On April 22, 2024, Capital City Bank Group Inc. (NASDAQ: CCBG) released its 8-K filing, announcing a net income of $12.6 million, or $0.74 per diluted share for the first quarter of 2024. This performance surpasses the analyst's estimated earnings per share of $0.70 and reflects a slight decrease from the $13.7 million, or $0.80 per diluted share reported in the first quarter of 2023. The company's net income also exceeded the estimated $11.65 million for the quarter.
Capital City Bank Group Inc, a prominent financial holding company based in Florida, offers a comprehensive range of banking services including traditional deposit and credit services, mortgage banking, asset management, and more through its extensive network in Florida, Georgia, and Alabama.
Quarterly Financial Performance
The bank reported a tax-equivalent net interest income of $38.4 million for Q1 2024, a decrease from $39.3 million in the previous quarter, primarily due to higher deposit costs which increased by 19 basis points to 85 basis points. Despite these challenges, the bank managed a net interest margin of 4.01%, slightly down by six basis points from Q4 2023.
Noninterest income saw an improvement, rising by $0.9 million to $18.1 million, thanks to higher mortgage banking revenues and wealth management fees. On the expense side, noninterest expenses were tightly controlled, registering a modest increase of $0.2 million to $40.2 million.
Capital City Bank Group's balance sheet showed moderate growth in loan balances, with a 0.6% increase to $17.4 million on average, although end-of-period figures slightly declined. Deposit balances reflected a similar trend with a slight increase on average but a decrease at the end of the period.
Strategic Achievements and Capital Management
The bank's strategic management of capital and assets is evident in its stable credit quality and the strategic repurchase of 82,540 shares of common stock. Chairman, President, and CEO William G. Smith, Jr. commented on the quarter's results, highlighting solid earnings and capital growth amidst a challenging operating environment. He remains optimistic about the bank's positioning for the remainder of the year.
Analysis and Outlook
While the operating environment poses challenges, particularly with rising deposit costs, Capital City Bank Group's strategic initiatives appear to be paying off, as seen in the growth of tangible book value per diluted share and stable asset quality metrics. The bank's proactive management strategies and robust service offerings position it well to navigate future uncertainties and leverage opportunities for growth.
As the bank continues to execute its strategic plans, investors and stakeholders will likely watch for continued improvements in efficiency and capital management, which are crucial for sustaining profitability and shareholder value in a competitive banking landscape.
About Capital City Bank Group, Inc.
With approximately $4.3 billion in assets, Capital City Bank Group, Inc. is one of the largest publicly traded financial holding companies headquartered in Florida. It operates 63 banking offices and 104 ATMs across three states, providing a full spectrum of banking services to its diverse clientele. For more information, visit www.ccbg.com.
Explore the complete 8-K earnings release (here) from Capital City Bank Group Inc for further details.
