Capital City Bank Group Inc. in Tallahassee, Fla., said Tuesday that rising nonperforming loans caused its second-quarter earnings to fall 39% from a year earlier, to $4.8 million.
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Earnings per share dropped 35%, to 28 cents, missing the average analyst estimate by 4 cents, according to Thomson Reuters.
The $2.6 billion-asset company said nonperforming loans increased 18% from the previous quarter, to $41.7 million. It cited troubled residential real estate loans to developers and investors.
The nonperforming loan ratio jumped 32 basis points, to 2.27% of total loans, and Capital City boosted its loan-loss provision 32%, to $5.4 million.
By late Tuesday shares of Capital City had dropped 3.6% from Monday's close, to $21.82.
