Capital City Bank Group - 10-Q quarterly report FY2024 Q1

1695022230000000.0190000000169285070.01FALSE--12-3120240000726601Q1nonono<div>(1) Adjustments to redemption value for non-controlling interest in Capital City Home Loans, LLC ("CCHL")</div>Yes12/31/202400007266012024-01-012024-03-310000726601us-gaap:CommitmentsToExtendCreditMember2024-03-3100007266012024-03-310000726601us-gaap:MortgagesMember2023-12-310000726601us-gaap:RetainedEarningsMember2024-01-012024-03-3100007266012023-12-310000726601us-gaap:StandbyLettersOfCreditMember2023-12-310000726601us-gaap:PensionPlansDefinedBenefitMember2024-01-012024-03-310000726601us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310000726601us-gaap:ConsumerLoanMember2023-12-310000726601us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000726601us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310000726601us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310000726601us-gaap:MortgageBackedSecuritiesMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2023-12-310000726601us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-03-310000726601us-gaap:FairValueInputsLevel2Member2023-12-310000726601us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2024-01-012024-03-310000726601us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310000726601us-gaap:CommonStockMember2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2023-12-310000726601us-gaap:CommonStockMember2024-01-012024-03-310000726601us-gaap:FairValueInputsLevel2Member2024-03-310000726601us-gaap:MortgagesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310000726601us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000726601us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-3100007266012023-01-012023-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310000726601us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-03-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2024-03-310000726601us-gaap:ResidentialRealEstateMember2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310000726601us-gaap:ConsumerLoanMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000726601us-gaap:StandbyLettersOfCreditMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2023-12-310000726601us-gaap:RetainedEarningsMember2023-12-310000726601us-gaap:FairValueInputsLevel1Member2024-03-310000726601us-gaap:FairValueInputsLevel3Member2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310000726601us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000726601us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310000726601us-gaap:CommitmentsToExtendCreditMember2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310000726601us-gaap:HomeEquityMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310000726601us-gaap:HomeEquityMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-03-310000726601us-gaap:AdditionalPaidInCapitalMember2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310000726601us-gaap:FairValueInputsLevel1Member2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-03-310000726601us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2024-03-310000726601us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-03-310000726601us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000726601us-gaap:ResidentialRealEstateMember2024-03-310000726601us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310000726601us-gaap:ConstructionLoansMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2024-03-310000726601us-gaap:DepositAccountMember2024-01-012024-03-310000726601us-gaap:CreditAndDebitCardMember2024-01-012024-03-310000726601us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2024-01-012024-03-310000726601us-gaap:MortgageBankingMember2024-01-012024-03-310000726601ccbg:LeasePaymentTransactionMember2024-03-310000726601us-gaap:DepositAccountMember2023-01-012023-03-310000726601us-gaap:CreditAndDebitCardMember2023-01-012023-03-310000726601us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember2023-01-012023-03-310000726601us-gaap:MortgageBankingMember2023-01-012023-03-310000726601us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-03-310000726601us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-01-012023-03-310000726601us-gaap:USTreasurySecuritiesMember2024-03-310000726601us-gaap:USStatesAndPoliticalSubdivisionsMember2024-03-310000726601ccbg:EquitySecuiritesBankStocksMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:PassMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:SpecialMentionMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:SubstandardMember2024-03-310000726601us-gaap:PassMemberus-gaap:ConstructionLoansMember2024-03-310000726601us-gaap:ConstructionLoansMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:PassMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:SpecialMentionMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:SubstandardMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:PassMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:SpecialMentionMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:SubstandardMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2024-01-012024-03-310000726601us-gaap:ConstructionLoansMember2024-01-012024-03-310000726601us-gaap:MortgagesMember2024-01-012024-03-310000726601us-gaap:ResidentialRealEstateMember2024-01-012024-03-310000726601us-gaap:HomeEquityMember2024-01-012024-03-310000726601us-gaap:ConsumerLoanMember2024-01-012024-03-310000726601us-gaap:ResidentialMortgageMember2024-03-310000726601us-gaap:ResidentialMortgageMemberccbg:ResidentialMortgageLoanCommitmentsDerivativeContractsMember2024-03-310000726601us-gaap:ResidentialMortgageMember2024-03-310000726601us-gaap:ResidentialMortgageMember2024-01-012024-03-310000726601us-gaap:WarehouseAgreementBorrowingsMemberccbg:MasterRepurchaseAgreementMember2024-03-310000726601us-gaap:WarehouseAgreementBorrowingsMember2024-03-310000726601us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoansHeldForSaleMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoansHeldForSaleMemberus-gaap:FairValueInputsLevel2Member2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoansHeldForSaleMemberus-gaap:FairValueInputsLevel3Member2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoansHeldForSaleMember2024-03-3100007266012024-06-2800007266012022-12-310000726601us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000726601us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000726601us-gaap:InterestRateSwapMember2024-03-310000726601us-gaap:InterestRateSwapMember2024-01-012024-03-310000726601us-gaap:InterestRateContractMember2024-03-310000726601us-gaap:InterestRateSwapMember2023-12-310000726601us-gaap:InterestRateSwapMember2022-12-310000726601us-gaap:InterestRateSwapMember2023-01-012023-03-310000726601srt:MinimumMember2024-03-310000726601srt:MaximumMember2024-03-310000726601us-gaap:FairValueInputsLevel3Member2024-03-310000726601srt:MinimumMember2024-01-012024-03-310000726601srt:MaximumMember2024-01-012024-03-310000726601us-gaap:InterestRateContractMember2024-01-012024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2023-01-012023-03-310000726601us-gaap:ConstructionLoansMember2023-01-012023-03-310000726601us-gaap:MortgagesMember2023-01-012023-03-310000726601us-gaap:ResidentialRealEstateMember2023-01-012023-03-310000726601us-gaap:HomeEquityMember2023-01-012023-03-310000726601us-gaap:ConsumerLoanMember2023-01-012023-03-310000726601us-gaap:HomeEquityMemberus-gaap:PerformingFinancingReceivableMember2024-03-310000726601us-gaap:HomeEquityMemberus-gaap:NonperformingFinancingReceivableMember2024-03-310000726601us-gaap:ConsumerLoanMemberus-gaap:PerformingFinancingReceivableMember2024-03-310000726601us-gaap:ConsumerLoanMemberus-gaap:NonperformingFinancingReceivableMember2024-03-310000726601us-gaap:ResidentialMortgageMember2023-12-310000726601ccbg:ResidentialMortgageLoanCommitmentsDerivativeContractsMemberus-gaap:ResidentialMortgageMember2023-12-310000726601us-gaap:ResidentialMortgageMember2023-12-310000726601us-gaap:ResidentialMortgageMember2023-01-012023-12-310000726601us-gaap:InterestRateSwapMember2023-01-012023-12-310000726601ccbg:ResidentialMortgageLoansHeldForSaleMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000726601ccbg:ResidentialMortgageLoansHeldForSaleMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000726601ccbg:ResidentialMortgageLoansHeldForSaleMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000726601ccbg:ResidentialMortgageLoansHeldForSaleMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000726601us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000726601us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310000726601us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310000726601us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000726601us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310000726601us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-03-310000726601us-gaap:InterestRateSwapMember2023-03-3100007266012023-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancialAssetPastDueMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2024-03-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:FinancialAssetPastDueMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetPastDueMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310000726601us-gaap:HomeEquityMemberus-gaap:FinancialAssetPastDueMember2024-03-310000726601us-gaap:HomeEquityMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancialAssetPastDueMember2024-03-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancialAssetNotPastDueMember2024-03-310000726601us-gaap:FinancialAssetPastDueMember2024-03-310000726601us-gaap:FinancialAssetNotPastDueMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310000726601us-gaap:MortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310000726601us-gaap:HomeEquityMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310000726601us-gaap:HomeEquityMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310000726601us-gaap:HomeEquityMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310000726601us-gaap:FinancingReceivables30To59DaysPastDueMember2024-03-310000726601us-gaap:FinancingReceivables60To89DaysPastDueMember2024-03-310000726601us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancialAssetPastDueMember2023-12-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancialAssetPastDueMember2023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:FinancialAssetPastDueMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetPastDueMember2023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000726601us-gaap:HomeEquityMemberus-gaap:FinancialAssetPastDueMember2023-12-310000726601us-gaap:HomeEquityMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancialAssetPastDueMember2023-12-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000726601us-gaap:HomeEquityMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000726601us-gaap:HomeEquityMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000726601us-gaap:HomeEquityMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000726601us-gaap:ConsumerLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000726601us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000726601us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000726601us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000726601us-gaap:FinancialAssetPastDueMember2023-12-310000726601us-gaap:FinancialAssetNotPastDueMember2023-12-310000726601srt:MinimumMember2023-01-012023-12-310000726601srt:MaximumMember2023-01-012023-12-310000726601us-gaap:CorporateDebtSecuritiesMember2024-03-310000726601us-gaap:InterestRateContractMember2023-01-012023-03-310000726601ccbg:CchlSubsidiaryMember2024-03-310000726601us-gaap:OtherDebtSecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2024-03-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2024-03-310000726601us-gaap:WarehouseAgreementBorrowingsMemberccbg:LineofcreditoneMember2024-03-310000726601us-gaap:WarehouseAgreementBorrowingsMemberccbg:LineofcreditoneMember2024-01-012024-03-310000726601us-gaap:USTreasurySecuritiesMember2023-12-310000726601us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000726601us-gaap:MortgageBackedSecuritiesMember2023-12-310000726601us-gaap:CorporateDebtSecuritiesMember2023-12-310000726601ccbg:EquitySecuiritesBankStocksMember2023-12-310000726601us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000726601us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000726601us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000726601us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMember2023-12-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMemberus-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMember2023-12-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:ConstructionLoansMember2024-03-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:ConstructionLoansMember2024-03-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:ConstructionLoansMember2023-12-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:ConstructionLoansMember2023-12-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:MortgagesMember2024-03-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:MortgagesMember2024-03-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:MortgagesMember2023-12-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:MortgagesMember2023-12-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:ResidentialRealEstateMember2024-03-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:ResidentialRealEstateMember2024-03-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:ResidentialRealEstateMember2023-12-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:ResidentialRealEstateMember2023-12-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:HomeEquityMember2024-03-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:HomeEquityMember2024-03-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:HomeEquityMember2023-12-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:HomeEquityMember2023-12-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:ConsumerLoanMember2024-03-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:ConsumerLoanMember2024-03-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:ConsumerLoanMember2023-12-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMemberus-gaap:ConsumerLoanMember2023-12-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMember2024-03-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMember2024-03-310000726601ccbg:RealEstateSecuredMemberus-gaap:AssetPledgedAsCollateralMember2023-12-310000726601us-gaap:AssetPledgedAsCollateralMemberccbg:NonRealEstateSecuredMember2023-12-310000726601us-gaap:CommonStockMember2023-01-012023-03-310000726601us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000726601us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000726601us-gaap:RetainedEarningsMember2023-01-012023-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2022-12-310000726601us-gaap:ConstructionLoansMember2022-12-310000726601us-gaap:MortgagesMember2022-12-310000726601us-gaap:ResidentialRealEstateMember2022-12-310000726601us-gaap:HomeEquityMember2022-12-310000726601us-gaap:ConsumerLoanMember2022-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2024-03-310000726601ccbg:DelinquentOrDefaultedMortgageLoansMemberus-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMember2023-01-012023-03-310000726601us-gaap:DebtSecuritiesMember2024-03-310000726601ccbg:MunicipalAndCorporateBondsMember2024-03-310000726601us-gaap:MunicipalBondsMember2024-03-310000726601us-gaap:ResidentialMortgageMemberccbg:Financingreceivables30To89DaysPastDueMember2024-03-310000726601us-gaap:ResidentialMortgageMemberccbg:Financingreceivables30To89DaysPastDueMember2023-12-310000726601us-gaap:CommonStockMember2022-12-310000726601us-gaap:AdditionalPaidInCapitalMember2022-12-310000726601us-gaap:RetainedEarningsMember2022-12-310000726601us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000726601ccbg:CapitalCityHomeLoansMember2024-01-012024-03-310000726601ccbg:CapitalCityHomeLoansMember2023-01-012023-03-310000726601us-gaap:AssetPledgedAsCollateralMember2023-12-310000726601ccbg:MasterRepurchaseAgreementMemberus-gaap:WarehouseAgreementBorrowingsMembersrt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-01-012024-03-310000726601ccbg:MasterRepurchaseAgreementMemberus-gaap:WarehouseAgreementBorrowingsMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MaximumMember2024-01-012024-03-310000726601ccbg:LineofcreditoneMemberus-gaap:WarehouseAgreementBorrowingsMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MaximumMember2024-01-012024-03-310000726601ccbg:LineofcreditoneMemberus-gaap:WarehouseAgreementBorrowingsMembersrt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-01-012024-03-310000726601us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2024-03-310000726601us-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2024-03-310000726601ccbg:MortgageServicingRightsMember2023-12-310000726601ccbg:MortgageServicingRightsMember2022-12-310000726601ccbg:MortgageServicingRightsMember2024-01-012024-03-310000726601ccbg:MortgageServicingRightsMember2023-01-012023-03-310000726601ccbg:MortgageServicingRightsMember2024-03-310000726601ccbg:MortgageServicingRightsMember2023-03-310000726601us-gaap:RetainedEarningsMember2023-03-310000726601us-gaap:CommonStockMember2023-03-310000726601us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000726601us-gaap:AdditionalPaidInCapitalMember2023-03-310000726601us-gaap:RetainedEarningsMember2024-03-310000726601us-gaap:CommonStockMember2024-03-310000726601us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000726601us-gaap:AdditionalPaidInCapitalMember2024-03-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2023-03-310000726601us-gaap:ConstructionLoansMember2023-03-310000726601us-gaap:MortgagesMember2023-03-310000726601us-gaap:ResidentialRealEstateMember2023-03-310000726601us-gaap:HomeEquityMember2023-03-310000726601us-gaap:ConsumerLoanMember2023-03-310000726601ccbg:ForwardSalesContractsMember2024-03-310000726601ccbg:ForwardSalesContractsMember2023-12-310000726601us-gaap:AssetPledgedAsCollateralMember2024-03-3100007266012023-01-012023-12-310000726601us-gaap:WarehouseAgreementBorrowingsMembersrt:MinimumMemberccbg:MasterRepurchaseAgreementMember2024-03-310000726601us-gaap:WarehouseAgreementBorrowingsMembersrt:MaximumMemberccbg:MasterRepurchaseAgreementMember2024-03-310000726601ccbg:LeasePaymentTransactionMember2024-01-012024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberccbg:ForwardSalesContractsMember2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberccbg:ForwardSalesContractsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberccbg:ForwardSalesContractsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberccbg:ForwardSalesContractsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberccbg:ForwardSalesContractsMember2024-03-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberccbg:ForwardSalesContractsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberccbg:ForwardSalesContractsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberccbg:ForwardSalesContractsMember2024-03-310000726601ccbg:FairValueSwapMember2024-03-310000726601ccbg:FairValueSwapMember2023-12-310000726601us-gaap:PassMemberccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2023-12-310000726601us-gaap:SpecialMentionMemberccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2023-12-310000726601us-gaap:SubstandardMemberccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2023-12-310000726601ccbg:LoansReceivableForCommercialAndFinancialAndAgriculturalMember2023-01-012023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:PassMember2023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2023-12-310000726601us-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:PassMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:SpecialMentionMember2023-12-310000726601us-gaap:MortgagesMemberus-gaap:SubstandardMember2023-12-310000726601us-gaap:MortgagesMember2023-01-012023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:PassMember2023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:SpecialMentionMember2023-12-310000726601us-gaap:ResidentialRealEstateMemberus-gaap:SubstandardMember2023-12-310000726601us-gaap:ResidentialRealEstateMember2023-01-012023-12-310000726601us-gaap:HomeEquityMemberus-gaap:PerformingFinancingReceivableMember2023-12-310000726601us-gaap:HomeEquityMemberus-gaap:NonperformingFinancingReceivableMember2023-12-310000726601us-gaap:HomeEquityMember2023-01-012023-12-310000726601us-gaap:ConsumerLoanMemberus-gaap:PerformingFinancingReceivableMember2023-12-310000726601us-gaap:ConsumerLoanMemberus-gaap:NonperformingFinancingReceivableMember2023-12-310000726601us-gaap:ConsumerLoanMember2023-01-012023-12-310000726601us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberccbg:DelinquentOrDefaultedMortgageLoansMember2024-03-310000726601us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberccbg:DelinquentOrDefaultedMortgageLoansMember2023-12-310000726601us-gaap:GovernmentNationalMortgageAssociationGnmaInsuredLoansMemberccbg:DelinquentOrDefaultedMortgageLoansMember2024-01-012024-03-310000726601srt:MaximumMemberccbg:BanktechVenturesMember2024-03-310000726601ccbg:BanktechVenturesMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberccbg:ResidentialMortgageLoanCommitmentsMember2024-03-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoanCommitmentsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberccbg:ResidentialMortgageLoanCommitmentsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoanCommitmentsMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberccbg:ResidentialMortgageLoanCommitmentsMember2023-12-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoanCommitmentsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberccbg:ResidentialMortgageLoanCommitmentsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberccbg:ResidentialMortgageLoanCommitmentsMember2023-12-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMember2024-03-310000726601us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMember2024-03-310000726601us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateSwapMember2024-03-31iso4217:USDxbrli:purexbrli:sharesiso4217:USDxbrli:sharesdummy:Contractsiso4217:USDdummy:LoanContractsccbg:ClaimsLitigationsdummy:Item

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,

D.C.

20549

FORM

10-Q

☒

QUARTERLY REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended

March 31, 2024

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number:

0-13358

Capital City Bank Group, Inc.

(Exact name of Registrant as specified in its charter)

Florida

59-2273542

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

217 North Monroe Street

Tallahassee

Florida

32301

(Address of principal executive office)

(Zip Code)

(

850

)

402-7821

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par value $0.01

CCBG

Nasdaq Stock Market

, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of

1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such

filing requirements for the past 90 days.

Yes

[X] No [

]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405

of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit

such files).

Yes [

] No [

]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company,

an emerging growth company.

See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth

company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any

new or revised financial accounting standards pursuant to Section 13(a) of The Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [

]

[X]

At June 28, 2024,

16,941,553

shares of the Registrant’s Common Stock, $.01 par value, were outstanding.

CAPITAL CITY BANK

GROUP,

INC.

QUARTERLY

REPORT ON FORM 10-Q

FOR THE THREE MONTHS ENDED MARCH 31, 2024

TABLE OF CONTENTS

PART I –

Financial Information

Page

Item 1.

Consolidated Financial Statements (Unaudited)

Consolidated Statements of Financial Condition – March 31, 2024 and December 31, 2023

Consolidated Statements of Income – Three Months Ended March 31, 2024 and 2023

Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2024 and 2023

Consolidated Statements of Changes in Shareowners’ Equity – Three Months Ended March 31, 2024 and 2023

Consolidated Statements of Cash Flows – Three Months Ended March 31, 2024 and 2023

Notes to Consolidated Financial Statements

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosure About Market Risk

Item 4.

Controls and Procedures

PART II –

Other Information

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Mine Safety Disclosure

Item 5.

Other Information

Item 6.

Exhibits

Signatures

INTRODUCTORY NOTE

Caution Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform

Act of 1995. These forward-looking statements include, among others, statements about our beliefs, plans, objectives, goals, expectations,

estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of

which are beyond our control.

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.

All forward-looking statements, by their nature, are subject to risks and uncertainties.

Our actual future results may differ materially from

those set forth in our forward-looking statements.

Our

ability

achieve

our

financial

objectives

could

adversely

affected

the

factors

discussed

detail

Part

II,

Item

1A.

“Risk

Factors” in

this Quarterly

Report on

Form 10-Q

and in

Part I,

Item 1A.

“Risk Factors”

in our

Annual Report

on Form

10-K/A for

the year

ended December 31,

2023 (the “2023

Form 10-K/A”), as

updated in our

subsequent quarterly reports

filed on Form

10-Q, as well

as, among

other factors:

●

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;

●

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;

●

our ability to retain key personnel;

●

the effects of natural disasters, harsh weather conditions (including hurricanes), widespread health emergencies (including pandemics, such

as the COVID-19 pandemic), military conflict, 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 consolidated statements of cash flows for the years ended December 31, 2021, 2022

and 2023 and for each of the three month periods ended March 31, 2022 and 2023, six month periods ended June 30, 2022 and 2023 and

nine month periods ended September 30, 2022 and 2023;

●

any deficiencies in the processes undertaken to effect such restatements and to identify and correct all errors in our historical financial

statements that may require restatement;

●

any inability to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to

remediate our existing material weaknesses in our internal controls deemed ineffective;

●

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 cost and effects of cybersecurity incidents or other failures, interruptions, or security breaches of our systems of those of our customers

or third-party providers;

●

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.

However, other factors besides those listed in

Item 1A Risk Factors

or discussed in this Form 10-Q also could adversely affect our results,

and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties.

Any forward-looking

statements made by us or on our behalf speak only as of the date they are made.

We do not undertake to update any forward-looking

statement, except as required by applicable law.

PART

FINANCIAL INFORMATION

Item 1.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENTS

OF FINANCIAL CONDITION

(Unaudited)

March 31,

December 31,

(Dollars in Thousands, Except Par Value)

2024

2023

ASSETS

Cash and Due From Banks

73,642

83,118

Federal Funds Sold and Interest Bearing Deposits

231,047

228,949

Total Cash and Cash Equivalents

304,689

312,067

Investment Securities, Available

for Sale, at fair value (amortized cost of $

358,416

and $

367,747

)

327,338

337,902

Investment Securities, Held to Maturity (fair value of $

569,682

and $

591,751

)

603,386

625,022

Equity Securities

3,445

3,450

Total Investment

Securities

934,169

966,374

Loans Held For Sale, at fair value

24,705

28,211

Loans Held for Investment

2,731,172

2,733,918

Allowance for Credit Losses

(29,329)

(29,941)

Loans Held for Investment, Net

2,701,843

2,703,977

Premises and Equipment, Net

81,452

81,266

Goodwill and Other Intangibles

92,893

92,933

Other Real Estate Owned

Other Assets

120,170

119,648

Total Assets

4,259,922

4,304,477

LIABILITIES

Deposits:

Noninterest Bearing Deposits

1,361,939

1,377,934

Interest Bearing Deposits

2,292,862

2,323,888

Total Deposits

3,654,801

3,701,822

Short-Term

Borrowings

31,886

35,341

Subordinated Notes Payable

52,887

Other Long-Term

Borrowings

265

315

Other Liabilities

65,181

66,080

Total Liabilities

3,805,020

3,856,445

Temporary Equity

6,588

7,407

SHAREOWNERS’ EQUITY

Preferred Stock, $

0.01

par value;

3,000,000

shares authorized;

shares issued and outstanding

Common Stock, $

0.01

par value;

90,000,000

shares authorized;

16,928,507

and

16,950,222

shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

169

170

Additional Paid-In Capital

34,861

36,326

Retained Earnings

435,364

426,275

Accumulated Other Comprehensive Loss, net of tax

(22,080)

(22,146)

Total Shareowners’

Equity

448,314

440,625

Total Liabilities, Temporary

Equity, and Shareowners’ Equity

4,259,922

4,304,477

The accompanying Notes to Consolidated Financial Statements are

an integral part of these statements.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENTS

OF INCOME

(Unaudited)

Three Months Ended March 31,

(Dollars in Thousands, Except Per Share

Data)

2024

2023

INTEREST INCOME

Loans, including Fees

40,683

34,891

Investment Securities:

Taxable Securities

4,238

4,912

Tax Exempt Securities

Federal Funds Sold and Interest Bearing Deposits

1,893

4,111

Total Interest Income

46,820

43,926

INTEREST EXPENSE

Deposits

7,594

2,488

Short-Term

Borrowings

240

461

Subordinated Notes Payable

628

571

Other Long-Term

Borrowings

Total Interest Expense

8,465

3,526

NET INTEREST INCOME

38,355

40,400

Provision for Credit Losses

920

3,099

Net Interest Income After Provision for Credit Losses

37,435

37,301

NONINTEREST INCOME

Deposit Fees

5,250

5,239

Bank Card Fees

3,620

3,726

Wealth Management

Fees

4,682

3,928

Mortgage Banking Revenues

2,878

2,871

Other

1,667

1,994

Total Noninterest

Income

18,097

17,758

NONINTEREST EXPENSE

Compensation

24,407

23,524

Occupancy, Net

6,994

6,762

Other

8,770

7,389

Total Noninterest

Expense

40,171

37,675

INCOME BEFORE INCOME TAXES

15,361

17,384

Income Tax Expense

3,536

3,710

NET INCOME

11,825

13,674

Loss Attributable to Noncontrolling Interests

732

NET INCOME ATTRIBUTABLE

TO COMMON SHAREOWNERS

12,557

13,709

BASIC NET INCOME PER SHARE

0.74

0.81

DILUTED NET INCOME PER SHARE

0.74

0.80

Average Basic Shares

Outstanding

16,951

17,016

Average Diluted

Shares Outstanding

16,969

17,045

The accompanying Notes to Consolidated Financial Statements are

an integral part of these statements.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended

March 31,

(Dollars in Thousands)

2024

2023

NET INCOME ATTRIBUTABLE

TO COMMON SHAREOWNERS

12,557

13,709

Other comprehensive income, before

tax:

Investment Securities:

Change in net unrealized loss on securities available for sale

(1,175)

6,808

Amortization of unrealized losses on securities transferred from available

for sale to held to maturity

891

865

Derivative:

Change in net unrealized gain on effective cash flow

derivative

437

(801)

Other comprehensive income, before

tax

153

6,872

Deferred tax expense related to other comprehensive income

1,719

Other comprehensive income, net of tax

5,153

TOTAL COMPREHENSIVE

INCOME

12,623

18,862

The accompanying Notes to Consolidated Financial Statements are

an integral part of these statements.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENTS

OF CHANGES IN SHAREOWNERS’ EQUITY

(Unaudited)

Accumulated

Other

Additional

Comprehensive

Common

Paid-In

Retained

(Loss) Income,

(Dollars In Thousands, Except Share Data)

Outstanding

Stock

Capital

Earnings

Net of Taxes

Total

Balance, January 1, 2024

16,950,222

170

36,326

426,275

(22,146)

440,625

Net Income Attributable to Common Shareowners

12,557

Reclassification to Temporary Equity

(1)

Other Comprehensive Income, net of tax

Cash Dividends ($

0.2100

per share)

(3,555)

Repurchase of Common Stock

(82,540)

(1)

(2,329)

(2,330)

Stock Based Compensation

392

Stock Compensation Plan Transactions, net

60,825

472

Balance, March 31, 2024

16,928,507

169

34,861

435,364

(22,080)

448,314

Balance, January 1, 2023

16,986,785

170

37,331

387,009

(37,229)

387,281

Net Income Attributable to Common Shareowners

13,709

Other Comprehensive Income, net of tax

5,153

Cash Dividends ($

0.1800

per share)

(3,064)

Repurchase of Common Stock

(25,241)

(819)

Stock Based Compensation

536

Stock Compensation Plan Transactions, net

60,204

464

Balance, March 31, 2023

17,021,748

170

37,512

397,654

(32,076)

403,260

(1)

Adjustments to redemption value for non-controlling

interest in Capital City Home Loans, LLC ("CCHL")

The accompanying Notes to Consolidated Financial Statements are

an integral part of these statements.

CAPITAL CITY BANK

GROUP,

INC.

CONSOLIDATED STATEMENTS

OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

(Dollars in Thousands)

2024

2023

CASH FLOWS FROM OPERATING

ACTIVITIES

Net Income Attributable to Common Shareowners

12,557

13,709

Adjustments to Reconcile Net Income to

Cash Provided by Operating Activities:

Provision for Credit Losses

920

3,099

Depreciation

2,051

1,969

Amortization of Premiums, Discounts and Fees, net

953

1,067

Amortization of Intangible Asset

Originations of Loans Held-for-Sale

(105,717)

(75,626)

Proceeds From Sales of Loans Held-for-Sale

106,941

73,706

Mortgage Banking Revenues

(2,878)

(2,871)

Net Additions for Capitalized Mortgage Servicing Rights

(88)

(91)

Stock Compensation

392

536

Net Tax Benefit from

Stock-Based Compensation

(5)

Deferred Income Taxes (Benefit)

(1,799)

(1,170)

Net Change in Operating Leases

166

(3)

Net Gain on Sales and Write-Downs of Other Real Estate Owned

(1,858)

Net Decrease (Increase) in Other Assets

2,598

(4,349)

Net (Decrease) Increase in Other Liabilities

(1,497)

12,471

Net Cash Provided By Operating Activities

14,647

20,629

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

Purchases

(1,277)

Proceeds from Payments, Maturities, and Calls

22,827

8,820

Securities Available for

Sale:

Purchases

(1,100)

(2,017)

Proceeds from Payments, Maturities, and Calls

10,012

16,559

Equity Securities:

Net Decrease in Equity Securities

Purchases of Loans Held for Investment

(302)

(923)

Proceeds from Sales of Loans

13,116

20,084

Net Increase in Loans Held for Investment

(6,830)

(127,336)

Proceeds From Sales of Other Real Estate Owned

2,699

Purchases of Premises and Equipment

(2,237)

(1,886)

Net Cash Provided by (Used In) Investing Activities

34,214

(84,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(47,021)

(115,397)

Net Decrease in Short-Term

Borrowings

(3,455)

(30,161)

Repayment of Other Long-Term

Borrowings

(50)

Dividends Paid

(3,555)

(3,064)

Payments to Repurchase Common Stock

(2,330)

(819)

Proceeds from Issuance of Common Stock Under Purchase Plans

172

164

Net Cash Used In by Financing Activities

(56,239)

(149,327)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(7,378)

(212,698)

Cash and Cash Equivalents at Beginning of Period

312,067

600,650

Cash and Cash Equivalents at End of Period

304,689

387,952

Supplemental Cash Flow Disclosures:

Interest Paid

7,875

3,723

Income Taxes Paid

7,466

Supplemental Noncash Items:

Loans Transferred to Other Real Estate Owned

423

Loans Transferred from Held for Investment

to Held for Sale, net

7,956

16,859

The accompanying Notes to Consolidated Financial Statements are

an integral part of these statements.

CAPITAL CITY BANK

GROUP,

INC.

NOTES TO CONSOLIDATED

FINANCIAL STATEMENTS

NOTE 1 –

BUSINESS AND BASIS OF PRESENTATION

Nature of Operations

Capital City Bank Group, Inc. (“CCBG” or the “Company”) provides a full range of

banking and banking-

related services to individual and corporate clients through its subsidiary,

Capital City Bank, with banking offices located in Florida,

Georgia, and Alabama.

The Company is subject to competition from other financial institutions, is subject to

regulation by certain

government agencies and undergoes periodic examinations

by those regulatory authorities.

Basis of Presentation

The consolidated financial statements in this Quarterly Report on Form

10-Q include the accounts of CCBG

and its wholly owned subsidiary,

Capital City Bank (“CCB” or the “Bank”).

All material inter-company transactions and accounts

have been eliminated.

Certain previously reported amounts have been reclassified to conform to the current year’s

presentation.

The accompanying unaudited consolidated financial statements have

been prepared in accordance with generally accepted accounting

principles for interim financial information and with the instructions to Form

10-Q and Article 10 of Regulation S-X.

Accordingly,

they do not include all of the information and notes required by generally accepted

accounting principles for complete financial

statements.

In the opinion of management, all adjustments (consisting of normal

recurring accruals) considered necessary for a fair

presentation have been included.

The Consolidated Statement of Financial Condition at December

31, 2023 has been derived from the audited consolidated financial

statements at that date, but does not include all of the information and notes

required by generally accepted accounting principles for

complete financial statements.

For further information, refer to the consolidated financial statements and notes

thereto included in the

Company’s 2023 Form

10-K/A.

Accounting Standards Updates

Adoption of New Accounting Standard,

On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2022-02,

“Financial Instruments – Credit Losses (Topic

326), Troubled Debt Restructurings and Vintage

Disclosures.” ASU 2022-02 eliminates

the accounting guidance for troubled debt restructurings in Accounting

Standards Codification (“ASC”) 310-40, “Receivables -

Troubled Debt Restructurings by Creditors

”

for entities that have adopted the current expected credit loss model introduced

by ASU

2016-13, “Financial Instruments – Credit Losses (Topic

326), Measurement of Credit Losses on Financial Instruments.”

ASU 2022-

02 also requires that public business entities disclose current-period

gross charge-offs by year of origination for financing receivables

and net investments in leases within the scope of Subtopic 326-20, “Financial

Instruments—Credit Losses—Measured at Amortized

Cost.”

Proposed Accounting Standards

ASU

2023-01, “Leases (Topic

842)

Common Control Arrangements.” ASU 2023-01 requires

entities to amortize leasehold improvements associated with common control

leases over the useful life to the common control group.

ASU 2023-01 also provides certain practical expedients applicable to private

companies and not-for-profit organizations. The

standard

is effective for the Company on January 1, 2024. As the Company

does not have any such common control leases, adoption of this

standard will not have any immediate impact on its consolidated financial statements and

related disclosures.

ASU No.

2023-02, “Investments—Equity Method and Joint Ventures

(Topic

323)

: Accounting for Investments in Tax

Credit

Structures Using the Proportional Amortization Method.” ASU 2023-02

is intended to improve the accounting and disclosures for

investments in tax credit structures. ASU 2023-02 allows entities to elect to account

for qualifying tax equity investments using the

proportional amortization method, regardless of the program giving

rise to the related income tax credits. Previously,

this method was

only available for qualifying tax equity investments in low-income

housing tax credit structures. The standard is effective for the

Company on January 1, 2024. As the Company does not have any such investments

in tax credit structures that are accounted for

using the proportional amortization method, adoption of this standard will not

have any immediate impact on its consolidated financial

statements or disclosures.

ASU No. 2023-06, “Disclosure Improvements

Codification Amendments in Response to the SEC’s

Disclosure Update and

Simplification Initiative.”

ASU 2023-06 is intended to clarify or improve disclosure and presentation

requirements of a variety of

topics, which will allow users to more easily compare entities subject to the SEC's existing

disclosures with those entities that were

not previously subject to the requirements and align the requirements in

the FASB accounting standard

codification with the SEC's

regulations. The Company is currently evaluating the provisions of

the amendments and the impact on its future consolidated

statements.

NOTE 2 –

INVESTMENT SECURITIES

Investment Portfolio Composition

. The following table summarizes the amortized cost and related fair value of investment

securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”)

and the corresponding amounts of gross

unrealized gains and losses.

Available for

Sale

Amortized

Unrealized

Allowance for

Fair

(Dollars in Thousands)

Cost

Gains

Losses

Credit Losses

Value

March 31, 2024

U.S. Government Treasury

24,977

1,226

23,751

U.S. Government Agency

147,113

8,142

139,048

States and Political Subdivisions

43,509

4,767

(39)

38,703

Mortgage-Backed Securities

(1)

71,465

10,918

60,548

Corporate Debt Securities

63,256

6,021

(43)

57,192

Other Securities

(2)

8,096

Total

358,416

31,074

(82)

327,338

December 31, 2023

U.S. Government Treasury

25,947

1,269

24,679

U.S. Government Agency

152,983

104

8,053

145,034

States and Political Subdivisions

43,951

4,861

(8)

39,083

Mortgage-Backed Securities

(1)

73,015

9,714

63,303

Corporate Debt Securities

63,600

6,031

(17)

57,552

Other Securities

(2)

8,251

Total

367,747

108

29,928

(25)

337,902

Held to Maturity

Amortized

Unrealized

Fair

(Dollars in Thousands)

Cost

Gains

Losses

Value

March 31, 2024

U.S. Government Treasury

442,762

16,288

426,474

Mortgage-Backed Securities

(1)

160,624

17,422

143,208

Total

603,386

33,710

569,682

December 31, 2023

U.S. Government Treasury

457,681

16,492

441,189

Mortgage-Backed Securities

(1)

167,341

16,792

150,562

Total

625,022

33,284

591,751

(1)

Comprised of residential mortgage-backed

securities

(2)

Includes Federal Home Loan Bank and Federal Reserve Bank stock, recorded

at cost of $

3.0

million and $

5.1

million,

respectively,

at March 31, 2024 and $

3.2

million and $

5.1

million, respectively,

at December 31, 2023.

At March 31, 2024 and December 31, 2023, the investment portfolio had $

3.4

million and $

3.5

million, respectively in equity

securities. These securities do not have a readily determinable fair value

and were not credit impaired.

Securities with an amortized cost of $

452.5

million and $

578.5

million at March 31, 2024 and December 31, 2023, respectively,

were

pledged to secure public deposits and for other purposes.

The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required

to own capital stock in the FHLB based

generally upon the balances of residential and commercial real estate loans and FHLB

advances.

FHLB stock, which is included in

other securities,

is pledged to secure FHLB advances.

No ready market exists for this stock, and it has no quoted fair value; however,

redemption of this stock has historically been at par value.

As a member of the Federal Reserve Bank of Atlanta, the Bank is required to maintain

stock in the Federal Reserve Bank of Atlanta

based on a specified ratio relative to the Bank’s

capital.

Federal Reserve Bank stock is carried at cost.

Investment Sales.

There were

sales of investment securities for the three months ended March 31, 2024 and March

31, 2023.

Maturity Distribution

At March 31, 2024, the Company’s

investment securities had the following maturity distribution based

contractual maturity.

Expected maturities may differ from contractual maturities because borrowers

may have the right to call or

prepay obligations.

Mortgage-backed securities (“MBS”) and certain amortizing U.S. government

agency securities are shown

separately because they are not due at a certain maturity date.

Available for

Sale

Held to Maturity

(Dollars in Thousands)

Amortized Cost

Fair Value

Amortized Cost

Fair Value

Due in one year or less

31,877

31,210

136,137

133,613

Due after one year through five years

138,581

127,809

306,625

292,861

Due after five year through ten years

34,427

29,217

Mortgage-Backed Securities

71,465

60,548

160,624

143,208

U.S. Government Agency

73,970

70,458

Other Securities

8,096

Total

358,416

327,338

603,386

569,682

Unrealized Losses on Investment Securities.

The following table summarizes the available for sale investment securities with

unrealized losses aggregated by major security type and length of time in a continuous

unrealized loss position:

Less Than

Greater Than

12 Months

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in Thousands)

Value

Losses

Value

Losses

Value

Losses

March 31, 2024

Available for

Sale

U.S. Government Treasury

3,980

19,771

1,225

23,751

1,226

U.S. Government Agency

13,416

117,053

8,064

130,469

8,142

States and Political Subdivisions

1,296

37,445

4,731

38,741

4,767

Mortgage-Backed Securities

60,446

10,917

60,517

10,918

Corporate Debt Securities

57,236

6,021

57,236

6,021

Total

18,763

116

291,951

30,958

310,714

31,074

Held to Maturity

U.S. Government Treasury

144,380

3,214

282,094

13,074

426,474

16,288

Mortgage-Backed Securities

1,785

140,058

17,411

141,843

17,422

Total

146,165

3,225

422,152

30,485

568,317

33,710

December 31, 2023

Available for

Sale

U.S. Government Treasury

19,751

1,269

19,751

1,269

U.S. Government Agency

12,890

121,220

7,979

134,110

8,053

States and Political Subdivisions

1,149

37,785

4,830

38,934

4,861

Mortgage-Backed Securities

63,195

9,714

63,218

9,714

Corporate Debt Securities

57,568

6,031

57,568

6,031

Total

14,062

105

299,519

29,823

313,581

29,928

Held to Maturity

U.S. Government Treasury

153,880

3,178

287,310

13,314

441,190

16,492

Mortgage-Backed Securities

786

148,282

16,778

149,068

16,792

Total

154,666

3,192

435,592

30,092

590,258

33,284

At March 31, 2024, there were

876

positions (combined AFS and HTM) with unrealized losses totaling $

64.8

million.

of these

positions are U.S. Treasury bonds and carry

the full faith and credit of the U.S. Government.

690

are U.S. government agency

securities issued by U.S. government sponsored entities.

We believe

the long history of no credit losses on government securities

indicates that the expectation of nonpayment of the amortized cost basis is effectively

zero.

The remaining

101

positions (municipal

securities and corporate bonds) have a credit component.

At March 31, 2024, all collateralized mortgage obligation securities,

mortgage-backed securities,

Small Business Administration securities,

U.S. Agency, and U.S. Treasury

bonds held were AAA rated.

At March 31, 2024, corporate debt securities had an allowance for credit losses of $

43,000

and municipal securities had an allowance

of $

39,000

Credit Quality Indicators

The Company monitors the credit quality of its investment securities through

various risk management procedures, including the

monitoring of credit ratings.

A majority of the debt securities in the Company’s

investment portfolio were issued by a U.S.

government entity or agency and are either explicitly or implicitly guaranteed

by the U.S. government.

The Company believes the

long history of no credit losses on these securities indicates that the expectation

of nonpayment of the amortized cost basis is

effectively zero, even if the U.S. government were

to technically default.

Further, certain municipal securities held by the Company

have been pre-refunded and secured by government guaranteed treasuries.

Therefore, for the aforementioned securities, the Company

does

t assess or record expected credit losses due to the zero loss assumption.

The Company monitors the credit quality of its

municipal and corporate securities portfolio via credit ratings

which are updated on a quarterly basis.

On a quarterly basis, municipal

and corporate securities in an unrealized loss position are evaluated to determine

if the loss is attributable to credit related factors and

if an allowance for credit loss is needed.

NOTE 3 – LOANS HELD FOR INVESTMENT AND ALLOWANCE

FOR CREDIT LOSSES

Loan Portfolio Composition

The composition of the held for investment (“HFI”) loan portfolio was as follows:

(Dollars in Thousands)

March 31, 2024

December 31, 2023

Commercial, Financial and Agricultural

218,298

225,190

Real Estate – Construction

202,692

196,091

Real Estate – Commercial Mortgage

823,690

825,456

Real Estate – Residential

(1)

1,016,580

1,004,219

Real Estate – Home Equity

214,617

210,920

Consumer

(2)

255,295

272,042

Loans Held For Investment, Net of Unearned Income

2,731,172

2,733,918

(1)

Includes loans in process balances of $

4.4

million and $

3.2

million at March 31, 2024 and December 31,

2023, respectively.

(2)

Includes overdraft balances of $

1.1

million and $

1.0

million at March 31, 2024 and December 31,

2023, respectively.

Net deferred loan costs, which include premiums on purchased loans,

included in loans were $

7.6

million at March 31, 2024 and $

7.8

million at December 31, 2023.

Accrued interest receivable on loans which is excluded from amortized

cost totaled $

10.2

million at March 31, 2024 and $

10.1

million

at December 31, 2023, and is reported separately in Other Assets.

The Company has pledged a blanket floating lien on all 1-4 family residential mortgage

loans, commercial real estate mortgage loans,

and home equity loans to support available borrowing capacity at the FHLB of

Atlanta and has pledged a blanket floating lien on all

consumer loans, commercial loans, and construction loans to support available

borrowing capacity at the Federal Reserve Bank of

Atlanta.

Loan Purchase and Sales

The Company will periodically purchase newly originated 1-4 family real

estate secured adjustable-rate

loans from CCHL, a related party.

Residential loan purchases from CCHL totaled $

35.6

million and $

120.1

million for the three

months ended March 31, 2024 and March 31, 2023, respectively,

and were not credit impaired.

Allowance for Credit Losses

The methodology for estimating the amount of credit losses reported in the

allowance for credit losses

(“ACL”) has two basic components: first, an asset-specific component

involving loans that do not share risk characteristics and the

measurement of expected credit losses for such individual loans; and second,

a pooled component for expected credit losses for pools

of loans that share similar risk characteristics.

This allowance methodology is discussed further in Note 1 – Significant

Accounting

Policies in the Company’s 2023 Form

10-K/A.

The following table details the activity in the allowance for credit losses by portfolio

segment.

Allocation of a portion of the

allowance to one category of loans does not preclude its availability to absorb

losses in other categories.

Commercial,

Real Estate

Financial,

Real Estate

Commercial

Real Estate

(Dollars in Thousands)

Agricultural

Construction

Mortgage

Residential

Home Equity

Consumer

Total

Three Months Ended

March 31, 2024

Beginning Balance

1,482

2,502

5,782

15,056

1,818

3,301

29,941

Provision for Credit Losses

284

(633)

(39)

(248)

130

1,388

882

Charge-Offs

(282)

(17)

(76)

(2,188)

(2,563)

Recoveries

204

763

1,069

Net (Charge-Offs) Recoveries

(241)

204

(52)

(1,425)

(1,494)

Ending Balance

1,525

1,869

5,947

14,828

1,896

3,264

29,329

Three Months Ended

March 31, 2023

Beginning Balance

1,506

2,654

4,815

10,741

1,864

3,488

25,068

Provision for Credit Losses

704

1,152

(10)

1,329

3,260

Charge-Offs

(164)

(120)

(2,366)

(2,650)

Recoveries

944

1,130

Net (Charge-Offs) Recoveries

(69)

(112)

(1,422)

(1,520)

Ending Balance

1,515

3,359

4,710

11,950

1,879

3,395

26,808

For the three months ended March 31, 2024, the allowance for HFI loans

decreased by $

0.6

million and reflected a provision expense

of $

0.9

million and net loan charge-offs of $

1.5

million.

The decrease was primarily due to favorable loan grade migration, lower loss

rates, and a combination of lower loan balances and shift in mix within the

portfolio.

For the three months ended March 31, 2023, the

allowance for HFI loans increased by $

1.7

million and reflected a provision expense of $

3.3

million and net loan charge-offs of $

1.5

million.

The increase was primarily driven by incremental reserves needed for loan growth.

Unemployment forecast scenarios were

utilized to estimate probability of default and are weighted based on management’s

estimate of probability.

See Note 8 –

Commitments and Contingencies for information on the

allowance for off-balance sheet credit commitments.

Loan Portfolio Aging.

A loan is defined as a past due loan when one full payment is past due or a contractual maturity

is over 30 days

past due (“DPD”).

The following table presents the aging of the amortized cost basis in accruing

past due loans by class of loans.

30-59

60-89

90 +

Total

Nonaccrual

Total

(Dollars in Thousands)

DPD

Past Due

Current

Loans

March 31, 2024

Commercial, Financial and Agricultural

567

635

217,357

306

218,298

Real Estate – Construction

202,370

322

202,692

Real Estate – Commercial Mortgage

879

821,379

1,432

823,690

Real Estate – Residential

1,040

1,042

1,012,210

3,328

1,016,580

Real Estate – Home Equity

101

213,766

750

214,617

Consumer

2,412

323

2,735

251,900

660

255,295

Total

4,999

393

5,392

2,718,982

6,798

2,731,172

December 31, 2023

Commercial, Financial and Agricultural

311

105

416

224,463

311

225,190

Real Estate – Construction

206

195,563

322

196,091

Real Estate – Commercial Mortgage

794

823,753

909

825,456

Real Estate – Residential

670

704

1,000,525

2,990

1,004,219

Real Estate – Home Equity

268

209,653

999

210,920

Consumer

3,693

774

4,467

266,864

711

272,042

Total

5,942

913

6,855

2,720,821

6,242

2,733,918

Nonaccrual Loans

Loans are generally placed on nonaccrual status if principal or interest payments

become 90 days past due and/or

management deems the collectability of the principal and/or interest to

be doubtful.

Loans are returned to accrual status when the

principal and interest amounts contractually due are brought current

or when future payments are reasonably assured.

The following table presents the amortized cost basis of loans in nonaccrual

status and loans past due over 90 days and still on accrual

by class of loans.

March 31, 2024

December 31, 2023

Nonaccrual

With No

With

90 + Days

With No

With

90 + Days

(Dollars in Thousands)

ACL

Still Accruing

ACL

Still Accruing

Commercial, Financial and Agricultural

306

311

Real Estate – Construction

322

Real Estate – Commercial Mortgage

1,295

137

781

128

Real Estate – Residential

2,102

1,226

1,705

1,285

Real Estate – Home Equity

323

427

999

Consumer

660

711

Total Nonaccrual

Loans

3,720

3,078

2,486

3,756

Collateral Dependent Loans.

The following table presents the amortized cost basis of collateral-dependent

loans.

March 31, 2024

December 31, 2023

Real Estate

Non Real Estate

Real Estate

Non Real Estate

(Dollars in Thousands)

Secured

Commercial, Financial and Agricultural

Real Estate – Construction

275

Real Estate – Commercial Mortgage

1,295

1,296

Real Estate – Residential

2,102

1,706

Real Estate – Home Equity

323

Consumer

Total Collateral Dependent

Loans

3,995

3,277

A loan is collateral dependent when the borrower is experiencing financial

difficulty and repayment of the loan is dependent on

the

sale or operation of the underlying collateral.

The Bank’s collateral dependent

loan portfolio is comprised primarily of real estate secured loans, collateralized

by either residential

or commercial collateral types.

The loans are carried at fair value based on current values determined by

either independent appraisals

or internal evaluations, adjusted for selling costs or other amounts to be deducted

when estimating expected net sales proceeds.

Residential Real Estate Loans In Process of Foreclosure

At March 31, 2024 and December 31, 2023, the Company had $

0.8

million

and $

0.5

million, respectively, in 1-4 family

residential real estate loans for which formal foreclosure proceedings were in process.

Modifications to Borrowers Experiencing

Financial Difficulty.

Occasionally, the Company may

modify loans to borrowers who are

experiencing financial difficulty.

Loan modifications to borrowers in financial difficulty are loans in

which the Company has granted

an economic concession to the borrower that it would not otherwise consider.

In these instances, as part of a work-out alternative, the

Company will make concessions including the extension of the loan

term, a principal moratorium, a reduction in the interest rate, or a

combination thereof.

The impact of the modifications and defaults are factored into the allowance for credit

losses on a loan-by-loan

basis.

Thus specific reserves are established based upon the results of either

a discounted cash flow analysis or the underlying

collateral value, if the loan is deemed to be collateral dependent.

A modified loan classification can be removed if the borrower’s

financial condition improves such that the borrower is no longer in financial difficulty,

the loan has not had any forgiveness of

principal or interest, and the loan is subsequently refinanced or restructured

at market terms and qualifies as a new loan.

At March 31, 2024, and December 31, 2023, the Company did

t have any modified loans made to borrowers due to the borrower

experiencing financial difficulty.

Credit Risk Management

The Company has adopted comprehensive lending policies, underwriting standards and

loan review

procedures designed to maximize loan income within an acceptable level

of risk.

Management and the Board of Directors review and

approve these policies and procedures on a regular basis (at least annually).

Reporting systems are used to monitor loan originations, loan quality,

concentrations of credit, loan delinquencies and nonperforming

loans and potential problem loans.

Management and the Credit Risk Oversight Committee periodically review

our lines of business to

monitor asset quality trends and the appropriateness of credit policies.

In addition, total borrower exposure limits are established and

concentration risk is monitored.

As part of this process, the overall composition of the portfolio is reviewed to gauge diversification

of risk, client concentrations, industry group, loan type, geographic area, or other

relevant classifications of loans.

Specific segments

of the loan portfolio are monitored and reported to the Board on a quarterly basis and

have strategic plans in place to supplement

Board approved credit policies governing exposure limits and underwriting

standards.

Detailed below are the types of loans within

the Company’s loan portfolio

and risk characteristics unique to each.

Commercial, Financial, and Agricultural – Loans in this category

are primarily made based on identified cash flows of the borrower

with consideration given to underlying collateral and personal or

other guarantees.

Lending policy establishes debt service coverage

ratio limits that require a borrower’s cash flow to be sufficient

to cover principal and interest payments on all new and existing debt.

The majority of these loans are secured by the assets being financed or other business assets such

as accounts receivable, inventory,

equipment.

Collateral values are determined based upon third party appraisals and evaluations.

Loan to value ratios at origination are

governed by established policy guidelines.

Real Estate Construction – Loans in this category consist of short-term

construction loans, revolving and non-revolving credit lines

and construction/permanent loans made to individuals and investors to finance

the acquisition, development, construction or

rehabilitation of real property.

These loans are primarily made based on identified cash flows of the borrower

or project and generally

secured by the property being financed, including 1-4 family residential properties

and commercial properties that are either owner-

occupied or investment in nature.

These properties may include either vacant or improved property.

Construction loans are generally

based upon estimates of costs and value associated with the completed project.

Collateral values are determined based upon third

party appraisals and evaluations.

Loan to value ratios at origination are governed by established policy guidelines.

The disbursement

of funds for construction loans is made in relation to the progress of the project and

as such these loans are closely monitored by on-

site inspections.

Real Estate Commercial Mortgage – Loans in this category consists of commercial

mortgage loans secured by property that is either

owner-occupied or investment in nature.

These loans are primarily made based on identified cash flows of the borrower or

project

with consideration given to underlying real estate collateral and

personal guarantees.

Lending policy establishes debt service

coverage ratios and loan to value ratios specific to the property type.

Collateral values are determined based upon third party

appraisals and evaluations.

Real Estate Residential – Residential mortgage loans held in the Company’s

loan portfolio are made to borrowers that demonstrate the

ability to make scheduled payments with full consideration to underwriting

factors such as current income, employment status, current

assets, and other financial resources, credit history,

and the value of the collateral.

Collateral consists of mortgage liens on 1-4 family

residential properties.

Collateral values are determined based upon third party appraisals and evaluations.

The Company does not

originate sub-prime loans.

Real Estate Home Equity – Home equity loans and lines are made to qualified individuals

for legitimate purposes generally secured

by senior or junior mortgage liens on owner-occupied

1-4 family homes or vacation homes.

Borrower qualifications include

favorable credit history combined with supportive income and debt ratio

requirements and combined loan to value ratios within

established policy guidelines.

Collateral values are determined based upon third party appraisals and evaluations.

Consumer Loans – This loan portfolio includes personal installment loans, direct

and indirect automobile financing, and overdraft

lines of credit.

The majority of the consumer loan category consists of direct and indirect automobile

loans.

Lending policy

establishes maximum debt to income ratios, minimum credit scores, and includes

guidelines for verification of applicants’ income and

receipt of credit reports.

Credit Quality Indicators

As part of the ongoing monitoring of the Company’s

loan portfolio quality, management

categorizes loans

into risk categories based on relevant information about the ability of borrowers to

service their debt such as: current financial

information, historical payment performance, credit documentation,

and current economic and market trends, among other

factors.

Risk ratings are assigned to each loan and revised as needed through established monitoring

procedures for individual loan

relationships over a predetermined amount and review of smaller balance homogenous

loan pools.

The Company uses the definitions

noted below for categorizing and managing its criticized loans.

Loans categorized as “Pass” do not meet the criteria set forth below

and are not considered criticized.

Special Mention – Loans in this category are presently protected from loss, but

weaknesses are apparent which, if not corrected, could

cause future problems.

Loans in this category may not meet required underwriting criteria and

have no mitigating factors.

More than

the ordinary amount of attention is warranted for these loans.

Substandard – Loans in this category exhibit well-defined weaknesses that would

typically bring normal repayment into jeopardy.

These loans are no longer adequately protected due to well-defined

weaknesses that affect the repayment capacity of the

borrower.

The possibility of loss is much more evident and above average supervision is required for

these loans.

Doubtful – Loans in this category have all the weaknesses inherent in a loan categorized

as Substandard, with the characteristic that

the weaknesses make collection or liquidation in full, on the basis of currently

existing facts, conditions, and values, highly

questionable and improbable.

Performing/Nonperforming – Loans within certain homogenous

loan pools (home equity and consumer) are not individually reviewed,

but are monitored for credit quality via the aging status of the loan and by payment

activity.

The performing or nonperforming status

is updated on an on-going basis dependent upon improvement and

deterioration in credit quality.

The following tables summarize gross loans held for investment at March

31, 2024 and December 31, 2023 and current period gross

write-offs for the three months ended March 31, 2024

and twelve months ended December 31, 2023 by years of origination and

internally assigned credit risk ratings (refer to Credit Risk Management section

for detail on risk rating system).

(Dollars in Thousands)

Term

Loans by Origination Year

Revolving

As of March 31, 2024

2024

2023

2022

2021

2020

Prior

Loans

Total

Commercial, Financial,

Agriculture:

Pass

8,690

54,213

60,831

25,989

9,022

13,831

43,073

215,649

Special Mention

224

153

542

305

698

1,936

Substandard

158

142

161

713

Total

8,914

54,524

61,462

26,367

9,121

13,978

43,932

218,298

Current-Period Gross

Writeoffs

167

282

Real Estate -

Construction:

Pass

9,733

121,495

52,078

12,036

187

4,833

200,362

Special Mention

668

520

290

210

1,688

Substandard

568

642

Total

9,733

122,163

52,672

12,894

210

187

4,833

202,692

Real Estate -

Commercial Mortgage:

Pass

17,060

114,391

271,591

132,081

98,214

146,120

17,344

796,801

Special Mention

5,573

5,633

795

1,995

13,996

Substandard

1,204

6,599

2,271

2,120

699

12,893

Total

17,060

119,964

278,428

138,680

101,280

150,235

18,043

823,690

Real Estate - Residential:

Pass

38,629

358,059

390,522

80,624

35,045

95,003

8,509

1,006,391

Special Mention

267

494

163

1,094

Substandard

1,512

2,526

1,028

4,029

9,095

Total

38,629

358,326

392,122

83,232

36,567

99,195

8,509

1,016,580

Current-Period Gross

Writeoffs

Real Estate - Home

Equity:

Performing

507

130

2,388

210,775

213,868

Nonperforming

749

Total

507

130

2,388

211,524

214,617

Current-Period Gross

Writeoffs

Consumer:

Performing

11,402

63,285

80,641

63,277

18,244

10,864

6,304

254,017

Nonperforming

151

291

639

1,278

Total

11,402

63,436

80,932

63,361

18,313

10,908

6,943

255,295

Current-Period Gross

Writeoffs

638

418

697

231

2,188

(Dollars in Thousands)

Term

Loans by Origination Year

Revolving

As of December 31, 2023

2023

2022

2021

2020

2019

Prior

Loans

Total

Commercial, Financial,

Agriculture:

Pass

57,320

66,671

28,933

10,610

7,758

7,502

44,350

223,144

Special Mention

168

608

356

1,227

Substandard

164

177

122

161

819

Total

57,652

67,456

29,387

10,697

7,787

7,624

44,587

225,190

Current-Period Gross

Writeoffs

252

511

Real Estate - Construction:

Pass

101,684

68,265

18,181

188

4,617

192,935

Special Mention

631

500

539

212

1,882

Substandard

576

651

1,274

Total

102,315

68,812

19,296

863

188

4,617

196,091

Real Estate - Commercial

Mortgage:

Pass

117,840

275,079

135,663

101,210

43,878

109,878

18,367

801,915

Special Mention

3,266

5,684

229

1,358

573

11,110

Substandard

1,226

6,695

1,637

605

1,574

694

12,431

Total

121,106

281,989

142,358

103,076

45,841

112,025

19,061

825,456

Current-Period Gross

Writeoffs

120

Real Estate - Residential:

Pass

372,394

400,437

83,108

35,879

24,848

68,685

8,252

993,603

Special Mention

268

502

313

1,255

Substandard

570

1,110

1,906

1,626

1,007

3,142

9,361

Total

373,232

401,636

85,097

38,007

25,855

72,140

8,252

1,004,219

Current-Period Gross

Writeoffs

Real Estate - Home

Equity:

Performing

890

127

386

950

207,509

209,921

Nonperforming

999

Total

890

127

386

950

208,508

210,920

Current-Period Gross

Writeoffs

Consumer:

Performing

68,496

90,031

70,882

21,314

10,210

4,258

5,431

270,622

Nonperforming

293

355

710

1,420

Total

68,789

90,386

70,940

21,318

10,210

4,258

6,141

272,042

Current-Period Gross

Writeoffs

3,137

3,224

1,362

329

230

162

8,543

NOTE 4 – MORTGAGE BANKING ACTIVITIES

The Company’s mortgage

banking activities include mandatory delivery loan sales, forward sales contracts used

to manage residential

loan pipeline price risk, utilization of warehouse lines to fund secondary

market residential loan closings, and residential mortgage

servicing.

Residential Mortgage Loan Production

The Company originates, markets, and services conventional and government

-sponsored residential mortgage loans.

Generally,

conforming fixed rate residential mortgage loans are held for sale in the secondary

market and non-conforming and adjustable-rate

residential mortgage loans may be held for investment.

The volume of residential mortgage loans originated for sale and secondary

market prices are the primary drivers of origination revenue.

Residential mortgage loan commitments are generally outstanding for 30

to 90 days, which represents the typical period from

commitment to originate a residential mortgage loan to when the closed

loan is sold to an investor.

Residential mortgage loan

commitments are subject to both credit and price risk.

Credit risk is managed through underwriting policies and procedures,

including

collateral requirements, which are generally accepted by the secondary

loan markets.

Price risk is primarily related to interest rate

fluctuations and is partially managed through forward sales of residential mortgage

-backed securities (primarily to-be announced

securities, or TBAs) or mandatory delivery commitments with investors.

The unpaid principal balance of residential mortgage loans held for sale, notional

amounts of derivative contracts related to residential

mortgage loan commitments and forward contract sales and their related fair values

are set- forth below.

March 31, 2024

December 31, 2023

Unpaid Principal

(Dollars in Thousands)

Balance/Notional

Fair Value

Balance/Notional

Fair Value

Residential Mortgage Loans Held for Sale

23,848

24,705

27,944

28,211

Residential Mortgage Loan Commitments ("IRLCs")

(1)

41,675

727

23,545

523

Forward Sales Contracts

(2)

39,500

24,500

209

25,510

28,943

(1)

Recorded in other assets at fair value

(2)

Recorded in other liabilities at fair value

At March 31, 2024, the Company had $

0.1

million of residential mortgage loans held for sale 30-89 days past due and

0.7

million of

loans were on nonaccrual status. At December 31, 2023, the Company had

residential mortgage loans held for sale 30-89 days past

due and $

0.7

million of loans were on nonaccrual status.

Mortgage banking revenue was as follows:

Three Months Ended March 31,

(Dollars in Thousands)

2024

2023

Net realized gains on sales of mortgage loans

1,676

1,194

Net change in unrealized gain on mortgage loans held for sale

457

Net change in the fair value of mortgage loan commitments

204

527

Net change in the fair value of forward sales contracts

132

(402)

Pair-Offs on net settlement of forward sales contracts

(1)

Mortgage servicing rights additions

150

191

Net origination fees

565

905

Total mortgage banking

revenues

2,878

2,871

Residential Mortgage Servicing

The Company may retain the right to service residential mortgage loans

sold.

The unpaid principal balance of loans serviced for

others is the primary driver of servicing revenue.

The following represents a summary of mortgage servicing rights.

(Dollars in Thousands)

March 31, 2024

December 31, 2023

Number of residential mortgage loans serviced for others

463

450

Outstanding principal balance of residential mortgage loans serviced

for others

120,713

108,897

Weighted average

interest rate

5.48%

5.37%

Remaining contractual term (in months)

349

309

Conforming conventional loans serviced by the Company are sold to Federal

National Mortgage Association (“FNMA”) on a non-

recourse basis, whereby foreclosure losses are generally

the responsibility of FNMA and not the Company.

The government loans

serviced by the Company are secured through the Government National

Mortgage Association (“GNMA”), whereby the Company is

insured against loss by the Federal Housing Administration or partially

guaranteed against loss by the Veterans

Administration.

March 31, 2024, the servicing portfolio balance consisted of the following

loan types: FNMA (

%), GNMA (

%), and private

investor (

%).

FNMA and private investor loans are structured as actual/actual payment remittance.

The Company had

delinquent residential mortgage loans in GNMA pools serviced by the Company

at March 31, 2024 and

December 31, 2023, respectively.

The right to repurchase these loans and the corresponding liability has been

recorded in other assets

and other liabilities, respectively,

in the Consolidated Statement of Financial Condition.

The Company had

repurchases for the

three months ended March 31, 2024, and $

0.3

million repurchased for the three months ended March 31, 2023, in delinquent

residential loans from the GNMA pools. When delinquent residential loans

are repurchased, the Company has the intention to modify

their terms and include the loans in new GNMA pools.

Activity in the capitalized mortgage servicing rights was as follows:

Three Months Ended

March 31,

(Dollars in Thousands)

2024

2023

Beginning balance

831

2,599

Additions due to loans sold with servicing retained

150

191

Deletions and amortization

(62)

(99)

Sale of servicing rights

101

Ending balance

919

2,792

The Company did

t record any permanent impairment losses on mortgage servicing rights for the

three months ended March 31,

2024 or 2023.

The key unobservable inputs used in determining the fair value of the Company’s

mortgage servicing rights were as follows:

March 31, 2024

December 31, 2023

Minimum

Maximum

Minimum

Maximum

Discount rates

9.50%

12.00%

9.50%

12.00%

Annual prepayment speeds

11.27%

19.66%

11.23%

17.79%

Cost of servicing (per loan)

Changes in residential mortgage interest rates directly affect

the prepayment speeds used in valuing the Company’s

mortgage

servicing rights.

A separate third party model is used to estimate prepayment speeds based on interest rates, housing

turnover rates,

estimated loan curtailment, anticipated defaults, and other relevant factors.

The weighted average annual prepayment speed was

14.82

% at March 31, 2024 and

14.22

% at December 31, 2023.

Warehouse

Line Borrowings

The Company has the following warehouse lines of credit and master repurchase

agreements with various financial institutions at

March 31, 2024.

Amounts

(Dollars in Thousands)

Outstanding

million master repurchase agreement without defined expiration.

Interest is at the SOFR rate plus

2.00%

3.00%

, with a floor rate of

3.25%

4.25%

A cash pledge deposit of $

0.1

million is required by the lender.

8,409

million warehouse line of credit agreement expiring in

December 2024

Interest is at the SOFR plus

2.75%

3.25%

Total Warehouse

Borrowings

8,409

Warehouse

line borrowings are classified as short-term borrowings.

At March 31, 2024, warehouse line borrowings totaled $

8.4

million. At March 31, 2024, the Company had residential mortgage

loans held for sale pledged as collateral under the above

warehouse lines of credit and master repurchase agreements.

The above agreements also contain covenants which include certain

financial requirements, including maintenance of minimum tangible

net worth, minimum liquid assets, and maximum debt to net

worth ratio, as defined in the agreements.

The Company was in compliance with all significant debt covenants at March 31,

2024.

The Company has extended a $

million warehouse line of credit to CCHL, a

% owned subsidiary entity.

Balances and

transactions under this line of credit are eliminated in the Company’s

consolidated financial statements and thus not included in the

total short term borrowings noted on the Consolidated Statement of

Financial Condition.

The balance of this line of credit was $

31.4

million at March 31, 2024 and December 31, 2023, respectively.

NOTE 5 – DERIVATIVES

The Company enters into derivative financial instruments to manage exposures

that arise from business activities that result in the

receipt or payment of future known and uncertain cash amounts, the value of

which are determined by interest rates.

The Company’s

derivative financial instruments are used to manage differences in

the amount, timing, and duration of the Company’s

known or

expected cash receipts and its known or expected cash payments principally

related to the Company’s subordinated

debt.

Cash Flow Hedges of Interest Rate Risk

Interest rate swaps with notional amounts totaling $

million at March 31, 2024 were designed as a cash flow hedge for subordinated

debt.

Under the swap arrangement, the Company will pay a fixed interest rate of

2.50

% and receive a variable interest rate based on

three-month CME Term

SOFR (secured overnight financing rate).

For derivatives designated and that qualify as cash flow hedges of interest rate

risk, the gain or loss on the derivative is recorded in

accumulated other comprehensive income (“AOCI”) and subsequently

reclassified into interest expense in the same period(s) during

which the hedged transaction affects earnings. Amounts reported

in accumulated other comprehensive income related to derivatives

will be reclassified to interest expense as interest payments are made on the

Company’s variable-rate subordinated

debt.

The following table reflects the cash flow hedges included in the consolidated

statements of financial condition

Statement of Financial

Notional

Fair

Weighted Average

(Dollars in Thousands)

Condition Location

Amount

Value

Maturity (Years)

March 31, 2024

Interest rate swaps related to subordinated debt

Other Assets

30,000

5,755

6.3

December 31, 2023

Interest rate swaps related to subordinated debt

Other Assets

30,000

5,317

6.5

The following table presents the net gains (losses) recorded in AOCI and the

consolidated statements of income related to the cash

flow derivative instruments (interest rate swaps related to subordinated

debt) for the three months ended March 31, 2024.

Amount of (Loss)

Amount of Gain

Gain Recognized

(Loss) Reclassified

(Dollars in Thousands)

Capital City Bank Group - 10-Q quarterly report FY2024 Q1

What is the market capitalization of a company?

DISCLAIMER

Contact

Links