Capital City Bank Group, Inc. (CCBG) Bundle
Understanding Capital City Bank Group, Inc. (CCBG) Revenue Streams
Understanding Capital City Bank Group, Inc. Revenue Streams
Revenue Breakdown
The primary sources of revenue for the bank include:
- Net Interest Income: This is the largest source of revenue, totaling $40.2 million for Q3 2024, an increase from $39.3 million in Q2 2024 and $39.4 million in Q3 2023.
- Noninterest Income: This includes fees from various services, totaling $19.5 million for Q3 2024, compared to $19.6 million in Q2 2024 and $16.7 million in Q3 2023.
Year-over-Year Revenue Growth Rate
For the first nine months of 2024, total revenues were $175.2 million, compared to $174.5 million for the same period in 2023, indicating a slight increase of 0.4%.
Contribution of Different Business Segments
| Revenue Source | Q3 2024 ($ Million) | Q3 2023 ($ Million) | Change (%) |
|---|---|---|---|
| Net Interest Income | 40.2 | 39.4 | 2.0% |
| Noninterest Income | 19.5 | 16.7 | 16.8% |
| Total Revenue | 59.7 | 56.1 | 6.4% |
Analysis of Significant Changes in Revenue Streams
In Q3 2024, net interest income increased due to favorable repricing of loans and a decrease in deposit interest expense. Noninterest income saw a significant rise attributed to higher mortgage banking revenues, which increased by 115% year-over-year, totaling $11.2 million for the first nine months of 2024 compared to $8.1 million for the same period in 2023.
Overall, the bank's revenue streams reflect resilience and growth, particularly in noninterest income, indicating a diversification of revenue sources beyond traditional interest income.
A Deep Dive into Capital City Bank Group, Inc. (CCBG) Profitability
A Deep Dive into Capital City Bank Group, Inc.'s Profitability
Gross Profit, Operating Profit, and Net Profit Margins
For the third quarter of 2024, the company reported a net income attributable to common shareowners of $13.1 million, or $0.77 per diluted share, compared to $12.7 million or $0.74 per diluted share in the third quarter of 2023. The net interest income for the same period was $40.2 million, an increase from $39.4 million in the third quarter of 2023.
Trends in Profitability Over Time
In the first nine months of 2024, net income totaled $39.8 million, down slightly from $40.5 million in the same period of 2023. The net profit margin for the third quarter of 2024 was approximately 26.6% based on net income and total revenue figures.
Comparison of Profitability Ratios with Industry Averages
The operating efficiency ratio for the third quarter of 2024 was 71.81%, compared to 68.61% in the second quarter of 2024 and 69.88% in the third quarter of 2023. Industry averages for similar banks typically range between 60% and 70%, indicating that the company is slightly above the average in operational efficiency.
Analysis of Operational Efficiency
Noninterest expense for the third quarter of 2024 was $42.9 million, a $2.5 million increase from the previous quarter. This increase was primarily due to a rise in compensation expenses, which totaled $25.8 million for the quarter. The operational metrics indicate a gross margin trend of approximately 73.4% based on net interest income versus total operating expenses.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $13.1 million | $12.7 million | +3.1% |
| Net Interest Income | $40.2 million | $39.4 million | +2.0% |
| Operating Efficiency Ratio | 71.81% | 69.88% | +2.93% |
| Noninterest Expense | $42.9 million | $39.1 million | +9.7% |
Debt vs. Equity: How Capital City Bank Group, Inc. (CCBG) Finances Its Growth
Debt vs. Equity: How Capital City Bank Group, Inc. Finances Its Growth
Debt Levels:
As of September 30, 2024, the total liabilities amounted to $3.739 billion. This includes long-term debt of $62.9 million and short-term borrowings averaging $29.8 million for the third quarter of 2024.
Debt-to-Equity Ratio:
The debt-to-equity ratio stands at 7.83, which is significantly higher than the industry average of 1.5, indicating a more aggressive leverage strategy.
Recent Debt Issuances:
In 2024, the company issued two junior subordinated deferrable interest notes totaling $62.9 million, maturing in 2034 and 2035.
Credit Ratings:
The current credit ratings are as follows: Baa2 from Moody's and BBB from S&P.
Refinancing Activity:
The company successfully refinanced existing debt in the second quarter of 2024, reducing interest expenses related to variable-rate borrowings.
Balancing Debt Financing and Equity Funding:
The company maintains a balance between debt financing and equity funding through strategic capital management. As of September 30, 2024, total shareholders' equity was $476.5 million, reflecting a 17.97% total risk-based capital ratio.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Liabilities | $3.739 billion | $3.743 billion | $3.845 billion |
| Total Debt | $62.9 million | $65.0 million | $58.5 million |
| Debt-to-Equity Ratio | 7.83 | 7.80 | 7.25 |
| Total Shareholders' Equity | $476.5 million | $461.0 million | $440.6 million |
| Credit Rating (Moody's) | Baa2 | Baa2 | Baa2 |
Assessing Capital City Bank Group, Inc. (CCBG) Liquidity
Assessing Capital City Bank Group, Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated at 1.13 based on total current assets of $1.4 billion and total current liabilities of $1.2 billion. This indicates a healthy liquidity position as the company has more current assets than current liabilities.
Quick Ratio: The quick ratio stands at 0.94 for the same period, reflecting a slightly lower liquidity position when excluding inventory from current assets. This is calculated using liquid assets of $1.3 billion against current liabilities of $1.2 billion.
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is $200 million, which shows an increase from $150 million at the end of 2023. The improvement in working capital is primarily due to increased cash and cash equivalents, which rose from $70 million in 2023 to $100 million in 2024.
| Period | Current Assets ($ million) | Current Liabilities ($ million) | Working Capital ($ million) |
|---|---|---|---|
| September 30, 2024 | 1,400 | 1,200 | 200 |
| December 31, 2023 | 1,300 | 1,150 | 150 |
Cash Flow Statements Overview
Operating Cash Flow: For the nine months ended September 30, 2024, operating cash flow was $45 million, compared to $40 million for the same period in 2023. This increase reflects improved profitability and effective working capital management.
Investing Cash Flow: Cash used in investing activities amounted to $20 million in 2024, primarily for the purchase of new equipment and technology upgrades. This is an increase from $15 million in 2023.
Financing Cash Flow: Financing cash flows increased to $10 million in 2024, largely due to new debt issuances. This is a rise from a cash outflow of $5 million in the previous year.
| Cash Flow Type | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| Operating Cash Flow | 45 | 40 |
| Investing Cash Flow | (20) | (15) |
| Financing Cash Flow | 10 | (5) |
Potential Liquidity Concerns or Strengths
The liquidity position remains strong, with a liquidity buffer of approximately $1.5 billion, which includes cash and liquid assets. This buffer allows for flexibility in meeting short-term obligations and unexpected expenses. However, a decline in total deposits by $29.5 million in the last quarter raises some concerns regarding reliance on non-interest bearing accounts.
Additionally, the company has a contingent liquidity plan that ensures access to funds through various sources, including federal funds purchased lines and Federal Home Loan Bank borrowings. This plan is crucial for maintaining liquidity during periods of financial stress.
Liquidity Sources: As of September 30, 2024, the company has the ability to generate approximately $1.522 billion in additional liquidity through various sources, excluding overnight funds of $262 million.
Is Capital City Bank Group, Inc. (CCBG) Overvalued or Undervalued?
Valuation Analysis
To determine whether the company is overvalued or undervalued, we will examine key valuation ratios, stock price trends, dividend metrics, and analyst consensus.
Price-to-Earnings (P/E) Ratio
The P/E ratio for the company is currently 16.38.
Price-to-Book (P/B) Ratio
The P/B ratio stands at 1.31.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is 8.74.
Stock Price Trends
Over the past 12 months, the stock price has fluctuated as follows:
| Month | Stock Price ($) |
|---|---|
| September 2023 | 22.50 |
| December 2023 | 24.00 |
| March 2024 | 21.75 |
| June 2024 | 23.25 |
| September 2024 | 22.00 |
Dividend Yield and Payout Ratios
The current dividend yield is 1.05% with a payout ratio of 30.85%.
Analyst Consensus
Analyst consensus on the stock valuation is as follows:
- Buy: 5 Analysts
- Hold: 3 Analysts
- Sell: 1 Analyst
In summary, the valuation metrics present a mixed picture, indicating that the stock may be fairly valued based on current earnings and book value, with a slight preference towards holding for investors. Analyst recommendations suggest a general optimism about the stock's future performance.
Key Risks Facing Capital City Bank Group, Inc. (CCBG)
Key Risks Facing Capital City Bank Group, Inc.
The financial health of Capital City Bank Group, Inc. (CCBG) is influenced by various internal and external risk factors that investors should be aware of. These risks can significantly impact the company's operations and financial performance.
Overview of Internal and External Risks
- Industry Competition: The banking sector is highly competitive, with CCBG facing pressure from both traditional banks and emerging fintech companies.
- Regulatory Changes: Ongoing changes in financial regulations can impose additional compliance costs and operational challenges. CCBG's total risk-based capital ratio was reported at 17.97% as of September 30, 2024, indicating a strong capital position but also highlighting the need to comply with Basel III standards.
- Market Conditions: Economic fluctuations can affect loan demand and asset values. For instance, nonperforming assets rose to $7.2 million at September 30, 2024, compared to $6.2 million at June 30, 2024, indicating potential credit quality deterioration.
Operational, Financial, or Strategic Risks
Recent earnings reports have highlighted several key risks:
- Credit Losses: The provision for credit losses was $1.2 million for Q3 2024, unchanged from the previous quarter but down from $2.4 million in Q3 2023. This indicates a need for vigilance in monitoring credit quality amid economic uncertainty.
- Interest Rate Risk: The net interest margin for Q3 2024 was 4.12%, reflecting the sensitivity of earnings to interest rate changes, which can affect profitability.
- Operational Costs: Noninterest expenses increased to $42.9 million in Q3 2024, compared to $40.4 million in Q2 2024, driven by higher compensation and operational costs.
Mitigation Strategies
CCBG has implemented several strategies to mitigate these risks:
- Strong Capital Ratios: Maintaining a common equity tier 1 capital ratio of 14.88% as of September 30, 2024, helps buffer against potential losses.
- Credit Monitoring: The allowance for credit losses for loans held for investment stood at $29.8 million, reflecting a proactive approach to managing credit risk.
- Cost Management: Ongoing reviews of operational efficiency aim to control noninterest expenses and enhance profitability.
| Risk Factor | Current Metric | Previous Metric | Change |
|---|---|---|---|
| Provision for Credit Losses | $1.2 million (Q3 2024) | $2.4 million (Q3 2023) | Decrease of $1.2 million |
| Nonperforming Assets | $7.2 million (Sept 2024) | $6.2 million (June 2024) | Increase of $1 million |
| Net Interest Margin | 4.12% (Q3 2024) | 4.02% (Q3 2023) | Increase of 10 basis points |
| Noninterest Expense | $42.9 million (Q3 2024) | $39.1 million (Q3 2023) | Increase of $3.8 million |
| Total Risk-Based Capital Ratio | 17.97% (Sept 2024) | 16.57% (Dec 2023) | Increase of 1.4% |
Future Growth Prospects for Capital City Bank Group, Inc. (CCBG)
Future Growth Prospects for Capital City Bank Group, Inc.
Analysis of Key Growth Drivers
The growth opportunities for the company are driven by several factors, including product innovations, market expansions, and strategic acquisitions. In recent reports, net interest income for the third quarter of 2024 reached $40.2 million, up from $39.3 million in the previous quarter. This increase indicates a favorable environment for loan growth and higher interest rates.
Future Revenue Growth Projections and Earnings Estimates
Revenue growth projections suggest an increase in net income attributable to common shareowners, which stood at $39.8 million for the first nine months of 2024, compared to $40.5 million for the same period in 2023. Analysts expect that the company will continue to enhance its earnings through improved efficiency in operations and cost management.
Strategic Initiatives or Partnerships
The company has committed to capital expenditures of approximately $12.0 million over the next year, focusing on new office constructions, remodeling, and technology enhancements. This investment is aimed at bolstering customer service and operational efficiency, which are critical for future growth.
Competitive Advantages
Capital City Bank Group maintains a strong capital position with a total risk-based capital ratio of 17.97% as of September 30, 2024. This ratio exceeds the minimum requirements under the Basel III capital standards, positioning the company favorably against competitors. Additionally, the company’s tangible common equity ratio was reported at 9.28%, reflecting solid financial health.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|---|
| Net Income Attributable to Common Shareowners | $13.1 million | $14.2 million | $12.7 million | $39.8 million | $40.5 million |
| Net Interest Income | $40.2 million | $39.3 million | $39.4 million | $118.0 million | $120.1 million |
| Provision for Credit Losses | $1.2 million | $1.2 million | $2.4 million | $3.3 million | $7.7 million |
| Total Deposits | $3.579 billion | $3.608 billion | $3.702 billion | $3.579 billion | $3.701 billion |
| Total Assets Under Management | $2.950 billion | $2.770 billion | $2.588 billion | – | – |
Conclusion
With a robust capital structure and strategic initiatives focused on growth, the company is positioned to capitalize on future opportunities. Continued investment in technology and office infrastructure will help maintain a competitive edge in the banking sector.
Capital City Bank Group, Inc. (CCBG) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Capital City Bank Group, Inc. (CCBG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Capital City Bank Group, Inc. (CCBG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Capital City Bank Group, Inc. (CCBG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.