Capital City Bank Group, Inc. reported net income attributable to common shareowners of $16.3 million, or $0.95 per diluted share, for the second quarter of 2026, compared to $15.8 million, or $0.92 per diluted share, for the first quarter of 2026, and $15.0 million, or $0.88 per diluted share, for the second quarter of 2025. Return on Assets was 1.48% and Return on Equity was 11.38% for the second quarter of 2026, compared to 1.45% and 11.30%, respectively, for the first quarter of 2026, and 1.38% and 11.44%, respectively, for the second quarter of 2025.

Key Earnings Highlights

The following table summarizes key earnings and performance metrics across recent periods:

For the first six months of 2026, net income attributable to common shareowners totaled $32.1 million, or $1.87 per diluted share, compared to $31.9 million, or $1.87 per diluted share, for the same period of 2025.

Net Interest Income and Margin

Tax-equivalent net interest income for the second quarter of 2026 totaled $44.2 million, compared to $42.9 million for the first quarter of 2026 and $43.2 million for the second quarter of 2025. The increase over the prior quarter was attributable to higher investment securities income and lower deposit interest expense, partially offset by lower loan interest income and overnight funds income due to lower average balances. One additional calendar day in the second quarter also contributed to the increase. The net interest margin for the second quarter of 2026 was 4.35%, an increase of 11 basis points from the first quarter of 2026 and an increase of five basis points over the second quarter of 2025. The cost of funds was 75 basis points for the second quarter of 2026, a decrease of six basis points from the first quarter of 2026.

For the first six months of 2026, tax-equivalent net interest income totaled $87.1 million compared to $84.8 million for the same period of 2025. The net interest margin for the first six months of 2026 increased by four basis points to 4.30% compared to the same period of 2025.

Noninterest Income and Expense

Noninterest income for the second quarter of 2026 totaled $20.6 million, a $0.7 million, or 3.3%, increase over the first quarter of 2026 and a $0.6 million, or 2.9%, increase over the second quarter of 2025. The increase over the prior quarter was primarily driven by higher mortgage banking revenues of $0.4 million and bank card fees of $0.2 million. For the first six months of 2026, noninterest income totaled $40.5 million, a $0.6 million, or 1.5%, increase over the same period of 2025.

Noninterest expense for the second quarter of 2026 totaled $42.6 million, a $1.3 million, or 3.1%, increase over the first quarter of 2026 and a $0.1 million, or 0.2%, increase over the second quarter of 2025. The increase over the prior quarter was primarily attributable to higher other expense of $0.9 million and occupancy expense of $0.2 million. For the first six months of 2026, noninterest expense totaled $84.0 million, a $2.8 million, or 3.4%, increase over the same period of 2025.

Income tax expense for the second quarter of 2026 was $5.0 million at an effective rate of 23.4%, compared to $4.8 million (effective rate of 23.5%) for the first quarter of 2026 and $5.0 million (effective rate of 24.9%) for the second quarter of 2025.

Balance Sheet and Credit Quality

Total assets were $4.450 billion at June 30, 2026, compared to $4.454 billion at March 31, 2026, and $4.386 billion at December 31, 2025. Average earning assets totaled $4.069 billion for the second quarter of 2026, a decrease of $21.0 million, or 0.5%, from the first quarter of 2026. Loan balances held for investment decreased $18.5 million, or 0.7% (end of period), from March 31, 2026, to $2.500 billion at June 30, 2026. Total deposits were $3.721 billion at June 30, 2026, a decrease of $30.6 million, or 0.8%, from March 31, 2026, primarily due to the seasonal decrease in public fund balances.

The following table summarizes key credit quality metrics:

Classified loans totaled $29.8 million at June 30, 2026, a $15.3 million increase over March 31, 2026, reflecting the downgrade of four commercial real estate relationships.

Capital Position

Shareowners' equity was $570.1 million at June 30, 2026, compared to $559.9 million at March 31, 2026, and $552.9 million at December 31, 2025. The tangible book value per diluted share (non-GAAP) increased $0.56, or 2.0%, to $28.07 at June 30, 2026, from $27.51 at March 31, 2026.

Key capital ratios at June 30, 2026, are presented below:

All regulatory capital ratios exceeded the thresholds to be designated as "well-capitalized" under the Basel III capital standards at June 30, 2026. During the first six months of 2026, common stock dividends of $9.2 million ($0.54 per share) were paid, and 63,088 shares of common stock were repurchased for $2.6 million.

"We're pleased with another strong quarter of performance and the momentum our team continues to build," said William G. Smith, Jr., Chairman and CEO. "As we look to the second half of the year, we'll remain focused on serving our clients' financial needs, managing risk wisely and executing on the opportunities ahead. None of this happens without the dedication of our associates and the strong communities we're privileged to serve."

Capital City Bank Group, Inc. is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.5 billion in assets. The company's bank subsidiary, Capital City Bank, was founded in 1895 and has 62 banking offices and 107 ATMs/ITMs in Florida, Georgia and Alabama.