Capital City Bank Group(US:CCBG)2025-10-31 17:52Financial Performance - Net income attributable to common shareholders for Q3 2025 was $16.0 million, or $0.93 per diluted share, compared to $15.0 million, or $0.88 per diluted share in Q2 2025, and $13.1 million, or $0.77 per diluted share in Q3 2024 [170]. - For the first nine months of 2025, net income attributable to common shareholders was $47.9 million, or $2.80 per diluted share, compared to $39.8 million, or $2.35 per diluted share for the same period in 2024 [170]. - Noninterest income for Q3 2025 was $22.3 million, compared to $20.0 million in Q2 2025 and $19.5 million in Q3 2024 [168]. - Noninterest income for the first nine months of 2025 totaled $62.3 million, a 9.3% increase from $57.2 million in the same period of 2024, driven by increases in wealth management fees, mortgage banking revenues, and other income [189]. - Net interest income for Q3 2025 was $43.6 million, an increase from $43.2 million in Q2 2025 and $40.3 million in Q3 2024 [184]. - Net interest income for the three months ended September 30, 2025, was $43,602 thousand, up from $40,260 thousand in the same period of 2024, representing an increase of 5.8% [256]. - The company reported a net interest income of $128,421 thousand for the nine months ended September 30, 2025, compared to $118,029 thousand for the same period in 2024, marking an increase of 8.5% [256]. Asset and Capital Management - Total assets as of Q3 2025 were $4.32 billion, a decrease from $4.39 billion in Q2 2025 [167]. - Total assets increased to $4,317,951 thousand in Q3 2025 from $4,215,862 thousand in Q3 2024, reflecting a growth of 2.6% [256]. - The tangible common equity ratio for Q3 2025 was 10.66%, up from 10.09% in Q2 2025 and 9.28% in Q3 2024 [167]. - Shareowners' equity rose to $540.6 million at September 30, 2025, up from $526.4 million at June 30, 2025, driven by net income of $47.9 million and a decrease in accumulated other comprehensive loss [247]. - The total risk-based capital ratio was 20.59% at September 30, 2025, compared to 19.60% at June 30, 2025, indicating strong capital adequacy [248]. Income and Expense Analysis - Noninterest expense for Q3 2025 was $42.9 million, a slight increase of $0.4 million or 0.9% from Q2 2025, and unchanged from Q3 2024 [174]. - Noninterest expense for the first nine months of 2025 totaled $124.2 million, a 0.5% increase from $123.5 million in the same period of 2024, primarily due to a $4.2 million increase in compensation expense [199]. - Total noninterest expense for Q3 2025 was $42.9 million, comparable to Q3 2024, with a slight increase from $42.5 million in Q2 2025 [198]. - Compensation expense for the first nine months of 2025 was $78.8 million, a $4.2 million increase from $74.6 million in the same period of 2024, driven by increases in salary and associate benefit expenses [202]. Credit Quality and Loss Provisions - The provision for credit losses in Q3 2025 was $1.9 million, significantly higher than $0.6 million in Q2 2025 and $1.2 million in Q3 2024 [168]. - Nonperforming assets increased to $10.0 million in Q3 2025 from $6.6 million in Q2 2025 [168]. - The allowance for credit losses for loans HFI was $30.2 million at September 30, 2025, representing 1.17% of loans HFI, up from 1.13% at June 30, 2025 [221]. - Nonperforming assets totaled $10.0 million at September 30, 2025, representing 0.23% of total assets, up from $6.6 million (0.15%) at June 30, 2025 [217]. Deposits and Funding - Average total deposits were $3.612 billion in Q3 2025, a decrease of $68.4 million or 1.86% from Q2 2025 [178]. - Total deposits at September 30, 2025, were $3.615 billion, a decrease of $89.9 million (2.4%) from June 30, 2025 [224]. - Average short-term borrowings totaled $34.7 million in Q3 2025, slightly up from $33.1 million in Q2 2025, primarily due to mortgage warehouse borrowing activity [243]. - The company continues to monitor its cost of deposits and deposit mix amid the current rate environment [226]. Interest Rates and Economic Value - The interest rate spread improved to 3.81% in Q3 2025 from 3.49% in Q3 2024 [256]. - The estimated changes in net interest income (NII) for a 12-month shock indicate a potential increase of 18.9% to 4.9% under rising rate scenarios, while a decrease of -5.3% to -23.8% is expected under falling rate scenarios as of September 30, 2025 [233]. - The economic value of equity (EVE) is projected to increase by 34.2% to 10.5% in rising rate environments, but decrease by -12.0% to -40.7% in falling rate environments as of September 30, 2025 [235].