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SEC filingCapital City Bank Group, Inc. (CCBG) reported net income attributable to common shareowners of $61.6 million for FY 2025, an increase from $52.9 million in FY 2024. This performance was driven by a $12.7 million increase in net interest income to $171.6 million and a $6.4 million increase in noninterest income to $82.4 million, partially offset by a $6.2 million increase in income taxes, a $1.7 million increase in noninterest expense, and a $1.2 million increase in provision for credit losses. The net interest margin improved to 4.28% from 4.08% in the prior year. Total assets were $4.4 billion, with shareowners' equity of $552.9 million. The company's strategic initiatives included market expansion and revenue diversification, while maintaining strong credit quality with an allowance coverage ratio of 1.22%.
Capital City Bank Group, Inc. (CCBG) delivered strong financial results for FY 2025, with net income attributable to common shareowners increasing to $61.6 million from $52.9 million in FY 2024, representing 16.3% growth. Diluted earnings per share rose to $3.60 from $3.12. Total revenue (interest income plus noninterest income) reached $286.7 million, up 5.9% from $270.6 million in the prior year. The improvement was primarily driven by higher net interest income of $171.6 million (up $12.7 million) and increased noninterest income of $82.4 million (up $6.4 million). These gains were partially offset by higher income tax expense of $20.2 million (up $6.2 million), increased noninterest expense of $167.0 million (up $1.7 million), and a higher provision for credit losses of $5.3 million (up $1.2 million). The company maintained strong asset quality with net loan charge-offs of 14 basis points of average loans.
Interest income totaled $204.4 million for FY 2025, with loans (including fees) contributing $161.2 million, investment securities providing $27.4 million (taxable) and $43,000 (tax-exempt), and federal funds sold and interest-bearing deposits generating $15.8 million. Interest expense was $32.7 million, resulting in net interest income of $171.6 million. The net interest margin expanded to 4.28% from 4.08% in FY 2024, driven by a 10 basis point increase in earning asset yield and a 10 basis point decrease in cost of funds. Noninterest income reached $82.4 million, comprising deposit fees of $22.1 million, bank card fees of $14.7 million, wealth management fees of $20.7 million, mortgage banking revenues of $17.0 million, and other income of $8.0 million. Mortgage banking revenues increased by $2.6 million due to higher secondary market production volume and gain on sale margin.
The company's gross margin (net interest income as percentage of total revenue) improved to 59.9% from 58.8% in FY 2024. Operating margin (income before income taxes as percentage of total revenue) was 28.5%. Noninterest expense totaled $167.0 million, with compensation being the largest component at $107.2 million, occupancy expense at $28.0 million, and other expenses at $31.9 million. The operating efficiency ratio (noninterest expense as percentage of taxable equivalent net interest income plus noninterest income) improved to 65.71% from 70.30% in the prior year, reflecting higher taxable equivalent net interest income. Income tax expense was $20.2 million with an effective tax rate of 24.7%, up from 21.2% in FY 2024 due to lower tax benefits from solar tax credit equity funds.
Net cash provided by operating activities was $87.6 million for FY 2025. Cash flows from investing activities provided $64.4 million, primarily from payments, maturities, and calls of securities held to maturity ($283.3 million) and proceeds from sales of loans held for sale ($461.9 million), partially offset by purchases of securities available for sale ($307.4 million). Cash flows from financing activities used $13.9 million, mainly due to net decrease in deposits ($9.7 million) and dividends paid ($17.1 million), partially offset by net increase in short-term borrowings ($21.8 million). Total assets were $4.4 billion at December 31, 2025, with loans held for investment (net) of $2.5 billion, investment securities of $1.0 billion, and cash and cash equivalents of $530.0 million. Total deposits were $3.7 billion, and shareowners' equity was $552.9 million, representing 12.61% of total assets.
The company's strategic plan focuses on client experience, channel optimization, market expansion, and culture. Initiatives include implementing integrated marketing software, reviewing the banking office network, and expanding residential mortgage banking and wealth businesses. Management expects capital expenditures of approximately $10.0 million over the next 12 months for technology purchases, office leasehold improvements, and information technology security needs. The annual effective tax rate is expected to approximate 24% for 2026, absent discrete items or new tax credit investments. Risk factors include interest rate sensitivity, credit quality, regulatory changes, and economic conditions in the company's Florida, Georgia, and Alabama markets. The company maintains a strong capital position with a total risk-based capital ratio of 21.45% and common equity tier 1 capital ratio of 18.56% at December 31, 2025.