Profits at Capital City Bank Group nearly doubled in the second quarter as the Tallahassee, Fla., company continued to shed problem assets.
Capital City, with $2.6 billion of assets, said Tuesday that earned $1.5 million in the quarter that ended June 30, an increase of 87% from the same period last year. Earnings per share increased 60%, to eight
Nonperforming assets as a percentage of total assets dropped to 2.66% from 3.77% a year earlier, driven by sales of foreclosed properties. Its total real estate owned assets fell by nearly 23%, to about $55 million. The decline in problem loans allowed the company to reduce its provision for loan losses by about 66%, to $499,000.
"Our retail approach to disposing of [other real-estate owned] properties continues to produce positive results," William G. Smith Jr., the company's chairman, president, and chief executive officer, said in a news release.
He added that stabilizing the loan portfolio, finding new sources of revenue and cutting expenses are the bank's top priorities for the remainder of the year. Despite earnings growth, Capital City's efficiency ratio has remained stubbornly high. Its efficiency ratio at June 30 was 91.15%, up slightly from the same quarter last year.