Capital City Bank Group, Inc.

What they do

CCBG is a financial holding company whose principal asset is Capital City Bank, a Florida-chartered full-service bank that commenced operations in 1895. The Bank operates 62 banking offices and 108 ATMs/ITMs in Florida, Georgia, and Alabama, and through Capital City Home Loans, LLC has 28 additional mortgage banking offices in the Southeast. It provides business and commercial real estate lending, traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage, and financial advisory services.

Revenue drivers

• Banking Services — Operated at Capital City Bank; generated approximately 92.8% of total revenue in 2025 and 92.6% in 2024, reflecting commercial and retail lending, deposits, and related fee services.
• Wealth Management Services — Operated under two divisions, Capital City Trust Company and Capital City Investments; generated approximately 7.2% of total revenue in 2025.
• Net interest income — The primary earnings driver, being the difference between interest earned on loans and securities and interest paid on deposits and borrowings; tax-equivalent net interest income was $44.2 million in Q2 2026.
• Geographic revenue mix — Approximately 81% of revenue is derived from Florida market areas, with 17% from Georgia and 2% from other market areas.

Recent performance

For the second quarter of 2026, CCBG reported net income attributable to common shareowners of $16.3 million, or $0.95 per diluted share, compared with $15.8 million, or $0.92 per diluted share, in Q1 2026 and $15.0 million, or $0.88 per diluted share, in Q2 2025. Return on assets was 1.48% and return on equity was 11.38% for Q2 2026. Tax-equivalent net interest income totaled $44.2 million in Q2 2026, up from $42.9 million in Q1 2026, with net interest margin rising 11 basis points to 4.35%. Noninterest income increased 3.3% quarter over quarter on higher mortgage banking revenues and bank card fees, while noninterest expense rose 3.1%. Loan balances decreased 1.3% on average and deposits decreased 0.8% end-of-period, partly due to a seasonal decrease in public fund balances.

Strategy

Management emphasizes building long-term client relationships based on quality service, high ethical standards, and safe and sound banking practices. The company maintains a locally oriented, community-based focus with a dedicated President for each market and community boards, supported by centralized expertise. It continues to deploy additional liquidity into the investment securities portfolio, which contributed to higher investment securities income. CCBG sold its insurance subsidiary, Capital City Strategic Wealth, LLC, in August 2025 and made Capital City Home Loans, LLC wholly owned effective January 1, 2025.

Risks

• Interest rate and monetary policy changes — Changes in interest rates and the Fed Funds rate affect funding costs, loan and securities portfolios, and customer behavior, which can pressure net interest margin.
• Credit quality deterioration — Changes in borrower creditworthiness, loan mix, or nonperforming assets could require higher credit loss reserves; total nonperforming assets were $13.4 million, or 30 basis points of total assets, at June 30, 2026.
• Deposit levels and funding costs — Deposit balances decreased 0.8% end-of-period at June 30, 2026, partly due to seasonal public fund outflows, and changes in deposit mix or pricing could affect liquidity and funding costs.
• Regulatory and compliance costs — CCBG is subject to extensive banking, securities, and insurance laws and regulations, and changes in laws, accounting standards, or regulatory examinations could increase costs or restrict dividend payments from the Bank.

Outlook

Management does not provide specific numerical guidance, but CEO William G. Smith, Jr. said the company will remain focused on serving clients' financial needs, managing risk wisely, and executing on opportunities ahead. The company continues to deploy liquidity into higher-yielding investment securities, which has supported net interest income. Deposit trends may continue to reflect seasonal public fund balances.