Capital City Bank (NASDAQ:CCBG) Problem Loans Remain Outsized in Contrast to Peers

Capital City Bank Group (NASDAQ:CCBG), while seemingly having improved their credit quality, still has a large number of problem loans when compared against their non-Florida peers.

FBR says, "Overall, Capital City maintained the perception of improving credit quality and profitability in 4Q10 and we believe the company faces a positive outlook in 2011 as economic conditions continue to improve, though would note that the level of problem loans at the company remains outsized relative to the company's non-Florida peers. Significant organic growth prospects are inhibited due to a lack of credit-worthy borrowers and limited excess capital (4Q10 tangible common equity to assets of 6.98%) which will remain a drag on valuation in the near term."

FBR Capital reiterates a "Market Perform" rating on Capital City Bank Group (CCBG), which closed Tuesday at $13.58, gaining $1.21, or 9.78 percent.