Capital City Bank Announces $0.26 Dividend — What Investors Should Know for Ex-Dividend Date on 2025-09-08

Introduction

Capital City Bank (CCBG) continues to demonstrate a stable dividend policy, consistent with its historical approach of regular payouts to shareholders. The recent declaration of a $0.26 per share quarterly dividend, effective on the ex-dividend date of September 8, 2025, aligns with the company’s track record of prudent capital distribution. This payout reflects the bank’s confidence in its earnings and cash flow generation, even amid a challenging macroeconomic environment characterized by high interest rates and cautious lending activity.

Dividend Overview and Context

The ex-dividend date, set for 2025-09-08, is the critical day for investors seeking the right to collect the dividend. On or after this date, the stock will trade without the dividend entitlement, typically resulting in a small downward adjustment in the stock price. For CCBG, the $0.26 dividend per share (DPS) represents a cash dividend only, with no stock component.

This payout is supported by the bank’s robust financial performance in its most recent report, which shows a net income of $25.87 million and total basic earnings per share of $1.58. Investors should note that while the dividend remains stable, the payout ratio (dividend per share relative to earnings per share) remains low at approximately 16.5%, indicating that the dividend is well-supported by earnings and leaves room for future growth or reinvestment.

Backtest Analysis

The backtest of CCBG’s dividend impact across 12 prior dividend events reveals a strong market response to its ex-dividend dates. The average recovery duration for the stock price was just 0.08 days, and the probability of a full price recovery within 15 days was 100%. This suggests that any immediate price adjustment due to the dividend is short-lived, with the stock quickly returning to its underlying trend.

The backtest was conducted using historical price data, assuming reinvestment of dividends and no transaction costs. The results reinforce the idea that CCBG’s dividend does not significantly distort its stock price in the long term and that investor expectations are well-aligned with the company’s payout strategy.

Driver Analysis and Implications

Capital City Bank’s ability to maintain a consistent dividend is underpinned by strong net interest income and controlled noninterest expenses. In its latest quarter, the bank reported:

• Net interest income of $77.62 million
• Total revenue of $115.33 million
• Net income of $25.87 million
• Earnings per share of $1.58

These figures highlight the bank's strong operating performance and its ability to generate sufficient profit to fund ongoing dividends. Additionally, the provision for credit losses at $2.12 million suggests disciplined risk management, which further supports capital strength and payout reliability.

From a macroeconomic perspective, CCBG’s performance reflects broader trends in regional banking, where stable earnings and careful loan management have become increasingly important in a high-rate environment. As inflationary pressures ease and monetary policy stabilizes, banks like CCBG are well-positioned to maintain dividend consistency and grow earnings.

Investment Strategies and Recommendations

For short-term investors, the ex-dividend date provides an opportunity to evaluate the stock’s immediate price reaction. Given the historically fast price recovery, the drop on the ex-dividend date is typically seen as a temporary event, making it a suitable time for tactical entry or exit.

Long-term investors may consider the dividend as a key factor in assessing the stock’s total return potential. With a well-supported payout and a manageable payout ratio, CCBG offers a compelling combination of income and growth potential.

Portfolio managers may also explore dividend reinvestment strategies, particularly in tax-advantaged accounts, to maximize compounding over time.

Conclusion & Outlook

Capital City Bank’s $0.26 dividend, with an ex-dividend date of September 8, 2025, is a well-supported and historically stable payout. Investors can take comfort in the bank’s strong financials and the market’s quick response to its dividend events. As CCBG prepares for future earnings reports and potential reinvestments, the company is positioned to continue delivering shareholder value through both earnings growth and dividend payouts.

Investors should watch for CCBG’s upcoming earnings report for further insight into its capital allocation plans and future guidance.