Capital City Bank Q3 net income rises, margin improves

Overview

• U.S. regional bank's Q3 net income and EPS rose slightly from prior quarter and year ago

• Net interest income and margin improved, driven by higher investment securities income and lower deposit costs

• Noninterest income declined due to lower mortgage banking revenues and deposit fees

Outlook

• Company expects 2026 annual effective tax rate to be 23-24%

Result Drivers

• INVESTMENT SECURITIES INCOME - Higher income from investment securities and loan interest income, along with lower deposit interest expense, drove net interest income growth

• MORTGAGE BANKING REVENUES - Decline in mortgage banking revenues due to lower production volume contributed to lower noninterest income

• CREDIT QUALITY - Improved credit quality and lower net loan charge-offs reduced provision expense for credit losses

Company press release:

Key Details

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 1.8% above its October 19 closing price of $48.63

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 20 - Peoples Bancorp Q3 net income and EPS rise

• Oct 20 - Commerce Bancshares Q3 EPS beats, helped by loan growth

• Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)