[Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Capital City Bank Group reported net income attributable to common shareowners of $15.0 million, or $0.88 per diluted share, for Q2 2025, showing a decrease from Q1 2025 but an increase compared to Q2 2024, with key improvements in net interest income and margin expansion Net Income and EPS (QoQ & YoY) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income Attributable to Common Shareowners | $15.0 million | $16.9 million | $14.2 million | | Diluted Net Income Per Share | $0.88 | $0.99 | $0.83 | - Net interest income increased by **3.9%** (QoQ) and net interest margin expanded by **8 basis points** to **4.30%** (QoQ)[2](index=2&type=chunk) - Tangible book value per share increased by **3.2%** (QoQ), and the tangible capital ratio rose to **10.1%** (QoQ)[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) William G. Smith, Jr., Chairman and CEO, highlighted the bank's strong quarter, emphasizing sustained revenue growth, continued credit strength, and strategic execution, focusing on profitable growth supported by a resilient balance sheet - Capital City delivered a strong quarter with sustained revenue growth and continued credit strength[2](index=2&type=chunk) - The company remains focused on executing strategies for consistent, profitable growth, supported by a 'fortress balance sheet' for resilience and strategic flexibility[2](index=2&type=chunk) [Discussion of Operating Results](index=2&type=section&id=Discussion%20of%20Operating%20Results) [Net Interest Income/Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%2FNet%20Interest%20Margin) Tax-equivalent net interest income increased across all comparative periods, driven by higher investment securities income from new purchases at higher yields and a decrease in deposit interest expense due to declining short-term rates, leading to significant net interest margin expansion Tax-Equivalent Net Interest Income | Period | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Tax-Equivalent Net Interest Income | $43.2 million | $41.6 million | $39.3 million | $84.8 million | $77.8 million | Net Interest Margin and Cost of Funds | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------ | :------ | :------ | :------ | :------ | :------ | | Net Interest Margin | 4.30% | 4.22% | 4.02% | 4.26% | 4.01% | | Cost of Funds (basis points) | 82 | 84 | 97 | N/A | N/A | | Cost of Deposits (basis points) | 81 | 82 | 95 | N/A | N/A | - The increase in net interest income was primarily due to a **$0.9 million** increase in investment securities income and a **$0.4 million** increase in overnight funds income (QoQ), and a **$2.7 million** increase in investment securities income and a **$1.2 million** decrease in deposit interest expense (YoY)[4](index=4&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision expense for credit losses decreased across all comparative periods, reflecting improved credit conditions Provision for Credit Losses | Period | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Provision for Credit Losses | $0.6 million | $0.8 million | $1.2 million | $1.4 million | $2.1 million | [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income saw a slight increase quarter-over-quarter, driven by higher mortgage banking revenues and deposit fees, partially offset by a decrease in wealth management fees, with the year-over-year increase primarily due to wealth management fees Noninterest Income (QoQ & YoY) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | :------ | | Total Noninterest Income | $20.0 million | $19.9 million | $19.6 million | $39.9 million | $37.7 million | | Mortgage Banking Revenues | $4.19 million | $3.82 million | $4.38 million | $8.01 million | $7.26 million | | Deposit Fees | $5.32 million | $5.06 million | $5.38 million | $10.38 million | $10.63 million | | Wealth Management Fees | $5.21 million | $5.76 million | $4.44 million | $10.97 million | $9.12 million | - QoQ increase in noninterest income was primarily due to a **$0.4 million** increase in mortgage banking revenues and a **$0.3 million** increase in deposit fees, partially offset by a **$0.6 million** decrease in wealth management fees[9](index=9&type=chunk) - YTD increase in noninterest income was primarily attributable to a **$1.8 million** increase in wealth management fees and a **$0.7 million** increase in mortgage banking revenues[10](index=10&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Noninterest expense increased significantly quarter-over-quarter, mainly due to a decrease in gains from the sale of banking facilities (specifically the operations center building in Q1 2025), while the year-over-year increase was driven by higher compensation expenses Noninterest Expense (QoQ & YoY) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | :------ | | Total Noninterest Expense | $42.5 million | $38.7 million | $40.4 million | $81.2 million | $80.6 million | | Compensation | $26.49 million | $26.25 million | $24.41 million | $52.74 million | $48.81 million | | Occupancy, Net | $7.07 million | $6.79 million | $6.99 million | $13.86 million | $13.99 million | | Other Expense | $8.98 million | $5.66 million | $9.04 million | $14.64 million | $17.81 million | - The **$3.8 million (9.9%)** QoQ increase in noninterest expense was primarily due to a **$3.3 million** increase in other expense, reflecting lower gains from the sale of banking facilities (e.g., operations center building in Q1 2025)[11](index=11&type=chunk) - The **$2.1 million (5.2%)** YoY increase was primarily due to a **$2.1 million** increase in compensation expense, driven by higher incentive plan expense and base salaries[11](index=11&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) Income tax expense remained relatively stable quarter-over-quarter but increased year-over-year, leading to a higher effective tax rate attributed to a lower tax benefit from a solar tax credit equity fund, with an expected annual effective tax rate of approximately 24% for 2025 Income Tax Expense and Effective Rate | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | :------ | | Income Tax Expense | $5.0 million | $5.1 million | $3.2 million | $10.1 million | $6.7 million | | Effective Tax Rate | 24.9% | 23.3% | 18.5% | 24.1% | 20.6% | - A lower level of tax benefit from a solar tax credit equity fund drove the increase in the effective tax rate for all prior period comparisons[13](index=13&type=chunk) - The company expects its annual effective tax rate to approximate **24%** for 2025, absent discrete items or new tax credit investments[13](index=13&type=chunk) [Discussion of Financial Condition](index=4&type=section&id=Discussion%20of%20Financial%20Condition) [Earning Assets](index=4&type=section&id=Earning%20Assets) Average earning assets increased over prior periods, primarily driven by higher average deposit balances, with the mix shifting towards increases in overnight funds and investment securities, partially offset by decreases in loans held for investment (HFI) and loans held for sale (HFS) Average Earning Assets | Period | Q2 2025 | Q1 2025 | Q4 2024 | | :------------------ | :------ | :------ | :------ | | Average Earning Assets | $4.032 billion | $3.994 billion | $3.922 billion | | Change QoQ | +$38.1 million (+1.0%) | N/A | N/A | | Change vs Q4 2024 | +$110.1 million (+2.8%) | N/A | N/A | - The earning asset mix reflected a **$27.8 million** increase in overnight funds and a **$25.7 million** increase in investment securities (QoQ), partially offset by a **$13.3 million** decrease in loans HFI and a **$2.1 million** decrease in loans HFS[14](index=14&type=chunk) [Loans Held for Investment (HFI)](index=4&type=section&id=Loans%20Held%20for%20Investment%20%28HFI%29) Both average and end-of-period loans HFI decreased across comparative periods, primarily driven by declines in construction, consumer (indirect auto), and commercial loans, partially offset by increases in residential real estate, commercial real estate, and home equity loans Loans Held for Investment (HFI) Changes | Metric | Q2 2025 (Avg) | Q1 2025 (Avg) | Q4 2024 (Avg) | Q2 2025 (EOP) | Q1 2025 (EOP) | Q4 2024 (EOP) | | :-------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | :------------ | | Total Loans HFI | $2.653 billion | $2.666 billion | $2.677 billion | $2.631 billion | $2.661 billion | $2.652 billion | | Change QoQ (Avg) | -$13.3 million (-0.5%) | N/A | N/A | N/A | N/A | N/A | | Change QoQ (EOP) | N/A | N/A | N/A | -$29.3 million (-1.1%) | N/A | N/A | - QoQ decrease in average loans HFI was due to decreases in construction loans (**$24.6 million**), consumer loans (**$1.9 million**), and commercial loans (**$3.4 million**), partially offset by increases in residential real estate (**$10.2 million**), commercial real estate (**$2.1 million**), and home equity loans (**$4.1 million**)[15](index=15&type=chunk) - EOP loans HFI decreased by **$29.3 million (1.1%)** from March 31, 2025, primarily due to decreases in construction loans (**$18.2 million**), consumer loans (**$8.7 million**), commercial loans (**$4.4 million**), and commercial real estate loans (**$4.4 million**)[16](index=16&type=chunk) [Allowance for Credit Losses](index=4&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses (ACL) for loans HFI slightly increased, primarily due to qualitative factor adjustments despite lower loan balances, leading to an improved allowance coverage ratio while net loan charge-offs remained comparable to the prior quarter Allowance for Credit Losses (ACL) for Loans HFI | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | ACL for Loans HFI | $29.9 million | $29.7 million | $29.3 million | | Allowance as % of Loans HFI | 1.13% | 1.12% | 1.10% | | Net Loan Charge-Offs (annualized, basis points) | 9 | 9 | N/A | - The slight increase in ACL was primarily attributable to qualitative factor adjustments, partially offset by lower loan balances[17](index=17&type=chunk) [Credit Quality](index=4&type=section&id=Credit%20Quality) Nonperforming assets (NPAs) increased quarter-over-quarter but remained stable year-over-year, with the increase mainly driven by a rise in nonaccrual loans and classified loans, particularly in residential and commercial real estate Nonperforming Assets (NPAs) and Credit Quality | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Nonperforming Assets (NPAs) | $6.6 million | $4.4 million | $6.7 million | | NPAs as % of Total Assets | 0.15% | 0.10% | 0.15% | | Nonaccrual Loans | $6.4 million | $4.3 million | $6.3 million | | Classified Loans | $28.6 million | $19.2 million | $19.9 million | - The **$2.2 million** increase in nonaccrual loans (QoQ) was primarily attributable to two home equity loans totaling **$1.8 million**[18](index=18&type=chunk) - Classified loans increased by **$9.4 million** (QoQ) due to the downgrade of four residential real estate loans (**$4.2 million**) and two commercial real estate loans (**$4.3 million**)[18](index=18&type=chunk) [Deposits](index=4&type=section&id=Deposits) Average total deposits increased quarter-over-quarter and year-over-year, driven by higher core deposit balances, though end-of-period deposits decreased quarter-over-quarter due to a seasonal decline in public funds while increasing year-over-year Total Deposits (Average & EOP) | Metric | Q2 2025 (Avg) | Q1 2025 (Avg) | Q4 2024 (Avg) | Jun 30, 2025 (EOP) | Mar 31, 2025 (EOP) | Dec 31, 2024 (EOP) | | :-------------------------- | :------------ | :------------ | :------------ | :----------------- | :----------------- | :----------------- | | Total Deposits | $3.681 billion | $3.665 billion | $3.600 billion | $3.705 billion | $3.784 billion | $3.672 billion | | Change QoQ (Avg) | +$15.2 million (+0.4%) | N/A | N/A | N/A | N/A | N/A | | Change QoQ (EOP) | N/A | N/A | N/A | -$79.0 million (-2.1%) | N/A | N/A | - Average total deposits increased QoQ due to higher core deposit balances (primarily noninterest bearing checking and money market), partially offset by a seasonal decline in public funds[19](index=19&type=chunk) - Noninterest bearing deposits averaged **36.5%** of total deposits for Q2 2025 and **36.2%** for the year[3](index=3&type=chunk) [Liquidity](index=5&type=section&id=Liquidity) The company maintained a strong liquidity position, with an increased average net overnight funds sold position, significant additional liquidity capacity available through various sources, and views its investment portfolio as a key liquidity source Average Net Overnight Funds Sold Position | Period | Q2 2025 | Q1 2025 | Q4 2024 | | :-------------------------- | :------ | :------ | :------ | | Average Net Overnight Funds Sold | $348.8 million | $320.9 million | $298.3 million | - The company had the ability to generate approximately **$1.603 billion** in additional liquidity at June 30, 2025, through various sources including federal funds purchased lines, FHLB borrowings, Federal Reserve Discount Window, and brokered deposits[23](index=23&type=chunk) - The investment portfolio, consisting of U.S. Treasury, agency, municipal, and corporate debt, serves as a liquidity source, with a weighted-average maturity of **2.66 years** and duration of **2.14 years** at June 30, 2025[24](index=24&type=chunk) [Capital](index=5&type=section&id=Capital) Shareowners' equity increased across all comparative periods, positively impacted by net income and a decrease in accumulated other comprehensive loss, with all regulatory capital ratios exceeding 'well-capitalized' thresholds and an improved tangible common equity ratio Shareowners' Equity and Capital Ratios | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Shareowners' Equity | $526.4 million | $512.6 million | $495.3 million | | Total Risk-Based Capital Ratio | 19.60% | 19.20% | 18.64% | | Common Equity Tier 1 Capital Ratio | 16.81% | 16.08% | 15.54% | | Leverage Ratio | 11.14% | 11.17% | 11.05% | | Tangible Common Equity Ratio (non-GAAP) | 10.09% | 9.61% | 9.51% | - Shareowners' equity was positively impacted by net income attributable to shareowners of **$31.9 million** and a **$5.5 million** decrease in accumulated other comprehensive loss for the first six months of 2025[25](index=25&type=chunk) - All regulatory capital ratios exceeded the thresholds to be designated as 'well-capitalized' under Basel III capital standards at June 30, 2025[26](index=26&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) [About Capital City Bank Group, Inc.](index=6&type=section&id=About%20Capital%20City%20Bank%20Group%2C%20Inc.) Capital City Bank Group, Inc. is a publicly traded financial holding company headquartered in Florida, with approximately $4.4 billion in assets, offering a comprehensive range of banking and financial services through 62 banking offices and 107 ATMs/ITMs across Florida, Georgia, and Alabama - Capital City Bank Group, Inc. has approximately **$4.4 billion** in assets[28](index=28&type=chunk) - The company provides a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage, and financial advisory services[28](index=28&type=chunk) - Its subsidiary, Capital City Bank, operates **62** banking offices and **107** ATMs/ITMs in Florida, Georgia, and Alabama[28](index=28&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, stating that forward-looking statements are based on current plans and expectations subject to uncertainties and risks, listing various factors that could cause actual results to differ materially from projections, including economic conditions, regulatory changes, market fluctuations, and operational risks - Forward-looking statements are based on current plans and expectations and are subject to uncertainties and risks that could cause future results to differ materially[29](index=29&type=chunk) - Key risk factors include changes in trade, monetary, and fiscal policies, inflation, interest rate fluctuations, economic conditions, legal and regulatory developments, and technological changes[29](index=29&type=chunk) - The company assumes no obligation to update forward-looking statements unless required by law[29](index=29&type=chunk) [Use of Non-GAAP Financial Measures](index=7&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company presents non-GAAP financial measures, specifically the tangible common equity ratio and tangible book value per diluted share, to provide investors with a clearer comparison of capital adequacy within the industry, with a reconciliation to GAAP measures provided - Non-GAAP financial measures, such as tangible common equity ratio and tangible book value per diluted share, are used to allow investors to more easily compare capital adequacy to other companies[31](index=31&type=chunk) - These non-GAAP measures remove the effect of goodwill and other intangibles resulting from merger and acquisition activity[31](index=31&type=chunk) GAAP to Non-GAAP Reconciliation (Tangible Common Equity) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Shareowners' Equity (GAAP, millions) | $526.423 | $512.575 | $495.317 | | Less: Goodwill and Other Intangibles (GAAP, millions) | $92.693 | $92.733 | $92.773 | | Tangible Shareowners' Equity (non-GAAP, millions) | $433.730 | $419.842 | $402.544 | | Total Assets (GAAP, billions) | $4.391 | $4.461 | $4.324 | | Less: Goodwill and Other Intangibles (GAAP, millions) | $92.693 | $92.733 | $92.773 | | Tangible Assets (non-GAAP, billions) | $4.299 | $4.368 | $4.232 | | Tangible Common Equity Ratio (non-GAAP) | 10.09% | 9.61% | 9.51% | | Tangible Book Value per Diluted Share (non-GAAP) | $25.37 | $24.59 | $23.65 | [Financial Tables and Supplementary Data](index=8&type=section&id=Financial%20Tables%20and%20Supplementary%20Data) [Earnings Highlights](index=8&type=section&id=Earnings%20Highlights) This section provides a summary table of key financial and performance indicators, including earnings, profitability ratios, capital adequacy metrics, asset quality, and stock performance for various quarterly and year-to-date periods Key Performance Indicators | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 (6M) | Jun 30, 2024 (6M) | | :-------------------------------- | :----------- | :----------- | :----------- | :---------------- | :---------------- | | Net Income Attributable to Common Shareowners (millions) | $15.044 | $16.858 | $14.150 | $31.902 | $26.707 | | Diluted Net Income Per Share | $0.88 | $0.99 | $0.83 | $1.87 | $1.57 | | Return on Average Assets (annualized) | 1.38% | 1.58% | 1.33% | 1.48% | 1.27% | | Net Interest Margin | 4.30% | 4.22% | 4.02% | 4.26% | 4.01% | | Total Capital | 19.60% | 19.20% | 17.50% | 19.60% | 17.50% | | Allowance as % of Loans HFI | 1.13% | 1.12% | 1.09% | 1.13% | 1.09% | | Nonperforming Assets as % of Total Assets | 0.15% | 0.10% | 0.15% | 0.15% | 0.15% | [Consolidated Statement of Financial Condition](index=9&type=section&id=Consolidated%20Statement%20of%20Financial%20Condition) This table presents the consolidated balance sheet, detailing assets, liabilities, and shareowners' equity at the end of various quarters, providing a snapshot of the company's financial position Consolidated Statement of Financial Condition (Selected Items) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Assets (billions) | $4.391 | $4.461 | $4.324 | | Total Loans Held for Investment (billions) | $2.631 | $2.660 | $2.651 | | Total Deposits (billions) | $3.704 | $3.783 | $3.671 | | Total Liabilities (billions) | $3.865 | $3.948 | $3.829 | | Total Shareowners' Equity (millions) | $526.423 | $512.575 | $495.317 | | Earning Assets (billions) | $4.044 | $4.108 | $3.974 | [Consolidated Statement of Operations](index=10&type=section&id=Consolidated%20Statement%20of%20Operations) This table provides the consolidated income statement, outlining interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and net income for various quarterly and year-to-date periods Consolidated Statement of Operations (Selected Items) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total Interest Income (millions) | $51.459 | $49.782 | $48.766 | $101.241 | $95.586 | | Total Interest Expense (millions) | $8.275 | $8.235 | $9.497 | $16.510 | $17.962 | | Net Interest Income (millions) | $43.184 | $41.547 | $39.269 | $84.731 | $77.624 | | Provision for Credit Losses (millions) | $0.620 | $0.768 | $1.204 | $1.388 | $2.124 | | Total Noninterest Income (millions) | $20.014 | $19.907 | $19.606 | $39.921 | $37.703 | | Total Noninterest Expense (millions) | $42.538 | $38.701 | $40.441 | $81.239 | $80.612 | | Net Income Attributable to Common Shareowners (millions) | $15.044 | $16.858 | $14.150 | $31.902 | $26.707 | [Allowance for Credit Losses and Credit Quality Details](index=11&type=section&id=Allowance%20for%20Credit%20Losses%20and%20Credit%20Quality%20Details) This detailed table provides a breakdown of the Allowance for Credit Losses (ACL) activity for held-for-investment loans, unfunded commitments, and debt securities, along with comprehensive data on charge-offs, recoveries by loan type, and various credit quality indicators like nonaccruing loans and nonperforming assets Allowance for Credit Losses (ACL) and Credit Quality | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | ACL - HFI Loans (End of Period, millions) | $29.862 | $29.734 | $29.219 | $29.862 | $29.219 | | ACL as a % of Loans HFI | 1.13% | 1.12% | 1.09% | 1.13% | 1.09% | | Net Charge-Offs (Recoveries, millions) | $0.590 | $0.600 | $1.239 | $1.190 | $2.733 | | Nonaccruing Loans (millions) | $6.449 | $4.296 | $5.515 | N/A | N/A | | Total Nonperforming Assets ("NPAs", millions) | $6.581 | $4.428 | $6.165 | N/A | N/A | | NPAs as a % of Total Assets | 0.15% | 0.10% | 0.15% | N/A | N/A | - Total charge-offs for Q2 2025 were **$1.498 million**, with consumer loans contributing the largest portion at **$0.914 million**[40](index=40&type=chunk) - Total recoveries for Q2 2025 were **$0.908 million**, with consumer loans contributing **$0.456 million**[40](index=40&type=chunk) [Average Balance and Interest Rates](index=12&type=section&id=Average%20Balance%20and%20Interest%20Rates) This table provides a comprehensive breakdown of average balances for earning assets and interest-bearing liabilities, along with their corresponding interest income/expense and average interest rates, also presenting the interest rate spread and net interest margin Average Balances and Interest Rates (Selected Items) | Metric | Q2 2025 Avg Balance | Q2 2025 Avg Rate | Q1 2025 Avg Balance | Q1 2025 Avg Rate | Q2 2024 Avg Balance | Q2 2024 Avg Rate | | :-------------------------------- | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | | Total Earning Assets (billions) | $4.032 | 5.12% | $3.993 | 5.06% | $3.935 | 4.99% | | Loans Held for Investment (billions) | $2.652 | 6.11% | $2.665 | 6.09% | $2.726 | 6.03% | | Total Interest Bearing Deposits (billions) | $2.338 | 1.27% | $2.348 | 1.28% | $2.294 | 1.50% | | Total Interest Bearing Liabilities (billions) | $2.424 | 1.37% | $2.438 | 1.37% | $2.381 | 1.60% | | Interest Rate Spread | N/A | 3.75% | N/A | 3.69% | N/A | 3.38% | | Net Interest Margin | N/A | 4.30% | N/A | 4.22% | N/A | 4.02% |

Group 1: Earnings Performance - Capital City Bank reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and up from $0.83 per share a year ago, representing an earnings surprise of +6.02% [1] - The company posted revenues of $63.2 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.77%, compared to year-ago revenues of $58.88 million [2] - Over the last four quarters, Capital City Bank has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Capital City Bank shares have increased approximately 14.5% since the beginning of the year, outperforming the S&P 500's gain of 7.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $63.2 million, and for the current fiscal year, it is $3.43 on revenues of $248.6 million [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Banks - Southeast industry is currently in the top 16% of over 250 Zacks industries, suggesting a favorable environment for Capital City Bank [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Core Insights - Capital City Bank Group, Inc. reported a net income of $15.0 million for Q2 2025, a decrease from $16.9 million in Q1 2025 but an increase from $14.2 million in Q2 2024 [1][32] - The company experienced a 3.9% increase in net interest income and an 8 basis point expansion in net interest margin to 4.30% [2][5] - Tangible book value per share increased by 3.2% to $25.37 [10][32] Income Statement - Tax-equivalent net interest income for Q2 2025 was $43.2 million, up from $41.6 million in Q1 2025 and $39.3 million in Q2 2024 [3][10] - Noninterest income for Q2 2025 totaled $20.0 million, a slight increase from $19.9 million in Q1 2025 and $19.6 million in Q2 2024 [7][10] - Noninterest expense increased to $42.5 million in Q2 2025 from $38.7 million in Q1 2025 and $40.4 million in Q2 2024 [9][10] Balance Sheet - Average earning assets rose to $4.032 billion in Q2 2025, an increase of $38.1 million from Q1 2025 [14] - Total deposits were $3.705 billion at June 30, 2025, a decrease of $79.0 million from March 31, 2025, but an increase of $32.9 million from December 31, 2024 [20] - The allowance for credit losses for loans held for investment (HFI) was $29.9 million at June 30, 2025, slightly up from $29.7 million at March 31, 2025 [17] Credit Quality - Nonperforming assets totaled $6.6 million at June 30, 2025, compared to $4.4 million at March 31, 2025 [18] - The allowance represented 1.13% of loans HFI at June 30, 2025, compared to 1.12% at March 31, 2025 [17][32] Capital Adequacy - The total risk-based capital ratio was 19.60% at June 30, 2025, up from 19.20% at March 31, 2025 [25] - The tangible common equity ratio was 10.09% at June 30, 2025, compared to 9.61% at March 31, 2025 [25][32] Liquidity - The average net overnight funds sold position was $348.8 million in Q2 2025, an increase from $320.9 million in Q1 2025 [21] - The company had the ability to generate approximately $1.603 billion in additional liquidity through various sources as of June 30, 2025 [22]

Company Overview - Capital City Bank Group, Inc. is one of the largest publicly traded financial holding companies based in Florida with approximately $4.4 billion in assets [2] - The company offers a comprehensive range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust services, merchant services, bankcards, securities brokerage, and financial advisory services [2] - Capital City Bank, the bank subsidiary, was established in 1895 and operates 62 banking offices and 107 ATMs/ITMs across Florida, Georgia, and Alabama [2] Upcoming Financial Results - Capital City Bank Group, Inc. will release its second quarter 2025 results on Tuesday, July 22, 2025, before the market opens [1] - Investors can access the earnings results on the company's Investor Relations website after the release [1]

Core Insights - Capital City Bank has appointed William G. Smith III to its board of directors, marking the continuation of a four-generation family legacy within the bank [1][2][7] - Smith has been with Capital City Bank for 18 years and has held various leadership roles, most recently as chief lending officer, where he drives the bank's lending strategies [1][3] Company Overview - Capital City Bank Group, Inc. is a publicly traded financial holding company based in Florida with approximately $4.5 billion in assets [4] - The bank offers a comprehensive range of services, including traditional deposit and credit services, mortgage banking, asset management, and financial advisory services [4] - Capital City Bank was established in 1895 and operates 62 banking offices and 105 ATMs/ITMs across Florida, Georgia, and Alabama [4]

Core Viewpoint - Capital City Bank (CCBG) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - For Capital City Bank, the rising earnings estimates indicate an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Capital City Bank is projected to earn $3.43 per share, reflecting a 9.9% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Capital City Bank has risen by 9.2%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Capital City Bank to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

TALLAHASSEE, Fla., June 02, 2025 (GLOBE NEWSWIRE) -- The board of directors of Capital City Bank Group (NASDAQ: CCBG) announced today that Bethany Corum has been named president of Capital City Bank, effective as of July 1, 2025. This historic appointment takes place during the Bank’s landmark 130th anniversary year and marks a significant milestone as Corum becomes the first female president in the history of the Bank. She assumes this role with extensive experience and a deep commitment to championing the ...

Company Overview - Capital City Bank (CCBG) is headquartered in Tallahassee and operates in the Finance sector [3] - The stock has experienced a price change of 1.91% since the beginning of the year [3] Dividend Information - CCBG currently pays a dividend of $0.24 per share, resulting in a dividend yield of 2.57%, which is higher than the Banks - Southeast industry's yield of 2.38% and the S&P 500's yield of 1.6% [3] - The annualized dividend of $0.96 represents a 9.1% increase from the previous year [4] - Over the past five years, CCBG has increased its dividend five times, averaging an annual increase of 12% [4] - The current payout ratio is 28%, indicating that the company pays out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $3.14 per share, reflecting a 0.64% increase from the previous year [5] Investment Considerations - CCBG is considered a compelling investment opportunity due to its strong dividend performance and a Zacks Rank of 3 (Hold) [7] - Income investors should be aware that high-yielding stocks may face challenges during periods of rising interest rates [7]

Financial Performance - Net income attributable to common shareholders for Q1 2025 was $16.9 million, or $0.99 per diluted share, compared to $13.1 million, or $0.77 per diluted share in Q4 2024, and $12.6 million, or $0.74 per diluted share in Q1 2024[142]. - Noninterest income for Q1 2025 was $19.9 million, compared to $18.8 million in Q4 2024 and $18.1 million in Q1 2024[141]. - Noninterest income for Q1 2025 totaled $19.9 million, a 6.1% increase from Q4 2024 and a 10.0% increase from Q1 2024, primarily due to increases in mortgage banking revenues and wealth management fees[158]. - Noninterest expense for Q1 2025 was $38.7 million, a decrease of 7.4% from Q4 2024 and 3.7% from Q1 2024[168]. - The operating efficiency ratio improved to 62.93% in Q1 2025 from 69.74% in Q4 2024 and 71.06% in Q1 2024[174]. Income and Revenue - Net interest income for Q1 2025 was $41.5 million, an increase from $39.3 million in Q4 2024 and $38.4 million in Q1 2024[141]. - Tax-equivalent net interest income for Q1 2025 was $41.6 million, up from $41.2 million in Q4 2024 and $38.4 million in Q1 2024, driven by higher investment securities interest and lower deposit interest expense[155]. - Net interest margin for Q1 2025 increased to 4.22%, up five basis points from Q4 2024 and 21 basis points from Q1 2024, reflecting a higher yield in the investment portfolio and lower cost of deposits[156]. - Wealth management fees totaled $5.8 million for Q1 2025, a 10.4% increase from Q4 2024 and a 23.1% increase from Q1 2024[165]. - Mortgage banking revenues reached $3.8 million in Q1 2025, up 22.5% from Q4 2024 and 32.7% from Q1 2024[166]. Assets and Liabilities - Total assets as of Q1 2025 were $4.46 billion, up from $4.32 billion in Q4 2024[140]. - Average total deposits for Q1 2025 were $3.665 billion, an increase of $65.1 million, or 1.8%, from Q4 2024 and $89.0 million, or 2.5%, from Q1 2024[150]. - Total deposits reached $3.784 billion at March 31, 2025, an increase of $111.9 million or 3.0% from December 31, 2024[190]. - Total liabilities increased to $3,821,632 thousand, up from $3,761,763 thousand at December 31, 2024, indicating a rise in the company's obligations[222]. Capital and Equity - Tangible common equity ratio for Q1 2025 was 9.61%, an increase from 9.51% in Q4 2024[140]. - Shareowners' equity increased to $512.6 million at March 31, 2025, from $495.3 million at December 31, 2024, and $448.3 million at March 31, 2024, positively impacted by net income of $16.9 million[213]. - Total risk-based capital ratio at March 31, 2025, was 19.20%, indicating the company was "well-capitalized" under Basel III standards[151]. - Total risk-based capital ratio was 19.20% at March 31, 2025, compared to 18.64% at December 31, 2024, and 16.84% at March 31, 2024, with all ratios exceeding "well-capitalized" thresholds under Basel III standards[214]. Credit Quality - Provision for credit losses in Q1 2025 was $768,000, compared to $701,000 in Q4 2024[141]. - Nonperforming assets as a percentage of total assets were 0.10% in Q1 2025, down from 0.15% in Q4 2024[141]. - Nonperforming assets decreased to $4.4 million at March 31, 2025, down from $6.7 million at December 31, 2024, and $6.8 million at March 31, 2024, representing 0.10% of total assets[149]. - The net loan charge-offs were nine basis points of average loans for Q1 2025, down from 25 basis points in Q4 2024[187]. Investments and Commitments - Average investments totaled $982.3 million, a 7.3% increase from Q4 2024 and a 3.1% increase from Q1 2024[177]. - At March 31, 2025, commitments to extend credit were $656.0 million, with $7.3 million in standby letters of credit, indicating ongoing financing support for clients[217]. - The company has issued two junior subordinated deferrable interest notes totaling $62.9 million, with interest payments adjusting quarterly based on three-month CME Term SOFR plus a margin[210]. Economic and Market Conditions - The economic value of equity was favorable in all rising rate environments, with an EVE ratio exceeding the policy minimum of 5.0% in each shock scenario[202]. - The net interest income at risk showed a positive impact in rising rate environments, with a 17.3% increase projected for a +400 bp shock over the next 12 months[199]. - The company continues to monitor its cost of deposits and deposit mix amid the current rate environment[192].

Financial Performance - Net income attributable to common shareowners for Q1 2025 was $16.9 million, or $0.99 per diluted share, up from $13.1 million, or $0.77 per diluted share in Q4 2024[1] - Net income attributable to common shareholders for the three months ended March 31, 2025, was $16.86 million, compared to $13.09 million for the previous quarter and $12.56 million for the same period last year[31] - The diluted net income per share rose to $0.99, up from $0.77 in the previous quarter and $0.74 a year ago[31] - Basic net income per share increased to $0.99 in Q1 2025, compared to $0.77 in Q4 2024, a rise of 28.57%[35] - The return on average assets (annualized) improved to 1.58% from 1.22% in the previous quarter and 1.21% a year ago[31] Income and Expenses - Tax-equivalent net interest income for Q1 2025 totaled $41.6 million, an increase of $0.4 million from Q4 2024, driven by higher investment securities interest and lower deposit interest expense[3] - Noninterest income increased by $1.1 million, or 6.1%, in Q1 2025, primarily due to a rise in mortgage banking revenues and wealth management fees[7] - Noninterest expense decreased by $3.1 million, or 7.4%, in Q1 2025, mainly due to a reduction in other expenses related to the sale of banking facilities[8] - Total noninterest expense decreased to $38,701 thousand in Q1 2025 from $41,782 thousand in Q4 2024, a reduction of 7.4%[35] Assets and Deposits - Average total deposits for Q1 2025 were $3.665 billion, an increase of $65.1 million, or 1.8%, from Q4 2024[16] - Total deposits at March 31, 2025, were $3.784 billion, an increase of $111.9 million, or 3.0%, from December 31, 2024[17] - Total assets increased to approximately $4.46 billion as of March 31, 2025, from $4.32 billion at December 31, 2024[29] - Total assets increased to $4,461,233 thousand in Q1 2025, up from $4,324,932 thousand in Q4 2024, representing a growth of 3.15%[33] - Total deposits rose to $3,783,890 thousand in Q1 2025, compared to $3,671,977 thousand in Q4 2024, marking an increase of 3.04%[33] Credit Quality - The allowance for credit losses for loans held for investment totaled $29.7 million at March 31, 2025, reflecting higher loan balances and loss rates[14] - Nonperforming assets totaled $4.4 million at March 31, 2025, a decrease from $6.7 million at December 31, 2024[15] - The allowance as a percentage of non-performing loans was 692.10%, significantly higher than 464.14% in the previous quarter and 431.46% a year ago[31] - Nonperforming loans as a percentage of loans held for investment decreased to 0.16% in Q1 2025 from 0.24% in Q4 2024[36] - Net charge-offs for Q1 2025 were $600,000, a significant decrease of 64.10% compared to $1,670,000 in Q4 2024[36] Capital Ratios - Shareowners' equity increased to $512.6 million at March 31, 2025, up from $495.3 million at December 31, 2024, driven by net income and other factors[21] - As of March 31, 2025, the total risk-based capital ratio was 19.20%, up from 18.64% at December 31, 2024, and 16.84% at March 31, 2024[23] - The common equity tier 1 capital ratio increased to 16.08% from 15.54% at December 31, 2024, and 13.82% at March 31, 2024[31] - The tangible common equity ratio (non-GAAP) was 9.61% as of March 31, 2025, compared to 9.51% at December 31, 2024, and 8.53% at March 31, 2024[29] Efficiency Metrics - The efficiency ratio improved to 62.93% from 69.74% in the previous quarter and 71.06% a year ago[31] - Net interest income after provision for credit losses reached $40,779 thousand in Q1 2025, compared to $40,402 thousand in Q4 2024, an increase of 0.93%[35]