Overview

• US regional bank's Q2 net income and EPS rose from prior quarter and year

• Q2 net interest income increased, driven by higher investment securities income and lower deposit costs

• Loan and deposit balances declined slightly in Q2; credit quality remained stable

Outlook

• Company expects modifications to deposit products will reduce fee revenues starting in Q3 2026

• Capital City Bank expects annual effective tax rate to be about 23.5% for 2026

• Company says it will focus on managing risk and executing opportunities in second half 2026

Result Drivers

• INVESTMENT SECURITIES INCOME - Higher income from new investment purchases at higher rates and increased balances drove net interest income growth

• MORTGAGE AND CARD FEE GROWTH - Noninterest income rose due to higher mortgage banking revenues from increased production volume and higher bank card fees from greater card volume

• HIGHER NONINTEREST EXPENSES - Noninterest expense increased, mainly due to higher other expense and occupancy expense

Company press release: ID:nGNX4zlQhz

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.95
Q2 Net Income		$16.28 mln
Q2 Net Interest Income		$44.2 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Capital City Bank Group Inc is $49.50, about 0.9% below its July 20 closing price of $49.93

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 21 - Peoples Bancorp Q2 net interest income rises on lower costs

• July 21 - KeyCorp Q2 net interest income rises on lower deposit costs

• July 20 - Wintrust Q2 net interest income rises on growth in average earning assets

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