CAPITAL CITY BANK GROUP INC (NASDAQ:CCBG) reported a net income attributable to common shareowners of $16.0 million, or $0.93 per diluted share, for the third quarter of 2025. This marks a 22.1% increase from $13.1 million, or $0.77 per diluted share, in the third quarter of 2024, and a 6.7% rise from $15.0 million, or $0.88 per diluted share, in the second quarter of 2025.
For the first nine months of 2025, net income attributable to common shareowners reached $47.9 million, or $2.80 per diluted share, up from $39.8 million, or $2.35 per diluted share, for the same period in 2024. Tax-equivalent net interest income for Q3 2025 totaled $43.6 million, an increase from $43.2 million in the prior quarter and $40.3 million in the third quarter of 2024. The net interest margin expanded to 4.34% in Q3 2025, up four basis points from the second quarter of 2025 and 22 basis points from the third quarter of 2024. This improvement was attributed to a higher yield in the investment portfolio and lower deposit costs, with the cost of funds decreasing four basis points to 78 basis points.
Noninterest income for the third quarter increased by $2.3 million, or 11.6%, to $22.3 million, primarily due to a $1.2 million increase in other income, which included a $0.7 million gain from the sale of an insurance subsidiary. Mortgage banking revenues also rose by $0.6 million, and deposit fees increased by $0.6 million. Noninterest expense increased by $0.4 million, or 0.9%, to $42.9 million.
The provision for credit losses rose to $1.9 million for the third quarter of 2025, compared to $0.6 million in the second quarter of 2025 and $1.2 million in the third quarter of 2024. Net loan charge-offs were 18 basis points (annualized) of average loans, and the allowance coverage ratio increased to 1.17% at September 30, 2025. Nonperforming assets totaled $10.0 million at quarter-end, representing 0.23% of total assets, up from 0.15% at June 30, 2025.
Average total deposits decreased by $68.4 million, or 1.9%, to $3.612 billion for the third quarter of 2025, primarily due to a seasonal decrease in public fund balances. Loan balances held for investment decreased by $46.4 million, or 1.7% on average. Tangible book value per diluted share, a non-GAAP financial measure, increased by $1.01, or 4.0%, to $26.38. All regulatory capital ratios exceeded Basel III capital standards thresholds at September 30, 2025. William G. Smith, Jr., Capital City Bank Group Chairman and CEO, stated, "Revenue growth driven by continued net interest margin expansion and higher noninterest income drove the improvement and resulted in a 4% increase in tangible book value per share."
