- Capital City Bank Group (CCBG, Financial) reported a 28.6% increase in net income to $16.9 million for Q1 2025.
- The net interest margin improved by 5 basis points to 4.22%.
- Deposit balances rose by $111.9 million, representing a 3.0% increase.
Capital City Bank Group, Inc. (CCBG) delivered a strong performance in the first quarter of 2025, with net income reaching $16.9 million, or $0.99 per diluted share. This marks a significant improvement from the previous quarter’s earnings of $13.1 million, or $0.77 per share, and a 33.8% year-over-year increase from $12.6 million, or $0.74 per share in the first quarter of 2024. A one-time gain of $0.17 per share from the sale of their operations center building contributed to this success, though underlying earnings still showed substantial growth.
Key performance indicators for CCBG this quarter include a tax-equivalent net interest income of $41.6 million and an improved net interest margin of 4.22%, driven by higher yields on new investments and lower deposit costs, which declined to 0.82%. The provision for credit losses was maintained at $0.8 million, reflecting prudent risk management.
Asset quality showed marked improvement, with net loan charge-offs reduced to 9 basis points from 25 basis points in Q4 2024, and nonperforming assets decreased to 0.10% of total assets. Additionally, the bank's allowance coverage ratio increased to 1.12%, providing better protection against potential future credit losses.
CCBG's noninterest income rose by 6.1%, largely due to a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees. Operational costs decreased by 7.4%, partly attributed to gains from the facility sale. Balance sheet metrics were robust, with end-of-period loan balances reflecting a 0.4% growth and deposit balances growing by 3.0%.
The bank sustained strong capital positions with a total risk-based capital ratio of 19.20% and a common equity tier 1 capital ratio of 16.08% as of March 31, 2025. Liquidity remains sound, supported by $446 million in overnight funds and an ability to raise an additional $1.54 billion if necessary.
