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CAPITAL CITY BANK GROUP INC (CCBG)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 results were stable with net income attributable to common shareowners of $13.1M ($0.77 diluted EPS), flat sequentially and up 10% YoY; net interest margin expanded 5 bps QoQ to 4.17% as deposit costs fell 6 bps, while noninterest expense declined 2.7% QoQ; tangible book value per diluted share rose 4.6% QoQ to $23.65 .
  • Deposits increased $92.9M QoQ (2.6%) on seasonal public funds inflows; loans HFI declined 1.2% QoQ; credit quality remained solid with ACL at 1.10% and NPAs at 0.15% of assets, though NCOs rose to 0.25% (annualized) .
  • Management set 2025 tax rate guidance at ~24% (vs. 20–21% expectation for 2024 cited last quarter), a potential headwind to net income; 2024 featured record earnings, a 15.8% dividend increase, and 83k shares repurchased, reinforcing capital return momentum .
  • No Q4 earnings call transcript was available in our sources; key operating drivers were gleaned from the 8‑K/press release and prior-quarter disclosures. S&P Global consensus estimates were unavailable for this request (daily limit), so estimate comparisons are not provided.*

What Went Well and What Went Wrong

  • What Went Well

    • Margin expansion with disciplined deposit pricing: NIM rose to 4.17% (+5 bps QoQ; +10 bps YoY) as total deposit costs fell to 0.86% (from 0.92% in Q3), aided by lower rates and mix management .
    • Fee momentum y/y and operating leverage q/q: Noninterest income rose $1.6M YoY on stronger mortgage banking and wealth management; noninterest expense fell $1.1M QoQ, helped by lower other real estate expense and the absence of a non-routine VISA swap payment recognized in Q3 .
    • Capital and book value strength: Tangible book value per diluted share increased 4.6% QoQ to $23.65; CET1 improved to 15.64%, total risk-based to 18.77%, and TCE ratio to 9.55% .

  • What Went Wrong

    • Loan contraction and portfolio remix: Loans HFI decreased $31.5M QoQ and $82.4M YoY, driven by declines in commercial mortgage, consumer (indirect auto), and commercial loans, partly offset by residential and construction growth .
    • Mortgage banking sequentially softer: Noninterest income fell $0.7–0.8M QoQ on lower mortgage production; deposit fees also dipped $0.3M QoQ .
    • Higher effective tax rate: Q4 effective tax rate increased to 24.3% (from 19.1% in Q3) and management guided ~24% for 2025, reflecting IRC 162(m) limitations and mix effects—an earnings headwind vs. 2024 .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Total Interest Income ($000)46,184 49,328 49,743
Net Interest Income ($000)39,171 40,211 41,103
Noninterest Income ($000)17,157 19,513 18,760
Noninterest Expense ($000)39,958 42,921 41,782
Operating Profit ($000)14,345 15,597 17,380
Net Income Attributable to Common ($000)11,720 13,118 13,090
Diluted EPS ($)0.70 0.78 0.77
Net Interest Margin (%)4.07 4.12 4.17
Efficiency Ratio (%)70.82 71.81 69.74
Cost of Deposits (%)0.66 0.92 0.86

Segment (Loans HFI) breakdown at period end ($000):

CategoryQ4 2023Q3 2024Q4 2024
Commercial, Financial & Agricultural225,190 194,625 189,208
Real Estate – Construction196,091 218,899 219,994
Real Estate – Commercial825,456 819,955 779,095
Real Estate – Residential1,001,257 1,023,485 1,028,498
Real Estate – Home Equity210,920 210,988 220,064
Consumer270,994 213,305 199,479
Other Loans2,962 461 14,006
Overdrafts1,048 1,378 1,206
Total Loans HFI2,733,918 2,683,096 2,651,550
Allowance for Credit Losses (HFI)29,941 29,836 29,251

Key KPIs:

KPIQ4 2023Q3 2024Q4 2024
Loans HFI (period end, $000)2,733,918 2,683,096 2,651,550
Deposits (period end, $000)3,701,822 3,579,077 3,671,977
ACL as % of Loans HFI1.10% 1.11% 1.10%
Net Charge-Offs as % Avg Loans HFI (annualized)0.23% 0.19% 0.25%
Nonperforming Assets as % Total Assets0.15% 0.17% 0.15%
Tangible Book Value/ Diluted Share ($)20.45 22.60 23.65

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Effective Tax RateFY 202520–21% (FY24 expectation, as of Q3) ~24% (FY25 expectation) Raised
Quarterly Dividend/ShareQ4 2024$0.21 (Q2 2024) $0.23 (declared Nov 21, 2024 and paid Dec 23) ; $0.23 shown in Q3/Q4 financials Raised vs. mid‑year; maintained QoQ

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Net interest margin and funding costsQ2: NIM 4.02%; deposit cost 0.95% amid remix toward MMA/CD . Q3: NIM 4.12%; deposit cost 0.92% .NIM 4.17%; deposit cost 0.86% as deposit rates/mix improved .Improving margin trajectory.
Deposit seasonality and remixQ2: Average deposits +1.8%; period-end down on seasonal public fund declines; remix to MMA/CD . Q3: Seasonal decline in public funds drove QoQ deposit drop .Seasonal public fund inflows drove QoQ deposit increase (+$92.9M EOP) .Seasonal swing; core deposit focus sustained.
Mortgage banking & wealth managementQ2: Mortgage banking up QoQ on higher production; WM up . Q3: Mortgage banking down QoQ but up YoY; WM up .Noninterest income −$0.7–0.8M QoQ mainly on lower mortgage; WM up .Choppy sequentially; stronger YoY vs. 2023.
Expense discipline & one-offsQ2: Expenses well controlled; lapped 2023 one-time consulting cost . Q3: Higher other expense incl. $0.5M VISA Class B swap; higher compensation .Expenses down $1.1M QoQ; lower OREO expense; lapped non-routine VISA swap .Easing after Q3 one-off.
Credit qualityQ2: ACL 1.09%; NCOs 0.18% . Q3: ACL 1.11%; NCOs 0.19% .ACL 1.10%; NCOs 0.25%; NPAs 0.15% assets .Stable; modest NCO uptick.
Capital & book valueTBV/share: Q2 $21.69; Q3 $22.60 .TBV/share $23.65; CET1 15.64%; Total RBC 18.77% .Strengthening capital/TBV.
Tax rate outlookQ3: 20–21% FY24 expected .2025 effective tax rate ~24% .Higher in 2025.

Management Commentary

  • “In 2024, we delivered record earnings and advanced our commitment to creating shareholder value, which is demonstrated by a 15.6% increase in tangible book value per share, a 15.8% increase in the dividend, and the repurchase of 83,000 shares… Our fortress balance sheet, diversified revenues, and growth markets together position us well for 2025 and beyond.” — William G. Smith, Jr., President, Chairman & CEO .
  • “Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.” — Management discussion of income taxes .

Q&A Highlights

  • A Q4 2024 earnings call transcript was not available in our document set (no transcript found via our document tools or investor site links). As a result, Q&A themes and any guidance clarifications from live discussion cannot be summarized here.

Estimates Context

  • We attempted to retrieve S&P Global (Capital IQ) consensus for Q4 2024, but the request could not be fulfilled due to a daily limit; therefore, EPS and revenue estimate comparisons are not provided in this recap. Values retrieved from S&P Global were unavailable for this request.*

Key Takeaways for Investors

  • Margin tailwind: NIM expanded to 4.17% on lower deposit costs and investment repricing; December NIM was 4.18%, suggesting positive exit momentum into 2025 .
  • Deposit dynamics remain seasonal but resilient: Q4 benefitted from public fund inflows; core deposits increased YoY, supporting balance sheet liquidity (average net overnight funds sold $298.3M) .
  • Credit quality stable with conservative reserves: ACL at 1.10% and NPAs at 0.15% of assets; watch the uptick in NCOs to 0.25% annualized as consumer and commercial real estate portfolios remix .
  • Expense moderation post-Q3: Noninterest expense fell 2.7% QoQ with easing other expense; ongoing merit and healthcare inflation remain underlying headwinds to monitor .
  • Capital and TBV strength: TBV/share rose 4.6% QoQ; CET1 at 15.64% and total RBC at 18.77% provide ample flexibility for growth and capital return .
  • Tax rate reset: 2025 effective tax rate guided to ~24% (up from ~20–21% in 2024), a modest EPS headwind to incorporate into forward models .
  • Dividend sustained at $0.23/quarter; recognition as a “Best Bank to Work For” for the 12th consecutive year underscores cultural stability and talent retention amid growth initiatives .

Additional Context from Q4-Adjacent Press Releases

  • Dividend declaration of $0.23 per share payable Dec 23, 2024 (annualized $0.92) .
  • Recognized by American Banker as a “Best Bank to Work For” for the 12th consecutive year .

Footnote: S&P Global (Capital IQ) consensus data could not be retrieved for this request due to a daily request limit; as a result, estimate comparisons are not included.