Capital City Bank Group Inc. of Tallahassee, Fla., said Tuesday that a spike in chargeoffs contributed to a 13.5% decline in its fourth-quarter net income, to $7.7 million.
Earnings per share dropped 8.3%, to 44 cents, beating the average of analysts' estimates by 3 cents, according to Thomson Financial.
By Tuesday afternoon shares of Capital City had climbed 7.2%, to $28.72.
Citing the stress in the real estate market, the $2.1 billion-asset Capital City said its loan-loss provision for the quarter jumped 240% from a year earlier, to $1.7 million. Chargeoffs increased 60%, to $1.6 million.
The parent of Capital City Bank also said its net interest margin declined 25 basis points, to 5.25%, as its cost of funds rose and its yield on earning assets shrank.
