Capital City Bank Group (CCBG) Q2 2024 earnings summary

Executive summary

• Net income attributable to common shareowners was $14.2 million ($0.83 per diluted share) for Q2 2024, up from $12.6 million ($0.74) in Q1 2024 and flat year-over-year.

• Tangible book value per share increased 3.4% to $21.69 in Q2 2024.

• Return on average assets was 1.33% and return on average equity was 12.23% for Q2 2024.

• Achieved record earnings in 2023 with a five-year average annual growth of ~15%.

• Maintains a deposit-centric franchise with a balanced consumer and commercial mix in Florida and Georgia.

Financial highlights

• Tax-equivalent net interest income for Q2 2024 was $39.3 million, up from $38.4 million in Q1 2024 but down from $40.2 million in Q2 2023.

• Noninterest income for Q2 2024 was $19.6 million, up 8.3% sequentially, driven by higher mortgage banking revenues.

• Noninterest expense for Q2 2024 was $40.4 million, up slightly from Q1 2024, mainly due to higher compensation and occupancy costs.

• Total assets at $4.23B and total deposits at $3.61B as of June 2024.

• Net interest margin for Q2 2024 was 4.02%, up 1 bp sequentially but down 4 bps year-over-year.

Outlook and guidance

• Management expects the annual effective tax rate to approximate 20-21% for 2024, absent discrete items.

• Strategic technology investments aim to enhance client experience and operational efficiency.

• Capital expenditures are projected at approximately $12.0 million over the next 12 months, funded with existing resources.

• Focus on expanding in the Emerald Coast and Northern Arc markets with strong demographic trends.

• The company continues to monitor liquidity and market conditions to determine investment portfolio strategy.