Capital City Bank Group Inc (CCBG) Reports Fourth Quarter 2023 Results
Net Income: Q4 net income attributable to common shareowners was $11.7 million, or $0.70 per diluted share, compared to $9.6 million, or $0.56 per diluted share in Q4 2022.
Annual Performance: Full-year 2023 net income reached $52.3 million, or $3.07 per diluted share, a significant increase from $33.4 million, or $1.97 per diluted share in 2022.
Net Interest Margin: Improved to 4.07% in Q4 2023, up from 3.76% in Q4 2022.
Loan Growth: Loan balances grew by 1.4% (average) and 1.1% (end of period) in Q4 2023.
Deposit Dynamics: Deposit balances declined by 1.3% (average) but increased by 4.6% (end of period) in Q4 2023, reflecting seasonal public fund balance increases.
Capital Strength: Tangible book value per share increased by 6.4% in Q4 2023, and total risk-based capital ratio stood at 16.57% at year-end.
Asset Quality: Nonperforming assets totaled $6.2 million at the end of Q4 2023, with the allowance for credit losses representing 1.10% of HFI loans.
On January 23, 2024, Capital City Bank Group Inc (NASDAQ:CCBG) released its 8-K filing, detailing the financial results for the fourth quarter of 2023. The company, a major financial holding company headquartered in Florida, operates through its subsidiary, Capital City Bank, offering a wide range of banking services across Florida, Georgia, and Alabama.
Financial Performance Overview
CCBG reported a net income attributable to common shareowners of $11.7 million for Q4 2023, a decrease from the $12.7 million reported in the previous quarter but an increase from the $9.6 million reported in Q4 2022. The full-year net income for 2023 was a record $52.3 million, significantly higher than the $33.4 million reported for 2022. This performance reflects the company's strong loan growth and higher interest rates, despite increased deposit costs.
Net Interest Income and Margin
The tax-equivalent net interest income for Q4 2023 was $39.3 million, slightly down from the previous quarter but up from the $38.2 million in Q4 2022. The net interest margin for the quarter increased to 4.07%, reflecting the re-pricing of earning assets at higher interest rates and loan growth, despite higher deposit costs.
Balance Sheet Strength
CCBG's loan balances showed growth both on an average and end-of-period basis, while deposit balances experienced a seasonal increase in public fund balances. The tangible book value per share increased by $1.23, or 6.4%, due to a decrease in accumulated other comprehensive loss, reflecting lower investment security losses and a favorable year-end re-measurement adjustment for the pension plan.
Asset Quality and Credit Performance
The company continued to maintain strong credit quality metrics, with the allowance coverage ratio increasing from 1.08% to 1.10%. Nonperforming assets totaled $6.2 million at the end of Q4 2023, representing 0.15% of total assets. The provision for credit losses was $2.0 million for the quarter, primarily attributable to loan growth.
Income and Expenses
Noninterest income for Q4 2023 increased to $17.1 million, driven by higher mortgage banking revenues. Noninterest expenses rose to $40.0 million, mainly due to increases in compensation and occupancy expenses associated with the expansion into new markets.
Capital and Liquidity
CCBG's capital ratios remained strong, with the total risk-based capital ratio at 16.57% and the common equity tier 1 capital ratio at 13.52%. The company's liquidity position allowed for the generation of approximately $1.488 billion in additional liquidity through various sources.
Management Commentary
I am pleased with Capital Citys performance this year and am very proud of our team for achieving another year of record earnings," said William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group, Inc. "Amid a challenging year for our industry, our deposit franchise, disciplined credit, diversified revenues, and conservative balance sheet management resulted in strong profitability and capital growth. We are well positioned as we enter 2024 and remain focused on strategies that add long-term value for our clients and shareowners."
For a detailed analysis of CCBG's financial results, including comprehensive tables and metrics, please refer to the full 8-K filing. Investors and stakeholders can gain valuable insights into the company's performance and strategic direction as it navigates the evolving financial landscape.
Explore the complete 8-K earnings release (here) from Capital City Bank Group Inc for further details.
This article first appeared on GuruFocus.
