Capital City Bank Group, Inc. Announces Replacement Stock Repurchase Program
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Insights
A new stock repurchase program can signal a company's confidence in its financial stability and future prospects. The authorization of Capital City Bank Group to repurchase up to 750,000 shares, which is approximately 4.4% of its outstanding common stock, suggests that management believes the stock is undervalued or that it is an opportune time to return value to shareholders. Share repurchases can lead to an increase in earnings per share (EPS) by reducing the number of shares outstanding, potentially making the stock more attractive to investors.
However, the discretionary nature of the program, which does not obligate the company to repurchase any specific number of shares, provides flexibility to the management to act based on prevailing market conditions. This approach can be advantageous in maintaining capital for other strategic opportunities or operational needs that may arise. Investors should monitor the company's repurchase activity as an indicator of management's confidence and as a potential driver for stock performance.
Stock repurchase programs are often interpreted by the market as a positive signal, as they can indicate that the company's leadership believes the stock to be undervalued. For Capital City Bank Group, initiating such a program could positively affect investor sentiment and stock price, particularly in the financial sector where confidence and stability are paramount.
In assessing the impact of this announcement on the market, it is important to consider the historical performance of the company's stock and the broader market trends affecting financial institutions. The repurchase plan could also be a strategic move to consolidate ownership, reduce capital supply and possibly defend against market volatility or hostile takeovers. The long-term implications will depend on the execution of this program and the company's ability to balance shareholder returns with necessary capital for growth and operations.
From an economic standpoint, stock repurchase programs can be reflective of broader economic conditions. In a low-interest-rate environment, companies often find it financially advantageous to return excess capital to shareholders through buybacks. For Capital City Bank Group, this decision may also be influenced by the current economic climate and its impact on the banking sector, such as interest rate trends, regulatory changes and competition.
It is crucial to consider the opportunity cost associated with the repurchase program. The funds allocated for stock buybacks could alternatively be invested in growth opportunities or used to strengthen the company's balance sheet. The decision to terminate the existing repurchase program and initiate a new one should be evaluated in the context of the company’s long-term strategic goals and its implications for future financial flexibility.
TALLAHASSEE, Fla., Feb. 02, 2024 (GLOBE NEWSWIRE) -- Capital City Bank Group, Inc. (NASDAQ: CCBG) announced today that its Board of Directors approved a new stock repurchase program on January 25, 2024. Under the newly approved stock repurchase program, the company is authorized to repurchase up to 750,000 shares of its common stock over the next five years, from time to time, in the open market or through private transactions, as market conditions warrant. However, the new stock repurchase program does not obligate the company to repurchase any specified number of shares of its common stock. Currently, the company has approximately 16,990,240 shares of common stock issued and outstanding and the number of shares authorized for repurchase under the new repurchase program currently represents approximately
About Capital City Bank Group, Inc.
Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority) that are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. We may not actually achieve the plans, carry out the intentions or meet the expectations disclosed in the forward-looking statements, and you should not rely on these forward-looking statements due to many factors, including: our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; legislative or regulatory changes; adverse developments in the financial services industry generally, such as bank failures and any related impact on depositor behavior; the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding costs, net interest margin and ability to replace maturing deposits and advances, as necessary; inflation, interest rate, market and monetary fluctuations; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans and related interest rate risk or price risk resulting from retaining mortgage servicing rights and the potential effects of higher interest rates on our loan origination volumes; the effects of actions taken by governmental agencies to stabilize the recent volatility in the financial system and the effectiveness of such actions; changes in monetary and fiscal policies of the U.S. Government; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; the accuracy of our financial statement estimates and assumptions, including the estimates used for our allowance for credit losses, deferred tax asset valuation and pension plan; changes in our liquidity position; changes in accounting principles, policies, practices or guidelines; the frequency and magnitude of foreclosure of our loans; the effects of our lack of a diversified loan portfolio, including the risks of loan segments, geographic and industry concentrations; the strength of the United States economy in general and the strength of the local economies in which we conduct operations; our ability to declare and pay dividends, the payment of which is subject to our capital requirements; changes in the securities and real estate markets; structural changes in the markets for origination, sale and servicing of residential mortgages; risks related to changes in key personnel and any changes in our ability to retain key personnel; the effect of corporate restructuring, acquisitions or dispositions, including the actual restructuring and other related charges and the failure to achieve the expected gains, revenue growth or expense savings from such corporate restructuring, acquisitions or dispositions; the effects of natural disasters, harsh weather conditions (including hurricanes), widespread health emergencies (including pandemics, such as the COVID-19 pandemic), military conflict, acts of war, terrorism, civil unrest or other geopolitical events; our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate; the impact of the restatement of our previously issued financial statements as of and for the year ended December 31, 2022, the three months ended March 31, 2022 and 2023, the three and six months ended June 30, 2022 and 2023, and the three and nine months ended September 30, 2022; any inability to implement and maintain effective internal control over financial reporting or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; the inherent limitations in internal control over financial reporting and disclosure controls and procedures; the willingness of clients to accept third-party products and services rather than our products and services and vice versa; increased competition and its effect on pricing; technological changes; the outcomes of litigation or regulatory proceedings; negative publicity and the impact on our reputation; changes in consumer spending and saving habits; growth and profitability of our noninterest income; the limited trading activity of our common stock; the concentration of ownership of our common stock; anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as amended, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this press release speak only as of the date of this press release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.
For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450
FAQ
What did Capital City Bank Group, Inc. (CCBG) announce on January 25, 2024?
How many shares of common stock is CCBG authorized to repurchase under the new program?
What percentage of the company's issued and outstanding shares of common stock do the authorized shares for repurchase represent?
What action did the Board of Directors take in connection with the new stock repurchase program?
