Capital City Bank's Q2 net income rises, loan balances dip

Capital City Bank Group, Inc.

Capital City Bank Group, Inc.

CCBG

0.00


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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