Capital City Bank Group, Inc. Reports Third Quarter 2026 Results

CCBG posted higher net income and improved credit quality in Q3 2026.

What the company is saying

Capital City Bank Group, Inc. (NASDAQ:CCBG) is emphasizing a quarter of strong earnings growth, with net income rising to $16.9 million ($0.99 per diluted share) in Q3 2026, up from $16.3 million ($0.95) in Q2 2026 and $16.0 million ($0.93) in Q3 2025. The company highlights improvements in core profitability metrics, including a net interest margin increase to 4.42% and higher tax-equivalent net interest income of $45.1 million. Management, led by Chairman and CEO William G. Smith, Jr., frames the narrative around continued momentum, citing net interest margin expansion and improved credit quality as key contributors. The release details the drivers of both income and expense changes, attributing noninterest income declines to lower mortgage banking revenues and deposit fees, and noninterest expense declines to reduced compensation costs. The company also points to improved asset quality, with nonperforming assets dropping by $3.7 million to $9.7 million. Forward-looking statements are limited to expectations for a 23-24% effective tax rate and confidence in finishing the year strong.

What the data suggests

The disclosed figures show CCBG's net income increased to $16.9 million in Q3 2026 from $16.3 million in Q2 and $16.0 million in Q3 2025, with EPS rising to $0.99. Return on Assets (1.53%) and Return on Equity (11.67%) both improved quarter-over-quarter. Tax-equivalent net interest income increased to $45.1 million, and net interest margin rose by 7 basis points to 4.42%. The cost of funds declined to 73 basis points. Credit quality improved, as nonperforming assets fell to $9.7 million and the credit loss provision dropped by $1.0 million. Noninterest income decreased by $1.2 million (5.9%), mainly from lower mortgage banking and deposit fees, while noninterest expense fell by $0.3 million, primarily due to a $0.2 million reduction in compensation expense. Loan balances declined by $10.3 million (average) and $10.1 million (end of period), and deposit balances dropped by $31.2 million (average) and $54.4 million (end of period), reflecting seasonal public fund outflows. Tangible book value per diluted share increased by $0.19. The company’s narrative of momentum is substantiated by these core profitability and asset quality improvements, despite some pressure on noninterest income and loan volumes.

Analysis

The announcement is a standard quarterly financial results release, with the vast majority of claims being realised, backward-looking, and supported by specific numerical disclosures. Key profitability metrics (net income, EPS, ROA, ROE), as well as operational and credit quality figures, are all provided for the current and prior periods. Only two minor forward-looking statements are present: an expected tax rate for the year and a generic statement about finishing the year strong. There is no evidence of exaggerated or promotional language, nor are there any large capital outlays or long-dated, uncertain returns discussed. The tone is factual and proportionate to the results, with no narrative inflation or overstatement relative to the disclosed evidence.

Risk flags

• ●Loan and deposit balances both declined during the quarter, with average loans down $10.3 million and average deposits down $31.2 million, reflecting potential headwinds for future balance sheet growth if these trends persist.
• ●Noninterest income fell by $1.2 million (5.9%) quarter-over-quarter and $2.9 million (13.2%) year-over-year, driven by lower mortgage banking revenues and deposit fees, indicating ongoing pressure on fee-based revenue streams.
• ●The investment securities portfolio experienced a 3.2% after-tax loss (AFS and HTM) of book value, and its duration is 2.6 years, exposing the company to continued interest rate risk if bond yields rise further.

Bottom line

CCBG delivered another quarter of incremental profitability gains, with net income, EPS, and core asset quality all improving in Q3 2026. The company’s results are backed by detailed disclosures showing higher net interest income, a stronger net interest margin, and lower credit costs, while nonperforming assets declined. However, the drop in both loan and deposit balances, along with continued weakness in noninterest income, signals areas to watch for future quarters. The company’s narrative of momentum is credible based on the numbers, but sustaining earnings growth will depend on stabilizing loan volumes and fee income. The most important takeaway is that CCBG’s core banking fundamentals are solid, but top-line growth may be challenged if balance sheet contraction and noninterest income declines continue.

Announcement summary

(NASDAQ:CCBG) Capital City Bank Group, Inc. reported net income attributable to common shareowners of $16.9 million, or $0.99 per diluted share, for the third quarter of 2026. This compares to $16.3 million, or $0.95 per diluted share, for the second quarter of 2026, and $16.0 million, or $0.93 per diluted share, for the third quarter of 2025. Return on Assets was 1.53% and Return on Equity was 11.67% for the third quarter of 2026. Tax-equivalent net interest income totaled $45.1 million for the third quarter of 2026, up from $44.2 million in the prior quarter. Net interest margin increased 7 basis points to 4.42%. The cost of funds was 73 basis points for the third quarter of 2026. The credit loss provision decreased by $1.0 million, with net loan charge-offs of 8 basis points (annualized) of average loans, and the allowance coverage ratio decreased two basis points to 1.22% at September 30, 2026. Noninterest income decreased $1.2 million, or 5.9%, driven by lower mortgage banking revenues and deposit fees. Noninterest expense decreased $0.3 million, or 0.8%, primarily due to lower compensation expense of $0.2 million. Loan balances decreased $10.3 million (average) and $10.1 million (end of period). Total nonperforming assets were $9.7 million at September 30, 2026, a $3.7 million decrease from the prior quarter. Deposit balances decreased $31.2 million (average) and $54.4 million (end of period). Investment security loss AFS and HTM was 3.2% (after-tax) of book value, with a total security portfolio duration of 2.6 years. Tangible book value per diluted share increased $0.19, or 0.7%. For the first nine months of 2026, tax-equivalent net interest income was $132.2 million, compared to $128.4 million for the same period of 2025. Provision benefit for credit losses was $0.1 million for the third quarter of 2026, compared to a provision expense of $0.9 million for the second quarter of 2026 and $1.9 million for the third quarter of 2025. For the first nine months of 2026, provision expense for credit losses was $1.6 million compared to $3.3 million for the same period of 2025. Noninterest income for the third quarter of 2026 was $19.4 million, a $1.2 million decrease from the second quarter of 2026 and a $2.9 million decrease from the third quarter of 2025. For the first nine months of 2026, noninterest income totaled $59.9 million, a $2.3 million decrease from the same period of 2025. Noninterest expense for the third quarter of 2026 was $42.3 million, a $0.3 million decrease from the second quarter of 2026 and a $0.6 million decrease from the third quarter of 2025. For the first nine months of 2026, noninterest expense totaled $126.3 million, a $2.2 million increase over the same period of 2025. Income tax expense was $5.2 million (effective rate of 23.6%) for the third quarter of 2026. Average earning assets totaled $4.038 billion for the third quarter of 2026, a decrease of $30.6 million from the second quarter of 2026. At September 30, 2026, the allowance for credit losses for loans HFI totaled $30.4 million. Nonperforming assets totaled $9.7 million at September 30, 2026, compared to $13.4 million at June 30, 2026.

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