• 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.

• Warning! GuruFocus has detected 1 Warning Sign with CCBG.

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.