Executive Summary

Q3 2025 delivered stronger profitability: diluted EPS rose to $0.93, up 5.7% sequentially and 20.8% YoY, driven by net interest margin expansion to 4.34% and higher noninterest income .
Versus S&P Global consensus, EPS beat by ~7.3% while revenue was modestly below by ~0.4% (S&P revenue definition)*. The EPS beat was supported by lower funding costs and securities yield lift, while revenue softness reflects lower loan income on smaller balances .
Credit costs ticked up: provision increased to $1.9M and net charge-offs annualized at 0.18% as nonperforming assets rose to 0.23% of total assets; allowance coverage improved to 1.17% .
Capital and TBV strengthened: tangible book value per diluted share rose 4.0% QoQ to $26.38; CET1 reached 17.73% and total risk-based capital 20.59%, supporting dividend policy and balance sheet resilience .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded 4 bps QoQ to 4.34% with cost of funds down to 78 bps; September NIM at 4.41% underscores momentum .
Noninterest income grew 11.6% QoQ (+$2.3M) on mortgage banking (+$0.6M), deposit fees (+$0.6M), and other income (+$1.2M) including a $0.7M gain from the sale of the insurance subsidiary .
Management tone confident: “highlighted by an above-peer ROA of 1.47% and ROE of 11.67%… Revenue growth driven by continued net interest margin expansion and higher noninterest income… we are in a position of strength” .

What Went Wrong

Loan balances declined: loans HFI fell $49.5M QoQ (-1.9% EOP) with notable declines in construction, CRE, consumer and residential real estate loans .
Credit metrics mixed: NPAs increased to $10.0M (0.23% of assets) and nonaccrual loans rose by $1.7M QoQ, driven partly by two home equity loans totaling $1.8M .
Seasonal deposit pressure: total deposits down $89.9M QoQ (-2.4%) EOP due to public fund seasonality, though core deposit balances were stable-to-improving .

Financial Results

Reported performance (GAAP and operating metrics)

Metric	Q3 2024	Q2 2025	Q3 2025
Diluted EPS ($)	$0.77	$0.88	$0.93
Net Interest Income ($M)	$40.211	$43.184	$43.557
Noninterest Income ($M)	$19.513	$20.014	$22.331
Provision for Credit Losses ($M)	$1.206	$0.620	$1.881
Net Interest Margin (%)	4.12%	4.30%	4.34%
ROA (annualized, %)	1.24%	1.38%	1.47%
ROE (annualized, %)	10.87%	11.44%	11.67%
Efficiency Ratio (%)	71.81%	67.26%	65.09%
Avg Total Deposits ($B)	$3.572	$3.681	$3.612

Noninterest income mix

Component ($M)	Q3 2024	Q2 2025	Q3 2025
Deposit Fees	$5.512	$5.320	$5.877
Bank Card Fees	$3.624	$3.774	$3.733
Wealth Mgmt Fees	$4.770	$5.206	$5.173
Mortgage Banking	$3.966	$4.190	$4.794
Other Income	$1.641	$1.524	$2.754 (includes ~$0.7M gain on insurance subsidiary sale)

Key KPIs and balance sheet quality

KPI	Q3 2024	Q2 2025	Q3 2025
Cost of Funds (%)	0.93%	0.82%	0.78%
Allowance as % Loans HFI (%)	1.11%	1.13%	1.17%
NPAs as % Total Assets (%)	0.17%	0.15%	0.23%
Tangible BV/ Diluted Share ($)	$22.60	$25.37	$26.38
CET1 Ratio (%)	14.88%	16.81%	17.73%
Total Risk-Based Capital (%)	17.97%	19.60%	20.59%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Effective Tax Rate	FY 2025	≈24% (as communicated in Q1/Q2 2025)	≈24% (absent discrete items/new credits)	Maintained
Quarterly Dividend	Q3 2025	$0.24 per share (Q2 2025)	$0.26 per share (declared Aug 28, 2025)	Raised
Revenue, Margins, OpEx, OI&E	FY/Quarter	Not provided	Not provided	—

Note: No formal quantitative revenue/margin/OpEx guidance was provided; management highlighted expectation for tax rate only .

Earnings Call Themes & Trends

Transcript was not available in the research corpus; conference call occurred Oct 21, 2025, 10:00AM ET (schedule reference) .

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Net Interest Margin trajectory	NIM up to 4.22% (Q1) and 4.30% (Q2) on higher securities yields and lower deposit costs	NIM expanded to 4.34%; September NIM 4.41%; cost of funds down 4 bps QoQ	Improving
Deposit mix & public funds seasonality	Public funds seasonality boosted Q1; declined in Q2; core deposits grew	Deposits down QoQ (-2.4% EOP) due to seasonal public fund decline; core deposits offset partially	Seasonal headwind; core stable
Credit quality	Lower net charge-offs and NPAs in Q1; NPAs rose modestly in Q2	NPAs rose to 0.23% of assets; allowance ratio up to 1.17%; NCOs at 0.18% (annualized)	Mixed (higher NPAs, stronger reserve)
Mortgage banking & fee momentum	Mortgage banking improved on production and gain on sale; wealth mgmt fee strength	Mortgage banking +$0.6M QoQ; deposit fees +$0.6M; wealth mgmt stable YoY	Improving
Capital strength	CET1 up; TCE ratio improving through year	CET1 17.73%, TRC 20.59%; TBV/share +4% QoQ	Strengthening
Liquidity	Elevated overnight funds; access to diverse funding	~$1.625B additional liquidity (excluding overnight funds); portfolio duration ~2.15 yrs	Strong

Management Commentary

“We are pleased to share another strong report for the third quarter of 2025, highlighted by an above-peer ROA of 1.47% and ROE of 11.67%… Revenue growth driven by continued net interest margin expansion and higher noninterest income drove the improvement and resulted in a 4% increase in tangible book value per share. We are in a position of strength and look forward to finishing the year strong and continued momentum in 2026.” — William G. Smith, Jr., Chairman & CEO .
On drivers: net interest income increased on higher investment securities income and lower interest expense; deposit rate reductions and higher yield purchases supported NIM .
On tax rate: “Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.” .

Q&A Highlights

The Q3 2025 earnings call transcript was not available in the research set; call was scheduled for Oct 21, 2025, 10:00AM ET .
No additional Q&A clarifications can be cited; all commentary herein reflects press release and 8-K disclosures .

Estimates Context

Performance versus S&P Global consensus (S&P definitions; “Revenue” reflects S&P revenue methodology)*

Metric	Q3 2024	Q2 2025	Q3 2025
EPS Consensus ($)	0.77*	0.78667*	0.86667*
EPS Actual ($)	0.78*	0.88*	0.93*
EPS Surprise (%)	+1.3%*	+11.8%*	+7.3%*
Revenue Consensus ($M)	58.70*	62.35*	64.30*
Revenue Actual ($M)	58.52*	62.58*	64.01*
Revenue Surprise (%)	-0.31%*	+0.37%*	-0.45%*

Values retrieved from S&P Global.*

Implications: Expect upward EPS estimate revisions into Q4 given recurring NIM lift and fee momentum; small revenue miss in Q3 (S&P definition) is driven by lower loan balances offset by securities/fees, and may not impede EPS trajectories given operating leverage .

Key Takeaways for Investors

EPS beat and NIM momentum: Continued margin expansion and lower funding costs are key upside drivers; watch yield on securities and deposit pricing discipline for sustainability .
Fee income diversification: Mortgage banking and deposit fees are contributing meaningfully; monitor gain-on-sale margins and ongoing fee adjustments for carry-through into Q4 .
Credit watchlist: Nonperforming assets increased; however, reserve coverage and allowance ratios improved—credit cost normalization is a manageable headwind at current levels .
Balance sheet resiliency: CET1 at 17.73% and TBV/share +4% QoQ provide optionality for dividend continuity and growth; dividend was raised to $0.26 in Q3 .
Deposit seasonality: Expect continued public fund seasonality into Q4; core deposit trends remain an anchor—track mix and cost trajectory .
Near-term trading: EPS beat and capital strength are supportive; any weakness tied to higher NPAs or seasonal deposit declines likely transitory if NIM/fees persist .
Medium-term thesis: A fortress capital base, improving NIM, and diversified fee streams position CCBG for steady ROA/ROE delivery, contingent on disciplined credit and deposit cost management .

Appendix: Additional Relevant Press Releases

Q3 earnings announcement timing (Oct 14, 2025) .
Dividend increase to $0.26 per share (Aug 28, 2025) .
Post-quarter leadership appointment (Nov 4, 2025) .

CAPITAL CITY BANK GROUP INC (CCBG)·Q3 2025 Earnings Summary