Capital City Bank Group Inc (CCBG) Reports Q3 2023 Earnings
CCBG reported Q3 2023 net income of $13.2 million, down from $14.6 million in Q2 2023 but up from $11.3 million in Q3 2022.
Net interest income totaled $39.2 million, reflecting higher deposit cost and lower overnight funds interest.
Loan balances grew by $15.0 million (0.6% average) and $26.4 million (1.0% end of period).
Noninterest income decreased by $2.7 million due to lower mortgage banking revenues and a gain on the sale of mortgage servicing rights in Q2 2023.
Released on October 24, 2023, Capital City Bank Group Inc (NASDAQ:CCBG)'s Q3 2023 earnings report shows a net income of $13.2 million, or $0.78 per diluted share. This is a decrease from the $14.6 million, or $0.85 per diluted share, reported in Q2 2023, but an increase from the $11.3 million, or $0.67 per diluted share, reported in Q3 2022. For the first nine months of 2023, net income totaled $42.7 million, or $2.51 per diluted share, compared to $28.5 million, or $1.68 per diluted share, for the same period in 2022.
Financial Performance and Highlights
CCBG's tax-equivalent net interest income for Q3 2023 totaled $39.2 million, down from $40.1 million in the previous quarter. This decrease was due to higher deposit costs and lower overnight funds interest. However, the bank reported strong credit quality metrics, with a slightly higher loan loss provision expense of $0.2 million increasing the allowance coverage ratio from 1.05% to 1.07%. Net loan charge-offs were 17 basis points (annualized) of average loans.
Noninterest income decreased by $2.7 million, or 11.8%, due to lower mortgage banking revenues of $1.0 million and a $1.4 million gain on the sale of mortgage servicing rights in Q2 2023. Noninterest expense decreased by $0.9 million, or 2.1%, primarily due to a non-recurring consulting payment of $0.8 million in the previous quarter related to the outsourcing of the bank's core processing system.
Balance Sheet and Capital
CCBG's loan balances grew by $15.0 million, or 0.6% (average), and $26.4 million, or 1.0% (end of period). Deposit balances declined by $115.3 million, or 3.1% (average), and $248.1 million, or 6.5% (end of period), primarily due to a seasonal low point for public fund balances. The bank's tangible book value per share increased by $0.50, or 2.6%, in Q3, bringing the year-to-date increase to $2.09, or 11.8%. CCBG repurchased 36,411 shares of common stock in Q3 2023, bringing the year-to-date total to 102,147 shares.
CCBG's CEO, William G. Smith, Jr., commented on the results, stating,
The solid results achieved this quarter continue what has been a year of strong financial performance by Capital City Bank Group. The diversity of our revenues, strong core deposit franchise and stable credit have been key drivers."
Looking Forward
As CCBG looks towards 2024, the focus remains on client acquisition and exploring opportunities to foster stronger relationships and enhance the overall client experience. Despite the challenges faced in Q3 2023, the bank's strong financial performance indicates a positive outlook for the future.
This article first appeared on GuruFocus.
