CCBG · Capital City Bank Group, Inc.

Capital City Bank Group’s Q1 2026 results reflect a mixed performance: earnings improved sequentially—driven by a $1.3 million reduction in provision expense, a $1.5 million decline in noninterest expense (mainly lower incentive compensation), and stable credit quality—but declined year-over-year amid continued loan balance contraction and margin pressure. Net interest income fell slightly from Q4 2025, attributed to two fewer calendar days and lower overnight funds income, though investment securities income rose due to higher-yielding purchases. The 2-basis-point dip in net interest margin from Q4 2025 stemmed from lower overnight rates and reduced loan balances, partially offset by improved deposit cost discipline (cost of funds at 81 bps, down 1 bp from Q4). Loan balances declined $27.7 million (1.1%) end-of-period, with broad-based reductions across commercial real estate, residential, construction, and consumer portfolios—consistent with strategic de-emphasis on certain lending segments following portfolio optimization actions in prior periods. Deposit growth was robust: core deposits rose $103 million, underscoring franchise strength, even as public funds declined $25 million. Management highlighted 'solid deposit trends, disciplined credit performance, and continued expense control' as key drivers, reaffirming balance sheet flexibility and relationship-focused execution. No forward guidance was disclosed beyond the expectation that the annual effective tax rate will approximate 24% for 2026. The share repurchase of 63,088 shares signals capital return discipline amid elevated tangible book value growth (+1.8%).