Breaking Down Capital City Bank Group, Inc. (CCBG) Financial Health: Key Insights for Investors

You're looking at Capital City Bank Group, Inc. and wondering if their recent performance justifies a deeper dive, especially with all the market noise around regional banks. Honestly, the Q3 2025 numbers, released in late October, show a bank that's defintely executing on operational discipline. The direct takeaway is strong profitability despite some balance sheet contraction. For the third quarter of 2025, net income attributable to common shareowners hit $16.0 million, translating to $0.93 per diluted share, which is a solid beat and a 22.1% jump year-over-year. That kind of bottom-line growth is driven by an expanding net interest margin (NIM) that reached 4.34%, plus a Return on Assets (ROA) of 1.47%, which is notably above the peer average. Sure, total assets stood at approximately $4.324 billion as of September 30, 2025, but the real story is the capital quality, with tangible book value per diluted share rising 4.0% to $26.38. We need to map out how they sustained this profitability while deposits and loans slightly decreased, so let's break down the core drivers and what that means for your investment strategy.

Revenue Analysis

You need to know where Capital City Bank Group, Inc. (CCBG) is making its money, and the direct takeaway is this: the bank is successfully diversifying its revenue, but its core strength remains its net interest income (NII). For the first nine months of 2025, total revenue-which is NII plus noninterest income-hit approximately $190.7 million, marking an impressive year-over-year growth of about 8.85% compared to the same period in 2024. That's a solid trajectory.

The primary revenue streams for Capital City Bank Group, Inc. (CCBG) fall into two main buckets: Net Interest Income (NII) and Noninterest Income. NII is the money the bank makes from loans and investments minus the interest it pays out on deposits, which is the traditional banking model. Noninterest income, on the other hand, is fee income from services like wealth management and mortgage banking, and this is where you see the strategic diversification play out.

Here's the quick math on the segment contribution for the third quarter of 2025 (Q3 2025), which reported a total revenue of $65.89 million:

• Net Interest Income (NII): $43.6 million, contributing about 66.16% of total revenue.
• Noninterest Income: $22.3 million, making up the remaining 33.84%.

For a regional bank, a one-third contribution from fee-based noninterest income is defintely a good buffer against interest rate swings. The full-year 2025 revenue is projected to be around $258.37 million based on consensus estimates.

Shifting Sources of Noninterest Income

The noninterest income segment is where the most significant changes happened in 2025. This segment grew by $5.1 million, or 8.92%, for the first nine months of 2025 compared to the same period in 2024. This growth wasn't accidental; it was driven by specific strategic moves and market conditions. Here's a look at the key drivers:

• Wealth Management Fees: A strong driver, increasing by $2.2 million for the first nine months of 2025, thanks to new business, higher account valuations, and a fee increase implemented early in the year.
• Mortgage Banking Revenues: These revenues increased by $1.6 million over the first nine months of 2025, reflecting higher production volume and better gain on sale margins.
• Strategic Asset Sale: In Q3 2025, the bank realized a non-recurring gain of $0.7 million from the sale of its insurance subsidiary, Capital City Strategic Wealth, which boosted the 'Other Income' line. This is a one-time gain, so don't expect it in Q4.

The table below shows the key revenue components for the first nine months of 2025 compared to the prior year, highlighting where the growth is coming from.

One key trend is the jump in NII, which is primarily attributable to a $7.3 million increase in investment securities income and a $2.3 million decrease in deposit interest expense for the first nine months of 2025. This means the bank is using the higher interest rate environment to its advantage, getting better yields on its investments while keeping its cost of funds (the interest paid on deposits) relatively low. For a deeper dive into the bank's long-term strategy, you can review the Mission Statement, Vision, & Core Values of Capital City Bank Group, Inc. (CCBG).

Profitability Metrics

You need to know if Capital City Bank Group, Inc. (CCBG) is not just growing revenue, but actually converting that revenue into real profit. The short answer is yes, they are, and their margins are currently outpacing the regional bank industry average, which is a strong signal of management discipline.

For the first nine months of the 2025 fiscal year, Capital City Bank Group has recorded a profit of $2.80 per diluted share. This performance is driven by expanding net interest margins (NIM) and a tight grip on costs, even with some one-time expense spikes. Here's the quick math on their core profitability for the third quarter of 2025 (Q3 2025):

• Q3 2025 Total Revenue: $65.9 million.
• Q3 2025 Net Income (Net Profit): $16.0 million.

This translates to a Q3 2025 Net Profit Margin of approximately 24.3%, which aligns closely with the trailing twelve-month net margin of 24.7%. This is a defintely strong performance, especially considering the broader market's revenue growth is outpacing CCBG's top-line, meaning their margin expansion is a pure function of better internal execution.

Margin Trends and Industry Comparison

The trend in profitability is clearly upward over the past year. Net income attributable to common shareholders has consistently increased year-over-year, rising from $13.1 million in Q3 2024 to $16.0 million in Q3 2025. This is a robust 22% increase. The key performance indicators (KPIs) show Capital City Bank Group is not just keeping up, but leading the pack in critical areas:

Their Return on Assets (ROA) of 1.47% and Return on Equity (ROE) of 11.67% in Q3 2025 both exceed the general industry averages, demonstrating superior capital efficiency. The expanding net interest margin (NIM), which hit 4.34% in Q3 2025, is the primary driver here, reflecting their ability to manage funding costs better than many peers.

Operational Efficiency and Cost Management

Operational efficiency, measured by the efficiency ratio (noninterest expenses to total revenue), tells you how much the bank spends to earn a dollar of revenue. For a regional bank, a lower number is better, and Capital City Bank Group's performance has been mixed but generally healthy.

• Q1 2025 Efficiency Ratio: 62.9%
• Q2 2025 Efficiency Ratio: 67.2%

The spike to 67.2% in Q2 2025 was largely an anomaly, driven by a 9.9% year-over-year increase in noninterest expenses to $42.5 million due to the absence of a one-time gain from the Q1 sale of their operations center building. This is a perfect example of why you must look beyond the headline number; the underlying cost discipline is still there, with noninterest expenses growing only $0.6 million over the first half of 2025 compared to 2024. The industry aggregate efficiency ratio was better at 56.2% in Q1 2025, so CCBG still has room to improve their structural cost base, but their ability to generate high margins despite a higher ratio is a testament to their strong Net Interest Income performance.

The Pre-Provision Net Revenue (PPNR), which is the bank's equivalent of operating profit before accounting for potential loan losses, was approximately $23.0 million in Q3 2025, giving an Operating Profit Margin of about 34.9%. This metric is rising, mostly due to the strong net interest income growth, which is a significant tailwind in the current rate environment. You can read more about this in the full analysis: Breaking Down Capital City Bank Group, Inc. (CCBG) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at Capital City Bank Group, Inc. (CCBG) and wondering how they fund their growth-is it through borrowing or shareholder money? The quick answer is they lean heavily on equity, which is defintely a conservative, low-risk approach in the banking world.

As a financial analyst with a few decades under my belt, I see a balance sheet that prioritizes stability. For the third quarter of 2025, Capital City Bank Group, Inc. reported a highly conservative debt-to-equity (D/E) ratio of just 0.15. This means for every dollar of shareholder equity, the company uses only 15 cents of debt financing.

To put that in perspective, the average D/E ratio for U.S. Regional Banks in 2025 is closer to 0.50 to 0.5753. Capital City Bank Group, Inc. is running with significantly less leverage than its peers, which is a clear signal of prudent financial management and a lower risk profile for investors.

Here's the quick math on their core debt components from the first quarter of 2025, which totaled approximately $90.881 million in long-term and short-term borrowings:

• Short-Term Borrowings (Repurchase Agreements and Other): Approximately $37.20 million
• Long-Term Debt (Subordinated Notes Payable and Other): Approximately $53.68 million

The core of their long-term debt is the Subordinated Notes Payable, which stood at $52.887 million as of March 31, 2025. They use derivative financial instruments, specifically interest rate swaps, to manage the interest rate exposure on this subordinated debt, which is a smart move to lock in financing costs in a volatile rate environment.

In terms of recent activity, the company hasn't engaged in any major new debt issuances, but they are focused on maintaining a clean ledger. Critically, Capital City Bank Group, Inc. was in compliance with all significant debt covenants as of September 30, 2025. This compliance is a key indicator that their debt obligations are well-managed and not straining their operations.

The balance between debt and equity is clear: Capital City Bank Group, Inc. is prioritizing capital strength. Their total shareowners' equity was robust at $526.423 million as of June 30, 2025. This strong equity base, combined with the low D/E ratio, shows they are financing growth primarily through retained earnings and shareholder capital, not aggressive borrowing. This approach limits their cost of capital (WACC) benefits from debt but provides a significant buffer against economic downturns. It's a trade-off of higher potential return for lower risk.

For a deeper dive into their profitability and asset quality, you can read the full analysis at Breaking Down Capital City Bank Group, Inc. (CCBG) Financial Health: Key Insights for Investors.

Your next step: Compare Capital City Bank Group, Inc.'s D/E ratio to its direct peers with similar asset sizes-that will show you just how much of an outlier their conservative stance is.

Liquidity and Solvency

You're looking for a clear picture of Capital City Bank Group, Inc. (CCBG)'s ability to meet its near-term obligations, and for a bank, that means looking beyond the standard corporate liquidity ratios. The short answer: CCBG shows solid capital and asset quality, which is the real measure of a bank's financial flexibility.

The traditional Current and Quick Ratios (liquidity positions) are defintely less useful here. For a bank, the bulk of its liabilities are customer deposits, which are technically current but operationally stable. A quick ratio of, say, 0.1x is normal for a bank, but it tells you nothing about the quality of the assets backing those deposits. What matters is asset quality and capital strength.

A better proxy for risk is the nonperforming assets ratio, which stood at 0.23% of total assets as of September 30, 2025. That is a low figure, signaling that the bank's core assets (loans and real estate) are clean and not a near-term drag on liquidity. Plus, the tangible book value per diluted share rose by $1.01, or 4.0%, in the third quarter of 2025 alone, reaching $26.38. That's a strong sign of capital retention and value.

Working Capital and Deposit Trends

Instead of a working capital analysis, we look at the spread between loans and deposits. This shows how well the bank is funding its primary business. Deposit balances are the bank's working capital engine, and they saw a seasonal decrease of $89.9 million, or 2.4%, in the third quarter of 2025, largely due to public fund withdrawals. Still, noninterest-bearing deposits averaged a healthy 36.4% of total deposits for the quarter. That high percentage of low-cost funding is a significant liquidity strength.

Loan balances also decreased by $49.5 million in the same period, down to $2.582 billion. This simultaneous, albeit seasonal, dip in both loans and deposits suggests a managed, rather than distressed, balance sheet contraction. The bank is not overextending its loan book while its funding base slightly shrinks.

Cash Flow Statement Overview

The cash flow statement for the nine months ended September 30, 2025, shows a positive trajectory in core profitability, which is the ultimate source of internal liquidity. Net income attributable to common shareowners was $47.85 million for the nine months, up from $39.83 million in the same period a year ago. That's a solid 20.1% increase year-over-year.

Here's a quick look at the cash flow components (all figures for the nine months ended September 30, 2025, in millions of USD):

• Operating Cash Flow: Driven by the $47.85 million in net income, this is where the bank generates its cash. Key adjustments include a $3.27 million provision for credit losses and a $3.40 million amortization of premiums, discounts, and fees. A significant part of the operating cash flow is tied to the mortgage banking business, with $350.88 million in proceeds from sales of loans held-for-sale, offset by $332.76 million in originations. This constant recycling of mortgage loans is a key source of operating liquidity.
• Investing Cash Flow: This is primarily tied to the management of the investment securities portfolio and the net change in loans. While the total net cash from investing isn't explicitly totaled, the activity is consistent with a bank managing its balance sheet in a rising-rate environment.
• Financing Cash Flow: This section is dominated by changes in deposits and borrowings. The seasonal deposit decrease mentioned earlier is the main driver here, but the bank's strong capital ratios-like the Total Risk-Based Capital Ratio of 19.60% at June 30, 2025-show that the funding structure is stable and well-capitalized.

The bank's liquidity position is strong, not because of a high quick ratio, but because of its high-quality asset base and conservative capital structure. For a deeper dive into the valuation, check out Breaking Down Capital City Bank Group, Inc. (CCBG) Financial Health: Key Insights for Investors.

Next Step: Portfolio Manager: Stress-test CCBG's deposit base against a 5% non-seasonal withdrawal scenario by Friday.

Valuation Analysis

You're looking at Capital City Bank Group, Inc. (CCBG) and asking the essential question: is this stock a bargain or a bubble? Based on the latest fiscal year data through November 2025, the stock appears reasonably valued, leaning toward a slight undervaluation when you focus on its earnings multiple and strong capital position.

The core valuation picture is clear. The Price-to-Earnings (P/E) ratio currently sits at a modest 11.44. Here's the quick math: this is well below the broader market average, suggesting investors are paying less for each dollar of Capital City Bank Group's earnings. For a regional bank, this P/E multiple is defintely attractive. However, its Price-to-Book (P/B) ratio, a critical metric for banks, is 1.29. A P/B over 1.0 means the market values the company at a premium to its net tangible assets, but 1.29 is a sensible premium for a bank with a solid return on equity.

Looking at the stock price trend over the last year, Capital City Bank Group has traded in a 52-week range of $32.38 to $44.69. The current price, around $39.48, places it near the middle of this range, which tells us the market isn't wildly enthusiastic, but it's not panicking either. The volatility is contained, which is what you want to see in a financial institution.

The dividend profile offers a nice cushion. The annual dividend is $1.04 per share, translating to a yield of 2.38%. More importantly, the payout ratio is a very sustainable 27.17%, meaning the bank is only using a small portion of its earnings to cover the dividend. That leaves plenty of capital to reinvest in the business, which aligns with their growth strategy and their Mission Statement, Vision, & Core Values of Capital City Bank Group, Inc. (CCBG).

Wall Street analysts are generally positive, giving the stock a consensus rating of Moderate Buy. The average 12-month price target is $45.00, which implies a forecasted upside of about 14.17% from the recent trading price. So, the professionals see a clear path for a decent return here.

Next Step: Portfolio Managers should model a stress-test scenario assuming a P/B multiple compression to 1.1x by Q2 2026 to understand downside risk.

Risk Factors

You've seen the strong headline numbers-Capital City Bank Group, Inc. (CCBG) posted net income attributable to common shareowners of $47.9 million for the first nine months of 2025, which is defintely a solid performance. But as a seasoned financial analyst, you know to look past the top line and map out the near-term risks. The biggest concerns right now are credit quality deterioration and persistent balance sheet contraction, even as the bank manages interest rate shifts well.

Here's the quick math on the risks: while the bank's net interest margin (NIM) hit 4.34% in the third quarter of 2025, the provision for credit losses jumped. This suggests the high-rate environment is starting to bite into borrower quality, a classic late-cycle risk for regional banks.

The Credit Quality Headwind: Rising Loss Provisions

The most pressing financial risk Capital City Bank Group, Inc. faces is credit risk, or the chance that borrowers won't pay back their loans. We saw a clear signal in the third quarter of 2025 when the Provision for Credit Losses (PCL) spiked to $1.9 million. That's a sharp increase from the $0.6 million reported in the second quarter of 2025. This isn't just a paper adjustment; it reflects a real-world increase in risk.

Also, classified loans-those considered higher risk-grew from 0.75% of the total loan portfolio in 2024 to 1.09% by the end of the second quarter of 2025. That's a material increase. The bank is mitigating this by maintaining a strong tangible capital ratio, which was 10.1% in Q2 2025, well above the regulatory minimums, so they have a cushion. Still, watch the net loan charge-offs, which hit 18 basis points (annualized) of average loans in Q3 2025. If that trend accelerates, it will eat into earnings.

Operational and Strategic Risks: Efficiency and Loan Demand

On the operational side, Capital City Bank Group, Inc. saw its efficiency ratio-a measure of cost control-worsen to 67.2% in the second quarter of 2025, up from 62.9% in the first quarter of 2025. This was largely due to a one-time event: the absence of a gain from the sale of an operations center building that benefited the prior quarter. It's a temporary spike, but it highlights the need for continued cost discipline.

Strategically, the bank is contending with subdued loan demand, a common external risk in a high-interest-rate environment. Loan balances decreased by $49.5 million, or 1.9%, in the third quarter of 2025. This contraction makes it harder to grow the asset base and leverage their capital. The bank is countering this by shifting its earning asset mix toward higher-yielding investment securities, which helped push tax-equivalent net interest income to $128.4 million for the first nine months of the year, but it's not a long-term substitute for core loan growth.

The near-term risks are manageable, but they require a close look at the balance sheet. For more on the bank's overall financial standing, you can read the full post: Breaking Down Capital City Bank Group, Inc. (CCBG) Financial Health: Key Insights for Investors.

• Monitor credit loss provisions: They are the clearest sign of a weakening economy.
• Track loan and deposit balances: Contraction limits future revenue growth.
• Confirm revenue diversification: Noninterest income of $62.3 million (9M 2025) provides a necessary buffer.

Mitigation in Action: Diversification and Deposit Stability

Capital City Bank Group, Inc. isn't sitting still. Their primary mitigation strategy against external market volatility is twofold: revenue diversification and a stable deposit base. The bank's noninterest income, which includes wealth management and mortgage banking fees, totaled $62.3 million for the first nine months of 2025. This income stream is less sensitive to interest rate fluctuations than traditional lending.

Also, while deposit balances decreased by $89.9 million in Q3 2025, management attributed this to a seasonal decrease in public funds, not a run on the bank. Crucially, noninterest-bearing deposits averaged a healthy 36.4% of total deposits in the third quarter of 2025. This low-cost funding is a significant competitive advantage (a low cost of funds) that helps keep the net interest margin high, even if rates move against them.

Growth Opportunities

You want to know where Capital City Bank Group, Inc. (CCBG) is going next, and the quick answer is that their future growth is less about massive acquisitions and more about disciplined, profitable execution in their core markets. They are defintely focused on maximizing their net interest margin (NIM) and growing their noninterest income streams.

For the full 2025 fiscal year, the consensus analyst estimates point to a solid top-line performance, projecting sales of about $258.37 million and earnings of $3.60 per share. Here's the quick math: while their projected annual revenue growth of just 4% lags the broader US market, their strong profit margins of 24.7% show they are squeezing more profit out of every dollar of revenue than many peers. That operational discipline is a huge plus.

Key Growth Drivers: Margin and Wealth

The biggest driver for Capital City Bank Group is their ability to manage their net interest margin (NIM)-the difference between what they earn on loans and investments and what they pay on deposits. In the second quarter of 2025, their NIM improved to 4.30%, an 8-basis-point increase from the prior quarter. This expansion is a direct result of higher yields on their investment portfolio and a lower cost of funds (the money they pay for deposits), which is a clear competitive advantage in this rate environment.

Also, the push into noninterest income is paying off. This is a crucial diversification strategy (a way to make money that isn't just lending). They are seeing growth in their wealth management and mortgage banking revenues. Honestly, the wealth management side is a standout: assets under management grew to $3.2 billion in the second quarter of 2025.

• Maximize NIM: Capitalizing on higher yields.
• Diversify Revenue: Growing wealth management fees.
• Enhance Efficiency: Maintaining a high net profit margin of 24.7%.

Strategic Focus and Competitive Edge

Capital City Bank Group's strategy isn't about chasing risky new markets; it's about deepening its presence in Florida, Georgia, and Alabama, where they operate 62 banking offices. Their longevity, having been established since 1895, gives them a significant trust advantage, especially with their substantial asset base of approximately $4.3 billion.

Their balance sheet provides a fortress-like foundation for this growth. They maintain a strong capital position with a tangible ratio of 10.1%. Plus, their low-cost funding base is excellent: noninterest-bearing deposits averaged 36.5% of total deposits in Q2 2025. That's cheap money to fund their operations.

To be fair, they are also investing internally, which shows up in their recent ranking as one of American Banker's 'Best Banks to Work For' in 2025, placing #37 nationwide. A strong culture means less turnover and better service, which is a quiet but powerful competitive edge for a regional bank.

You can see their long-term commitment to their operating philosophy here: Mission Statement, Vision, & Core Values of Capital City Bank Group, Inc. (CCBG).