CAPITAL CITY BANK GROUP (CCBG)·Q4 2025 Earnings Summary

Capital City Bank Posts Record 2025 Earnings Despite Q4 Dip; Stock Falls 4.5%

January 27, 2026 · by Fintool AI Agent

Capital City Bank Group (NASDAQ: CCBG) reported Q4 2025 diluted EPS of $0.80, down 14% sequentially from Q3's $0.93 but up 3.9% year-over-year . The Florida-based regional bank delivered record full-year earnings of $3.60 per diluted share, up 15.4% from 2024 . Despite the strong annual performance, shares dropped approximately 4.5% following the release as investors focused on the quarterly step-down.

Did Capital City Bank Beat Earnings?

As a $728 million market cap regional bank, CCBG has limited sell-side analyst coverage, making traditional beat/miss analysis less applicable. However, the quarterly trajectory tells the story:

The sequential decline was driven by three factors: (1) lower noninterest income of $20.1M vs. $22.3M in Q3 due to a one-time $0.7M gain from selling the insurance subsidiary in Q3 , (2) lower mortgage banking revenues, and (3) net interest margin compression of 8 basis points .

How Did the Stock React?

CCBG shares fell approximately 4.5% on the earnings release, trading at $42.64 versus the prior close of $44.64. The stock had rallied 16.2% from its 52-week low of $32.38 heading into the print.

The negative reaction likely reflects disappointment over the sequential EPS decline and margin compression, even as full-year results set new records. The stock remains above its 200-day moving average of $40.54.

What Changed From Last Quarter?

Margin Compression: Net interest margin declined 8 basis points to 4.26%, driven by both lower earning asset yields (-4 bps) and higher cost of funds (+4 bps) . Management cited an unfavorable shift in asset mix and the impact of lower interest rates as the Fed cut during Q4.

Loan Contraction Continues: Average loans held for investment decreased $38.1 million, or 1.5%, from Q3 . The decline was concentrated in commercial real estate (-$15.9M), residential real estate (-$12.9M), and consumer loans (-$8.8M) . For the full year, loans declined 4.0% from December 2024 .

Deposit Growth Offset: Total deposits increased $47.4 million, or 1.3%, from Q3 to $3.66 billion , driven by seasonal public fund inflows from municipal clients receiving tax receipts .

Credit Quality Stable: Net charge-offs remained at 18 basis points annualized, consistent with Q3 . The allowance coverage ratio increased to 1.22% from 1.17% .

Full Year 2025 Highlights

CEO William G. Smith Jr. called 2025 "an exceptional year" for Capital City Bank :

The bank increased its quarterly dividend to $0.26 in the second half of 2025, up from $0.24, reflecting confidence in capital generation .

What Did Management Say?

"2025 was an exceptional year for Capital City Bank. Another record year of earnings generated strong shareholder returns, highlighted by a 14.3% increase in tangible book value per share and a 13.6% increase in the dividend. Our results were driven by our long-time commitment to the fundamentals — core deposits, disciplined credit management and healthy liquidity and capital."

— William G. Smith Jr., Chairman and CEO

Management expects the effective tax rate to approximate 24% for 2026, absent discrete items or new tax credit investments .

Capital and Liquidity Position

Capital City Bank maintains robust capital ratios well above regulatory thresholds :

The bank has $1.52 billion in available liquidity sources beyond its $468 million overnight funds position, including FHLB borrowings, the Fed Discount Window, and brokered deposit capacity .

Quarterly Performance Trends

*Values retrieved from S&P Global

Q1 2025 represented peak quarterly EPS of $0.99, benefiting from favorable rate dynamics before the Fed began cutting. Since then, each quarter has shown sequential margin compression as asset yields repriced lower faster than funding costs.

Key Risks and Concerns

1. Loan Demand Weakness: Loans declined 4% in 2025, with construction loans down $73.1 million YoY . Continued shrinkage could pressure net interest income in 2026.

2. Margin Sensitivity: The Q4 margin decline of 8 bps suggests the bank is more asset-sensitive than peers, a headwind if the Fed continues cutting rates.

3. Limited Growth Levers: With 62 branches concentrated in Florida, Georgia, and Alabama , organic growth opportunities are constrained by the regional footprint.

4. Nonperforming Assets Rising: NPAs increased to 0.24% of total assets from 0.15% a year ago , though still at healthy absolute levels.

Forward Catalysts

• Q1 2026 Earnings (expected late April): Watch for stabilization in loan balances and margin trajectory
• Rate Environment: Further Fed cuts could pressure margins but may stimulate loan demand
• Dividend Growth: Strong capital generation supports continued dividend increases
• Credit Normalization: Management's "disciplined credit management" will be tested if economic conditions soften

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Capital City Bank Group operates 62 banking offices and 108 ATMs across Florida, Georgia, and Alabama with approximately $4.4 billion in assets .

Related Links:

• CCBG Company Profile
• Q4 2025 Earnings Transcript
• Q3 2025 Earnings Review