Capital City Bank Group(CCBG) - 2025 Q1 - Quarterly Report

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].