NASDAQ$CCBG

Capital City Bank Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported net income of $4.3 million, impacted by a $5.0 million provision for credit losses due to deteriorating economic conditions related to COVID-19.

Capital City Bank Group reported a net income of $4.3 million, or $0.25 per diluted share, for Q1 2020. This includes a $5.0 million provision for credit losses, exceeding net loan charge-offs of $1.1 million, due to COVID-19's economic impact.

  • Diversified revenue and strong balance sheet buffered impact of COVID-19 and Fed interest rate actions.
  • Average loans (ex-held for sale) up 0.8% sequentially and 4.2% over 2019.
  • Loan loss provision of $5.0 million reflected reserve build for COVID-19 impact.
  • Acquisition of a 51% membership interest in Brand Mortgage Group, LLC (now operated as Capital City Home Loans (“CCHL”)) occurred March 1st – nominal net impact on earnings.

Headline financials

Total Revenue

$41.3M

Previous: $37.5M+10.1%
EPS (adj)

$0.25

Previous: $0.38-34.2%
Return on Average Assets

0.6%

No prior period
Return on Average Equity

5.2%

No prior period
Net Interest Margin

3.8%

No prior period
Noninterest Income as % of Operating Revenue

37.5%

No prior period
Efficiency Ratio

74.9%

No prior period
Equity to Assets

10.6%

No prior period
Allowance as % of Non-Performing Loans

432.6%

No prior period
Allowance as a % of Loans HFI

1.1%

No prior period
Net Charge-Offs as % of Average Loans HFI

0.2%

No prior period
Nonperforming Assets as % of Total Assets

0.2%

No prior period
Capital Expenditures

-$4.77M

Previous: -$1.27M-276.4%
Free Cash Flow

-$486K

Previous: $5.17M-109.4%
Net Income

$4.29M

Previous: $6.44M-33.4%
Operating Income

$28.1M

Previous: $28.5M-1.6%
Gross Profit

$36.3M

Previous: $37.5M-3.2%
Cash & Equivalents

$72.7M

Previous: $49.5M+46.8%
Total Assets

$3.09B

Previous: $3.05B+1.1%
Stock-Based Comp

$291K

Previous: $499K-41.7%

Revenue & EPS history

Capital City Bank · Revenue · Quarterly

$41.3M

Q1 2020+10.1%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Capital City Bank · $15.5M total across 5 segments · Q1 2020

  • Deposit Fees
    $5.02M
  • Bank Card Fees
    $3.05M
  • Mortgage Banking Revenues
    $3.03M+205.1%
  • Wealth Management Fees
    $2.6M
  • Other Noninterest Income
    $1.78M

Forward guidance

Deposit levels remain strong, and average core deposits grew over last quarter. As a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and our participation in the Paycheck Participation Program (PPP) to support small businesses, the potential exists for our deposit levels to be volatile over the coming quarters due to the government’s distribution of economic impact payments and the funding of PPP loans.

Tailwinds

  • Current liquidity levels will remain adequate due to our strong overnight funds sold position
  • Cash flow generated from the investment portfolio.
  • Short-term advances from the FHLB or FRB could be considered if necessary.
  • Deposit rates are monitored on an ongoing basis and adjusted if necessary
  • A prudent pricing discipline remains the key to managing our mix of deposits.

Headwinds

  • The magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations and financial condition, including the impact of our participation in government programs related to COVID-19
  • The accuracy of the our financial statement estimates and assumptions
  • Legislative or regulatory changes
  • Fluctuations in inflation, interest rates, or monetary policies
  • The effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.3%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+8.8%

Q4 2023

Best reaction

-10.8%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-1.5%-0.8%
Q4 2025-5.0%-6.5%-2.8%
Q3 2025-1.8%+0.9%-2.4%
Q2 2025-1.5%-2.9%+3.9%
Q1 2025+3.7%+5.7%+11.5%
Q4 2024-0.8%-0.5%-2.2%
Q3 2024+2.9%+0.3%+12.0%
Q2 2024+4.0%+9.1%-0.4%
Q1 2024+0.3%-0.3%+2.3%
Q4 2023+8.8%+10.3%-1.2%
Q3 2023-8.3%-4.9%-7.7%
Q2 2023-0.5%-4.3%-9.3%
Q1 2023+4.1%+7.4%+5.2%
Q4 2022-1.2%-0.1%+6.7%
Q3 2022+2.1%+3.3%+4.4%
Q2 2022+2.3%+1.2%+5.3%
Q1 2022+4.0%+3.1%+6.8%
Q4 2021+0.3%+0.7%-0.3%
Q3 2021-0.8%-0.4%+6.7%
Q2 2021+1.0%+1.8%-5.2%
Q1 2021-0.7%-0.8%+3.4%
Q4 2020-10.8%-7.8%+5.1%
Q3 2020-0.6%-1.2%+14.1%
Q2 2020+2.9%+6.9%+7.7%
Q1 2020+6.3%+21.1%+6.2%
Q4 2019+0.6%+4.6%-6.0%
Q3 2019+1.4%+2.0%+2.3%
Q2 2019+5.1%+3.9%+0.0%
Q1 2019-3.2%-2.8%+0.1%
Q4 2018+0.6%+0.4%+3.3%
Q3 2018+0.8%+4.3%+10.7%
Q2 2018-3.0%-5.9%-2.3%
Q1 2018-3.8%-5.2%-7.6%
Q4 2017-0.8%-0.2%+1.5%
Q3 2017-0.9%+5.4%-1.6%
Q2 2017+6.8%+7.0%+2.6%
Q1 2017+0.5%-1.3%-10.2%
Q4 2016+6.4%+6.2%+10.3%
Q3 2016-1.0%-2.5%+25.8%
Q2 2016-2.5%-2.3%-5.3%
Q1 2016+2.8%
Q4 2015+3.0%
Q3 2015-1.4%
Q2 2015+2.5%
Q1 2015-4.8%
Q4 2014-0.6%
Q3 2014+5.1%
Q2 2014+0.4%
Q1 2014+0.8%
Q4 2013+4.7%
Q3 2013+0.3%
Q2 2013+0.1%
Q1 2013+1.0%
Q4 2012-3.4%
Q3 2012+0.5%
Q2 2012-1.0%
Q1 2011-7.3%
Q1 2012+3.2%
Q4 2009+0.8%
Q4 2010+0.8%
Q3 2010-3.3%
Q3 2011-3.3%
Q2 2011+3.5%
Q2 2010+3.5%
Q1 2010-0.2%

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