of $0.93 for the three months ended September 30, 2025, an increase from $0.77 in the same period of 2024.

Did Capital City Bank Group's loans held for investment increase or decrease?

Loans held for investment, net, for Capital City Bank Group Inc. decreased slightly to $2.55 billion at September 30, 2025, from $2.62 billion at December 31, 2024.

What was the provision for credit losses for Capital City Bank Group Inc.?

The provision for credit losses for Capital City Bank Group Inc. was $3.27 million for the nine months ended September 30, 2025, a slight decrease from $3.33 million in the same period of 2024.

How does Capital City Bank Group manage its market risk?

Capital City Bank Group Inc. addresses market risk through quantitative and qualitative disclosures, focusing on factors like interest rate fluctuations and their impact on financial instruments, as detailed in Item 3 of their 10-Q filing.

Risk Factors

Industry Context

Capital City Bank Group Inc. operates in the highly competitive banking sector across Florida, Georgia, and Alabama. The industry is characterized by evolving customer preferences for digital services, increasing regulatory oversight, and the need for robust risk management. Banks are focusing on diversifying revenue streams beyond traditional lending, with wealth management and mortgage services showing growth potential.

Regulatory Implications

As a regulated financial institution, CCBG is subject to stringent oversight from government agencies. Changes in capital requirements, lending standards, or consumer protection laws could impact profitability and operational flexibility. Proactive compliance and adaptation to new regulations are critical for maintaining stability and trust.

What Investors Should Do

  1. Monitor loan portfolio performance and credit quality trends.
  2. Analyze the drivers of noninterest income growth.
  3. Evaluate the impact of interest rate changes on net interest margin and investment portfolio.
  4. Assess the company's ability to attract and retain deposits.

Key Dates

Glossary

Net Interest Income
The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A primary driver of CCBG's profitability, showing an 8.8% increase.)
Noninterest Income
Revenue generated by a bank from sources other than traditional interest income, such as fees, commissions, and trading gains. (CCBG's noninterest income grew by 8.8%, indicating diversification of revenue streams.)
Accumulated Other Comprehensive Income (Loss)
A component of equity that includes unrealized gains and losses on certain investments and foreign currency translations that have not yet been realized. (A positive shift to a gain of $1.22 million from a loss of $6.49 million significantly boosted total shareowners' equity.)
Loans Held for Investment, Net
The total value of loans originated or acquired with the intent to hold until maturity, net of the allowance for credit losses. (A slight decrease to $2.55 billion from $2.62 billion, indicating a modest contraction in the loan portfolio.)
Total Deposits
The aggregate amount of funds held by a bank on behalf of its customers in various types of deposit accounts. (A slight decrease to $3.61 billion from $3.67 billion, suggesting a modest outflow of customer funds.)
Investment Securities, Available for Sale
Securities that are not classified as held-to-maturity or trading securities, whose unrealized gains and losses are reported in other comprehensive income. (Fair value increased to $577.33 million from $403.35 million, contributing to the positive shift in AOCI.)
Investment Securities, Held to Maturity
Securities that a financial institution has the intent and ability to hold until their maturity date, reported at amortized cost. (Fair value decreased to $404.66 million from $567.16 million, reflecting a strategic shift or market valuation changes.)

Year-Over-Year Comparison

Compared to the prior year period, Capital City Bank Group Inc. has demonstrated robust growth, with net income up 20.1% and net interest income increasing by 8.8%. Total noninterest income also saw a healthy 8.8% rise, driven by wealth management and mortgage banking. Shareholder equity has improved significantly, bolstered by a positive swing in accumulated other comprehensive income. However, there has been a slight decrease in both loans held for investment and total deposits, suggesting a modest contraction in core balance sheet activities.

Filing Stats: 4,416 words · 18 min read · ~15 pages · Grade level 17 · Accepted 2025-10-31 13:52:41

Key Financial Figures

Filing Documents

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3. Quantitative and Qualitative Disclosure About Market Risk 50 Item 4.

Controls and Procedures

Controls and Procedures 50 PART II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50 Item 3. Defaults Upon Senior Securities 50 Item 4. Mine Safety Disclosure 50 Item 5. Other Information 50 Item 6. Exhibits 51

Signatures

Signatures 52 3 INTRODUCTORY NOTE Special Cautionary Notice Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements about our beliefs, plans, objectives, goals, expectations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. The words "may," "could," "should," "would," "believe," "anticipate," "contemplate," "estimate," "expect," "intend," "plan," "point to," "project," "target," "vision," "goal," "continue," "further," and similar expressions are intended to identify

forward-looking statements

forward-looking statements. All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ materially from those set forth in our forward-looking statements. Our ability to achieve our financial objectives could be adversely affected by the factors discussed in detail in Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q and in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K"), as updated in our subsequent quarterly reports filed on Form 10-Q, as well as, among other factors: The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; Inflation, interest rate, market and monetary fluctuations; Local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; The costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; The accuracy of our financial statement estimates and assumptions; Changes in the financial performance and/or condition of our borrowers; Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; Changes in estimates of future credit loss reserve requirements based upon the pe

Risk Factors

Item 1A Risk Factors or discussed in this Form 10-Q also could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking We do not undertake to update any forward-looking 5 PART I. FINANCIAL INFORMATION Item 1. CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) September 30, December 31, (Dollars in Thousands, Except Par Value) 2025 2024 ASSETS Cash and Due From Banks $ 68,397 $ 70,543 Federal Funds Sold and Interest Bearing Deposits 397,502 321,311 Total Cash and Cash Equivalents 465,899 391,854 Investment Securities, Available for Sale, at fair value (amortized cost of $ 592,323 and $ 429,033 ) 577,333 403,345 Investment Securities, Held to Maturity (fair value of $ 394,125 and $ 544,460 ) 404,659 567,155 Equity Securities 2,145 2,399 Total Investment Securities 984,137 972,899 Loans Held For Sale, at fair value 24,204 28,672 Loans Held for Investment 2,582,007 2,651,550 Allowance for Credit Losses ( 30,202 ) ( 29,251 ) Loans Held for Investment, Net 2,551,805 2,622,299 Premises and Equipment, Net 79,748 81,952 Goodwill and Other Intangibles 89,095 92,773 Other Real Estate Owned 1,831 367 Other Assets 127,055 134,116 Total Assets $ 4,323,774 $ 4,324,932 LIABILITIES Deposits: Noninterest Bearing Deposits $ 1,303,786 $ 1,306,254 Interest Bearing Deposits 2,311,126 2,365,723 Total Deposits 3,614,912 3,671,977 Short-Term Borrowings 40,244 28,304 Subordinated Notes Payable 42,582 52,887 Other Long-Term Borrowings 680 794 Other Liabilities 84,721 75,653 Total Liabilities 3,783,139 3,829,615 SHAREOWNERS' EQUITY Preferred Stock, $ 0.01 par value;

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS NOTE 1 – BUSINESS AND BASIS OF PRESENTATION Nature of Operations . Capital City Bank Group, Inc. ("CCBG" or the "Company") provides a full range of banking and banking- related services to individual and corporate clients through its wholly owned subsidiary, Capital City Bank ("CCB" or the "Bank"), with banking offices located in Florida, Georgia, and Alabama. The Company is subject to competition from other financial institutions, is subject to regulation by certain government agencies and undergoes periodic examinations by those regulatory authorities. Basis of Presentation . The consolidated financial statements in this Quarterly Report on Form 10-Q include the accounts of CCBG and CCB. All material inter-company transactions and accounts have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year's presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Consolidated Statement of Financial Condition at December 31, 2024 has been derived from the audited consolidated financial required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company's 2024 Form 10-K. Accounting Standards Updates Proposed Accounting Standards , ASU No. 2023-

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