Capital City Bank Group (CCBG) in Tallahassee, Fla., enjoyed a trifecta last quarter: it lowered expenses, income taxes and its loan-loss provision.
Profits rose 26.3% year over year, to $3.8 million, thanks to those achievements and other factors, the $2.6 billion-asset company said in a news release Monday.
Operating expenses fell 9%, to $28.4 million, and its income-tax position swung to a credit of $1.4 million from a $400,000 expense a year earlier thanks largely to a state tax benefit.
It's loan-loss provision fell 63.6%, to $400,000, as overall credit quality improved.
Nonperforming assets including nonaccrual loans and other real estate owned properties totaled $78.6 million, down 24% from the first quarter of 2013. That lowered its nonperforming assets ratio to 2.98%, compared with 3.99% a year earlier.
"Improving our credit quality and stabilizing our loan portfolio remain primary areas of focus in our 2014 strategy," William Smith, the chairman and chief executive of Capital City, said in the release.
Capital City reported other good news, too, including a 1.2% increase in average earning assets and higher deposits from public funds, noninterest-bearing accounts and savings accounts.
However, the drags on its performance were familiar to many community banks. Its net interest income fell 8.95%, to $19.2 million; its net interest margin contracted 35 basis points, to 3.29%; and noninterest income fell 5.5%, to $12.8 million, on lower mortgage banking and other fees.