On July 23, 2024, Capital City Bank Group Inc (NASDAQ: CCBG) released its 8-K filing reporting its financial results for the second quarter of 2024. The company, which provides a range of banking services including retail and commercial banking, trust and asset management, and brokerage services, reported net income attributable to common shareowners of $14.2 million, or $0.83 per diluted share. This performance surpassed the analyst estimate of $0.73 per share.
Quarterly Financial Highlights
Capital City Bank Group Inc (CCBG, Financial) reported a tax-equivalent net interest income of $39.3 million for the second quarter, up from $38.4 million in the previous quarter. The net interest margin increased slightly to 4.02%, reflecting higher overnight funds and loan interest income, partially offset by increased deposit interest expenses.
Noninterest income rose by $1.5 million, or 8.3%, driven by higher mortgage banking revenues. Noninterest expenses were well-controlled, with a marginal increase of $0.3 million, or 0.7%, for the quarter. The effective tax rate reduction was attributed to a new investment in a solar tax credit fund.
Balance Sheet and Asset Quality
Loan balances saw a slight decrease of $1.9 million on average, while deposit balances increased by $64.5 million on average. However, end-of-period figures showed a decline in both loans and deposits. The allowance coverage ratio for credit losses increased to 1.09%, indicating stable credit quality metrics.
Nonperforming assets totaled $6.2 million, consistent with the previous year, and nonaccrual loans decreased by $1.3 million from the previous quarter. The company maintained a strong liquidity position with an average net overnight funds sold position of $262.4 million.
Capital Adequacy and Shareholder Returns
Shareowners' equity increased to $461.0 million, driven by net income and a decrease in the net unrealized loss on available-for-sale securities. The total risk-based capital ratio improved to 17.50%, and the tangible common equity ratio rose to 8.91%. The company also declared a common stock dividend of $0.21 per share.
Performance Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income Attributable to Common Shareowners | $14.2 million | $12.6 million | $14.2 million |
| Diluted Net Income Per Share | $0.83 | $0.74 | $0.83 |
| Net Interest Margin | 4.02% | 4.01% | 4.06% |
| Return on Average Assets (annualized) | 1.33% | 1.21% | 1.32% |
| Return on Average Equity (annualized) | 12.23% | 11.07% | 13.58% |
Analysis and Outlook
Capital City Bank Group Inc (CCBG, Financial) demonstrated resilience and effective management in the second quarter of 2024, exceeding earnings expectations despite market challenges. The increase in net interest income and noninterest income, coupled with controlled expenses, contributed to the strong financial performance. The company's focus on maintaining stable credit quality and enhancing shareholder value through dividends and equity growth positions it well for future success.
"I am pleased with the quarter and how the year is progressing. Our disciplined approach resulted in tangible book value growth of 3.4% for the quarter, driven by margin expansion and stable credit quality. We are poised for a successful year and remain focused on initiatives that drive sustained core profitability." - William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group Inc.
For more detailed insights and the complete financial statements, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Capital City Bank Group Inc for further details.
