10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

___________________________________

FORM

10-K/A

(Amendment No. 1)

☒

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended

December 31, 2023

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Capital City Bank Group, Inc.

(Exact name of Registrant as specified in its charter)

Florida

0-13358

59-2273542

(State of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

217 North Monroe Street

,

Tallahassee

,

Florida

32301

(Address of principal executive offices)

(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, $0.01 par value

CCBG

 The

Nasdaq Stock Market

 LLC

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes

☐

 No 

☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes

☐

 No

☒

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

☐

 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, or an emerging

growth company. See definition 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 provided pursuant to Section 13(a) of the Exchange Act. 

☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over

financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit

report. 

☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect

the correction of an error to previously issued financial statements

.

☒

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of

the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

☒

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

☐

No

☒

The aggregate market value of the registrant’s common stock, $0.01 par value per share, held by non-affiliates of the registrant on June 30, 2023, the last business day

of the registrant’s most recently completed second fiscal quarter, was approximately $

400,209,385

 (based on the closing sales price of the registrant’s common stock

on that date). Shares of the registrant’s common stock held by each officer and director and each person known to the registrant to own 10% or more of the

outstanding voting power of the registrant have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not a

determination for other purposes.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

Outstanding at June 28, 2024

Common Stock, $0.01 par value per share

16,941,553

DOCUMENTS INCORPORATED BY REFERENCE

Portions of our Proxy Statement for the Annual Meeting of Shareowners held on April 23, 2024, are incorporated by reference in Part III.

2

CAPITAL CITY BANK GROUP, INC.

ANNUAL REPORT FOR 2023 ON FORM 10-K/A

TABLE OF CONTENTS

PART I

PAGE

Item 1.

6

Item 1A.

22

Item 1B.

36

Item 1C.

36

Item 2.

36

Item 3.

36

Item 4.

 36

PART II

Item 5.

38

Item 6.

41

Item 7.

43

Item 7A.

68

Item 8.

69

Item 9.

141

Item 9A.

141

Item 9B.

145

PART III

Item 10.

146

Item 11.

146

Item 12.

146

Item 13.

146

Item 14.

146

PART IV

Item 15.

147

Item 16.

148

149

3

EXPLANATORY NOTE

Capital City Bank Group, Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-K/A (the “Amendment” or “Form

10-K/A”) to amend and restate certain items in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023,

originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 13, 2024 (the “Original Form 10-K”).

Except as described below, no other information included in the Original Form 10-K is being amended or updated by this

Amendment and this Amendment does not purport to reflect any information or events subsequent to the filing of the Original

Form 10-K.

Restatement Background

As previously disclosed in the Company’s Current Report on Form 8-K filed with the SEC on May 13, 2024, in preparation of its

financial statements for the first quarter of 2024, the Company identified changes needed in preparing its consolidated financial

statements, specifically its Consolidated Statement of Cash Flows related to certain construction/permanent loan sales. As a

result, as further discussed below, the Company’s Consolidated Statements of Cash Flows for the following periods (collectively,

the “Impacted Statements of Cash Flows”) should no longer be relied upon: (1) years ended December 31, 2023, 2022, and 2021,

(2) the three-month periods ended March 31, 2023 and 2022, (3) the six-month periods ended June 30, 2023 and 2022, and (4) the

nine-month periods ended September 30, 2023 and 2022.

Company management, after consultation and discussion with the Audit Committee of the Board of Directors of the Company

and the Company’s independent registered public accounting firm, Forvis Mazars, LLP, determined that the Impacted Statements

of Cash Flows should no longer be relied upon. The Company has not filed and does not intend to file amendments to the

Company’s previously filed Quarterly Reports on Form 10-Q containing any of the Impacted Statements of Cash Flow or the

Company’s Annual Reports on Form 10-K for the years ended December 31, 2022 and 2021. This Form 10-K/A contains

restatements of the Impacted Statements of Cash Flows. Accordingly, investors and others should rely on the financial

information and other disclosures regarding the affected period as disclosed in this Form 10-K/A and in the Company’s future

filings with the SEC (as applicable). For additional information, see “Part II – Item 8. Financial Statements and Supplementary –

Note 1 – Restatement of Previously Issued Consolidated Financial Statements” in this Form 10-K/A.

This Form 10-K/A also amends and restates the following items included in the Original Form 10-K as appropriate to reflect the

restatement and revision of the relevant items: Cover Page; Item 8. Financial Statements and Supplementary Data; Item 9A.

Controls and Procedures: Part III, Items 10 through 14; and Item 15. Exhibits and Financial Statement Schedules. In accordance

with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is also including

with this Form 10-K/A currently dated certifications of the Company’s Chief Executive Officer and Chief Financial Officer

(attached as Exhibits 31.1, 31.2, 32.1, and 32.2). This Form 10-K/A also contains a modified report from Forvis Mazars on the

consolidated financial statements for years ended December 31, 2023, 2022 and 2021, a modified Forvis Mazars opinion on the

effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, 2022 and 2021, and a new

consent of Forvis Mazars (attached as Exhibit 23.1).

The Company is also filing this Amendment to check the box on the cover page of this Amendment following “Indicate by check

mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation

received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).” The

Company has conducted such analysis and has determined that the previously mentioned changes affecting the Impacted

Statements of Cash Flows does not impact related performance metrics used for executive management’s compensation, and

therefore that no recovery of incentive-based compensation was required. For additional information, see “Part III – Item 11.

Executive Compensation” in this Form 10-K/A.

Except as discussed above and as further described herein, the Company has not modified or updated the disclosures presented in

the Original Form 10-K. Accordingly, this Form 10-K/A does not reflect events occurring after the filing of the Original Form

10-K or modify or update those disclosures affected by any such subsequent events. Information not affected by the restatements

reflects disclosures made at the time of the filing of the Original Form 10-K. Forward-looking statements included in this Form

10-K/A represent management’s views as of the date of the Original Form 10-K and should not be assumed to be accurate as of

any date thereafter. This Form 10-K/A should be read in conjunction with the Company’s filings made with the SEC subsequent

to the filing of the Original Form 10-K, including any amendment to those filings.

4

INTRODUCTORY NOTE

This Annual Report on Form 10-K/A 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.

In addition to those risks discussed in this Annual Report under Item 1A Risk Factors, factors that could cause our actual results

to differ materially from those in the forward-looking statements, include, without limitation:

●

our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry;

●

legislative or regulatory changes;

●

adverse developments in the financial services industry generally, such as bank failures and any related impact on depositor

behavior; 

●

the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding

costs, net interest margin and ability to replace maturing deposits and advances, as necessary; 

●

inflation, interest rate, market and monetary fluctuations;

●

uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing

rights related to these loans and related interest rate risk or price risk resulting from retaining mortgage servicing rights and

the potential effects of higher interest rates on our loan origination volumes;

●

the effects of actions taken by governmental agencies to stabilize the recent volatility in the financial system and the

effectiveness of such actions; 

●

changes in monetary and fiscal policies of the U.S. Government;

●

the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card

products;

●

the accuracy of our financial statement estimates and assumptions, including the estimates used for our allowance for credit

losses, deferred tax asset valuation and pension plan;

●

changes in our liquidity position;

●

changes in accounting principles, policies, practices or guidelines;

●

the frequency and magnitude of foreclosure of our loans;

●

the effects of our lack of a diversified loan portfolio, including the risks of loan segments, geographic and industry

concentrations;

●

the strength of the United States economy in general and the strength of the local economies in which we conduct

operations; 

●

our ability to declare and pay dividends, the payment of which is subject to our capital requirements;

●

changes in the securities and real estate markets;

●

structural changes in the markets for origination, sale and servicing of residential mortgages;

●

the effect of corporate restructuring, acquisitions or dispositions, including the actual restructuring and other related

charges and the failure to achieve the expected gains, revenue growth or expense savings from such corporate

restructuring, acquisitions or dispositions;

●

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

pandemics, such as the COVID-19 pandemic), military conflict, 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 the Impacted Statements of Cash Flows;

●

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 or 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;

5

●

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 Annual Report 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.

6

PART I

Item 1. Business

About Us

General

Capital City Bank Group, Inc. (“CCBG”) is a financial holding company headquartered in Tallahassee, Florida. CCBG was

incorporated under Florida law on December 13, 1982, to acquire five national banks and one state bank that all subsequently

became part of CCBG’s bank subsidiary, Capital City Bank (“CCB” or the “Bank”). The Bank commenced operations in 1895. In

this report, the terms “Company,” “we,” “us,” or “our” mean CCBG and all subsidiaries included in our consolidated financial

statements.

CCBG is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.3

billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking,

asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the

sale of life insurance, risk management and asset protection services. The Bank has 63 banking offices and 103 ATMs/ITMs in

Florida, Georgia, and Alabama. Through Capital City Home Loans, LLC (“CCHL”), we have 29 additional offices in the

Southeast for our mortgage banking business. The majority of the revenue (excluding CCHL), approximately 85%, is derived

from our Florida market areas while approximately 14% and 1% of the revenue is derived from our Georgia and other market

areas, respectively. Approximately 48% of the revenue from CCHL is derived from our Georgia market areas while

approximately 38% and 14% is derived from our Florida and other market areas, respectively.

Below is a summary of our financial condition and results of operations for the past three fiscal years, which we believe is a

sufficient period for understanding our general business development. Our financial condition and results of operations are more

fully discussed in our Management’s Discussion and Analysis on page 43 and our consolidated financial statements on page 72.

Dollars in millions

Year Ended

December 31, 

Assets

Deposits

Shareowners’

Equity

Revenue

(1)

Net Income

2023

$4,304.5 

$3,701.8 

$440.6 

$252.7 

$52.3 

2022

$4,519.2 

$3,939.3 

$387.3 

$207.1 

$33.4 

2021

$4,263.8 

$3,712.9 

$383.2 

$213.9 

$33.4 

(1)

Revenue represents interest income plus noninterest income

Dividends and management fees received from the Bank are CCBG’s primary source of income. Dividend payments by the Bank

to CCBG depend on the capitalization, earnings and projected growth of the Bank, and are limited by various regulatory

restrictions, including compliance with a minimum Common Equity Tier 1 Capital conservation buffer. See the section entitled

“Regulatory Considerations” in this Item 1 and Note 17 in the Notes to Consolidated Financial Statements for a discussion of the

restrictions.

Item 6 contains other financial and statistical information about us.

Subsidiaries of CCBG

CCBG’s principal asset is the capital stock of CCB, our wholly owned banking subsidiary, which accounted for nearly 100% of

consolidated assets and net income attributable to CCBG at December 31, 2023. CCBG also maintains an insurance subsidiary,

Capital City Strategic Wealth, LLC. CCB has two primary subsidiaries, which are wholly owned, Capital City Trust Company

and Capital City Investments. CCB also maintains a 51% membership interest in a consolidated subsidiary, CCHL, which we

acquired on March 1, 2020. The nature of these subsidiaries is provided below. 

Operating Segment

We have one reportable segment with two principal services: Banking Services and Wealth Management Services. Banking

Services are operated at CCB, and Wealth Management Services are operated under three separate subsidiaries (Capital City

Trust Company, Capital City Investments, and Capital City Strategic Wealth, LLC). Revenues from these principal services for

the year ended 2023 totaled approximately 93.5% and 6.5% of our total revenue, respectively. In 2022 and 2021, Banking

Services (CCB) revenue was approximately 90.3% and 93.2% of our total revenue for each respective year. 

7

Capital City Bank

CCB is a Florida-chartered full-service bank engaged in the commercial and retail banking business. Significant services offered

by CCB include:

●

Business Banking

 – We provide banking services to corporations and other business clients. Credit products are available

for a wide variety of general business purposes, including financing for commercial business properties, equipment,

inventories and accounts receivable, as well as commercial leasing and letters of credit. We also provide treasury

management services, and, through a marketing alliance with Elavon, Inc., merchant credit card transaction processing

services.

●

Commercial Real Estate Lending

 – We provide a wide range of products to meet the financing needs of commercial

developers and investors, residential builders and developers, and community development. Credit products are available

to purchase land and build structures for business use and for investors who are developing residential or commercial

property.

●

Residential Real Estate Lending

 – We provide products through our strategic alliance with CCHL and its existing

network of locations to help meet the home financing needs of consumers, including conventional permanent and

construction/ permanent (fixed, adjustable, or variable rate) financing arrangements, and FHA/VA/Government National

Mortgage Association (“GNMA”) loan products. We offer both fixed and adjustable-rate residential mortgage (ARM)

loans. We offer these products through our existing network of CCHL locations. We do not originate subprime

residential real estate loans. 

●

Retail Credit

 – We provide a full-range of loan products to meet the needs of consumers, including personal loans,

automobile loans, boat/RV loans, home equity loans, and through a marketing alliance with ELAN, we offer credit card

programs.

●

Institutional Banking –

We provide banking services to meet the needs of state and local governments, public schools

and colleges, charities, membership and not-for-profit associations including customized checking and savings accounts,

cash management systems, tax-exempt loans, lines of credit, and term loans.

●

Retail Banking

– We provide a full-range of consumer banking services, including checking accounts, savings programs,

interactive/automated teller machines (ATMs/ITMs), debit/credit cards, night deposit services, safe deposit facilities,

online banking, and mobile banking.

Capital City Trust Company

Capital City Trust Company, or the Trust Company, provides asset management for individuals through agency, personal trust,

IRA, and personal investment management accounts. Associations, endowments, and other nonprofit entities hire the Trust

Company to manage their investment portfolios. Additionally, a staff of well-trained professionals serves individuals requiring the

services of a trustee, personal representative, or a guardian. The market value of trust assets under discretionary management

exceeded $1.121 billion at December 31, 2023, with total assets under administration exceeding $1.136 billion.

Capital City Investments

We offer our customers access to retail investment products through LPL Financial pursuant to which retail investment products

would be offered through LPL. LPL offers a full line of retail securities products, including U.S. Government bonds, tax-free

municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance and long-term health care. Non-deposit

investment and insurance products are: (i) not FDIC insured; (ii) not deposits, obligations, or guarantees by any bank; and (iii)

subject to investment risk, including the possible loss of principal amount invested. 

Capital City Strategic Wealth, LLC.

We provide a multi-disciplinary strategic planning approach that requires examining all facets of our clients’ financial lives

through our business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. 

Insurance sales within this division include life, health, disability, long-term care, and annuity solutions. 

8

Lending Activities

One of our core goals is to support the communities in which we operate. We seek loans from within our primary market area,

which is defined as the counties in which our banking offices are located. We will also originate loans within our secondary

market area, defined as counties adjacent to those in which we have banking offices. There may also be occasions when we will

have opportunities to make loans that are out of both the primary and secondary market areas, including participation loans.

These loans are only approved if the underwriting is consistent with our criteria and generally the project or applicant’s primary

business is in or near our primary or secondary market areas. Approval of all loans is subject to our policies and standards

described in more detail below.

We have adopted comprehensive lending policies, underwriting standards and loan review procedures. Management and our

Board of Directors reviews and approves these policies and procedures on a regular basis (at least annually).

Management has also implemented reporting systems designed to monitor loan originations, loan quality, concentrations of

credit, loan delinquencies, nonperforming loans, and potential problem loans. Our 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, we establish total borrower exposure limits and monitor concentration risk. 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 portfolio are monitored and reported to our

Board on a quarterly basis, and we have strategic plans in place to supplement Board approved credit policies governing exposure

limits and underwriting standards. We recognize that exceptions to the below-listed policy guidelines may occasionally occur and

have established procedures for approving exceptions to these policy guidelines.

Residential Real Estate Loans

We originate 1-4 family, owner-occupied residential real estate loans at CCHL for sale in the secondary market. Historically, a

vast majority of residential loan originations are fixed-rate loans which are sold in the secondary market on a non-recourse basis. 

We will frequently sell loans and retain the servicing rights. Note 4 – Mortgage Banking Activities in the Notes to Our

Consolidated Financial Statements provides additional information on our servicing portfolio. 

CCB also maintains a portfolio of residential loans held for investment and will periodically purchase newly originated 1-4

family secured adjustable-rate loans from CCHL for that portfolio. Residential loans held for investment are generally

underwritten in accordance with secondary market guidelines in effect at the time of origination, including loan-to-value, or LTV,

and documentation requirements. 

Residential real estate loans also include home equity lines of credit, or HELOCs, and home equity loans. Our home equity

portfolio includes revolving open-ended equity loans with interest-only or minimal monthly principal payments and closed-end

amortizing loans. Open-ended equity loans typically have an interest only 10-year draw period followed by a five-year repayment

period of 0.75% of principal balance monthly and balloon payment at maturity. As of December 31, 2023, approximately 53% of

our residential home equity loan portfolio consisted of first mortgages. Interest rates may be fixed or adjustable. Adjustable-rate

loans are tied to the Prime Rate with a typical margin of 1.0% or more.

Commercial Loans

Our policy sets forth guidelines for debt service coverage ratios, LTV ratios and documentation standards. Commercial loans are

primarily made based on identified cash flows of the borrower with consideration given to underlying collateral and personal or

other guarantees. We have established 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 our commercial loans are secured by the

assets being financed or other business assets such as accounts receivable or inventory. Many of the loans in the commercial

portfolio have variable interest rates tied to the Prime Rate or U.S. Treasury indices.

9

Commercial Real Estate Loans

We have adopted guidelines for debt service coverage ratios, LTV ratios and documentation standards for commercial real estate

loans. These loans are primarily made based on identified cash flows of the borrower with consideration given to underlying real

estate collateral and personal guarantees. Our policy establishes a maximum LTV specific to property type and minimum 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. Commercial real estate loans may be fixed or variable-rate loans with interest rates tied to the Prime Rate

or U.S. Treasury indices. We require appraisals for loans in excess of $500,000 that are secured by real property unless we deem

the real property used as security to be a complex property type, in which case we require appraisals for loans in excess of

$250,000. For loans secured by real property that fall beneath the applicable thresholds above, we will generally use a third-party

evaluation to assess the value of the real property used as security. 

Consumer Loans

Our consumer loan portfolio includes personal installment loans, direct and indirect automobile financing, and overdraft lines of

credit. The majority of the consumer loan portfolio consists of indirect and direct automobile loans. The majority of our consumer

loans are short-term and have fixed rates of interest that are priced based on current market interest rates and the financial

strength of the borrower. Our policy establishes maximum debt-to-income ratios, minimum credit scores, and includes guidelines

for verification of applicants’ income and receipt of credit reports.

Expansion of Business

See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations under the section captioned

“Business Overview” for discussion related to the expansion of our Business.

Competition

There is significant competition among commercial banks in our market areas. We compete against a wide range of banking and

nonbanking institutions including banks, savings and loan associations, credit unions, money market funds, mutual fund advisory

companies, mortgage banking companies, investment banking companies, insurance agencies and companies, securities firms,

brokerage firms, finance companies and other types of financial institutions. Some of our competitors are larger financial

institutions with greater resources and, as such, may have higher lending limits and may offer other services that are not provided

by us. However, we believe that the larger financial institutions are less familiar with the markets in which we operate and

typically target a different client base. We also believe clients who bank at community banks tend to prefer the relationship style

service of community banks compared to larger banks.

As a result, we expect to be able to effectively compete in our markets with larger financial institutions through providing

superior client service and leveraging our knowledge and experience in providing banking products and services in our market

areas. See Item 1A. Risk Factors under the section captioned “Our future success is dependent on our ability to compete

effectively in the highly competitive banking industry” for further discussion related to the competitive environment in which we

operate.

Our primary market area consists of 21 counties in Florida, six counties in Georgia, and one county in Alabama. Most of Florida’s

major banking concerns have a presence in Leon County, where our main office is located. Our Leon County deposits totaled

$1.272 billion, or 34.4% of our consolidated deposits at December 31, 2023.

10

The table below depicts our market share percentage within each county, based on commercial bank deposits within the county.

Market Share as of June 30,

(1)

County

2023

2022

2021

Florida

 Alachua

5.1%

4.9%

4.6%

 Bay

0.3%

0.3%

0.2%

 Bradford

37.1%

34.9%

32.4%

 Citrus

4.4%

4.7%

4.1%

 Clay

2.4%

2.3%

2.8%

 Dixie

17.5%

19.8%

18.9%

 Gadsden

81.9%

82.1%

81.1%

 Gilchrist

42.2%

41.2%

39.6%

 Gulf

12.4%

14.8%

14.6%

 Hernando

4.9%

5.0%

3.9%

 Jefferson

28.3%

24.8%

24.4%

 Leon

16.9%

15.4%

11.9%

 Levy

26.4%

25.4%

26.4%

 Madison

13.5%

14.0%

14.5%

 Putnam

34.4%

26.4%

23.2%

 St. Johns

0.8%

0.7%

0.7%

 Suwannee

6.6%

7.0%

6.8%

 Taylor

75.0%

73.8%

73.2%

 Wakulla

8.4%

10.0%

10.5%

 Walton

0.3%

-

-

 Washington

9.2%

11.2%

11.2%

Georgia

 Bibb

2.9%

3.2%

3.3%

 Cobb

0.1%

0.0%

0.0%

 Gwinnett

(2)

0.0%

-

-

 Grady

13.8%

16.3%

14.8%

 Laurens

6.7%

7.8%

7.9%

 Troup

5.6%

6.4%

6.1%

Alabama

 Chambers

8.6%

9.3%

9.3%

(1)

Obtained from the FDIC Summary of Deposits Report for the year indicated.

(2)

Bank office opened in the second quarter of 2023.

Seasonality

We believe our commercial banking operations are not generally seasonal in nature; however, public deposits tend to increase

with tax collections in the fourth and first quarters of each year and decline as a result of governmental spending thereafter.

Human Capital Matters 

Our culture distinguishes us from our competitors and is the driving force behind our continued success. Our leadership is

committed to a culture that values people alongside results. 

Our brand promise (“More than your bank. Your banker.”) and purpose (“We empower our clients’ financial wellness and help

them build secure futures”), together with our core values statement (“Do the Right Thing, Build Relationships & Loyalty,

Embrace Individuality & Value Others, Promote Career Growth, Be Committed to Community, and Represent the Star (our bank)

Proudly”), are the foundation on which our culture is built.

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The bank has grown significantly since its beginnings in 1895. Our commitment to fostering a culture that values our associates

across our entire footprint remains unwavering. We have a Chief Culture Officer and a Chief Diversity Officer who make it a

priority to ensure our culture is maintained and associates exemplify our values.

Diversity and Inclusion

. Integral to our culture and values is a commitment to an equitable, diverse, and inclusive work

environment whereby respect, acceptance and belonging are practiced and experienced by all.

Our associates are our most valuable assets, and our differences make us stronger. The individual perspectives, life experiences,

capabilities and talents, which our associates invest in their work, represent a significant part of our culture, reputation and

collective achievements. 

The Chief Diversity Officer and the Diversity, Equity, and Inclusion (DE&I) Council, which comprises diverse associates from

various levels and offices throughout our organization, connect the company’s diversity and inclusion initiatives with our broader

business strategies. A diverse team produces more creative solutions, offers better client service and is vital to attracting and

retaining talent—key factors that contribute to our success. We continue to build an inclusive culture through a variety of DE&I

initiatives for internal promotions and hiring practices. 

At February 8, 2024, we had approximately 811 associates, which included approximately 784 full-time associates and

approximately 27 part-time associates. At February 8, 2024, approximately 70% of our workforce was female, 30% was male,

and approximately 22% was ethnic minorities. None of our associates are represented by a labor union or covered by a collective

bargaining agreement. 

Our commitment to people and being an employer with integrity and heart has earned us numerous accolades including: one of

the “Best Companies to Work for in Florida” by Florida Trend for 12 consecutive years, a “Best Bank to Work For” by American

Bankers Association for 11 consecutive years and being named by Forbes in 2023 as one of “America’s Best-in-State Banks, a

selection made from direct consumer feedback and online reviews. 

The average tenure of our associates is approximately 9.6 years, and the average tenure of our management team is 28 years.

Tenure statistics support these accolades and further demonstrate that associates enjoy working for CCB. 

Compensation and Benefits Program

. To attract and retain experienced associates we offer a competitive compensation and

benefits program, foster a culture where everyone feels included and empowered to do to their best work, and give associates the

opportunity to give back to their communities and make a social impact.

Our compensation program is designed to attract and reward talented individuals who possess the skills necessary to support our

business objectives, assist in the achievement of our strategic goals and create long-term value for our shareowners. We provide

our associates with compensation packages that include base salary and annual incentive bonuses, and certain associates can

receive equity awards tied to the Company’s performance. 

Experience has taught us that a compensation program with both short- and long-term awards provides fair and competitive

compensation and aligns associate and shareowner interests by incentivizing business and individual performance. This dual

approach also encourages long-term company performance and integrates compensation with our business plans. 

In addition to cash and equity compensation, we offer associates benefits including life and health (medical, dental & vision)

insurance, paid time off, an associate stock purchase plan, and a 401(k) plan. Associates hired prior to 2020 are eligible to

participate in a pension plan.

A core value is providing associates the ability to “grow a career.” To that end, we support and encourages associates to develop a

life-long habit of continuous learning that focuses on personal and professional development through higher education. We offer

an educational Tuition Assistance Plan to help eligible associates continue or begin post-high school education, develop skills,

increase knowledge and aid in career development.

We have invested in tools and capabilities that allow our team members to work remotely as appropriate.

Health and Safety

. Our business success is fundamentally connected to our associates’ well-being. We make available to our

associates a voluntary wellness program, StarFit that provides associates with resources and good-health opportunities through

exercise, diet and preventive care.

In response to emerging workplace practices, we made changes to our flex–work program to assist our associates in maintaining a

work/life balance consistent with their professional and personal goals. 

12

We continue to follow local and federal guidance, including guidance prescribed by the Centers for Disease Control and

Prevention (“CDC”), regarding COVID-19 precautions and health measures. 

Social Matters

Community Involvement

. We aim to give back to the communities where we live and work and believe that this commitment

helps in our efforts to attract and retain associates. Our commitment to help our community starts with our associates. Community

involvement is a hallmark for our organization, and it comes naturally to our associates. We encourage our associates to volunteer

their hours with service organizations and philanthropic groups in the communities we serve. 

We recorded 10,526 community service hours in 2023, and 9,508, and 8,697 hours in 2022 and 2021, respectively. Furthermore,

the CCBG Foundation donated $0.3 million in 2023 to various non-profit organizations in the communities we serve and $0.3

million and $0.2 million in 2022, and 2021, respectively. 

Since 2015, we have annually supported the United Way of the Big Bend in analyzing financial information for its annual grant

review process. Many of these grants are provided to low-moderate income communities in the Big Bend area.

Access, affordability, and financial inclusion.

Our community commitment to further financial literacy in the markets we service

remains an ongoing focus. In 2023, the CCBG Foundation made grants totaling $143,000 to Community Reinvestment Act of

1977 (“CRA”) eligible organizations in our market area. We are committed to providing educational outreach regarding home

ownership and financial access for minorities. We are a long-time supporter of Habitat for Humanity, with our associates

providing volunteer hours on home builds. During 2020 to 2023, we partnered with Habitat for Humanity and Warrick Dunn

Charities to build and furnish four homes. 

During tax season, we provide locations for community residents to access Volunteer Income Tax Assistance (VITA) services.

VITA is a nationwide IRS program that offers free tax preparation assistance to people who generally make $60,000 or less,

persons with disabilities, the elderly, and limited English-speaking taxpayers who need assistance in preparing their own tax

returns. 

Environmental Matters 

We recognize the value of environmental stewardship and seek opportunities to reduce our carbon footprint and incorporate

energy efficiency products into business operations. We have implemented company-wide recycling programs and have

converted exterior lighting to LED at 64 offices. Further reducing our environmental impact, our office model design is reduced

from an average 5,500 square feet to 3,300 square feet. As we renovate or build new facilities, we employ energy efficient

equipment such as HVAC systems and lighting controls in offices. 

In 2022, we made a commitment for a $7 million investment in SOLCAP 2022-1, LLC and, in 2023, we made a commitment for

a $7 million investment in SOLCAP 2023-1, LLC. Each of these funds were formed to make solar tax equity investments in

renewable solar energy projects that will provide us with tax credits and other tax benefits. These projects will produce

approximately 20,186,357 kw hours of clean power each year. The clean power produced is equivalent to removing

approximately 14,306 metric tons of greenhouse gas emissions. We plan to continue to review these kinds of investment

opportunities as they arise. 

We work to ensure lending activities do not encourage business activities that could cause irreparable damage to our reputation or

the environment. In general, we evaluate each credit or transaction on its individual merits, with larger deals receiving more

attention and deeper analysis, including a review of environmental matters related to certain real estate loans, which is overseen

by our Credit Risk Oversight Committee.

To prepare for any climate-related occurrences, we have a business continuity plan that addresses how to maintain business

operations in the event of a disastrous event. We also offer disaster assistance to our associates, which includes

accommodation/shelter reimbursement in case of evacuations or sustained power outages.

Regulatory Considerations

We must comply with state and federal banking laws and regulations that control virtually all aspects of our operations. These

laws and regulations generally aim to protect our depositors, not necessarily our shareowners or our creditors. Any changes in

applicable laws or regulations may materially affect our business and prospects. Proposed legislative or regulatory changes may

also affect our operations. The following description summarizes some of the laws and regulations to which we are subject.

References to applicable statutes and regulations are brief summaries, do not purport to be complete, and are qualified in their

entirety by reference to such statutes and regulations. 

13

Capital City Bank Group, Inc.

We are registered with the Board of Governors of the Federal Reserve as a bank holding company under the Bank Holding

Company Act of 1956 (“BHC Act”) and have also elected to be a financial holding company. As a result, we are subject to

supervisory regulation and examination by the Federal Reserve. The BHC Act, the Dodd -Frank Wall Street Reform and

Consumer Protection Act (the “Dodd-Frank Act”), the Gramm-Leach-Bliley Financial Modernization Act (the “GLBA”), and

other federal laws subject financial holding companies to restrictions on the types of activities in which they may engage, and to a

range of supervisory requirements and activities, including regulatory enforcement actions for violations of laws and regulations. 

Permitted Activities

The GLBA reformed the U.S. banking system by: (i) allowing bank holding companies (“BHCs”) that qualify as “financial

holding companies,” such as CCBG, to engage in a broad range of financial and related activities; (ii) allowing insurers and other

financial service companies to acquire banks; (iii) removing restrictions that applied to bank holding company ownership of

securities firms and mutual fund advisory companies; and (iv) establishing the overall regulatory scheme applicable to bank

holding companies that also engage in insurance and securities operations. The general effect of the law was to establish a

comprehensive framework to permit affiliations among commercial banks, insurance companies, securities firms, and other

financial service providers. Activities that are financial in nature are broadly defined to include not only banking, insurance, and

securities activities, but also merchant banking and additional activities that the Federal Reserve, in consultation with the

Secretary of the Treasury, determines to be financial in nature, incidental to such financial activities, or complementary activities

that do not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally. 

In contrast to financial holding companies, bank holding companies are limited to managing or controlling banks, furnishing

services to or performing services for its subsidiaries, and engaging in other activities that the Federal Reserve determines by

regulation or order to be so closely related to banking or managing or controlling banks as to be a proper incident thereto. In

determining whether a particular activity is permissible, the Federal Reserve must consider whether the performance of such an

activity reasonably can be expected to produce benefits to the public that outweigh possible adverse effects. Possible benefits

include greater convenience, increased competition, and gains in efficiency. Possible adverse effects include undue concentration

of resources, decreased or unfair competition, conflicts of interest, and unsound banking practices. Despite prior approval, the

Federal Reserve may order a bank holding company or its subsidiaries to terminate any activity or to terminate ownership or

control of any subsidiary when the Federal Reserve has reasonable cause to believe that a serious risk to the financial safety,

soundness or stability of any bank subsidiary of that bank holding company may result from such an activity.

Changes in Control

Subject to certain exceptions, the BHC Act and the Change in Bank Control Act (“CBCA”), together with the applicable

regulations, require Federal Reserve approval (or, depending on the circumstances, no notice of disapproval) prior to any

acquisition of “control” of a bank or bank holding company. Under the BHC Act, a company (a broadly defined term that includes

partnerships among other things) that acquires the power, directly or indirectly, to direct the management or policies of an insured

depository institution or to vote 25% or more of any class of voting securities of any insured depository institution is deemed to

control the institution and to be a bank holding company. A company that acquires less than 5% of any class of voting security

(and that does not exhibit the other control factors) is presumed not to have control. For ownership levels between the 5% and

25% thresholds, the Federal Reserve has developed an extensive body of law on the circumstances in which control may or may

not exist. Further, on January 30, 2020, the Federal Reserve finalized a rule that simplifies and increases the transparency of its

rules for determining when one company controls another company for purposes of the BHC Act. The rule became effective

September 30, 2020. It has and will likely continue to have a meaningful impact on control determinations related to investments

in banks and bank holding companies and investments by bank holding companies in nonbank companies.

Under the CBCA, if an individual or a company that acquires 10% or more of any class of voting securities of an insured

depository institution or its holding company and either that institution or company has registered securities under Section 12 of

the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or no other person will own a greater percentage of that

class of voting securities immediately after the acquisition, then that investor is presumed to have control and may be required to

file a change in bank control notice with the institution’s or the holding company’s primary federal regulator. Our common stock

is registered under Section 12 of the Exchange Act so we are subject to these rules.

14

As a financial holding company, we are required to obtain prior approval from the Federal Reserve before (i) acquiring all or

substantially all of the assets of a bank or bank holding company, (ii) acquiring direct or indirect ownership or control of more

than 5% of the outstanding voting stock of any bank or bank holding company (unless we own a majority of such bank’s voting

shares), or (iii) acquiring, merging or consolidating with any other bank or bank holding company. In determining whether to

approve a proposed bank acquisition, federal bank regulators will consider, among other factors, the effect of the acquisition on

competition, the public benefits expected to be received from the acquisition, the projected capital ratios and levels on a post-

acquisition basis, and the companies’ records of addressing the credit needs of the communities they serve, including the needs of

low and moderate income neighborhoods, consistent with the safe and sound operation of the bank, under the CRA.

Under Florida law, a person or entity proposing to directly or indirectly acquire control of a Florida bank must also obtain

permission from the Florida Office of Financial Regulation. The Florida Statutes define “control” as either (i) indirectly or

directly owning, controlling or having power to vote 25% or more of the voting securities of a bank; (ii) controlling the election of

a majority of directors of a bank; (iii) owning, controlling, or having power to vote 10% or more of the voting securities as well as

directly or indirectly exercising a controlling influence over management or policies of a bank; or (iv) as determined by the

Florida Office of Financial Regulation. These requirements will affect us because the Bank is chartered under Florida law and

changes in control of CCBG are indirect changes in control of CCB.

Prohibitions Against Tying Arrangements

Banks are subject to the prohibitions on certain tying arrangements. We are prohibited, subject to some exceptions, from

extending credit to or offering any other service, or fixing or varying the consideration for such extension of credit or service, on

the condition that the customer obtain some additional service from the institution or its affiliates or not obtain services of a

competitor of the institution.

Capital; Dividends; Source of Strength

The Federal Reserve imposes certain capital requirements on financial holding companies under the BHC Act, including a

minimum leverage ratio and a minimum ratio of “qualifying” capital to risk-weighted assets. These requirements are described

below under “Capital Regulations.” Subject to these capital requirements and certain other restrictions, we are generally able to

borrow money to make a capital contribution to CCB, and such loans may be repaid from dividends paid from CCB to us. We are

also able to raise capital for contributions to CCB by issuing securities without having to receive regulatory approval, subject to

compliance with federal and state securities laws.

It is the Federal Reserve’s policy that bank holding companies should generally pay dividends on common stock only out of

income available over the past year, and only if prospective earnings retention is consistent with the organization’s expected

future needs and financial condition. It is also the Federal Reserve’s policy that bank holding companies should not maintain

dividend levels that undermine their ability to be a source of strength to their banking subsidiaries. Additionally, the Federal

Reserve has indicated that bank holding companies should carefully review their dividend policies and has discouraged payment

ratios that are at maximum allowable levels unless both asset quality and capital are very strong. The Federal Reserve possesses

enforcement powers over bank holding companies and their non-bank subsidiaries to prevent or remedy actions that represent

unsafe or unsound practices or violations of applicable statutes and regulations. Among these powers is the ability to proscribe the

payment of dividends by banks and bank holding companies. 

Bank holding companies are expected to consult with the Federal Reserve before redeeming any equity or other capital instrument

included in Tier 1 or Tier 2 capital prior to stated maturity, if such redemption could have a material effect on the level or

composition of the organization’s capital base. In addition, a bank holding company may not repurchase shares equal to 10% or

more of its net worth if it would not be well-capitalized (as defined by the Federal Reserve) after giving effect to such repurchase.

Bank holding companies experiencing financial weaknesses, or that are at significant risk of developing financial weaknesses,

must consult with the Federal Reserve before redeeming or repurchasing common stock or other regulatory capital instruments.

In accordance with Federal Reserve policy, which has been codified by the Dodd-Frank Act, we are expected to act as a source of

financial strength to CCB and to commit resources to support CCB in circumstances in which we might not otherwise do so. In

furtherance of this policy, the Federal Reserve may require a financial holding company to terminate any activity or relinquish

control of a nonbank subsidiary (other than a nonbank subsidiary of a bank) upon the Federal Reserve’s determination that such

activity or control constitutes a serious risk to the financial soundness or stability of any subsidiary depository institution of the

financial holding company. Further, federal bank regulatory authorities have additional discretion to require a financial holding

company to divest itself of any bank or nonbank subsidiary if the agency determines that divestiture may aid the depository

institution’s financial condition. 

Safe and Sound Banking Practices

15

Bank holding companies and their nonbanking subsidiaries are prohibited from engaging in activities that represent unsafe and

unsound banking practices or that constitute a violation of law or regulations. Under certain conditions the Federal Reserve may

conclude that some actions of a bank holding company, such as a payment of a cash dividend, would constitute an unsafe and

unsound banking practice. The Federal Reserve also has the authority to regulate the debt of bank holding companies, including

the authority to impose interest rate ceilings and reserve requirements on such debt. The Federal Reserve may also require a bank

holding company to file written notice and obtain its approval prior to purchasing or redeeming its equity securities, unless certain

conditions are met. 

Capital City Bank

Capital City Bank is a state-chartered commercial banking institution that is chartered by and headquartered in the State of Florida

and is subject to supervision and regulation by the Florida Office of Financial Regulation. The Florida Office of Financial

Regulation supervises and regulates all areas of our operations including, without limitation, the making of loans, the issuance of

securities, the conduct of our corporate affairs, the satisfaction of capital adequacy requirements, the payment of dividends, and

the establishment or closing of banking centers. We are also a member bank of the Federal Reserve System, which makes our

operations subject to broad federal regulation and oversight by the Federal Reserve. In addition, our deposit accounts are insured

by the FDIC up to the maximum extent permitted by law, and the FDIC has certain supervisory enforcement powers over us. 

As a Florida state-chartered bank, we are empowered by statute, subject to the limitations contained in those statutes, to take and

pay interest on savings and time deposits, to accept demand deposits, to make loans on residential and other real estate, to make

consumer and commercial loans, to invest (with certain limitations) in equity securities and in debt obligations of banks and

corporations and to provide various other banking services for the benefit of our clients. Various consumer laws and regulations

also affect our operations, including state usury laws, laws relating to fiduciaries, consumer credit and equal credit opportunity

laws, and fair credit reporting. In addition, the Federal Deposit Insurance Corporation Improvement Act of 1991, or FDICIA,

prohibits insured state-chartered institutions from conducting activities as principal that are not permitted for national banks. A

bank, however, may engage in certain otherwise prohibited activity if it meets its minimum capital requirements and the FDIC

determines that the activity does not present a significant risk to the Deposit Insurance Fund (“DIF”).

Safety and Soundness Standards / Risk Management

The federal banking agencies have adopted guidelines establishing operational and managerial standards to promote the safety

and soundness of federally insured depository institutions. The guidelines set forth standards for internal controls, information

systems, internal audit systems, loan documentation, credit underwriting, interest rate exposure, asset growth, compensation, fees

and benefits, asset quality and earnings.

In general, the safety and soundness guidelines prescribe the goals to be achieved in each area, and each institution is responsible

for establishing its own procedures to achieve those goals. If an institution fails to comply with any of the standards set forth in

the guidelines, the financial institution’s primary federal regulator may require the institution to submit a plan for achieving and

maintaining compliance. If a financial institution fails to submit an acceptable compliance plan or fails in any material respect to

implement a compliance plan that has been accepted by its primary federal regulator, the regulator is required to issue an order

directing the institution to cure the deficiency. Until the deficiency cited in the regulator’s order is cured, the regulator may

restrict the financial institution’s rate of growth, require the financial institution to increase its capital, restrict the rates the

institution pays on deposits or require the institution to take any action the regulator deems appropriate under the circumstances.

Noncompliance with the standards established by the safety and soundness guidelines may also constitute grounds for other

enforcement action by the federal bank regulatory agencies, including cease and desist orders and civil money penalty

assessments. 

The bank regulatory agencies have increasingly emphasized the importance of sound risk management processes and strong

internal controls when evaluating the activities of the financial institutions they supervise. Properly managing risks has been

identified as critical to the conduct of safe and sound banking activities and has become even more important as new

technologies, product innovation and the size and speed of financial transactions have changed the nature of banking markets. The

agencies have identified a spectrum of risks facing a banking institution including, but not limited to, credit, market, liquidity,

operational, legal and reputational risk. In particular, recent regulatory pronouncements have focused on operational risk, which

arises from the potential that inadequate information systems, operational problems, breaches in internal controls, fraud or

unforeseen catastrophes will result in unexpected losses. New products and services, third party risk management and

cybersecurity are critical sources of operational risk that financial institutions are expected to address in the current environment.

The Bank is expected to have active board and senior management oversight; adequate policies, procedures and limits; adequate

risk measurement, monitoring and management information systems; and comprehensive internal controls.

Reserves

16

The Federal Reserve requires all depository institutions to maintain reserves against transaction accounts (noninterest bearing and

NOW checking accounts). The balances maintained to meet the reserve requirements imposed by the Federal Reserve may be

used to satisfy liquidity requirements. An institution may borrow from the Federal Reserve Bank “discount window” as a

secondary source of funds, provided that the institution meets the Federal Reserve Bank’s credit standards.

Dividends

CCB is subject to legal limitations on the frequency and amount of dividends that can be paid to CCBG. The Federal Reserve may

restrict the ability of CCB to pay dividends if such payments would constitute an unsafe or unsound banking practice.

Additionally, financial institutions are now required to maintain a capital conservation buffer of at least 2.5% of risk-weighted

assets in order to avoid restrictions on capital distributions and other payments. If a financial institution’s capital conservation

buffer falls below the minimum requirement, its maximum payout amount for capital distributions and discretionary payments

declines to a set percentage of eligible retained income based on the size of the buffer. See “Capital Regulations” below for

additional details on this capital requirement.

In addition, Florida law and Federal regulation place restrictions on the declaration of dividends from state-chartered banks to

their holding companies. Under the Florida Financial Institutions Code, the board of directors of a state-chartered bank, after it

charges off bad debts, depreciation and other worthless assets, if any, and makes provisions for reasonably anticipated future

losses on loans and other assets, may quarterly, semi-annually or annually declare a dividend of up to the aggregate net profits of

that period combined with the bank’s retained net profits for the preceding two years. In addition, with the approval of the Florida

Office of Financial Regulation and Federal Reserve, the bank’s board of directors may declare a dividend from retained net

profits which accrued prior to the preceding two years. Before declaring such dividends, 20% of the net profits for the preceding

period as is covered by the dividend must be transferred to the surplus fund of the bank until this fund becomes equal to the

amount of the bank’s common stock then issued and outstanding. However, a Florida state-chartered bank may not declare any

dividend if (i) its net income (loss) from the current year combined with the retained net income (loss) for the preceding two years

aggregates a loss or (ii) the payment of such dividend would cause the capital account of the bank to fall below the minimum

amount required by law, regulation, order or any written agreement with the Florida Office of Financial Regulation or a federal

regulatory agency. Under Federal Reserve regulations, a state member bank may, without the prior approval of the Federal

Reserve, pay a dividend in an amount that, when taken together with all dividends declared during the calendar year, does not

exceed the sum of the bank’s net income during the current calendar year and the retained net income of the prior two calendar

years. The Federal Reserve may approve greater amounts.

Insurance of Accounts and Other Assessments 

Deposits at U.S. domiciled banks are insured by the FDIC, subject to limits and conditions of applicable laws and regulations.

Our deposit accounts are insured by the DIF generally up to a maximum of $250,000 per separately insured depositor. In order to

fund the DIF, all insured depository institutions are required to pay quarterly assessments to the FDIC that are based on an

institutions assignment to one of four risk categories based on supervisory evaluations, regulatory capital levels and certain other

factors. The FDIC has the discretion to adjust an institution’s risk rating and may terminate its insurance of deposits upon a

finding that the institution engaged or is engaging in unsafe and unsound practices, is in an unsafe or unsound condition to

continue operations, or violated any applicable law, regulation, rule, order or condition imposed by the FDIC or written

agreement entered into with the FDIC. The FDIC may also prohibit any FDIC-insured institution from engaging in any activity it

determines to pose a serious risk to the DIF.

In October 2022, the FDIC finalized a rule to increase the initial base deposit insurance assessment rate schedules uniformly by 2

basis points beginning with the first quarterly assessment period of 2023. The increased assessment is intended to improve the

likelihood that the DIF reserve ratio would reach the statutory minimum of 1.35% by the statutory deadline of September 30,

2028 prescribed under the FDIC’s amended restoration plan. In November 2023, the FDIC adopted a final rule with respect to a

special assessment to recover the costs associated with protecting uninsured depositors following the closures of Silicon Valley

Bank and Signature Bank. The final rule does not apply to any banking organization with less than $5 billion in total consolidated

assets and therefore the special assessment is not expected to impact the Company.

Transactions with Affiliates and Insiders

Pursuant to Sections 23A and 23B of the Federal Reserve Act and Regulation W, the authority of CCB to engage in transactions

with related parties or “affiliates” or to make loans to insiders is limited. Loan transactions with an affiliate generally must be

collateralized and certain transactions between CCB and its affiliates, including the sale of assets, the payment of money or the

provision of services, must be on terms and conditions that are substantially the same, or at least as favorable to CCB, as those

prevailing for comparable nonaffiliated transactions. In addition, CCB generally may not purchase securities issued or

underwritten by affiliates. 

17

Loans to executive officers and directors of an insured depository institution or any of its affiliates or to any person who directly

or indirectly, or acting through or in concert with one or more persons, owns, controls or has the power to vote more than 10% of

any class of voting securities of a bank, which we refer to as “10% Shareowners,” or to any political or campaign committee the

funds or services of which will benefit those executive officers, directors, or 10% Shareowners or which is controlled by those

executive officers, directors or 10% Shareowners, are subject to Sections 22(g) and 22(h) of the Federal Reserve Act and the

corresponding regulations (Regulation O) and Section 13(k) of the Exchange Act relating to the prohibition on personal loans to

executives (which exempts financial institutions in compliance with the insider lending restrictions of Section 22(h) of the Federal

Reserve Act). Among other things, these loans must be made on terms substantially the same as those prevailing on transactions

made to unaffiliated individuals and certain extensions of credit to those persons must first be approved in advance by a

disinterested majority of the entire board of directors. Section 22(h) of the Federal Reserve Act prohibits loans to any of those

individuals where the aggregate amount exceeds an amount equal to 15% of an institution’s unimpaired capital and surplus plus

an additional 10% of unimpaired capital and surplus in the case of loans that are fully secured by readily marketable collateral, or

when the aggregate amount on all of the extensions of credit outstanding to all of these persons would exceed our unimpaired

capital and unimpaired surplus. Section 22(g) identifies limited circumstances in which we are permitted to extend credit to

executive officers. 

Community Reinvestment Act

The CRA and its corresponding regulations are intended to encourage banks to help meet the credit needs of the communities

they serve, including low- and moderate-income (“LMI”) neighborhoods, consistent with safe and sound banking practices. These

regulations provide for regulatory assessment of a bank’s record in meeting the credit needs of its market area. Federal banking

agencies are required to publicly disclose each bank’s rating under the CRA. The Federal Reserve considers a bank’s CRA rating

when the bank submits an application to establish bank branches, merge with another bank, or acquire the assets and assume the

liabilities of another bank. In the case of a financial holding company, the CRA performance record of all banks involved in a

merger or acquisition are reviewed in connection with the application to acquire ownership or control of shares or assets of a bank

or to merge with another bank or bank holding company. An unsatisfactory record can substantially delay or block the

transaction. We received a satisfactory rating on our most recent CRA assessment. 

In October 2023, the Federal Reserve, along with the FDIC and OCC, issued a joint final rule that made significant amendments

to the regulations implementing the CRA to “strengthen and modernize” those regulations, including by creating rigorous data-

driven performance tests and growing the geographic areas in which a bank’s CRA performance may be evaluated. The final rules

are intended to achieve the following key goals, among others: strengthen the achievement of the core purpose of the CRA;

encourage banks to expand access to credit, investment, and banking services in LMI communities; adapt to changes in the

banking industry, including internet and mobile banking; provide greater clarity and consistency in the application of the CR

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regulations; and tailor CRA evaluations and data collection to bank size and type. Although the effective date of the final rule is

April 1, 2024, the compliance date for the majority of the rule’s provisions is January 1, 2026. The remaining requirements,

including the data reporting requirements, will be applicable on January 1, 2027. We are planning for compliance with the final

rules and continue to evaluate the impact of the final rules to our financial condition, results of operations, and liquidity, which

cannot be predicted at this time. 

Capital Regulations

The federal banking regulators have adopted rules implementing risk-based, capital adequacy guidelines for financial holding

companies and their subsidiary banks based on the Basel III standards. Under these guidelines, assets and off-balance sheet items

are assigned to specific risk categories each with designated risk weightings. These risk-based capital guidelines were designed to

make regulatory capital requirements more sensitive to differences in risk profiles among banks and bank holding companies, to

account for off-balance sheet exposure, to minimize disincentives for holding liquid assets, and to achieve greater consistency in

evaluating the capital adequacy of major banks throughout the world. The resulting capital ratios represent capital as a percentage

of total risk-weighted assets and off-balance sheet items. 

In computing total risk-weighted assets, bank and bank holding company assets are given risk-weights of 0%, 20%, 50%, 100%

and 150%. In addition, certain off-balance sheet items are given similar credit conversion factors to convert them to asset

equivalent amounts to which an appropriate risk-weight will apply. Most loans will be assigned to the 100% risk category, except

for performing first mortgage loans fully secured by 1-to-4 family and certain multi-family residential property, which carry a

50% risk rating. Most investment securities (including, primarily, general obligation claims on states or other political

subdivisions of the United States) will be assigned to the 20% category, except for municipal or state revenue bonds, which have

a 50% risk-weight, and direct obligations of the U.S. Treasury or obligations backed by the full faith and credit of the U.S.

Government, which have a 0% risk-weight. In covering off -balance sheet items, direct credit substitutes, including general

guarantees and standby letters of credit backing financial obligations, are given a 100% conversion factor. Transaction -related

contingencies such as bid bonds, standby letters of credit backing nonfinancial obligations, and undrawn commitments (including

commercial credit lines with an initial maturity of more than one year) have a 50% conversion factor. Short-term commercial

letters of credit are converted at 20% and certain short-term unconditionally cancelable commitments have a 0% factor. 

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The rules implement strict eligibility criteria for regulatory capital instruments and improve the methodology for calculating risk-

weighted assets to enhance risk sensitivity. Consistent with the international Basel III framework, the rules include a minimum

ratio of Common Equity Tier 1 Capital to Risk-Weighted Assets of 4.5%. The rules provide for a Common Equity Tier 1 Capital

conservation buffer of 2.5% of risk-weighted assets. This buffer is added to each of the three risk-based capital ratios to determine

whether an institution has established the buffer. The rules provide for a minimum ratio of Tier 1 Capital to Risk-Weighted Assets

of 6% and include a minimum leverage ratio of 4% for all banking organizations. If a financial institution’s capital conservation

buffer falls below 2.5% (e.g., if the institution’s Common Equity Tier 1 Capital to Risk-Weighted Assets is less than 7.0%), then

capital distributions and discretionary payments will be limited or prohibited based on the size of the institution’s buffer. The

types of payments subject to this limitation include dividends, share buybacks, discretionary payments on Tier 1 instruments, and

discretionary bonus payments.

The capital regulations may also impact the treatment of accumulated other comprehensive income (“AOCI”) for regulatory

capital purposes. AOCI generally flows through to regulatory capital; however, community banks and their holding companies

were allowed a one-time irrevocable opt-out election to continue to treat AOCI the same as under the old regulations for

regulatory capital purposes. This election was required to be made on the first call report or bank holding company annual report

(on form FR Y-9C) filed after January 1, 2015. We made the opt-out election. Additionally, the rules also permitted community

banks with less than $15 billion in total assets to continue to count certain non -qualifying capital instruments issued prior to May

19, 2010, as Tier 1 capital, including trust preferred securities and cumulative perpetual preferred stock (subject to a limit of 25%

of Tier 1 capital). However, non-qualifying capital instruments issued on or after May 19, 2010, would not qualify for Tier 1

capital treatment.

Commercial Real Estate Concentration Guidelines 

The federal banking regulators have implemented guidelines to address increased concentrations in commercial real estate loans.

These guidelines describe the criteria regulatory agencies will use as indicators to identify institutions potentially exposed to

commercial real estate concentration risk. An institution that has (i) experienced rapid growth in commercial real estate lending,

(ii) notable exposure to a specific type of commercial real estate, (iii) total reported loans for construction, land development, and

other land representing 100% or more of total risk-based capital, or (iv) total commercial real estate (including construction) loans

representing 300% or more of total risk-based capital and the outstanding balance of the institutions commercial real estate

portfolio has increased by 50% or more in the prior 36 months, may be identified for further supervisory analysis of a potential

concentration risk. 

At December 31, 2023, CCB’s ratio of construction, land development and other land loans to total risk-based capital was 77%,

its ratio of total commercial real estate loans to total risk-based capital was 235% and, therefore, CCB was under the 100% and

300% thresholds, respectively, set forth in clauses (iii) and (iv) above. As a result, we are not deemed to have a concentration in

commercial real estate lending under applicable regulatory guidelines.

Prompt Corrective Action

The federal banking agencies are required to take “prompt corrective action” with respect to financial institutions that do not meet

minimum capital requirements. The law establishes five categories for this purpose: “well-capitalized,” “adequately capitalized,”

“undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.” To be considered “well-capitalized,” an

insured depository institution must maintain minimum capital ratios and must not be subject to any order or written directive to

meet and maintain a specific capital level for any capital measure. An institution that fails to remain well-capitalized becomes

subject to a series of restrictions that increase in severity as its capital condition weakens. Such restrictions may include a

prohibition on capital distributions, restrictions on asset growth or restrictions on the ability to receive regulatory approval of

applications. The regulations apply only to banks and not to BHCs. However, the Federal Reserve is authorized to take

appropriate action at the holding company level based on the undercapitalized status of the holding company’s subsidiary banking

institutions. In certain instances relating to an undercapitalized banking institution, the BHC would be required to guarantee the

performance of the undercapitalized subsidiary’s capital restoration plan and could be liable for civil money damages for failure

to fulfill those guarantee commitments.

In addition, failure to meet capital requirements may cause an institution to be directed to raise additional capital. Federal law

further mandates that the agencies adopt safety and soundness standards generally relating to operations and management, asset

quality and executive compensation, and authorizes administrative action against an institution that fails to meet such standards.

Failure to meet capital guidelines may subject a banking organization to a variety of other enforcement remedies, including

additional substantial restrictions on its operations and activities, termination of deposit insurance by the FDIC and, under certain

conditions, the appointment of a conservator or receiver.

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At December 31, 2023, we exceeded the requirements contained in the applicable regulations, policies and directives pertaining to

capital adequacy to be classified as “well capitalized” and are unaware of any material violation or alleged violation of these

regulations, policies or directives (see table below). Rapid growth, poor loan portfolio performance, or poor earnings

performance, or a combination of these factors, could change our capital position in a relatively short period of time, making

additional capital infusions necessary. Our capital ratios can be found in Note 17 to the Notes to our Consolidated Financial

Statements.

Interstate Banking and Branching

The Dodd-Frank Act relaxed interstate branching restrictions by modifying the federal statute governing de novo interstate

branching by state member banks. Consequently, a state member bank may open its initial branch in a state outside of the bank’s

home state by way of an interstate bank branch, so long as a bank chartered under the laws of that state would be permitted to

open a branch at that location. 

Anti-money Laundering

The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of

2001 (the “USA Patriot Act”), provides the federal government with additional powers to address terrorist threats through

enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money

laundering requirements. By way of amendments to the Bank Secrecy Act (the “BSA”), the USA Patriot Act puts in place

measures intended to encourage information sharing among bank regulatory and law enforcement agencies. In addition, certain

provisions of the USA Patriot Act impose affirmative obligations on a broad range of financial institutions.

The USA Patriot Act, BSA, and the related federal regulations require banks to establish anti-money laundering programs that

include policies, procedures and controls to detect, prevent and report money laundering and terrorist financing and to verify the

identity of their customers and of beneficial owners of their legal entity customers.

The Anti-Money Laundering Act (“AMLA”), which amends the BSA, was enacted in early 2021. The AMLA is intended to be a

comprehensive reform and modernization of U.S. bank secrecy and anti-money laundering laws. In particular, it codifies a risk-

based approach to anti-money laundering compliance for financial institutions, requires the U.S. Department of the Treasury to

promulgate priorities for anti-money laundering and countering the financing of terrorism policy, requires the development of

standards for testing technology and internal processes for BSA compliance, expands enforcement- and investigation-related

authority (including increasing available sanctions for certain BSA violations), and expands BSA whistleblower incentives and

protections. 

Many AMLA provisions require additional rulemakings, reports, and other measures, and the impact of the AMLA will depend

on, among other things, rulemaking and implementation guidance. In June 2021, the Financial Crimes Enforcement Network, a

bureau of the U.S. Department of the Treasury, issued the priorities for anti-money laundering and countering the financing of

terrorism policy required under the AMLA. The priorities include corruption, cybercrime, terrorist financing, fraud, transnational

crime, drug trafficking, human trafficking and proliferation financing.

There is also increased scrutiny of compliance with the sanctions programs and rules administered and enforced by the Office of

Foreign Assets Control of the U.S. Department of Treasury, or “OFAC.” OFAC administers and enforces economic and trade

sanctions against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities

related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of

the United States, based on U.S. foreign policy and national security goals. OFAC issues regulations that restrict transactions by

U.S. persons or entities (including banks), located in the U.S. or abroad, with certain foreign countries, their nationals or

“specially designated nationals.” OFAC regularly publishes listings of foreign countries and designated nationals that are

prohibited from conducting business with any U.S. entity or individual. While OFAC is responsible for promulgating, developing

and administering these controls and sanctions, all of the bank regulatory agencies are responsible for ensuring that financial

institutions comply with these regulations.

Privacy

A variety of federal and state privacy laws govern the collection, safeguarding, sharing and use of customer information, and

require that financial institutions have policies regarding information privacy and security. The GLBA and related regulations

require banks and their affiliated companies to adopt and disclose privacy policies, including policies regarding the sharing of

personal information with third parties. Some state laws also protect the privacy of information of state residents and require

adequate security of such data, and certain state laws may require us to notify affected individuals of security breaches of

computer databases that contain their personal information. These laws may also require us to notify law enforcement, regulators

or consumer reporting agencies in the event of a data breach, as well as businesses and governmental agencies that own data.

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Cybersecurity

The federal banking regulators regularly issue new guidance and standards, and update existing guidance and standards, regarding

cybersecurity intended to enhance cyber risk management among financial institutions. Financial institutions are expected to

comply with such guidance and standards and to accordingly develop appropriate security controls and risk management

processes. If we fail to observe such regulatory guidance or standards, we could be subject to various regulatory sanctions,

including financial penalties. In 2023, the SEC issued a final rule that requires disclosure of material cybersecurity incidents, as

well as cybersecurity risk management, strategy and governance. Under this rule, banking organizations that are SEC registrants

must generally disclose information about a material cybersecurity incident within four business days of determining it is material

with periodic updates as to the status of the incident in subsequent filings, as necessary.

Under a final rule adopted by federal banking agencies in 2021, banking organizations are required to notify their primary

banking regulator within 36 hours of determining that a “computer-security incident” has materially disrupted or degraded, or is

reasonably likely to materially disrupt or degrade, the banking organization’s ability to carry out banking operations or deliver

banking products and services to a material portion of its customer base, its businesses and operations that would result in

material loss, or its operations that would impact the stability of the United States.

State regulators have also been increasingly active in implementing privacy and cybersecurity standards and regulations.

Recently, several states have adopted regulations requiring certain financial institutions to implement cybersecurity programs and

many states have also recently implemented or modified their data breach notification, information security and data privacy

requirements. We expect this trend of state-level activity in those areas to continue and are continually monitoring developments

in the states in which our customers are located.

Risks and exposures related to cybersecurity attacks, including litigation and enforcement risks, are expected to be elevated for

the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of

internet banking, mobile banking, and other technology-based products and services by us and our customers.

See Item 1A. Risk Factors for a further discussion of risks related to cybersecurity and Item 1C. Cybersecurity for a further

discussion of risk management strategies and governance processes related to cybersecurity.

Overdraft Fee Regulation

The Electronic Fund Transfer Act prohibits financial institutions from charging consumers fees for paying overdrafts on

automated teller machines, or ATM, and one-time debit card transactions, unless a consumer consents, or opts in, to the overdraft

service for those type of transactions. If a consumer does not opt in, any ATM transaction or debit that overdraws the consumer’s

account will be denied. Overdrafts on the payment of checks and regular electronic bill payments are not covered by this rule. 

Before opting in, the consumer must be provided a notice that explains the financial institution’s overdraft services, including the

fees associated with the service, and the consumer’s choices. Financial institutions must provide consumers who do not opt in

with the same account terms, conditions and features (including pricing) that they provide to consumers who do opt in.

Consumer Laws and Regulations

CCB is also subject to other federal and state consumer laws and regulations that are designed to protect consumers in

transactions with banks. While the list set forth below is not exhaustive, these laws and regulations include the Truth in Lending

Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Check Clearing for the

21st Century Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Equal Credit Opportunity Act, the

Fair Housing Act, the Home Mortgage Disclosure Act, the Fair and Accurate Credit Transactions Act, the Mortgage Disclosure

Improvement Act, and the Real Estate Settlement Procedures Act, among others. These laws and regulations mandate certain

disclosures and regulate the manner in which financial institutions must deal with clients when taking deposits or making loans to

clients. CCB must comply with these consumer protection laws and regulations as part of its ongoing client relations. 

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In addition, the Consumer Financial Protection Bureau (“CFPB”) issues regulations and standards under these federal consumer

protection laws that affect our consumer businesses. These include regulations setting “ability to repay” standards for residential

mortgage loans and mortgage loan servicing and originator compensation standards, which generally require creditors to make a

reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling

(excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from

liability under this requirement for loans that meet the requirements of the “qualified mortgage” safe harbor. Also, the more recent

TILA-RESPA Integrated Disclosure, or TRID, rules for mortgage closings have impacted our loan applications. These rules,

including the required loan forms, generally increased the time it takes to approve mortgage loans.

Future Legislative Developments

Various bills are from time to time introduced in the U.S. Congress and the Florida legislature. This legislation may change

banking and tax statutes and the environment in which our banking subsidiary and we operate in substantial and unpredictable

ways. We cannot determine the ultimate effect that potential legislation, if enacted, or implementing regulations with respect

thereto, would have upon our financial condition or results of operations or that of our banking subsidiary.

Legislative and Regulatory Responses to the COVID-19 Pandemic

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which came into law in 2020, was a $2.2 trillion

economic stimulus bill that was intended to provide relief in response to the COVID-19 pandemic. The CARES Act, among other

things, amended the SBA’s loan program, in which the Bank participates, to create a guaranteed, unsecured loan program (the

“PPP”) to fund operational costs of eligible businesses, organizations and self-employed persons during COVID-19. The PPP

authorized financial institutions to make federally guaranteed loans to qualifying small businesses and non-profit organizations.

These loans carry an interest rate of 1% per annum and a maturity of two years for loans originated prior to June 5, 2020 and five

years for loans originated on or after June 5, 2020. The PPP provides that such loans may be forgiven if the borrowers meet

certain requirements with respect to maintaining employee headcount and payroll and the use of the loan proceeds after the loan is

originated. Although the PPP ended in accordance with its terms on May 31, 2021, outstanding PPP loans continue to go through

the process of either obtaining forgiveness from the SBA or pursuing claims under the SBA guaranty. 

There have also been a number of regulatory actions intended to help mitigate the adverse economic impact of the COVID-19

pandemic on borrowers, including several mandates from the bank regulatory agencies, requiring financial institutions to work

constructively with borrowers affected by the COVID-19 pandemic. While these programs have generally expired, governmental

authorities may take additional actions in the future to limit the adverse impacts of COVID-19 that may affect the Bank and its

clients.

Effect of Governmental Monetary Policies

The commercial banking business is affected not only by general economic conditions, but also by the monetary policies of the

Federal Reserve. Changes in the discount rate on member bank borrowing, availability of borrowing at the “discount window,”

open market operations, changes in the Fed Funds target interest rate, changes in interest rates payable on reserve accounts, the

imposition of changes in reserve requirements against member banks’ deposits and assets of foreign banking centers and the

imposition of and changes in reserve requirements against certain borrowings by banks and their affiliates are some of the

instruments of monetary policy available to the Federal Reserve. These monetary policies are used in varying combinations to

influence overall growth and distributions of bank loans, investments and deposits, which may affect interest rates charged on

loans or paid on deposits. The monetary policies of the Federal Reserve have had a significant effect on the operating results of

commercial banks and are expected to continue to do so in the future. The Federal Reserve’s policies are primarily influenced by

its dual mandate of price stability and full employment, and, to a lesser degree by short-term and long-term changes in the

international trade balance and in the fiscal policies of the U.S. Government. Future changes in monetary policy and the effect of

such changes on our business and earnings in the future cannot be predicted.

Website Access to Company’s Reports

Our Internet website is www.ccbg.com. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on

Form 8-K, including any amendments to those reports filed or furnished pursuant to section 13(a) or 15(d), and reports filed

pursuant to Section 16, 13(d), and 13(g) of the Exchange Act are available free of charge through our website as soon as

reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission. The

information on our website is not incorporated by reference into this report.

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Item 1A. Risk Factors

An investment in our common stock contains a high degree of risk. You should consider carefully the following risk factors before

deciding whether to invest in our common stock. Our business, including our operating results and financial condition, could be

harmed by any of these risks. Additional risks and uncertainties not currently known to us or that we currently deem to be

immaterial also may materially and adversely affect our business. The trading price of our common stock could decline due to

any of these risks, and you may lose all or part of your investment. In assessing these risks, you should also refer to the other

information contained in our filings with the SEC, including our financial statements and related notes.

Market Risks

We may incur losses if we are unable to successfully manage interest rate risk.

Our profitability depends to a large extent on Capital City Bank’s net interest income, which is the difference between income on

interest-earning assets, such as loans and investment securities, and expense on interest-bearing liabilities such as deposits and

borrowings. We are unable to predict changes in market interest rates, which are affected by many factors beyond our control,

including inflation, recession, unemployment, federal funds target rate, money supply, domestic and international events and 

changes in the United States and other financial markets. Our net interest income may be reduced if: (i) more interest-earning

assets than interest-bearing liabilities reprice or mature during a time when interest rates are declining or (ii) more interest-bearing

liabilities than interest-earning assets reprice or mature during a time when interest rates are rising.

Changes in the difference between short-term and long-term interest rates may also harm our business. We generally use short-

term deposits to fund longer-term assets. When interest rates change, assets and liabilities with shorter terms reprice more quickly

than those with longer terms, which could have a material adverse effect on our net interest margin. During 2022 and 2023, the

Federal Reserve raised the federal funds rate 11 times for a cumulative increase of 5.25% and there is no guarantee that it will

reduce the federal funds rate in the near-term. Prior to 2022, the Federal Reserve had not raised the federal funds rate since

December 2018. The increase in the federal funds rate could have an adverse effect on our net interest income and profitability. If

market interest rates start rising again, interest rate adjustment caps may also limit increases in the interest rates on adjustable-rate

loans, which could further reduce our net interest income. Further, increased price competition for deposits resulting from the

return to a historically normal interest rate environment could adversely affect our net interest margin.

Although we continuously monitor interest rates and have a number of tools to manage our interest rate risk exposure, changes in

market assumptions regarding future interest rates could significantly impact our interest rate risk strategy, our financial position

and results of operations. If we do not properly monitor our interest rate risk management strategies, these activities may not

effectively mitigate our interest rate sensitivity or have the desired impact on our results of operations or financial condition.

Interest rates and economic conditions affect consumer demand for housing and can create volatility in the mortgage industry. 

These risks can have a material impact on the volume of mortgage originations and refinancings, adversely affecting mortgage

banking revenues and the profitability of our mortgage banking business. 

See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations under the section captioned

“Net Interest Income” and “Market Risk and Interest Rate Sensitivity” elsewhere in this report for further discussion related to

interest rate sensitivity and our management of interest rate risk.

The fair value of our investments could decline which would cause a reduction in shareowners’ equity.

A portion of our investment securities portfolio (35.1%) at December 31, 2023 has been designated as available-for-sale pursuant

to U.S. generally accepted accounting principles relating to accounting for investments. Such principles require that unrealized

gains and losses in the estimated value of the available-for-sale portfolio be “marked to market” and reflected as a separate item in

shareowners’ equity (net of tax) as accumulated other comprehensive income/losses. Shareowners’ equity will continue to reflect

the unrealized gains and losses (net of tax) of these investments. The fair value of our investment portfolio may decline, causing a

corresponding decline in shareowners’ equity.

Management believes that several factors will affect the fair values of our investment portfolio. These include, but are not limited

to, changes in interest rates or expectations of changes in interest rates, the degree of volatility in the securities markets, inflation

rates or expectations of inflation and the slope of the interest rate yield curve (the yield curve refers to the differences between

short-term and long-term interest rates; a positively sloped yield curve means short -term rates are lower than long-term rates).

These and other factors may impact specific categories of the portfolio differently, and we cannot predict the effect these factors

may have on any specific category.

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Inflationary pressures and rising prices may affect our results of operations and financial condition.

Inflation rose sharply at the end of 2021 and continued rising in 2022 at levels not seen for over 40 years. Inflationary pressures

eased but remained elevated throughout 2023. Small to medium-sized businesses may be impacted more during periods of high

inflation as they are not able to leverage economies of scale to mitigate cost pressures compared to larger businesses.

Consequently, the ability of our business customers to repay their loans may deteriorate, and in some cases this deterioration may

occur quickly, which would adversely impact our results of operations and financial condition. Furthermore, a prolonged period

of inflation could cause wages and other costs to further increase which could adversely affect our results of operations and

financial condition. Sustained higher interest rates by the Federal Reserve may be needed to tame persistent inflationary price

pressures, which could push down asset prices and weaken economic activity. A deterioration in economic conditions in the

United States and our markets could result in an increase in loan delinquencies and non-performing assets, decreases in loan

collateral values and a decrease in demand for our products and services, all of which, in turn, would adversely affect our

business, financial condition and results of operations.

The impact of interest rates on our mortgage banking business can have a significant impact on revenues.

Changes in interest rates can impact our mortgage-related revenues and net revenues associated with our mortgage activities. A

decline in mortgage rates generally increases the demand for mortgage loans as borrowers refinance, but also generally leads to

accelerated payoffs. Conversely, in a constant or increasing rate environment, we would expect fewer loans to be refinanced and a

decline in payoffs. Although we use models to assess the impact of interest rates on mortgage-related revenues, the estimates of

revenues produced by these models are dependent on estimates and assumptions of future loan demand, prepayment speeds and

other factors which may differ from actual subsequent experience.

Our profitability depends significantly on economic conditions in the States of Florida and Georgia.

Our profitability and the success of our business depends substantially on the general economic conditions of the States of Florida

and, to a lesser extent, Georgia, as well as the specific local markets in which we operate. Unlike larger national or other regional

banks that are more geographically diversified, we provide banking and financial services primarily to customers across northern

Florida and Georgia. The local economic conditions in these areas have a significant impact on the demand for our products and

services as well as the ability of our customers to repay loans, the value of the collateral securing loans and the stability of our

deposit funding sources. As a result, a significant decline in general economic conditions in Florida or Georgia, whether caused

by recession, inflation, unemployment, in-flows and out-flows of residents, shifts in political landscape, changes in securities

markets, acts of terrorism, pandemics, natural disasters, climate change, outbreak of hostilities or other occurrences or other

factors could have a material adverse effect on our business, financial condition and results of operations.

Shares of our common stock are not an insured deposit and may lose value.

The shares of our common stock are not a bank deposit and will not be insured or guaranteed by the FDIC or any other

government agency. Your investment will be subject to investment risk, and you must be capable of affording the loss of your

entire investment.

Limited trading activity for shares of our common stock may contribute to price volatility.

While our common stock is listed and traded on the Nasdaq Global Select Market, there has historically been limited trading

activity in our common stock. The average daily trading volume of our common stock over the 12-month period ending

December 31, 2023 was approximately 33,775 shares. Due to the limited trading activity of our common stock, relativity small

trades may have a significant impact on the price of our common stock. Similarly, significant sales of our common stock, or the

expectation of these sales, could cause our stock prices to fall.

Securities analysts may not initiate coverage or continue to cover our common stock, and this may have a negative impact

on its market price.

The trading market for our common stock will depend in part on the research and reports that securities analysts publish about us

and our business. We do not have any control over securities analysts, and they may not initiate coverage or continue to cover our

common stock. If securities analysts do not cover our common stock, the lack of research coverage may adversely affect its

market price. If we are covered by securities analysts, and our common stock is the subject of an unfavorable report, our stock

price would likely decline. If one or more of these analysts ceases to cover our Company or fails to publish regular reports on us,

we could lose visibility in the financial markets, which may cause our stock price or trading volume to decline.

24

Credit Risks

Our loan portfolio includes loans with a higher risk of loss which could lead to higher loan losses and nonperforming

assets.

We originate commercial real estate loans, commercial loans, construction loans, vacant land loans, consumer loans, and

residential mortgage loans primarily within our market area. Commercial real estate, commercial, construction, vacant land, and

consumer loans may expose a lender to greater credit risk than traditional fixed-rate fully amortizing loans secured by single-

family residential real estate because the collateral securing these loans may not be sold as easily as single-family residential real

estate. In addition, these loan types tend to involve larger loan balances to a single borrower or groups of related borrowers and

are more susceptible to a risk of loss during a downturn in the business cycle. These loans also have historically had greater credit

risk than other loans for the following reasons:

●

Commercial Real Estate Loans

. Repayment is dependent on income being generated in amounts sufficient to cover

operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing

over the loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment

typically will depend on the borrower’s ability to either refinance the loan or timely sell the underlying property. At

December 31, 2023, commercial mortgage loans comprised approximately 30.2% of our total loan portfolio.

●

Commercial Loans

. Repayment is generally dependent upon the successful operation of the borrower’s business. In

addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in

value based on the success of the business. At December 31, 2023, commercial loans comprised approximately 8.2% of

our total loan portfolio.

●

Construction Loans

. The risk of loss is largely dependent on our initial estimate of whether the property’s value at

completion equals or exceeds the cost of property construction and the availability of take-out financing. During the

construction phase, a number of factors can result in delays or cost overruns. If our estimate is inaccurate or if actual

construction costs exceed estimates, the value of the property securing our loan may be insufficient to ensure full

repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. At December 31,

2023, construction loans comprised approximately 7.2% of our total loan portfolio.

●

Vacant Land Loans

. Because vacant or unimproved land is generally held by the borrower for investment purposes or

future use, payments on loans secured by vacant or unimproved land will typically rank lower in priority to the borrower

than a loan the borrower may have on their primary residence or business. These loans are susceptible to adverse

conditions in the real estate market and local economy. At December 31, 2023, vacant land loans comprised

approximately 3.5% of our total loan portfolio.

●

HELOCs

. Our open-ended home equity loans have an interest-only draw period followed by a five-year repayment

period of 0.75% of the principal balance monthly and a balloon payment at maturity. Upon the commencement of the

repayment period, the monthly payment can increase significantly, thus, there is a heightened risk that the borrower will

be unable to pay the increased payment. Further, these loans also involve greater risk because they are generally not fully

amortizing over the loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a

balloon payment may depend on the borrower’s ability to either refinance the loan or timely sell the underlying property. 

At December 31, 2023, HELOCs comprised approximately 7.7% of our total loan portfolio.

●

Consumer Loans

. Consumer loans (such as automobile loans and personal lines of credit) are collateralized, if at all,

with assets that may not provide an adequate source of payment of the loan due to depreciation, damage, or loss. At

December 31, 2023, consumer loans comprised approximately 9.9% of our total loan portfolio, with indirect auto loans

making up a majority of this portfolio at approximately 91.2% of the total balance.

The increased risks associated with these types of loans result in a correspondingly higher probability of default on such loans (as

compared to fixed-rate fully amortizing single-family real estate loans). Loan defaults would likely increase our loan losses and

nonperforming assets and could adversely affect our allowance for credit losses and our results of operations.

25

Our loan portfolio is heavily concentrated in mortgage loans secured by properties in Florida and Georgia which causes

our risk of loss to be higher than if we had a more geographically diversified portfolio. 

Our interest-earning assets are heavily concentrated in mortgage loans secured by real estate, particularly real estate located in

Florida and Georgia. At December 31, 2023, approximately 81.8% of our loans included real estate as a primary, secondary, or

tertiary component of collateral. The real estate collateral in each case provides an alternate source of repayment in the event of

default by the borrower; however, the value of the collateral may decline during the time the credit is extended. If we are required

to liquidate the collateral securing a loan during a period of reduced real estate values to satisfy the debt, our earnings and capital

could be adversely affected.

Additionally, at December 31, 2023, a significant number of our loans secured by real estate are secured by commercial and

residential properties located in Florida and Georgia. The concentration of our loans in these areas subjects us to risk that a

downturn in the economy or recession in these areas could result in a decrease in loan originations and increases in delinquencies

and foreclosures, which would more greatly affect us than if our lending were more geographically diversified. In addition, since

a large portion of our portfolio is secured by properties located in Florida and Georgia, the occurrence of a natural disaster, such

as a hurricane, or a man-made disaster could result in a decline in loan originations, a decline in the value or destruction of

mortgaged properties and an increase in the risk of delinquencies, foreclosures or loss on loans originated by us. We may suffer

further losses due to the decline in the value of the properties underlying our mortgage loans, which would have an adverse

impact on our results of operations and financial condition.

Our concentration in loans secured by real estate may increase our credit losses, which would negatively affect our

financial results. 

Due to the lack of diversified industry within some of the markets served by CCB and the relatively close proximity of our

geographic markets, we have both geographic concentrations as well as concentrations in the types of loans funded. Specifically,

due to the nature of our markets, a significant portion of the portfolio has historically been secured with real estate. At December

31, 2023, approximately 30.2% and 44.4% of our $2.7 billion loan portfolio was secured by commercial real estate and residential

real estate, respectively. As of this same date, approximately 7.2% was secured by property under construction.

In the event we are required to foreclose on a property securing one of our mortgage loans or otherwise pursue our remedies in

order to protect our investment, we may be unable to recover funds in an amount equal to our projected return on our investment

or in an amount sufficient to prevent a loss to us due to prevailing economic conditions, real estate values and other factors

associated with the ownership of real property. As a result, the market value of the real estate or other collateral underlying our

loans may not, at any given time, be sufficient to satisfy the outstanding principal amount of the loans, and consequently, we

would sustain loan losses.

An inadequate allowance for credit losses would reduce our earnings.

We are exposed to the risk that our clients may be unable to repay their loans according to their terms and that any collateral

securing the payment of their loans may not be sufficient to assure full repayment. This could result in credit losses that are

inherent in the lending business. We evaluate the collectability of our loan portfolio and provide an allowance for credit losses

that we believe is adequate based upon such factors as:

●

the risk characteristics of various classifications of loans;

●

previous loan loss experience;

●

specific loans that have loss potential;

●

delinquency trends;

●

estimated fair market value of the collateral;

●

current and future economic conditions; and

●

geographic and industry loan concentrations.

At December 31, 2023, our allowance for credit losses for loans held for investment was $29.9 million, which represented

approximately 1.10% of our total loans held for investment. We had $6.2 million in nonaccruing loans at December 31, 2023. 

The allowance is based on management’s reasonable estimate and may not prove sufficient to cover future loan losses. Although

management uses the best information available to make determinations with respect to the allowance for credit losses, future

adjustments may be necessary if economic conditions differ substantially from the assumptions used or adverse developments

arise with respect to our nonperforming or performing loans. In addition, regulatory agencies, as an integral part of their

examination process, periodically review our estimated losses on loans. Our regulators may require us to recognize additional

losses based on their judgments about information available to them at the time of their examination. Accordingly, the allowance

for credit losses may not be adequate to cover all future loan losses and significant increases to the allowance may be required in

the future if, for example, economic conditions worsen. A material increase in our allowance for credit losses would adversely

impact our net income and capital in future periods, while having the effect of overstating our current period earnings.

26

We may incur significant costs associated with the ownership of real property as a result of foreclosures, which could

reduce our net income.

Since we originate loans secured by real estate, we may have to foreclose on the collateral property to protect our investment and

may thereafter own and operate such property, in which case we would be exposed to the risks inherent in the ownership of real

estate.

The amount that we, as a mortgagee, may realize after a foreclosure is dependent upon factors outside of our control, including,

but not limited to:

●

general or local economic conditions;

●

environmental cleanup liability;

●

neighborhood values;

●

interest rates;

●

real estate tax rates;

●

operating expenses of the mortgaged properties;

●

supply of and demand for rental units or properties;

●

ability to obtain and maintain adequate occupancy of the properties;

●

zoning laws;

●

governmental rules, regulations and fiscal policies; and

●

acts of God.

Certain expenditures associated with the ownership of real estate, including real estate taxes, insurance and maintenance costs,

may adversely affect the income from the real estate. Furthermore, we may need to advance funds to continue to operate or to

protect these assets. As a result, the cost of operating real property assets may exceed the rental income earned from such

properties or we may be required to dispose of the real property at a loss.

Reliance on inaccurate or misleading financial statements, credit reports, or other financial information could have a

material adverse impact on our business, financial condition, and results of operations.

In deciding whether to extend credit or enter into other transactions, we rely on information furnished by or on behalf of

customers and counterparties, including financial statements, credit reports, and other financial information. We also rely on

representations of those customers, counterparties, or other third parties, such as independent auditors, as to the accuracy and

completeness of that information. Reliance on inaccurate or misleading financial statements, credit reports, or other financial

information could have a material adverse impact on our business, financial condition, and results of operations.

Liquidity and Capital Risks

Liquidity risk could impair our ability to fund operations and jeopardize our financial condition.

Effective liquidity management is essential for the operation of our business. We require sufficient liquidity to meet client loan

requests, client deposit maturities and withdrawals, payments on our debt obligations as they come due and other cash

commitments under both normal operating conditions and other unpredictable circumstances causing industry or general financial

market stress. If we are unable to raise funds through deposits, borrowings, earnings and other sources, it could have a substantial

negative effect on our liquidity. In particular, a majority of our liabilities during 2023 were checking accounts and other liquid

deposits, which are generally payable on demand or upon short notice. By comparison, a substantial majority of our assets were

loans, which cannot generally be called or sold in the same time frame. Although we have historically been able to replace

maturing deposits and advances as necessary, we might not be able to replace such funds in the future, especially if a large

number of our depositors seek to withdraw their accounts at the same time, regardless of the reason. Our access to funding

sources in amounts adequate to finance our activities on terms that are acceptable to us could be impaired by factors that affect us

specifically or the financial services industry or economy in general. Factors that could negatively impact our access to liquidity

sources include a decrease in the level of our business activity as a result of a downturn in the markets in which our loans are

concentrated, adverse regulatory action against us, or our inability to attract and retain deposits. Our access to deposits may be

negatively impacted by, among other factors, periods of low interest rates or high interest rates. Periods of high interest rates

could promote increased competition for deposits, including from new financial technology competitors, or provide customers

with alternative investment options. Our ability to borrow could also be impaired by factors that are not specific to us, such as a

disruption in the financial markets or negative views and expectations about the prospects for the financial services industry. If we

are unable to maintain adequate liquidity, it could materially and adversely affect our business, results of operations or financial

condition.

27

A significant decrease in our public fund deposit balances as a result of increased competition in the current higher

interest-rate environment and seasonal nature of these deposits could materially and adversely affect our liquidity. 

The Company has many long-standing relationships with municipal entities throughout its markets and the deposits held by these

customers have provided a relatively attractive and stable (although seasonal) funding source for the Company over an extended

period of time. Public fund deposits from local government entities such as universities, counties, school districts, and other

municipalities generally have higher average balances and historically been more volatile than nonpublic deposits because they

are heavily impacted by the seasonality of tax collection, changes in competitive and market forces, and fiscal spending patterns,

as well as the longer-term financial position of local government entities, which can change from year to year. Such public fund

deposits are often subject to competitive bidding and in many cases must be secured by pledging a portion of our investment

securities.

The Company’s inability to retain public fund deposit balances due to increased competition in the current higher

interest-rate environment and seasonal nature of these deposits could materially and adversely affect our liquidity or result in the

use of higher-cost funding sources, which, in turn, could materially and adversely affect our business, results of operations or

financial condition.

Unrealized losses in our securities portfolio could materially and adversely affect our liquidity.

As market interest rates have increased, we have experienced significant unrealized losses on our available-for-sale securities

portfolio. Unrealized losses related to available-for-sale securities are reflected in accumulated other comprehensive income in

our consolidated statements of financial condition and reduce the level of our book capital and tangible common equity. However,

such unrealized losses do not affect our regulatory capital ratios. We actively monitor our available-for-sale securities portfolio

and we do not currently anticipate the need to realize material losses from the sale of securities for liquidity purposes.

Furthermore, we believe it is unlikely that we would be required to sell any such securities before recovery of their amortized cost

bases, which may be at maturity. Nonetheless, our access to liquidity sources could be affected by unrealized losses if securities

must be sold at a loss, tangible capital ratios decline from an increase in unrealized losses or realized credit losses, the Federal

Home Loan Bank of Atlanta (“FHLB”) or other funding sources reduce capacity, or bank regulators impose restrictions on us that

impact the level of interest rates we may pay on deposits or our ability to access federal funds lines or brokered deposits.

Additionally, significant unrealized losses could negatively impact market and customer perceptions of the Company, which

could lead to a loss of depositor confidence and an increase in deposit withdrawals, particularly among those with uninsured

deposits.

We may need to raise additional capital in the future, and such capital may not be available on acceptable terms or at all.

We may need to raise additional capital in the future to provide us with sufficient capital resources and liquidity to meet our

commitments and business needs, particularly if our asset quality or earnings were to deteriorate significantly. Our ability to raise

additional capital, if needed, will depend on, among other things, conditions in the capital markets at that time, which are outside

of our control, and our financial condition. Economic conditions and the loss of confidence in financial institutions may increase

our cost of funding and limit access to certain customary sources of capital, including inter-bank borrowings, repurchase

agreements and borrowings from the discount window of the Federal Reserve.

Further, as a result of our failure to timely file our Quarterly Report on Form 10-Q for the three-month period ended September

30, 2023, we are currently ineligible to file new short form registration statements on Form S-3 and, absent a waiver of the Form

S-3 eligibility requirements, we are not currently permitted to use our existing registration statement on Form S-3D. If we seek to

access the capital markets through a registered offering during the period of time that we are unable to use Form S-3, we may be

required to publicly disclose the proposed offering and the material terms thereof before the offering commences and we will be

required to use a registration statement on Form S-1 to register securities with the SEC, which would hinder our ability to act

quickly in raising capital to take advantage of market conditions in our capital raising activities and would increase our cost of

raising capital. 

As a result, we may be unable to raise capital on terms favorable to us, in a timely manner or at all, which could materially and

adversely affect our liquidity, business, results of operations, or financial condition. Moreover, if we need to raise capital in the

future, we may have to do so when many other financial institutions are also seeking to raise capital and would have to compete

with those institutions for investors.

We may be unable to pay dividends in the future.

In 2023, our Board of Directors declared four quarterly cash dividends. Declarations of any future dividends will be contingent on

our ability to earn sufficient profits and to remain well capitalized, including our ability to hold and generate sufficient capital to

comply with the Common Equity Tier 1 (“CET1”) Capital conservation buffer requirement. In addition, due to our contractual

obligations with the holders of our trust preferred securities, if we defer the payment of accrued interest owed to the holders of our

trust preferred securities, we may not make dividend payments to our shareowners.

28

Further, under applicable statutes and regulations, CCB’s board of directors, after charging-off bad debts, depreciation and other

worthless assets, if any, and making provisions for reasonably anticipated future losses on loans and other assets, may quarterly,

semi-annually, or annually declare and pay dividends to CCBG of up to the aggregate net income of that period combined with

the CCB’s retained net income for the preceding two years and, with the approval of the Florida Office of Financial Regulation

and Federal Reserve, declare a dividend from retained net income which accrued prior to the preceding two years. Additional

state laws generally applicable to Florida corporations may also limit our ability to declare and pay dividends. Thus, our ability to

fund future dividends may be restricted by state and federal laws and regulations.

Regulatory and Compliance Risks

We are subject to extensive regulation, which could restrict our activities and impose financial requirements or limitations

on the conduct of our business.

We are subject to extensive regulation, supervision and examination by our regulators, including the Florida Office of Financial

Regulation, the Federal Reserve, and the FDIC. Our compliance with these industry regulations is costly and restricts certain of

our activities, including payment of dividends, mergers and acquisitions, investments, lending and interest rates charged on loans,

interest rates paid on deposits, access to capital and brokered deposits and locations of banking offices. If we are unable to meet

these regulatory requirements, our financial condition, liquidity and results of operations would be materially and adversely

affected.

Our activities are also regulated under consumer protection laws applicable to our lending, deposit, and other activities. Many of

these regulations are intended primarily for the protection of our depositors, the DIF, and the banking system as a whole, and not

for the benefit of our shareowners. In addition to the regulations of the bank regulatory agencies, as a member of the FHLB of

Atlanta, we must also comply with applicable regulations of the Federal Housing Finance Agency and the Federal Home Loan

Bank.

Our failure to comply with these laws and regulations could subject us to the loss of FDIC insurance, reputational damage, the

revocation of our banking charter, enforcement actions, sanctions, or other legal actions by regulatory agencies, restrictions on our

business activities, fines, and other penalties, any of which could adversely affect our results of operations, capital base, and the

price of our securities. Further, any new laws, rules, regulations, policies, and supervisory guidance or changes in existing laws,

rules, regulations, policies, and supervisory guidance (including changes in interpretation and implementation) could make

compliance more difficult or expensive or otherwise adversely affect our business and financial condition. 

Government authorities, including the bank regulatory agencies, are pursuing aggressive enforcement actions with respect to

compliance and other legal matters involving financial activities, which heightens the risks associated with actual and perceived

compliance failures. Directives issued to enforce such actions may be confidential and thus, in some instances, we are not

permitted to publicly disclose these actions. Any of the foregoing could have a material adverse effect on our business, financial

condition, and results of operations. 

In addition, we anticipate increased regulatory scrutiny, in the course of routine examinations and otherwise, and new regulations

in response to recent negative developments in the banking industry, which may increase our cost of doing business and reduce

our profitability. Among other things, there may be increased focus by both regulators and investors on deposit composition, the

level of uninsured deposits, brokered deposits, unrealized losses in securities portfolios, liquidity, commercial real estate loan

composition and concentrations, and capital as well as general oversight and control of the foregoing. We could face increased

scrutiny or be viewed as higher risk by regulators and the investor community, which could have a material adverse effect on our

business, financial condition, and results of operations.

Please refer to the Section entitled “Business – Regulatory Considerations” on page 12.

U.S. federal banking agencies may require us to increase our regulatory capital, long-term debt or liquidity requirements,

which could result in the need to issue additional qualifying securities or to take other actions, such as to sell company

assets.

We are subject to U.S. regulatory capital and liquidity rules. These rules, among other things, establish minimum requirements to

qualify as a well-capitalized institution. If CCB fails to maintain its status as well capitalized under the applicable regulatory

capital rules, the Federal Reserve will require us to agree to bring the bank back to well-capitalized status. For the duration of

such an agreement, the Federal Reserve may impose restrictions on our activities. If we were to fail to enter into or comply with

such an agreement or fail to comply with the terms of such agreement, the Federal Reserve may impose more severe restrictions

on our activities, including requiring us to cease and desist activities permitted under the Bank Holding Company Act of 1956.

Additionally, if our CET1 to Risk Weighted Assets ratio does not exceed the minimum required plus the additional CET1

conservation buffer, we may be restricted in our ability to pay dividends or make other distributions of capital to our shareowners.

29

Capital and liquidity requirements are frequently introduced and amended. It is possible that regulators may increase regulatory

capital requirements, change how regulatory capital is calculated or increase liquidity requirements. Requirements to maintain

higher levels of capital may lower our return on equity.

Further changes to and compliance with the regulatory capital and liquidity requirements may impact our operations by requiring

us to liquidate assets, increase borrowings, issue additional equity or other securities, cease or alter certain operations, sell

company assets or hold highly liquid assets, which may adversely affect our results of operations. We may be prohibited from

taking capital actions such as paying or increasing dividends or repurchasing securities.

Changes in accounting standards or assumptions in applying accounting policies could adversely affect us.

Our accounting policies and methods are fundamental to how we record and report our financial condition and results of

operations. Some of these policies require use of estimates and assumptions that may affect the reported value of our assets or

liabilities and results of operations and are critical because they require management to make difficult, subjective and complex

judgments about matters that are inherently uncertain. If those assumptions, estimates or judgments were incorrectly made, we

could be required to correct and restate prior-period financial statements. Accounting standard-setters and those who interpret the

accounting standards, the SEC, banking regulators and our independent registered public accounting firm may also amend or even

reverse their previous interpretations or positions on how various standards should be applied. These changes may be difficult to

predict and could impact how we prepare and report our financial statements. In some cases, we could be required to apply a new

or revised standard retrospectively, resulting in us revising prior-period financial statements. 

Florida financial institutions, such as CCB, face a higher risk of noncompliance and enforcement actions with the Bank

Secrecy Act and other anti-money laundering statutes and regulations.

Since September 11, 2001, banking regulators have intensified their focus on anti-money laundering and BSA compliance

requirements, particularly the anti-money laundering provisions of the USA PATRIOT Act. There is also increased scrutiny of

compliance with the rules enforced by the Office of Foreign Assets Control, or OFAC. Since 2004, federal banking regulators and

examiners have been extremely aggressive in their supervision and examination of financial institutions located in the State of

Florida with respect to the institution’s BSA/anti-money laundering compliance. Consequently, numerous formal enforcement

actions have been instituted against financial institutions. If CCB’s policies, procedures and systems are deemed deficient or the

policies, procedures and systems of the financial institutions that it has already acquired or may acquire in the future are deficient,

CCB would be subject to liability, including fines and regulatory actions such as restrictions on its ability to pay dividends and the

necessity to obtain regulatory approvals to proceed with certain aspects of its business plan, including its acquisition plans.

We are subject to government regulation and oversight relating to data and privacy protection.

Our business requires the collection and retention of large volumes of customer data, including personally identifiable information

in various information systems that we maintain and in those maintained by third parties with whom we contract. We also

maintain important internal company data such as personally identifiable information about our associates and information

relating to our operations. The integrity and protection of that customer and company data is important to us. 

We are subject to complex and evolving laws and regulations relating to the privacy of the information of our customers,

associates and others, and any failure to comply with these laws and regulations, or any misuse or mismanagement of such

information, could expose us to liability and reputational damage, which could adversely affect our financial condition and results

of operations. As new privacy-related laws and regulations are implemented, the time and resources needed for us to comply with

such laws and regulations, as well as our potential liability for non-compliance and reporting obligations in the case of data

breaches, may significantly increase. It is possible that these laws may be interpreted and applied by various jurisdictions in a

manner inconsistent with our current or future practices, or that is inconsistent with one another. 

Fee revenues from overdraft protection programs constitute a significant portion of our noninterest income and may be

subject to increased supervisory scrutiny. 

Revenues derived from transaction fees associated with overdraft protection programs offered to consumers represent a

significant portion of our noninterest income. In 2023, the Company collected approximately $9.6 million in net consumer

overdraft transaction fees. 

30

In 2022, certain members of Congress and the leadership of the CFPB have expressed a heightened interest in bank consumer

overdraft protection programs. In 2022, the CFPB piloted a supervision effort to collect key metrics from some supervised

institutions regarding the consumer impact of their overdraft and non-sufficient fund practices, with the intent of using this

information to identify institutions for further examination and review. The CFPB has indicated that it intends to pursue

enforcement actions against banking organizations, and their executives, that oversee overdraft practices that are deemed to be

unlawful, and indeed took action against a large bank for charging “surprise” overdraft fees known as authorized positive fee. In

October of 2022, the CFPB issued guidance to help banks avoid charging illegal surprise overdraft fees. In addition, the

Comptroller of the Currency has identified potential options for reform of national bank overdraft protection practices, including

providing a grace period before the imposition of a fee, refraining from charging multiple fees in a single day and eliminating fees

altogether. 

In response to this increased congressional and regulatory scrutiny, and in anticipation of enhanced supervision and enforcement

of overdraft protection practices in the future, certain banking organizations have begun to modify their overdraft protection

programs, including by discontinuing the imposition of overdraft transaction fees and amending their payment priority policies

and procedures. These competitive pressures from our peers, as well as any adoption by our regulators of new rules or supervisory

guidance or more aggressive examination and enforcement policies in respect of banks’ overdraft protection practices, could

cause us to modify our program and practices in ways that may have a negative impact on our revenue and earnings, which, in

turn, could have an adverse effect on our financial condition and results of operations.

Operational Risks

Many types of operational risks can affect our earnings negatively.

We regularly assess and monitor operational risk in our businesses. Despite our efforts to assess and monitor operational risk, our

risk management framework may not be effective in all cases. Factors that can impact operations and expose us to risks varying in

size, scale and scope include:

●

failures of technological systems or breaches of security measures, including, but not limited to, those resulting from

computer viruses or cyber-attacks;

●

unsuccessful or difficult implementation of computer systems upgrades;

●

human errors or omissions, including failures to comply with applicable laws or corporate policies and procedures;

●

theft, fraud or misappropriation of assets, whether arising from the intentional actions of internal personnel or external

third parties;

●

breakdowns in processes, breakdowns in internal controls or failures of the systems and facilities that support our

operations;

●

deficiencies in services or service delivery;

●

negative developments in relationships with key counterparties, third-party vendors, or associates in our day-to-day

operations; and

●

external events that are wholly or partially beyond our control, such as pandemics, geopolitical events, political unrest,

natural disasters or acts of terrorism.

While we have in place many controls and business continuity plans designed to address these factors and others, these plans may

not operate successfully to mitigate these risks effectively. If our controls and business continuity plans do not mitigate the

associated risks successfully, such factors may have a negative impact on our business, financial condition or results of

operations. In addition, an important aspect of managing our operational risk is creating a risk culture in which all associates fully

understand that there is risk in every aspect of our business and the importance of managing risk as it relates to their job functions.

We continue to enhance our risk management program to support our risk culture. Nonetheless, if we fail to provide the

appropriate environment that sensitizes all of our associates to managing risk, our business could be impacted adversely.

31

We are subject to certain operational risks, including, but not limited to

risk arising from failure or circumvention of our

controls and procedures.

Our internal controls, including fraud detection and controls, disclosure controls and procedures, and corporate governance

procedures are based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives

of the controls and procedures are met. Notwithstanding the proliferation of technology and technology-based risk and control

systems, we rely on the ability of our associates and systems to process a high number of transactions, and we are subject to the

risk that our associates may make mistakes or engage in violations of applicable policies, laws, rules, or procedures that in the

past have not, and in the future may not, always be prevented by our technological processes or by our controls and other

procedures intended to prevent and detect such errors or violations. Any failure or circumvention of our controls and procedures,

failure to comply with regulations related to controls and procedures, failure to comply with our corporate governance procedures,

fraud by associates or persons outside our Company, the execution of unauthorized transactions by associates, or errors relating to

transaction processing and technology could have a material adverse effect on our reputation, business, financial condition and

results of operations, including subjecting us to litigation, customer attrition, regulatory fines, penalties, or other sanctions.

Insurance coverage may not be available for losses relating to such event, or where available, such losses may exceed insurance

limits.

We are subject to credit and/or settlement risk arising from the soundness of other financial institutions and

counterparties which may have a material adverse effect on our business, financial condition, and results of operations.

Financial services institutions are interrelated as a result of trading, clearing, counterparty, or other relationships. We have

exposure to many different industries and counterparties, and routinely execute transactions with counterparties in the financial

services industry, including commercial banks, brokers and dealers, investment banks, other institutional clients, and certain

vendors. Many of these transactions expose us to credit or settlement risk in the event of a default or other failure to adhere to

contractual obligations by a counterparty or client. In addition, our credit or settlement risk may be exacerbated when any

collateral held by us cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the credit or

derivative exposure due to us. Increased interconnectivity amongst financial institutions also increases the risk of cyber-attacks

and information system failures for financial institutions. Any such losses could have a material adverse effect on our business,

financial condition, and results of operations.

The Company recently identified a material weakness in its internal control over financial reporting. If we are not able to

remediate this material weakness, or if we experience additional material weaknesses or other deficiencies in our internal

control over financial reporting in the future or otherwise fail to maintain an effective system of internal control over

financial reporting, we may not be able to accurately report our financial results, prevent fraud, or file our periodic

reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may

lead to a decline in our stock price.

As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses

in such internal control. Section 404 of the Sarbanes -Oxley Act requires that we furnish a report by management on, among other

things, the effectiveness of our internal control over financial reporting. This assessment requires disclosure of any material

weaknesses identified by our management in our internal control over financial reporting. Our independent registered public

accounting firm also needs to attest to the effectiveness of our internal control over financial reporting. Effective internal control

over financial reporting is necessary for us to provide reliable financial reports and, together with adequate disclosure controls and

procedures, is designed to prevent fraud. Any failure to maintain or implement required new or improved controls, or difficulties

encountered in implementation could cause us to fail to meet our reporting obligations. 

In the fourth quarter of 2023, management identified a material weakness in its internal control over financial reporting related to

certain inter-company transactions. As discussed in Item 9A. Controls and Procedures, the Company's management has re-

evaluated its assessment of the effectiveness of internal control over financial reporting and its disclosure controls and procedures

and concluded that they were not effective as of December 31, 2023. Management has implemented controls in accordance with a

remediation plan to address the material weakness. For additional information related to the material weakness in internal control

over financial reporting and the related remedial measures, see Item 9A. Controls and Procedures.

There can be no assurance as to when the material weakness will be remediated or that additional material weaknesses will not

arise in the future. If the Company is unable to maintain effective internal control over financial reporting, its ability to record,

process and report financial information timely and accurately could be adversely affected, which could subject the Company to

litigation, investigations, or breach of contract claims, require management resources, increase costs, negatively affect investor

confidence, and adversely impact its stock price.

We face risks related to the restatement of our Impacted Statements of Cash Flows.

32

As discussed in the Explanatory Note, we determined to restate the Impacted Statements of Cash Flows. These restatements are in

addition to the restatements contained in our Form 10-K/A for December 31, 2022 and our Form 10-Q/A filings for March 31,

2023 and June 30, 2023, each of which were filed with the SEC on December 22, 2023. As a result, we have incurred

unanticipated costs for accounting and legal fees in connection with the restatements and become subject to some additional risks

and uncertainties, which could affect investor confidence in the accuracy of our financial disclosures and may cause reputational

harm to our business. We may face potential for litigation or other disputes, which may include, among others, claims invoking

the federal and state securities laws. In addition, the processes undertaken to effect the restatements may not have been adequate

to identify and correct all errors in our historical financial statements. If one or more of the foregoing risks persist, our business,

operations and financial condition could be materially and adversely affected.

Cybersecurity incidents, including security breaches and failures of our information systems could significantly disrupt

our business, result in the unintended disclosure or misuse of confidential or proprietary information, damage our

reputation, increase our costs, and cause losses.

In the ordinary course of business, we rely on electronic communications and information systems to conduct our operations and

to store sensitive data

, including our proprietary business information and that of our clients, and personally identifiable

information of our clients and associates. The secure processing, maintenance, and transmission of this information is critical to

our operations.

 Our systems, or those of our clients, could be vulnerable to cybersecurity-related incidents, which include

breaches of information systems, attempts to access information, including customer and company information, malicious code,

computer viruses and denial of service attacks that could result in unauthorized access, theft, misuse, loss, release, or destruction

of data (including confidential customer information), account takeovers, unavailability of service, or other events. These types of

threats may derive from human error, fraud, or malice on the part of external or internal parties or may result from accidental

technological failure. Any failure, interruption, or breach in security of these systems could result in significant disruption to our

operations.

Financial institutions and companies engaged in data processing have increasingly reported breaches in the security of their

websites or other systems, some of which have involved sophisticated and targeted attacks intended to obtain unauthorized access

to confidential information, destroy data, disrupt or degrade service, sabotage systems, or cause other damage. Our technologies,

systems, networks, and software have been and continue to be subject to cybersecurity threats and attacks, which range from

uncoordinated individual attempts to sophisticated and targeted measures directed at us. Our customers, associates, and third

parties that we do business with have been, and will likely continue to be, targeted in cybersecurity-related incidents by parties

using fraudulent e-mails, artificial intelligence, and other communications in attempts to misappropriate passwords, bank account

information, or other personal information or to introduce viruses or other malware programs to our information systems, the

information systems of our third-party service providers and our customers’ personal devices, which are beyond our security

control systems. Though we endeavor to mitigate these threats through product improvements, use of encryption and

authentication technology and customer and employee education, such cyber-attacks against us, our third-party service providers

and our customers remain a serious issue and have been successful in the past.

We may be required to spend significant capital and other resources to protect against the threat of cybersecurity-related incidents

or to alleviate problems caused by such incidents. Any failures related to upgrades and maintenance of our technology and

information systems could increase our information and system security risk. Our increased use of cloud and other technologies,

such as remote work technologies, also increases our risk of being subject to a cyber-related incident. The risk of a cybersecurity-

related incident has increased as the number, intensity, and sophistication of attempted attacks and intrusions from around the

world have increased. A cybersecurity-related incident or other significant disruption of our information systems or those of our

customers or third-party vendors could (i) disrupt the proper functioning of our networks and systems and therefore our

operations and those of our customers; (ii) result in the unauthorized access to, and destruction, loss, theft, misappropriation, or

release of confidential, sensitive, or otherwise valuable information of ours or our customers; (iii) result in a violation of

applicable privacy, data protection, and other laws, subjecting us to additional regulatory scrutiny and exposing us to civil

litigation, enforcement actions, governmental fines, and possible financial liability; (iv) require significant management attention

and resources to remedy the damages that result; or (v) harm our reputation or cause a decrease in the number of customers that

choose to do business with us, damaging our ability to generate deposits. The occurrence of any of the foregoing could have a

material adverse effect on our business, financial condition, and results of operations. Furthermore, in the event of a cyber-related

incident, we may be delayed in identifying or responding to the incident, which could increase the negative impact of the incident

on our business, financial condition, and results of operations. While we maintain “cyber” insurance coverage, which would apply

in the event of certain cyber-related incidents, the amount of coverage may not be adequate depending on the magnitude of the

incident. Furthermore, because cyber-related incidents are inherently difficult to predict and can take many forms, some incidents

may not be covered under our cyber insurance coverage.

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Increased fraudulent activity may cause losses to us or our clients, damage to our brand, and increases in our costs, in

turn, materially and adversely affecting our business, financial condition, and results of operations.

Additionally, fraud losses have risen in recent years due in large part to growing and evolving schemes. Fraudulent activity has

taken many forms, ranging from wire fraud, debit card fraud, credit card fraud, check fraud, mechanical devices attached to

ATMs, social engineering, and phishing attacks to obtain personal information, business email compromise, or impersonation of

clients through the use of falsified or stolen credentials. Many financial institutions have suffered significant losses in recent years

due to the theft of cardholder data that has been illegally exploited for personal gain. The potential for debit and credit card fraud,

as well as check fraud, against us or our clients and our third-party service providers is a serious issue. Debit and credit card fraud

and check fraud are pervasive, and the risks of cybercrime are complex and continue to evolve. While we have policies and

procedures, as well as fraud detection tools, designed to prevent fraud losses, such policies, procedures, and tools may be

insufficient to accurately detect and prevent fraud. A significant increase in fraudulent activities could lead us to take additional

steps to reduce fraud risk, which could increase our costs. Fraud losses could cause losses to us or our clients, damage to our

brand, and an increase in our costs, in turn, materially and adversely affecting our business, financial condition, and results of

operations.

We may not be able to attract and retain skilled people, which may have a negative impact on our business and

operations.

Our success depends, in large part, on our ability to attract and retain key people. Competition for the best people in many

activities engaged in by us is intense, including with respect to compensation and emerging workplace practices and

accommodations, and, as a result, we may not be able to sufficiently hire or to retain key people. We do not currently have

employment agreements or non-competition agreements with any of our senior officers. The unexpected loss of service of key

personnel could have a material adverse impact on our business, financial condition, and results of operations because of their

customer relationships, skills, knowledge of our market, years of industry experience, and the difficulty of promptly finding

qualified replacement personnel. In addition, the scope and content of U.S. banking regulators’ policies on incentive

compensation, as well as changes to these policies, could adversely affect our ability to hire, retain, and motivate our key

associates.

Issues we encounter with respect to external vendors upon which we rely could have a material adverse effect on our

business and, in turn, our financial condition and results of operations.

We rely on certain external vendors to provide products and services necessary to maintain our day-to-day operations. These

third-party vendors are sources of operational and informational security risk to us, including risks associated with operational

errors, information system failures, interruptions or breaches, and unauthorized disclosures of sensitive or confidential client or

customer information. If we encounter any of these issues in connection with our external vendors, or if we have difficulty

communicating with these vendors, we could be exposed to disruption of operations, loss of service, or connectivity to customers,

reputational damage, and litigation risk that could have a material adverse effect on our business and, in turn, our financial

condition and results of operations.

In addition, our operations are exposed to risk that these vendors will not perform in accordance with the contracted arrangements

under service level agreements. Although we have selected these external vendors carefully, we do not control their actions. The

failure of an external vendor to perform in accordance with the contracted arrangements under service level agreements could be

disruptive to our operations, which could have a material adverse effect on our business and, in turn, our financial condition and

results of operations. Replacing these external vendors could also entail significant delay and expense.

Pandemics, severe weather, natural disasters, global climate change, acts of terrorism and global conflicts may have a

negative impact on our business and operations.

Pandemics (such as the COVID-19 pandemic), severe weather, natural disasters, global climate change, acts of terrorism, global

conflicts, or other similar events have in the past, and may in the future have, a negative impact on our business and operations.

These events impact us negatively to the extent that they result in reduced capital markets activity, lower asset price levels, or

disruptions in general economic activity in the United States or abroad, or in financial market settlement functions. In addition,

such events could affect the stability of our deposit base, impair the ability of borrowers to repay outstanding loans, impair the

value of collateral securing loans, cause significant property damage, result in loss of revenue, cause us to incur additional

expenses, and impact economic growth negatively. If any of these risks materialized, they could have an adverse effect on our

business and operations and may have other adverse effects on us in ways that we are unable to predict.

34

Litigation may adversely affect our results.

We are subject to litigation in the ordinary course of business. Claims and legal actions, including claims pertaining to our

performance of our fiduciary responsibilities as well as supervisory actions by our regulators, could involve large monetary

claims and significant defense costs. The outcome of litigation and regulatory matters as well as the timing of ultimate resolution

are inherently difficult to predict.

Actual legal and other costs of resolving claims may be greater than our legal reserves. The ultimate resolution of a pending legal

proceeding, depending on the remedy sought and granted, could materially adversely affect our results of operations and financial

condition.

In addition, governmental authorities have, at times, sought criminal penalties against companies in the financial services sector

for violations, and, at times, have required an admission of wrongdoing from financial institutions in connection with resolving

such matters. Criminal convictions or admissions of wrongdoing in a settlement with the government can lead to greater exposure

in civil litigation and reputational harm.

Substantial legal liability or significant regulatory action against us could have material adverse financial effects or cause

significant reputational harm, which adversely impact our business prospects. Further, we may be exposed to substantial

uninsured liabilities, which could adversely affect our results of operations and financial condition.

Strategic Risks

Our future success is dependent on our ability to compete effectively in the highly competitive banking industry.

We face vigorous competition for deposits, loans and other financial services in our market area from other banks and financial

institutions, including savings and loan associations, savings banks, finance companies and credit unions. A number of our

competitors are significantly larger than we are and have greater access to capital and other resources. Many of our competitors

also have higher lending limits, more expansive branch networks, and offer a wider array of financial products and services. To a

lesser extent, we also compete with other providers of financial services, such as money market mutual funds, brokerage firms,

consumer finance companies, insurance companies and governmental organizations, which may offer financial products and

services on more favorable terms than we are able to. Many of our non-bank competitors are not subject to the same extensive

regulations that govern our activities. As a result, these non-bank competitors have advantages over us in providing certain

services. The effect of this competition may reduce or limit our margins or our market share and may adversely affect our results

of operations and financial condition.

Our inability to adapt our business strategies, products, and services could harm our business.

We rely on a diversified mix of financial products and services through multiple distribution channels. Our success depends on

our and our third-party providers’ of products and services abilities to adapt our business strategies, products, and services and

their respective features in a timely manner, including available payment processing services and technology to rapidly evolving

industry standards and consumer preferences.

The widespread adoption and rapid evolution of emerging technologies, including artificial intelligence, analytic capabilities, self-

service digital trading platforms and automated trading markets, internet services, and digital assets, such as central bank digital

currencies, cryptocurrencies (including stablecoins), tokens, and other cryptoassets that utilize distributed ledger technology

(DLT), as well as DLT in payment, clearing, and settlement processes creates additional risks, could negatively impact our ability

to compete, and require substantial expenditures to the extent we were to modify or adapt our existing products and services. As

such new technologies evolve and mature, our businesses and results of operations could be adversely impacted, including as a

result of the introduction of new competitors to the payment ecosystem and increased volatility in deposits and significant long-

term reduction in deposits. In addition, cloud technologies are also critical to the operation of our systems, and our reliance on

cloud technologies is growing. Failure to successfully keep pace with technological change affecting the financial services

industry could have a material adverse effect on our business, financial condition, and results of operations.

35

Also, we may not be timely or successful in developing or introducing new products and services, integrating new products or

services into our existing offerings, responding, managing, or adapting to changes in consumer behavior, preferences, spending,

investing and saving habits, achieving market acceptance of our products and services, or reducing costs in response to pressures

to deliver products and services at lower prices. There are substantial risks and uncertainties associated with these efforts,

particularly in instances where the markets are not fully developed. In developing and marketing new products and services, we

invest significant time and resources. Initial timetables for the introduction and development of new products or services may not

be achieved, and price and profitability targets may not prove feasible. External factors, such as compliance with regulations,

competitive alternatives, and shifting market preferences, may also impact the successful implementation of new products or

services. The Company’s, or its third-party providers’, inability or resistance to timely innovate or adapt its operations, products,

and services to evolving industry standards and consumer preferences could result in service disruptions and harm our business

and adversely affect our results of operations and reputation.

Furthermore, any new products, services, or technology could have a significant impact on the effectiveness of our system of

internal controls. Failure to successfully manage these risks in the development and implementation of new products or services

could have a material adverse effect on our business, financial condition, and results of operations.

Our directors, executive officers, and principal shareowners, if acting together, have substantial control over all matters

requiring shareowner approval, including changes of control. Because Mr. William G. Smith, Jr. is a principal

shareowner and our Chairman, President, and Chief Executive Officer and Chairman of CCB, he has substantial control

over all matters on a day-to-day basis.

Our directors, executive officers, and principal shareowners beneficially owned approximately 19.2% of the outstanding shares of

our common stock at December 31, 2023. William G. Smith, Jr., our Chairman, President and Chief Executive Officer

beneficially owned 17.2% of our shares as of that date. Accordingly, these directors, executive officers, and principal

shareowners, if acting together, may be able to influence or control matters requiring approval by our shareowners, including the

election of directors and the approval of mergers, acquisitions or other extraordinary transactions. Moreover, because William G.

Smith, Jr. is the Chairman, President, and Chief Executive Officer of CCBG and Chairman of CCB, he has substantial control

over all matters on a day-to-day basis, including the nomination and election of directors.

These directors, executive officers, and principal shareowners may also have interests that differ from yours and may vote in a

way with which you disagree, and which may be adverse to your interests. The concentration of ownership may have the effect of

delaying, preventing or deterring a change of control of our Company, could deprive our shareowners of an opportunity to receive

a premium for their common stock as part of a sale of our Company and might ultimately affect the market price of our common

stock. You may also have difficulty changing management, the composition of the Board of Directors, or the general direction of

our Company.

Our Articles of Incorporation, Bylaws, and certain laws and regulations may prevent or delay transactions you might

favor, including a sale or merger of CCBG.

CCBG is registered with the Federal Reserve as a financial holding company under the Bank Holding Company Act, or BHC Act.

As a result, we are subject to supervisory regulation and examination by the Federal Reserve. The GLBA, the BHC Act, and other

federal laws subject financial holding companies to restrictions on the types of activities in which they may engage, and to a range

of supervisory requirements and activities, including regulatory enforcement actions for violations of laws and regulations.

Provisions of our Articles of Incorporation, Bylaws, certain laws and regulations and various other factors may make it more

difficult and expensive for companies or persons to acquire control of us without the consent of our Board of Directors. It is

possible, however, that you would want a takeover attempt to succeed because, for example, a potential buyer could offer a

premium over the then prevailing price of our common stock.

For example, our Articles of Incorporation permit our Board of Directors to issue preferred stock without shareowner action. The

ability to issue preferred stock could discourage a company from attempting to obtain control of us by means of a tender offer,

merger, proxy contest or otherwise. We are also subject to certain provisions of the Florida Business Corporation Act and our

Articles of Incorporation that relate to business combinations with interested shareowners. Other provisions in our Articles of

Incorporation or Bylaws that may discourage takeover attempts or make them more difficult include: 

●

Supermajority voting requirements to remove a director from office;

●

Provisions regarding the timing and content of shareowner proposals and nominations;

●

Supermajority voting requirements to amend Articles of Incorporation unless approval is received by a majority of

“disinterested directors”;

●

Absence of cumulative voting; and

●

Inability for shareowners to take action by written consent.

36

Reputational Risks

Damage to our reputation could harm our businesses, including our competitive position and business prospects.

Reputation risk, or the risk to our earnings, liquidity, and capital from negative public opinion, is inherent in our business.

Negative public opinion could adversely affect our ability to attract and retain customers, clients, investors and associates and

expose us to adverse legal and regulatory consequences. Negative public opinion could result from our actual or alleged conduct

and can arise from various sources, including (a) officer, director or associate fraud, misconduct, and unethical behavior; (b)

security breaches; (c) litigation or regulatory outcomes; (d) compensation practices; (e) lending practices; (f) branching strategy;

(g) the suitability or reasonableness of recommending particular trading or investment strategies, including the reliability of our

research and models; (h) prohibiting clients from engaging in certain transactions; (h) associate sales practices; (i) failure to

deliver products and services; (j) subpar standards of service and quality expected by our customers, clients, and the community;

(k) compliance failures; (l) mergers and acquisitions; (m) the inability to manage technology change or maintain effective data

management; (n) cyber incidents; (o) internal and external fraud (including check fraud and debit card and credit card fraud); (p)

inadequacy of responsiveness to internal controls; (q) unintended disclosure of personal, proprietary or confidential information;

(r) failure (or perceived failure) to identify and manage actual and potential conflicts of interest; (s) breach of fiduciary

obligations; (t) the handling of health emergencies or pandemics, (u) the activities of our clients, customers, counterparties, and

third parties, including vendors; (v) our environmental, social, and governance practices and disclosures, including practices and

disclosures related to climate change; (w) our response (or lack of response) to social and sustainability concerns; and (x) actions

by the financial services industry generally or by certain members or individuals in the industry. In addition, adverse publicity or

negative information posted on social media by associates, the media or otherwise, whether or not factually correct, may

adversely impact our reputation. Harm to our reputation may adversely and materially affect our competitive position, business

prospects, and financial results.

Item 1B.

Unresolved Staff Comments

None.

Item 1C.

Cybersecurity

Risk Management and Strategy

Our enterprise risk management program is designed to identify, assess, and mitigate risks across various aspects of our

Company, including financial, operational, market, regulatory, technology, legal, and reputational. Cybersecurity risk is a critical

component of our technology risk management program, specifically our information security program given the increasing

reliance on technology and potential of cyber risk threats. Our Chief Information Security Officer (“CISO”) is primarily

responsible for coordinating the various aspects of the information security program with cross-functional support teams. The

Chief Operating Officer (“COO”), management risk committees, and the Board of Directors provide oversight of the program and

its activities. 

Our objective for managing cybersecurity risk is to avoid or minimize the impacts of external threat events or other efforts to

penetrate, disrupt or misuse systems or information. Our cybersecurity risk management infrastructure is designed around

regulatory guidance, other industry standards and the National Institute of Standards and Technology (“NIST”) Cybersecurity

Framework, although this does not imply that we meet all technical standards, specification, or requirements under the NIST. Our

CISO and Information Security Officer (“ISO”) along with key members of their respective teams, regularly collaborate with peer

banks, industry groups, and policymakers to discuss cybersecurity trends and issues and identify best practices. Our information

security program and cyber risk management policies and procedures are periodically reviewed by the CISO and ISO with the

goal of addressing changing threats and conditions. 

The parts of our information security program relating to cybersecurity are built on a multi-layered and integrated defense model

and include the following processes:

◾

Risk-based controls for information systems and information on our networks:

 We maintain risk management

processes designed to identify, assess, and manage cybersecurity risks associated with external service providers and the

services we provide to our clients. We leverage people, processes, and technology as part of our efforts to manage and

maintain cybersecurity controls. We also employ a variety of preventative and detective tools designed to monitor, block,

and provide alerts regarding suspicious activity, as well as to report on suspected advanced persistent threats. We seek to

maintain a risk management infrastructure that implements physical, administrative and technical controls that are

designed, based on risk, to protect our information systems and the information stored on our networks, including personal

information, intellectual property and proprietary information of our Company and our clients.

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◾

Incident response program:

We have an incident response program and dedicated teams to respond to cybersecurity,

physical and administrative incidents. When a cybersecurity incident occurs, we have cross-functional teams that are

responsible for leading the initial assessment of priority and severity and communicating material cybersecurity incidents

to the appropriate members of management and the Board of Directors.

◾

Training and testing:

We have established processes and systems designed to mitigate cybersecurity risk, including

regular and on-going education and training for associates, preparedness simulations and tabletop exercises, and recovery

and resilience tests. We also actively monitor our email gateways for malicious phishing email campaigns and monitor

remote connections.

◾

Internal and external risk assessments:

 We engage in regular assessments of our infrastructure, software systems, and

network architecture using internal experts and third-party specialists. Our internal auditor and other independent external

partners will periodically review our processes, systems, and controls, including with respect to our information security

program, to assess their design and operating effectiveness and make recommendations to strengthen our risk management

processes. 

Notwithstanding our defensive measures and processes, the threat posed by cyber-attacks is severe. Our internal systems,

processes, and controls are designed to mitigate loss from cyber-attacks and, while we have experienced cybersecurity incidents

in the past, to date, risks from cybersecurity threats have not materially affected our Company. For further discussion of risks

from cybersecurity threats, see Item 1A. Risk Factors under the section captioned “Cybersecurity incidents, including security

breaches and failures of our information systems could significantly disrupt our business, result in the unintended disclosure or

misuse of confidential or proprietary information, damage our reputation, increase our costs, and cause losses.” 

Governance

Our CISO is responsible for managing our Corporate Security Department and overseeing our information security program,

including cybersecurity risks. The CISO reports the day-to-day status of the program to the COO who in turn reports to our Bank

President. On a quarterly basis, and as needed, the CISO reports the status of the program, notable threats or incidents, and other

developments related to information security and cybersecurity risks to our Operations Risk Oversight Committee (“OROC”) and

to our Enterprise Risk Oversight Committee (“ROC”). The CISO also provides reports to our Board of Directors at least annually

on the status of the information security program and risks, notable threats and incidents, and other developments related to

cybersecurity. In addition, the CISO provides more frequent reports to the Audit Committee on the aforementioned activities,

including remediation efforts and the status of incident response, as needed.

Item 2. Properties

We are headquartered in Tallahassee, Florida. Our executive office is in the Capital City Bank building located on the corner of

Tennessee and Monroe Streets in downtown Tallahassee. The building is owned by CCB, but is located on land leased under a

long-term agreement.

At December 31, 2023, Capital City Bank had 63 banking offices. Of these locations, we lease the land, buildings, or both at 13

locations and own the land and buildings at the remaining 50. CCHL had 30 loan production offices, 29 of which were leased. 

Capital City Strategic Wealth, LLC. maintained five offices, all of which were leased. 

Item 3.

Legal Proceedings

We are party to lawsuits and claims arising out of the normal course of business. In management’s opinion, there are no known

pending claims or litigation, the outcome of which would, individually or in the aggregate, have a material effect on our

consolidated results of operations, financial position, or cash flows.

Item 4

.

Mine Safety Disclosure

Not applicable.

38

PART II

Item 5.

Market for the Registrant’s Common Equity, Related Shareowner Matters, and Issuer Purchases of Equity

Securities

Common Stock Market Prices and Dividends

Our common stock trades on the Nasdaq Global Select Market under the symbol “CCBG.” We had a total of 1,080 shareowners

of record at January 31, 2024.

The following table presents the range of high and low closing sales prices reported on the Nasdaq Global Select Market and cash

dividends declared for each quarter during the past two years. 

2023

2022

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Second

Quarter

First

Quarter

Common stock price:

High 

$

32.56

$

33.44

$

34.16

$

36.86

$

36.23

$

33.93

$

28.55

$

28.88

Low 

26.12

28.64

28.03

28.18

31.14

27.41

24.43

25.96

Close 

29.43

29.83

30.64

29.31

32.50

31.11

27.89

26.36

Cash dividends per share 

0.20

0.20

0.18

0.18

0.17

0.17

0.16

0.16

Florida law and Federal regulations impose restrictions on our ability to pay dividends and limitations on the amount of dividends

that the Bank can pay annually to us. See Item 1. “Capital; Dividends; Sources of Strength” and “Dividends” in the Business

section on page 14 and 16, Item 1A. “Market Risks” in the Risk Factors section on page 22, Item 7. “Liquidity and Capital

Resources – Dividends” – in Management’s Discussion and Analysis of Financial Condition and Operating Results on page 66

and Note 17 in the Notes to Consolidated Financial Statements.

39

Performance Graph

This performance graph compares the cumulative total shareowner return on our common stock with the cumulative total

shareowner return of the Nasdaq Composite Index and the S&P U.S. Small Cap Banks Index for the past five years. The graph

assumes that $100 was invested on December 31, 2018 in our common stock and each of the above indices, and that all dividends

were reinvested. The shareowner return shown below represents past performance and should not be considered indicative of

future performance.

Period Ending

Index

12/31/18

12/31/19

12/31/20

12/31/21

12/31/22

12/31/23

Capital City Bank Group, Inc. 

$

100.00

$

133.95

$

110.72

$

121.82

$

153.27

$

142.32

Nasdaq Composite 

100.00

136.69

198.10

242.03

163.28

236.17

SNL $1B-$5B Bank Index 

100.00

125.46

113.94

158.62

139.85

140.55

40

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table contains information about all purchases made during the fourth quarter of 2023 by, or on behalf of, us and

any affiliated purchaser (as defined in Rule 10b-18(a)(3) under the Exchange Act) of shares or other units of any class of our

equity securities that is registered pursuant to Section 12 of the Exchange Act.

Total number of 

Maximum Number of

Total number

Average

shares purchased as 

shares that may yet be 

of shares

price paid

part of our share 

purchased under our share

Period

purchased

per share

repurchase program

(1)

repurchase program

October 1, 2023 to

October 31, 2023

4,000

$28.05

4,000

466,901

November 1, 2023 to

November 30, 2023

16,391

$29.07

16,391

450,510

December 1, 2023 to

December 31, 2023

-

-

-

450,510

Total

20,391

$30.24

20,391

450,510

(1)

This balance represents the number of shares that were repurchased during the fourth quarter of 2023 through the Capital City

Bank Group, Inc. Share Repurchase Program (the “Program”), which was approved on January 31, 2019 for a five year

period, under which we were authorized to repurchase up to 750,000 shares of our common stock. The Program is flexible

and shares are acquired from the public markets and other sources using free cash flow. No shares are repurchased outside of

the Program. 

41

Item 6.

Selected Financial Data

(Dollars in Thousands, Except Per Share Data)

2023

2022

2021

Interest Income

$

181,068

$

131,910

$

106,351

Net Interest Income

158,988

125,022

102,861

Provision for Credit Losses

9,714

7,494

(1,553)

Noninterest Income

71,610

75,181

107,545

Noninterest Expense

(1)

157,023

151,634

162,508

Pre-Tax Loss (Income) Attributable to Noncontrolling Interests

(2)

1,437

135

(6,220)

Net Income Attributable to Common Shareowners

52,258

33,412

33,396

Per Common Share:

Basic Net Income

$

3.08

$

1.97

$

1.98

Diluted Net Income

3.07

1.97

1.98

Cash Dividends Declared

0.76

0.66

0.62

Diluted Book Value

25.92

22.73

22.63

Diluted Tangible Book Value

(3)

20.45

17.27

17.12

Performance Ratios:

Return on Average Assets

1.22

%

0.77

%

0.84

%

Return on Average Equity

12.40

8.81

9.92

Net Interest Margin (FTE)

4.05

3.14

2.83

Noninterest Income as % of Operating Revenues

31.05

37.55

51.11

Efficiency Ratio

67.99

75.62

77.11

Asset Quality:

Allowance for Credit Losses ("ACL")

$

29,941

$

25,068

$

21,606

ACL to Loans Held for Investment ("HFI")

1.10

%

0.98

%

1.12

%

Nonperforming Assets ("NPAs")

6,243

2,728

4,339

NPAs to Total Assets

0.15

0.06

0.10

NPAs to Loans HFI plus OREO

0.23

0.11

0.22

ACL to Non-Performing Loans

479.70

1091.33

499.93

Net Charge-Offs to Average Loans HFI

0.18

0.18

-0.03

Capital Ratios:

Tier 1 Capital

15.37

%

14.27

%

16.14

%

Total Capital

16.57

15.30

17.15

Common Equity Tier 1 Capital

13.52

12.38

13.86

Tangible Common Equity

(3)

8.26

6.65

6.95

Leverage

10.30

8.91

8.95

Equity to Assets

10.24

8.57

8.99

Dividend Pay-Out

24.76

33.50

31.31

Averages for the Year:

Loans Held for Investment

$

2,656,394

$

2,189,440

$

2,000,563

Earning Assets

3,933,800

3,989,248

3,652,486

Total Assets

4,278,686

4,332,302

3,984,064

Deposits

3,669,612

3,763,336

3,406,886

Shareowners’ Equity

421,482

379,290

336,821

Year -End Balances:

Loans Held for Investment

$

2,733,918

$

2,547,685

$

1,931,465

Earning Assets

3,957,452

4,177,177

3,949,111

Total Assets

4,304,477

4,519,223

4,263,849

Deposits

3,701,822

3,939,317

3,712,862

Shareowners’ Equity

440,625

387,281

383,166

Other Data:

Basic Average Shares Outstanding

16,987,167

16,950,810

16,862,932

Diluted Average Shares Outstanding

17,022,922

16,984,740

16,892,947

Shareowners of Record

(4)

1,080

1,124

1,157

Banking Locations

(4)

63

59

57

Full-Time Equivalent Associates

(4)(5)

970

992

954

(1)

 For 2023, 2022 and 2021, includes pension settlement gain of $0.3 million, charge of $2.3 million and $3.1 million, respectively.

(2)

 Acquired 51% membership interest in Brand Mortgage Group, LLC, re-named as Capital City Home Loans, LLC, on March 1, 2020 - fully consolidated.

(3)

 Diluted tangible book value and tangible common equity ratio are non-GAAP financial measures. For additional information, including a reconciliation

 to GAAP, refer to page 42.

(4)

 As of January 31st of the following year.

(5)

 Reflects 970 full-time equivalent associates that includes 178 full-time equivalent associates at CCHL.

42

NON-GAAP FINANCIAL MEASURES

We present a tangible common equity ratio and a tangible book value per diluted share that, in each case, removes the effect of

goodwill that resulted from merger and acquisition activity. We believe these measures are useful to investors because it allows

investors to more easily compare our capital adequacy to other companies in the industry. The generally accepted accounting

principles (“GAAP”) to non-GAAP reconciliation for selected year-to-date financial data is provided below.

Non-GAAP Reconciliation - Selected Financial Data

(Dollars in Thousands, except per share data)

2023

2022

2021

Shareowners' Equity (GAAP)

$

440,625

$

387,281

$

383,166

Less: Goodwill and Other Intangibles (GAAP)

92,933

93,093

93,253

Tangible Shareowners' Equity (non-GAAP)

A

347,692

294,188

289,913

Total Assets (GAAP)

4,304,477

4,519,223

4,263,849

Less: Goodwill and Other Intangibles (GAAP)

92,933

93,093

93,253

Tangible Assets (non-GAAP)

B

$

4,211,544

$

4,426,130

$

4,170,596

Tangible Common Equity Ratio (non-GAAP)

A/B

8.26%

6.65%

6.95%

Actual Diluted Shares Outstanding (GAAP)

C

17,000,758

17,039,401

16,935,389

Tangible Book Value per Diluted Share (non-GAAP)

A/C

20.45

17.27

17.12

43

Item 7.

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

Management’s discussion and analysis (“MD&A”) provides supplemental information, which sets forth the major factors that

have affected our financial condition and results of operations and should be read in conjunction with the Consolidated Financial

Statements and related notes included in the Annual Report on Form 10-K/A. The MD&A is divided into subsections entitled

“Business Overview,” “Executive Overview,” “Results of Operations,” “Financial Condition,” “Liquidity and Capital Resources,”

“Off-Balance Sheet Arrangements,” and “Accounting Policies.” The following information should provide a better understanding

of the major factors and trends that affect our earnings performance and financial condition, and how our performance during

2023 compares with prior years. Throughout this section, Capital City Bank Group, Inc., and its subsidiaries, collectively, are

referred to as “CCBG,” “Company,” “we,” “us,” or “our.”

CAUTION CONCERNING FORWARD -LOOKING STATEMENTS

This Annual Report on Form 10-K/A, including this MD&A section, 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. Please see the Introductory Note and

Item 1A Risk Factors

 of

this Annual Report for a discussion of factors that could cause our actual results to differ materially from those in the forward-

looking statements.

However, other factors besides those listed in

Item 1A Risk Factors

 or discussed in this Annual Report 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.

BUSINESS OVERVIEW

Our Business

We are a financial holding company headquartered in Tallahassee, Florida, and we are the parent of our wholly owned subsidiary,

Capital City Bank (the “Bank” or “CCB”). We provide a full range of banking services, including traditional deposit and credit

services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial

advisory services, including the sale of life insurance, risk management, and asset protection services. The Bank has 63 banking

offices and 103 ATMs/ITMs in Florida, Georgia and Alabama. Through Capital City Home Loans, LLC (“CCHL”), we have 29

additional offices in the Southeast for our mortgage banking business. Please see the section captioned “About Us” beginning on

page 6 for more detailed information about our business.

Our profitability, like most financial institutions, is dependent, to a large extent upon net interest income, which is the difference

between the interest and fees received on interest earning assets, such as loans and securities, and the interest paid on interest-

bearing liabilities, principally deposits and borrowings. Results of operations are also affected by the provision for credit losses,

operating expenses such as salaries and employee benefits, occupancy , and other operating expenses including income taxes, and

noninterest income such as mortgage banking revenues, wealth management fees, deposit fees, and bank card fees. 

Strategic Review

Operating Philosophy

. Our philosophy is to build long-term client relationships based on quality service, high ethical standards,

and safe and sound banking practices. We maintain a locally oriented, community-based focus, which is augmented by

experienced, centralized support in select specialized areas. Our local market orientation is reflected in our network of banking

office locations, experienced community executives with a dedicated President for each market, and community boards which

support our focus on responding to local banking needs. We strive to offer a broad array of sophisticated products and to provide

quality service by empowering associates to make decisions in their local markets. 

44

Strategic Initiatives

. In 2021, we initiated a new five-year strategic plan “2025 In Focus” that guide s us in the areas of client

experience, channel optimization, market expansion, and culture. As part of 2025 In Focus, we aim to take our brand of

relationship banking to the next level, further deepen relationships within our communities, expand into new higher growth

markets, diversify our revenue sources, invest in new technology that will support the expansion of client relationships, scale

within our lines of business, and drive higher profitability. We have implemented initiatives in support of the strategic plan,

including the implementation of an integrated marketing software aimed at deepening client relationships, continued our

comprehensive review of our banking office network, continued expansion into new markets and further diversification of

revenues by expanding our residential mortgage banking and wealth businesses . 

Markets

. We maintain a blend of large and small markets in Florida and Georgia, all in close proximity to major interstate

thoroughfares such as Interstates 10 and 75. Our larger markets include Tallahassee (Leon County, Florida), Gainesville

(Alachua County, Florida), Macon (Bibb County, Georgia), and Suncoast (Hernando/Pasco/Citrus Counties, Florida). The larger

employers in these markets are state and local governments, healthcare providers, educational institutions, and small businesses,

providing stability and good growth dynamics that have historically grown in excess of the national average. We serve an

additional fourteen smaller, less competitive, rural markets located on the outskirts of, and centered between, our larger markets

where we are positioned as a market leader. In 7 of 11 markets in Florida and two of four Georgia markets (excluding Northern

Arc of Atlanta markets entered into in 2022 and 2023), we frequently rank within the top four banks in terms of deposit market

share. Furthermore, in the counties in which we operate, we maintain an 7.7% deposit market share in the Florida counties and

5.5% in the Georgia counties (excluding Northern Arc of Atlanta). Our markets provide for a strong core deposit funding base, a

key differentiator and driver of our profitability and franchise value. 

Recent Acquisition/Expansion Activity

. We have continued our expansion into the Northern Arc of Atlanta, Georgia by opening

full-service offices in Marietta (Cobb County) in the fourth quarter of 2022 and Duluth (Gwinnett County) in the second quarter

of 2023. Additionally, we expanded our presence in the Florida Panhandle by opening a full-service office in Watersound,

Florida in the first quarter of 2023 and Panama City, Florida (Lynn Haven) in the first quarter of 2024 and we plan to open

another full-service office in Panama City, Florida (West Bay) in the second half of 2024. To expand our presence and

commitment to our Gainesville market, we opened a third full-service banking office in the area in early 2023. During 2022 and

2023, we hired leadership and banking teams in the Northern Arc and Walton County office markets, including commercial

bankers, retail delivery support, private banking, wealth advisors, and treasury professionals. Further, CCHL loan originators will

reside in the Northern Arc and Walton County offices.

On March 1, 2020, CCB acquired a 51% membership interest in Brand Mortgage Group, LLC (“Brand”) which is now operated

as CCHL, a consolidated entity in the Company’s financial statements. The terms of the transaction included a buyout call/put

option for CCB to purchase the remaining 49% of the membership interests in CCHL (“the 49% Interest”) that are held by

BMGBMG, LLC (“BMG”). The option requires 12 months advance notice to the other party, and under the terms of the option,

January 1, 2025 is the earliest date the transfer of the 49% Interest may be completed. On December 20, 2023, BMG notified

CCB that BMG will exercise its put option and the transfer of the 49% Interest will become effective on January 1, 2025.

EXECUTIVE OVERVIEW

For 2023, net income attributable to common shareowners totaled $52.3 million, or $3.07 per diluted share, compared to net

income of $33.4 million, or $1.97 per diluted share, for 2022, and $33.4 million, or $1.98 per diluted share, for 2021.

The increase in net income attributable to common shareowners for 202 3 reflected higher net interest income of $34.0 million that

was partially offset by higher noninterest expense of $5.4 million, higher income taxes of $5.2 million, lower noninterest income

of $3.6 million, and a $2.2 million increase in the provision for credit losses. Net income attributable to common shareowners

included a $1.3 million increase in the deduction to record the 49% non-controlling interest in the earnings of CCHL. 

The increase in net income attributable to common shareowners for 202 2 was attributable to higher net interest income of $22.2

million, lower noninterest expense of $10.9 million, and lower income taxes of $1.9 million, partially offset by a $9.0 million

increase in the provision for credit losses and lower noninterest income of $32.4 million. Net income attributable to common

shareowners included a $6.4 million increase in the deduction to record the 49% non-controlling interest in the earnings of CCHL.

Below are

Summary Highlights

 of our 2023 financial performance:

◾

Tax-equivalent net interest income totaled $159.4 million for 2023 compared to $125.3 million for 2022 driven by strong

loan growth and higher interest rates, partially offset by higher deposit cost which was well controlled at 48 basis points for

the year – net interest margin was 4.05% for 2023 compared to 3.14% for 2022

◾

Credit quality metrics remained strong throughout the year – allowance coverage ratio increased from 0.98% to 1.10% -

net loan charge-offs were 18 basis points of average loans for both periods

◾

Noninterest income decreased $3.6 million, or 4.8%, driven by lower wealth management fees reflective of lower insurance

commissions (large policy sales in 2022) and mortgage banking revenues (lower residential loan originations attributable

to the higher interest rate environment) 

◾

Noninterest expense increased $5.4 million, or 3.6%, primarily due to higher compensation and occupancy expense

reflective of the addition of staffing and banking offices in our new markets

45

◾

Loan balances grew $467.0 million, or 21.3% (average), and $186.2 million, or 7.3% (end of period)

◾

Deposit balances (including repurchase agreements) declined by $81.9 million, or 2.2% (average), and decreased $217.1

million, or 5.5% (end of period)

◾

Tangible book value per share increased $3.18, or 18.4%, driven by strong earnings and favorable investment security and

pension plan accumulated other comprehensive loss adjustments

For more detailed information, refer to the following additional sections of the MD&A “Results of Operations” and “Financial

Condition”.

46

RESULTS OF OPERATIONS

A condensed earnings summary for the last three fiscal years is presented in Table 1 below:

Table 1

CONDENSED SUMMARY OF EARNINGS

(Dollars in Thousands, Except Per Share Data)

2023

2022

2021

Interest Income

$

181,068

$

131,910

$

106,351

Taxable Equivalent Adjustments

367

325

349

Total Interest Income (FTE)

181,435

132,235

106,700

Interest Expense

22,080

6,888

3,490

Net Interest Income (FTE)

159,355

125,347

103,210

Provision for Credit Losses

9,714

7,494

(1,553)

Taxable Equivalent Adjustments

367

325

349

Net Interest Income After Provision for Credit Losses

149,274

117,528

104,414

Noninterest Income

71,610

75,181

107,545

Noninterest Expense

157,023

151,634

162,508

Income Before Income Taxes

63,861

41,075

49,451

Income Tax Expense 

13,040

7,798

9,835

Pre-Tax Income Attributable to Noncontrolling Interests

1,437

135

(6,220)

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Basic Net Income Per Share

$

3.08

$

1.97

$

1.98

Diluted Net Income Per Share

$

3.07

$

1.97

$

1.98

Net Interest Income and Margin

Net interest income represents our single largest source of earnings and is equal to interest income and fees generated by earning

assets, less interest expense paid on interest bearing liabilities. We provide an analysis of our net interest income, including

average yields and rates in Tables 2 and 3 below. We provide this information on a “taxable equivalent” basis to reflect the tax-

exempt status of income earned on certain loans and investments.

For 2023, our taxable equivalent net interest income totaled $159.4 million compared to $125.3 million in 2022 and $103.2

million in 2021. The $34.1 million, or 27.2%, increase in 2023 reflected loan growth and higher interest rates across a majority of

our earning assets, partially offset by higher deposit interest expense. The $22.1 million, or 21.4%, increase in 2022 was

primarily due to strong loan growth, higher interest rates, and growth in the investment portfolio. 

For 2023, our taxable equivalent interest income totaled $181.4 million compared to $132.2 million in 2022 and $106.7 million in

2021. The $49.2 million, or 37.2%, increase in 2023 and the $25.5 million, or 23.9%, increase in 2022 reflected an overall

improved earning asset mix and higher interest rates on earning assets. 

For 2023, interest expense totaled $22.1 million compared to $6.9 million in 2022 and $3.5 million in 2021. The $15.2 million, or

220.3%, increase in 2023 was primarily attributable to a $9.6 million increase in NOW account interest expense and $3.5 million

increase in money market account expense. The increase in NOW account expense reflected an increase in expense for our

commercial accounts that have a managed rate that was increased during the year reflective of higher interest rates. The shift in

balances from noninterest bearing to the NOW product also contributed to the increase. The increase in the expense for money

market accounts reflected adjustment to our board and managed rates for this product also reflective of higher interest rates. For

2022, the $3.4 million, or 97.4%, increase was primarily attributable to higher NOW account expense related to our negotiated

rate commercial accounts that were tied to an index until mid-2022 and then migrated to a managed rate product. To a lesser

extent, higher interest expense for our variable rate short-term borrowings (warehouse line of credit for mortgage banking) and

subordinated notes contributed to the increase in 2022. 

Our cost of interest bearing deposits was 81 basis points in 2023, 17 basis points in 2022, and 4 basis points in 2021. Our total

cost of deposits (including noninterest bearing accounts) was 48 basis points in 2023, 9 basis points in 2022, and 2 basis points in

2021. Our total cost of funds (interest expense/average earning assets) was 56 basis points in 2023, 17 basis points in 2022, and

10 basis points in 2021. 

47

Our interest rate spread (defined as the taxable-equivalent yield on average earning assets less the average rate paid on interest

bearing liabilities) was 3.63% in 2023, 3.00% in 2022, and 2.75% in 2021. Our net interest margin (defined as taxable-equivalent

interest income less interest expense divided by average earning assets) was 4.05% in 2023, 3.14% in 2022, and 2.83% in 2021. 

The increase in the interest rate spread and net interest margin in 2023 and 2022 reflected an improved earning asset mix, higher

yields across a majority of our earning assets due to the rapid increase in interest rates, and good control of our deposit cost. 

During 2023, the Federal Open Market Committee (“FOMC”) raised interest rates 100 basis points, putting the federal funds

target rate at a range of 5.25%-5.50%, compared to a range of 4.25%-4.50% at the end of 2022. Our asset sensitive position, with

strong core deposit funding and ample liquidity provided benefits as interest rates increased. 

48

Table 2

AVERAGE BALANCES AND INTEREST RATES

2023

2022

2021

(Taxable Equivalent Basis - Dollars

in Thousands)

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

Average

Balance

Interest

Average

Rate

ASSETS

Loans Held for Sale

(1)(2)

$

55,510

$

3,232

5.82

%

$

48,502

$

2,175

4.49

%

$

78,328

$

2,555

3.24

%

Loans Held for Investment

(1)(2)

2,656,394

149,366

5.62

2,189,440

104,578

4.78

2,000,563

94,332

4.76

Investment Securities

 Taxable Investment Securities

1,016,550

18,652

1.83

1,098,876

15,917

1.45

778,953

8,724

1.12

 Tax-Exempt Investment Securities

(2)

2,199

59

2.68

2,668

54

2.03

3,772

91

2.39

Total Investment Securities

1,018,749

18,711

1.83

1,101,544

15,971

1.45

782,725

8,815

1.12

Fed Funds Sold & Int Bearing Dep

203,147

10,126

4.98

649,762

9,511

1.46

790,870

998

0.13

Total Earning Assets

3,933,800

181,435

4.61

%

3,989,248

132,235

3.32

%

3,652,486

106,700

2.92

%

Cash & Due From Banks

75,786

76,929

72,409

Allowance for Credit Losses

(28,190)

(21,688)

(22,960)

Other Assets

297,290

287,813

282,129

TOTAL ASSETS

$

4,278,686

$

4,332,302

$

3,984,064

LIABILITIES

Noninterest Bearing Deposits

$

1,507,657

$

1,691,132

$

1,523,717

NOW Accounts

1,172,861

12,375

1.06

%

1,065,838

2,799

0.26

%

965,320

294

0.03

%

Money Market Accounts

299,581

3,670

1.22

283,407

203

0.07

278,606

134

0.05

Savings Accounts

592,033

598

0.10

628,313

309

0.05

537,023

263

0.05

Time Deposits

97,480

939

0.96

94,646

133

0.14

102,220

148

0.14

Total Interest Bearing Deposits

2,161,955

17,582

0.81

%

2,072,204

3,444

0.17

%

1,883,169

839

0.04

%

Total Deposits

3,669,612

17,582

0.48

3,763,336

3,444

0.09

3,406,886

839

0.02

Repurchase Agreements

19,917

513

2.57

8,095

14

0.17

5,762

2

0.03

Short-Term Borrowings

24,146

1,538

6.37

32,388

1,747

5.40

47,749

1,360

2.54

Subordinated Notes Payable

52,887

2,427

4.53

52,887

1,652

3.08

52,887

1,228

2.29

Other Long-Term Borrowings

408

20

4.77

665

31

4.62

1,887

63

3.33

Total Interest Bearing Liabilities

2,259,313

22,080

0.98

%

2,166,239

6,888

0.32

%

1,991,454

3,490

0.18

%

Other Liabilities

81,842

85,684

111,567

TOTAL LIABILITIES

3,848,812

3,943,055

3,626,738

Temporary Equity

8,392

9,957

20,505

TOTAL SHAREOWNERS’

EQUITY

421,482

379,290

336,821

TOTAL LIABILITIES,

TEMPORARY EQUITY AND

SHAREOWNERS’ EQUITY

$

4,278,686

$

4,332,302

$

3,984,064

Interest Rate Spread

3.63

%

3.00

%

2.75

%

Net Interest Income

$

159,355

$

125,347

$

103,210

Net Interest Margin

(3)

4.05

%

3.14

%

2.83

%

(1)

 Average balances include net loan fees, discounts and premiums, and nonaccrual loans. Interest income includes loan fees of $0.05 million for 2023, 

 $0.5 million for 2022, and $6.6 million for 2021. 

(2)

 Interest income includes the effects of taxable equivalent adjustments using a 21% tax rate.

(3)

 Taxable equivalent net interest income divided by average earning assets.

49

Table 3

RATE/VOLUME ANALYSIS

(1)

2023 vs. 2022

2022 vs. 2021

(Taxable Equivalent Basis -

Dollars in Thousands)

Increase (Decrease) Due to Change In

Increase (Decrease) Due to Change In

Total

Volume

Rate

Total

Calendar

Volume

Rate

Earnings Assets:

Loans Held for Sale

(2)

$

1,057

$

315

$

742

$

(380)

$

-

$

(967)

$

587

Loans Held for Investment

(2)

44,788

22,304

22,484

10,247

-

8,982

1,265

Taxable Investment Securities

2,735

(1,192)

3,927

7,193

-

3,583

3,610

Tax-Exempt Investment Securities

(2)

5

(10)

15

(37)

-

(27)

(10)

Funds Sold

615

(6,537)

7,152

8,513

-

(178)

8,691

Total

$

49,200

$

14,880

$

34,320

25,536

$

-

$

11,393

$

14,143

Interest Bearing Liabilities:

NOW Accounts

$

9,576

$

281

$

9,295

2,505

$

-

$

31

$

2,474

Money Market Accounts

3,467

12

3,455

69

-

2

67

Savings Accounts

289

(18)

307

46

-

45

1

Time Deposits

806

4

802

(15)

-

(11)

(4)

Short-Term Borrowings

290

156

134

401

-

(331)

732

Subordinated Notes Payable

775

-

775

424

-

-

424

Other Long-Term Borrowings

(11)

(12)

1

(32)

-

(41)

9

Total

$

15,192

$

423

$

14,769

3,398

$

-

$

(305)

$

3,703

Changes in Net Interest Income

$

34,008

$

14,457

$

19,551

$

22,138

$

-

$

11,698

$

10,440

(1)

 This table shows the change in taxable equivalent net interest income for comparative periods based on either changes in average

 volume or changes in average rates for interest earning assets and interest bearing liabilities. Changes which are not solely

 due to volume changes or solely due to rate changes have been attributed to rate changes. 

(2)

 Interest income includes the effects of taxable equivalent adjustments using a 21% tax rate to adjust on tax-exempt loans and securities

 and securities to a taxable equivalent basis.

Provision for Credit Losses

For 2023, we recorded a provision for credit loss expense of $9.7 million ($9.5 million expense for loans held for investment

(“HFI”) and $0.2 million expense for unfunded loan commitments) compared to a provision expense of $7.5 million for 2022

($7.4 million benefit for loans HFI and $0.1 million expense for unfunded loan commitments), and a provision benefit of $1.6

million for 2021 ($2.8 million benefit for loans HFI and $1.2 million expense for unfunded loan commitments ). The higher loan

loss provision in 2023 was driven by loan growth. The higher level of provision in 2022 was primarily attributable to strong loan

growth and weaker projected economic conditions, primarily a higher rate of unemployment. The credit loss provision in 2021

was favorably impacted by strong loan recoveries. We discuss the various factors that have impacted our provision expense in

more detail under the heading Allowance for Credit Losses.

Noninterest Income

For 2023, noninterest income totaled $71.6 million, a $3.6 million decrease from 2022 and reflected decreases in wealth

management fees of $1.7 million, mortgage banking revenues of $1.5 million, deposit fees of $0.8 million, and bank card fees of

$0.5 million, partially offset by a $0.9 million increase in other income. The decrease in wealth management fees reflected lower

insurance commissions of $2.7 million due to the sale of large policies in 2022 and was partially offset by higher trust fees of $0.5

million and retail brokerage fees of $0.5 million. The decrease in mortgage banking revenues was primarily driven by lower

production volume in 2023, reflective of the rapid increase in interest rates and lower market driven gain on sale margins. Steady

best efforts adjustable-rate production by CCHL during 2023 contributed to the Bank’s loan growth and earnings. The decline in

deposit fees reflected lower commercial account analysis fees and account service charge fees, and the reduction in bank card fees

was generally due to lower card volume reflective of slower consumer spending. The increase in other income was primarily due

to a $1.4 million gain from the sale of mortgage servicing rights that was partially offset by lower loan servicing income. 

50

For 2022, noninterest income totaled $75.2 million, a $32.4 million decrease from 2021 due to lower mortgage banking revenues

of $40.5 million, partially offset by higher wealth management fees of $4.4 million, deposit fees of $3.2 million, other income of

$0.4 million, and bank card fees of $0.1 million. Lower mortgage banking revenues at CCHL in 2022 generally reflected a

reduction in refinancing activity and, to a lesser degree, lower purchase mortgage originations primarily driven by higher interest

rates. In addition, gain on sale margins were pressured due to a lower level of governmental loan originations and mandatory

delivery loan sales (both of which provide a higher gain on sale percentage). Strong best efforts adjustable-rate production by

CCHL during 2022 contributed to the Bank’s loan growth and earnings. 

Noninterest income as a percent of total operating revenues (net interest income plus noninterest income) was 31.05% in 2023,

37.55% in 2022, and 51.11% in 2021. The variance in both 2023 and 2022 reflected strong growth in net interest income and

lower mortgage banking revenues. The table below reflects the major components of noninterest income.

Table 4

NONINTEREST INCOME

(Dollars in Thousands)

2023

2022

2021

Deposit Fees

$

21,325

$

22,121

$

18,882

Bank Card Fees

14,918

15,401

15,274

Wealth Management Fees

16,337

18,059

13,693

Mortgage Banking Revenues

10,400

11,909

52,425

Other

8,630

7,691

7,271

Total Noninterest Income

$

71,610

$

75,181

$

107,545

Significant components of noninterest income are discussed in more detail below.

Deposit Fees

. For 2023, deposit fees (service charge fees, insufficient fund/overdraft fees, and business account analysis fees)

totaled $21.3 million compared to $22.1 million in 2022 and $18.9 million in 2021. The $0.8 million, or 3.6%, decrease in 2023

was attributable to lower commercial account analysis fees of $0.5 million and account service charge fees of $0.3 million. The

reduction in commercial account analysis fees reflected a higher earnings credit rate for commercial deposit accounts. The

decrease in account service charge fees was attributable to higher debit card utilization which allows the client to forego the

service charge fee if a certain number of debit card transactions is achieved. The $3.2 million, or 17.2%, increase in 2022

reflected higher account service charge fees and overdraft fees. The conversion, in the third quarter of 2021, of our remaining

free checking accounts to a monthly maintenance fee account type drove the increase in account service charge fees. The increase

in overdraft fees was driven by higher utilization of our overdraft service which is closely correlated (inversely) with the

consumer savings rate which has declined noticeably since it substantially increased in 2021 due to the high level of governmental

stimulus related to the COVID-19 pandemic. 

Bank Card Fees

. Bank card fees totaled $14.9 million in 2023 compared to $15.4 million in 2022 and $15.3 million in 2021. The

decrease in 2023 was generally due to lower card volume reflective of overall slower consumer spending. The slight increase in

2022 reflected incremental revenues from growth in new checking accounts that was partially offset by lower transaction volume

which reflected a slowdown in consumer spending. 

Wealth Management Fees

. Wealth management fees including both trust fees (i.e., managed accounts and trusts/estates) and

retail brokerage fees (i.e., investment, insurance products, and retirement accounts) totaled $16.3 million in 2023 compared to

$18.1 million in 2022 and $13.7 million in 2021. The decrease in 2023 reflected lower insurance revenues of $2.7 million that

was partially offset by a $0.5 million decrease in trust fees and $0.5 million decrease in retail brokerage fees. The sale of large

policies in 2022 drove the decline in insurance revenues. The increase in 2022 was primarily due to higher insurance revenues of

$3.7 million and retail brokerage fees of $0.6 million. The higher level of insurance revenues reflected the acquisition of CCSW

in 2021. At December 31, 2023, total assets under management (“AUM”) were approximately $2.588 billion compared to $2.273

billion at December 31, 2022 and $2.324 billion at December 31, 2021. The increase in AUM in 2023 was primarily attributable

to growth in assets at Capital City Investments, our retail brokerage subsidiary, reflecting increases in investments in fixed

income and annuity products, and higher account values/returns reflective of the improved market returns in 2023. The decrease

in AUM in 2022 generally reflected lower account values/returns reflective of volatile market conditions during the year partially

offset by new account growth.

51

Mortgage Banking Revenues

. Mortgage banking revenues totaled $10.4 million in 2023 compared to $11.9 million in 2022 and

$52.4 million in 2021. The decrease in 2023 was primarily driven by lower production volume reflective of the rapid increase in

interest rates and lower market driven gain on sale margins which continued to be under pressure in 2023. 2022 revenues

reflected a reduction in refinancing activity, and, to a lesser degree, lower purchase mortgage originations primarily driven by

higher interest rates. In addition, gain on sale margins were pressured due to a lower level of governmental loan originations and

mandatory delivery loan sales (both of which provide a higher gain on sale percentage). Throughout 2023 and 2022, best efforts

origination volume allowed us to book a steady flow of adjustable-rate residential loans in our portfolio which contributed to loan

growth and earnings. In addition, continued stability in our construction/permanent loan program partially offset the slowdown in

secondary market originations. We provide a detailed overview of our mortgage banking operation, including a detailed break-

down of mortgage banking revenues, mortgage servicing activity, and warehouse funding within Note 4 - Mortgage Banking

Activities in the Notes to Consolidated Financial Statements. 

Other

. Other noninterest income totaled $8.6 million in 2023 compared to $7.7 million in 2022 and $7.3 million in 2021. The

$0.9 million increase in 2023 was due to a $1.4 million gain from the sale of mortgage servicing rights that was partially offset by

lower loan servicing income which reflected the aforementioned sale. The $0.4 million increase in 2022 was primarily

attributable to a $0.4 million increase in miscellaneous income, primarily from a $0.2 million gain on the termination of a lease. 

Noninterest Expense

For 2023, noninterest expense totaled $157.0 million compared to $151.6 million for 2022 and reflected increases in occupancy

expense of $3.1 million and compensation expense of $2.3 million. The increase in occupancy expense was primarily driven by

the addition of four new banking offices in mid-to-late 2022 and early 2023, and, to a lesser extent, higher expense for property

insurance (increased premiums) and maintenance agreements (network and security upgrades). The increase in compensation

expense reflected a $4.7 million increase in salary expense that was partially offset by a $2.4 million decrease in associate benefit

expense. The increase in salary expense was primarily due to a $3.6 million increase in base salaries (primarily the addition of

staffing in new markets and annual merit), a $3.0 million decrease in realized cost (credit offset to salary expense - lower new

residential loan originations in 2023), and higher incentive expense of $1.2 million that was partially offset by lower commission

expense of $3.3 million (lower residential loan originations and insurance policy sales in 2023). The decrease in associate benefit

expense reflected a $2.9 million decrease in pension plan service cost expense that was partially offset by a $0.5 million increase

in associate insurance expense (higher premiums). The net variance in other expense was primarily due to lower expenses for

OREO of $1.6 million (gain from the sale of a banking office) and miscellaneous expense of $1.2 million (mortgage servicing

asset amortization of $1.0 million - mid-2023 sale of servicing rights). Further, there was no pension settlement expense in 2023

whereas we realized $2.3 million in total pension settlement expense in 2022. These favorable variances were partially offset by

increases in pension – other expense (non-service component) of $3.0 million, professional fees of $0.8 million (one-time

consulting expense related to our core processor outsourcing contract negotiation) , insurance – other (FDIC insurance fees) of

$0.7 million, processing fees of $0.5 million, and legal fees of $0.3 million. For comparison purposes, the service cost component

of our pension plan expense is reflected in associate benefit expense and the non-service component and any settlement expenses

are reflected in other expense. For 2023, our total pension expense was $3.3 million compared to $5.7 million in 2022 which

included $2.3 million in pension settlement expense due to a higher level of retirements. 

For 2022, noninterest expense totaled $151.6 million, a $10.9 million decrease from 2021, due to a decrease in compensation

expense of $10.0 million and other expense of $1.6 million, partially offset by an increase in occupancy expense of $0.6 million. 

The decrease in compensation expense was primarily due to a decrease in salary expense of $10.6 million that was partially offset

by an increase in associate benefit expense of $0.6 million. The variance in salary expense was primarily due to higher realized

loan cost of $7.7 million and lower variable/performance-based compensation of $4.5 million, partially offset by higher base

salary expense of $1.8 million (merit and new market staffing additions). The increase in associate benefit expense was primarily

attributable to an increase in associate insurance expense (utilized self-insurance reserves in 2021) of $0.4 million and stock

compensation expense of $0.7 million, partially offset by lower pension service cost expense of $0.6 million. The decrease in

other expense was primarily due to lower pension plan related costs, including a decrease of $4.9 million for the non-service cost

component of our pension plan (reflected in pension – other) attributable to the utilization of a lower discount rate for plan

liabilities and a decrease of $0.8 million for pension plan settlement expense. These favorable variances were partially offset by

an increase in other real estate expense of $1.2 million, travel/entertainment and advertising costs of $1.3 million (return to pre-

pandemic levels and market expansion), miscellaneous expense of $1.5 million (other losses of $0.9 million (primarily debit card

and check fraud) and VISA share swap conversion ratio payments of $0.4 million), and insurance – other of $0.3 million (FDIC

insurance fees). Gains from the sale of two banking offices in 2021 drove the increase in other real estate expense. The increase

in occupancy expense is related to lease expense for four new banking offices added in 2022 and various software purchases,

including network security and end of life upgrades. For 2021, our total pension expense was $12.0 million and reflected the

utilization of a lower discount rate for plan liabilities reflective of the low rate environment at that time. 

52

Our operating efficiency ratio (expressed as noninterest expense as a percent of taxable equivalent net interest income plus

noninterest income) was 67.99%, 75.62% and 77.11% in 2023, 2022 and 2021, respectively. The decrease in this metric for 2023

and 2022 was primarily driven by higher taxable equivalent net interest income (refer to caption headed Net Interest Income and

Margin). For 2022, lower noninterest expense also contributed to the decrease. 

Expense management is an important part of our culture and strategic focus. We will continue to review and evaluate

opportunities to optimize our delivery operations and invest in technology that provides favorable returns/scale and/or mitigates

risk. The table below reflects the major components of noninterest expense. 

Table 5

NONINTEREST EXPENSE

(Dollars in Thousands)

2023

2022

2021

Salaries

$

79,278

$

74,590

$

85,211

Associate Benefits

14,509

16,929

16,259

Total Compensation

93,787

91,519

101,470

Premises

13,033

11,184

10,879

Equipment

14,627

13,390

13,053

Total Occupancy, net

27,660

24,574

23,932

Legal Fees

1,721

1,413

1,411

Professional Fees

6,245

5,437

5,633

Processing Services

6,984

6,534

6,569

Advertising

3,349

3,208

2,683

Travel and Entertainment

1,896

1,815

1,063

Telephone

2,729

2,851

2,975

Insurance – Other

3,120

2,409

2,096

Pension - Other

76

(3,043)

1,913

Pension Settlement (Gain) Charge

(291)

2,321

3,072

Other Real Estate, Net

(1,969)

(337)

(1,488)

Miscellaneous

11,716

12,933

11,179

Total Other Expense

35,576

35,541

37,106

Total Noninterest Expense

$

157,023

$

151,634

$

162,508

53

Significant components of noninterest expense are discussed in more detail below.

Compensation

. Compensation expense totaled $93.8 million in 2023 compared to $91.5 million in 2022, and $101.5 million in

2021. For 2023, the $2.3 million, or 2.5%, net increase reflected an increase in salary expense of $4.7 million that was partially

offset by a decrease in associate benefit expense of $2.4 million. The increase in salary expense was primarily due to a $3.6

million increase in base salaries (primarily the addition of staffing in new markets and annual merit), a $3.0 million reduction in

realized cost (credit offset to salary expense - lower new residential loan originations in 2023) and higher incentive expense of

$1.2 million that was partially offset by lower commission expense of $3.3 million (lower residential loan originations and

insurance policy sales in 2023). The decrease in associate benefit expense reflected a $2.9 million decrease in pension plan

service cost expense that was partially offset by a $0.5 million increase in associate insurance expense (higher premiums). 

For 2022, the $10.0 million, or 9.8%, net decrease reflected a decrease in salary expense of $10.6 million that was partially offset

by an increase in associate benefit expense of $0.6 million. The variance in salary expense was primarily due to higher realized

loan cost (credit offset to salary expense) of $7.7 million and lower variable/performance -based compensation of $4.5 million

($6.7 million decrease at CCHL (lower loan volume) partially offset by a $2.2 million increase at the Bank (primarily related to

higher insurance revenues). These decreases were partially offset by higher base salary expense of $1.8 million at the Bank

(merit and new market staffing additions). The increase in associate benefit expense was primarily attributable to an increase in

associate insurance expense (utilized self-insurance reserves in 2021) of $0.4 million and stock compensation expense of $0.7

million, partially offset by lower pension service cost expense of $0.6 million.

Occupancy

. Occupancy expense (including premises and equipment) totaled $27.7 million for 2023 compared to $24.5 million

for 2022, and $23.9 million for 2021. For 2023, the $3.1 million, or 12.6%, increase was a primarily driven by the addition of

four new banking offices in mid-to-late 2022 and early 2023, and, to a lesser extent higher expense for property insurance

(increased premiums) and maintenance agreements (network and security upgrades). 

For 2022, the $0.6 million, or 2.7%, increase was attributable to increases in software license expense of $0.5 million and banking

office lease expense of $0.3 million, partially offset by a decrease in maintenance and repairs expense of $0.1 million. The

increase in software license expense reflected software upgrades for personal computers and network servers, and additional

investment in network security monitoring software. 

Other

. Other noninterest expense totaled $35.6 million in 2023 compared to $35.5 million in 2022 and $37.1 million in 2021. 

For 2023, $0.1 million variance in other expense was primarily due to lower expenses for OREO of $1.6 million (gain from the

sale of a banking office in 2023) and miscellaneous expense of $1.2 million (mortgage servicing asset amortization of $1.0

million - mid-2023 sale of servicing rights). Further, there was no pension settlement expense in 2023 whereas we realized $2.3

million in total pension settlement expense in 2022. These favorable variances were partially offset by increases in pension –

other expense (non-service component) of $2.8 million, professional fees of $0.8 million (one-time consulting expense related to

our core processor outsourcing contract negotiation), insurance – other (FDIC insurance fees) of $0.7 million, processing fees of

$0.5 million, and legal fees of $0.3 million. 

For 2022, the $1.6 million, or 4.2%, decrease was due to lower pension related costs, including a decrease of $4.9 million for the

non-service cost component of our pension plan (reflected in pension – other) attributable to the utilization of a lower discount

rate for plan liabilities and a decrease of $0.8 million for pension plan settlement expense. These favorable variances were

partially offset by an increase in other real estate expense of $1.2 million, travel/entertainment and advertising costs of $1.3

million (return to pre-pandemic levels and market expansion), and miscellaneous expense of $1.5 million (other losses of $0.9

million (primarily debit card and check fraud) and VISA share swap conversion ratio payments of $0.4 million), and insurance –

other of $0.3 million (FDIC insurance fees). Gains from the sale of two banking offices in 2021 drove the increase in other real

estate expense. 

54

Income Taxes

For 2023, we realized income tax expense of $13.0 million (effective rate of 20.4%) compared to $7.8 million (effective rate of

19.0%) for 2022 and $9.8 million (effective rate of 19.9%) in 2021. The increase in our effective tax rate for 2023 was

attributable to a higher level of consolidated income. The effective rate was further increased due to a lower level of pre -tax

income from CCHL, in relation to our consolidated income as the non-controlling interest adjustment for CCHL is accounted for

as a permanent tax adjustment. However, these increases were offset by additional solar tax credits earned in 2023. 2022 income

tax expense was favorably impacted by discrete tax items totaling $0.7 million related to a favorable deferred tax adjustment for

our SERP and a State of Florida corporate tax refund. 

In September 2021, Florida enacted a corporate tax rate reduction from 4.5% to 3.535% retroactive to January 1, 2021, with an

expiration date of December 31, 2021, therefore, there was no material impact to our deferred tax accounts. Our 2021 state tax

rate was adjusted to reflect the two percentage point reduction. The Florida tax rate reverted to 5.5% effective January 1, 2022. 

Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 23-24% in 2024. 

FINANCIAL CONDITION

Average assets totaled approximately $4.279 billion for 2023, a decrease of $53.6 million, or 1.2%, from 2022. Average earning

assets were approximately $3.934 billion for 2023, a decrease of $55.5 million, or 1.4%, from 2022. Compared to 2022, the

average decrease was primarily attributable to a $446.6 million decrease in overnight funds and a $82.8 million decrease in

investment securities that was partially offset by a $467.0 million increase in loans HFI. We discuss these variances in more

detail below.

Table 2 provides information on average balances and rates, Table 3 provides an analysis of rate and volume variances and Table

6 highlights the changing mix of our interest earning assets over the last three fiscal years.

Loans

In 2023, average loans HFI increased $467.0 million, or 21.3%, compared to an increase of $188.9 million, or 9.4%, in 2022.

Compared to 2022, the growth in average loans was broad based with increases realized in most loan categories, more

significantly in the residential real estate and commercial real estate categories which increased by $391.3 million and $110.0

million, respectively. Declines were experienced in our consumer (primarily indirect auto) and commercial loan segments of

$49.0 million and $9.1 million, respectively. Total loans HFI at December 31, 2023 totaled $2.734 billion, a $186.2 million

increase over December 31, 2022 and primarily reflected higher balances in residential real estate of $254.7 million and

commercial real estate of $42.9 million, partially offset by declines in our consumer loans of $53.5 million and construction loans

of $38.4 million. At December 31, 2023, our consumer loan balance reflected direct loans of $23.0 million and indirect auto

loans of $248.0 million. During 2023, indirect auto balances declined gradually as we focused on reducing exposure to this loan

segment which totaled $302.8 million at December 31, 2022.

As part of our overall strategy, we will purchase newly originated 1-4 family real estate secured adjustable-rate loans from CCHL. 

The strategic alliance with CCHL provides us a larger pool of loan purchase opportunities, which in large part drove the

aforementioned increases in residential real estate loans. These purchases can vary according to the direction of residential

mortgage interest rates, and we expect that these purchases might slow in 2024 compared to the 2023 level of purchases.

Expansion into new markets in the Northern Arc of Atlanta, Georgia (Cobb and Gwinnett Counties) and Walton County, Florida

drove incremental loan growth of approximately $43 million in 2023 as we added to those banking teams throughout 2023.

In 2023, average loans held for sale (“HFS”) increased $7.0 million, or 14. 5%, from 2022. Loans HFI and HFS as a percentage of

average earning assets increased to 68.9% in 2023 compared to 56.1% in 2022, primarily attributable to strong loan growth during

the year.

55

Table 6

SOURCES OF EARNING ASSET GROWTH

2022 to

Percentage

Components of

2023

of Total

Average Earning Assets

(Average Balances – Dollars In Thousands)

Change

Change

2023

2022

2021

Loans:

Loans HFS

$

7,008

12.6

%

1.4

%

1.2

%

2.1

%

Loans HFI:

Commercial, Financial, and Agricultural

(9,134)

(16.5)

5.9

6.0

8.5

Real Estate – Construction

14,458

26.1

5.8

5.4

4.3

Real Estate – Commercial Mortgage

110,013

198.4

20.7

17.6

18.6

Real Estate – Residential

391,287

705.7

22.5

12.3

10.0

Real Estate – Home Equity

9,284

16.7

5.2

4.9

5.3

Consumer

(48,954)

(88.3)

7.6

8.7

8.0

Total HFI Loans

466,954

842.1

67.7

54.9

54.7

Total Loans HFS and HFI

$

473,962

854.7

69.1

56.1

56.8

%

Investment Securities:

Taxable

$

(82,326)

(148.5)

%

25.8

%

27.5

%

21.3

%

Tax-Exempt

(469)

(0.8)

0.1

0.1

0.1

Total Securities

$

(82,795)

(149.3)

%

25.9

%

27.6

%

21.4

%

Federal Funds Sold and Interest Bearing Deposits

(446,615)

(805.4)

5.0

16.3

21.8

Total Earning Assets

$

(55,448)

100

%

100

%

100

%

100

%

Our average total loans (HFS and HFI)-to-deposit ratio was 73.9% in 2023, 59.5% in 2022, and 61.0% in 2021. 

The composition of our HFI loan portfolio at December 31 for each of the past three years is shown in Table 7. Table 8 arrays

our HFI loan portfolio at December 31, 2023, by maturity period. As a percentage of the HFI loan portfolio, loans with fixed

interest rates represented 29.1% at December 31, 2023 compared to 33.3% at December 31, 2022. 1-4 family real estate secured

adjustable-rate loan production in 2023 drove the decrease in the percentage. 

Table 7

LOANS HFI BY CATEGORY

(Dollars in Thousands)

2023

2022

2021

Commercial, Financial and Agricultural

$

225,190

$

247,362

$

223,086

Real Estate – Construction

196,091

234,519

174,394

Real Estate – Commercial Mortgage

825,456

782,557

663,550

Real Estate – Residential

1,004,219

749,513

360,021

Real Estate – Home Equity

210,920

208,217

187,821

Consumer

272,042

325,517

322,593

Total Loans HFI, Net of Unearned Income

$

2,733,918

$

2,547,685

$

1,931,465

56

Table 8

LOANS HFI MATURITIES

Maturity Periods

(Dollars in Thousands)

One Year

 or Less

Over One

Through

Five Years

 Five

Through

Fifteen

Years

Over

Fifteen

Years

Total

Commercial, Financial and Agricultural

$

37,692

$

144,978

$

39,563

$

2,957

$

225,190

Real Estate – Construction

119,397

48,295

1,751

26,648

196,091

Real Estate – Commercial Mortgage

58,142

136,164

330,093

301,057

825,456

Real Estate – Residential

15,579

18,619

132,848

837,173

1,004,219

Real Estate – Home Equity

2,208

9,698

60,668

138,346

210,920

Consumer

(1)

6,382

170,698

94,672

290

272,042

Total

$

239,400

$

528,452

$

659,595

$

1,306,471

$

2,733,918

Total Loans HFI with Fixed Rates

$

96,749

$

407,059

$

248,494

$

43,529

$

795,831

Total Loans HFI with Floating or Adjustable-Rates

142,651

121,393

411,101

1,262,942

1,938,087

Total

$

239,400

$

528,452

$

659,595

$

1,306,471

$

2,733,918

(1)

Demand loans and overdrafts are reported in the category of one year or less.

Credit Quality

Table 9 provides the components of nonperforming assets and various other credit quality and risk metrics at December 31 for the

last three fiscal years. Information regarding our accounting policies related to nonaccruals, past due loans, and financial

difficulty modifications is provided in Note 3 – Loans Held for Investment and Allowance for Credit Losses.

Nonperforming assets (nonaccrual loans and other real estate) totaled $6.2 million at December 31, 2023 compared to $2.7

million at December 31, 2022. At December 31, 2023, nonperforming assets as a percent of total assets was 0.15%, compared to

0.06% at December 31, 2022. Nonaccrual loans totaled $6.2 million at December 31, 2023, a $3.9 million increase over

December 31, 2022. Further, classified loans totaled $22.2 million at December 31, 2023, a $2.9 million increase over December

31, 2022.

Table 9

CREDIT QUALITY

(Dollars in Thousands)

2023

2022

2021

Nonaccruing Loans:

Commercial, Financial and Agricultural

$

311

$

41

$

90

Real Estate – Construction

322

17

-

Real Estate – Commercial Mortgage

909

645

604

Real Estate – Residential

2,990

239

2,097

Real Estate – Home Equity

999

771

1,319

Consumer

711

584

212

Total Nonaccruing Loans

6,242

2,297

4,322

Other Real Estate Owned

1

431

17

Total Nonperforming Assets

$

6,243

$

2,728

$

4,339

Past Due Loans 30 – 89 Days

$

6,855

$

7,829

$

3,600

Classified Loans

$

22,203

$

19,342

$

17,912

Nonaccruing Loans/Loans

0.23

%

0.09

%

0.22

%

Nonperforming Assets/Total Assets

0.15

0.06

0.10

Nonperforming Assets/Loans Plus OREO

0.23

0.11

0.22

Allowance/Nonaccruing Loans

479.70

%

1091.33

%

499.93

%

57

Nonaccrual Loans

. Nonaccrual loans totaled $6.2 million at December 31, 2023, a $3.9 million increase over December 31,

2022. Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due or management

deems the collectability of the principal and interest to be doubtful. Once a loan is placed in nonaccrual status, all previously

accrued and uncollected interest is reversed against interest income. Interest income on nonaccrual loans is recognized when the

ultimate collectability is no longer considered 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. If interest on our loans classified

as nonaccrual during 2023 had been recognized on a fully accruing basis, we would have recorded an additional $0.2 million of

interest income for the year ended December 31, 2023.

Other Real Estate Owned

. OREO represents property acquired as the result of borrower defaults on loans or by receiving a deed

in lieu of foreclosure. OREO is recorded at the lower of cost or estimated fair value, less estimated selling costs, at the time of

foreclosure. Write-downs occurring at foreclosure are charged against the allowance for credit losses. On an ongoing basis,

properties are either revalued internally or by a third-party appraiser as required by applicable regulations. Subsequent declines in

value are reflected as other noninterest expense. Carrying costs related to maintaining the OREO properties are expensed as

incurred and are also reflected as other noninterest expense.

OREO totaled $1,000 at December 31, 2023 versus $0.4 million at December 31, 2022. During 2023, we added properties

totaling $1.5 million and sold properties totaling $1.9 million. For 2022, we added properties totaling $2.4 million and sold

properties totaling $2.0 million.

Modifications to Borrowers Experiencing Financial Difficulty

. Occasionally, we will modify loans to borrowers who are

experiencing financial difficulty. Loan modifications to borrowers in financial difficulty are loans in which we will grant an

economic concession to the borrower that we would not otherwise consider. In these instances, as part of a work-out alternative,

we will make concessions including the extension of the loan term, a principal moratorium, a reduction in the interest rate, or a

combination thereof. 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 December 31, 2023, we did not maintain

any loans made to borrowers modified due to the borrower experiencing financial difficulty. 

Past Due Loans

. 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. Past due loans at December 31, 2023 totaled $6.9 million compared to $7.8 million at December 31, 2022. Indirect

auto loans represented a large portion of the past due balances representing 76% and 73%, respectively, of the total dollars past

due at December 31, 2023 and December 31, 2022, respectively. 

Potential Problem Loans

. Potential problem loans are defined as those loans which are now current but where management has

doubt as to the borrower’s ability to comply with present loan repayment terms. At December 31, 2023, we had $3.4 million in

loans of this type which were not included in either of the nonaccrual or 90 days past due loan categories compared to $2.8

million at December 31, 2022. Management monitors these loans closely and reviews their performance on a regular basis.

Loan Concentrations

. Loan concentrations exist when there are amounts loaned to multiple borrowers engaged in similar

activities which cause them to be similarly impacted by economic or other conditions and such amount exceeds 10% of total

loans. Due to the lack of diversified industry within our markets and the relatively close proximity of the markets, we have both

geographic concentrations as well as concentrations in the types of loans funded. Specifically, due to the nature of our markets, a

significant portion of our HFI loan portfolio has historically been secured with real estate, approximately 82% at December 31,

2023 and 78% at December 31, 2022 with the increase driven by a higher volume of 1-4 family residential real estate loans

originated in 2023 in comparison to other loan types. The primary types of real estate collateral are commercial properties and 1-

4 family residential properties.

We review our loan portfolio segments and concentration limits on an ongoing basis and will make adjustments as needed to

mitigate/reduce risk to segments that reflect decline or stress. 

We have established an internal lending limit of $10 million for the total aggregate amount of credit that will be extended to a

client and any related entities within our Board approved policies. This compares to our legal lending limit of approximately $96

million.

58

The following table summarizes our real estate loan category as segregated by the type of property. Property type concentrations

are stated as a percentage of total real estate loans at December 31.

Table 10

REAL ESTATE LOANS BY PROPERTY TYPE

2023

2022

Investor

Real Estate

Owner

Occupied

 Real Estate

Investor

Real Estate

Owner

Occupied

 Real Estate

Vacant Land, Construction, and Land Development

13.3

%

-

14.8

%

-

Improved Property

27.2

59.5

%

27.4

57.8

%

Total Real Estate Loans

40.5

%

59.5

%

42.2

%

57.8

%

A major portion of our real estate loan category is centered in the owner occupied category which carries a lower risk of non-

collection than certain segments of the investor category. Approximately 41% of the investor real estate category was secured by

residential real estate at December 31, 2023 compared to 42% at December 31, 2022.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net

amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is

reported in earnings and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the

allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the

aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable

off-balance sheet credit exposures is provided through the credit loss provision, but recorded separately in other liabilities.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to

past events, current conditions, and reasonable and supportable forecasts. Historical loan default and loss experience provides the

basis for the estimation of expected credit losses. Adjustments to historical loss information incorporate management’s view of

current conditions and forecasts. 

Detailed information regarding the methodology for estimating the amount reported in the allowance for credit losses is provided

in Note 1 – Significant Accounting Policies/Allowance for Credit Losses in the Consolidated Financial Statements.

Note 3 – Loans Held for Investment and Allowance for Credit Losses in the Consolidated Financial Statements provides the

activity in the allowance and the allocation by loan type for each of the past three fiscal years.

At December 31, 2023, the allowance for credit losses for HFI loans totaled $29.9 million compared to $25.1 million at December

31, 2022 and $21.6 million at December 31, 2021. The $4.8 million increase in the allowance in 2023 reflected a credit loss

provision of $9.6 million and net loan charge-offs of $4.7 million. The $3.5 million increase in the allowance in 2022 reflected a

credit loss provision of $7.4 million and net loan charge -offs of $3.9 million. The increases in the allowance for both 2023 and

2022 were primarily attributable to incremental allowance related to loan growth, primarily residential real estate, and slower

prepayment speeds (due to higher interest rates). For 2022, a higher projected rate of unemployment and its effect on rates of

default was also a contributing factor. 

For 2023, we realized net loan charge-offs of $4.7 million, or 0.18% of average HFI loans, compared to net loan charge -offs of

$3.9 million, or 0.18%, for 2022, and net loan recoveries of $0.6 million, or 0.03%, for 2021. A majority of the increase in 2023

and 2022 reflected higher consumer loan (indirect auto) net loan charge -offs which represented 76% and 43%, respectively, of

total net loan charge-offs. Further, indirect auto net loan charge -offs represented approximately 1.31% of average indirect auto

loans in 2023 and 0.53% in 2022. Beginning in 2022 we began reducing our exposure to this loan segment in advance of

potential economic slowing. 

At December 31, 2023, the allowance for credit losses represented 1.10% of HFI loans and provided coverage of 480% of

nonperforming loans compared to 0.98% and 1,091%, respectively, at December 31, 2022 and 1.12% and 500%, respectively, at

December 31, 2021. 

59

Table 11

ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES

2023

2022

2021

(Dollars in Thousands)

ACL

Amount

Percent of

Loans to

Total Loans

ACL

Amount

Percent of

Loans to

Total Loans

ACL

Amount

Percent of

Loans to

Total Loans

Commercial, Financial and Agricultural

$

1,482

8.2

%

$

1,506

9.7

%

$

2,191

11.6

%

Real Estate:

Construction

2,502

7.2

2,654

9.2

3,302

9.0

Commercial

5,782

30.2

4,815

30.7

5,810

34.4

Residential

15,056

36.7

10,741

29.4

4,129

18.6

Home Equity

1,818

7.7

1,864

8.2

2,296

9.7

Consumer

3,301

10.0

3,488

12.8

3,878

16.7

Total

$

29,941

100

%

$

25,068

100

%

$

21,606

100

%

Investment Securities

Through December 31, our average investment portfolio balance was $1.019 billion in 2023, $1.102 billion in 2022, and $783

million in 2021. As a percentage of average earning assets, our investment portfolio represented 25.9% in 2023, compared to

27.6% in 2022, and 21.4% in 2021. For 2023, the decline in the investment portfolio was attributable to the majority of our

investment cash flow not being reinvested in investment securities and to a lesser extent the sale of $30.4 million of our floating

rate securities at a slight net gain, both of which were designed to support loan growth. As we continue to monitor our overall

liquidity levels in 2024, cash flow from the investment portfolio should continue to run-off, but we will review various investment

strategies, as appropriate given loan demand and other liquidity management strategies. 

For 2023, average taxable investments decreased $82.3 million, or 7.5%, while tax-exempt investments decreased $0.5 million, or

17.6%. Both taxable and non-taxable bonds decreased as part of our overall investment strategy to allow a majority of our

investments to run off in order to fund loan growth. At December 31, 2023, municipal securities (taxable and non-taxable)

comprised 4.0% of the portfolio. 

Our investment portfolio is a significant component of our operations and, as such, it functions as a key element of liquidity and

asset/liability management. Two types of classifications are approved for investment securities which are Available -for-Sale

(“AFS”) and Held-to-Maturity (“HTM”). For 2023 and 2022, we maintained securities under both the AFS and HTM

designations. At December 31, 2023, $337.9 million, or 35.1%, of our investment portfolio was classified as AFS, with $625.0

million, or 64.7%, classified as HTM and $3.5 million, or 0.2%, classified as equity securities. At December 31, 2022, the AFS

and HTM portfolio comprised 38.5% and 61.5%, respectively. In the third quarter of 2022, U.S. Treasury obligations totaling

$168.4 million with unrealized losses of $9.4 million were transferred from AFS to HTM. At December 31, 2023, $4.5 million

was remaining in unrealized losses for these securities.

Table 12 provides the composition of our investment securities portfolio at December 31 for each of the last three fiscal years.

60

Table 12

INVESTMENT SECURITIES COMPOSITION

2023

2022

2021

(Dollars in Thousands)

Carrying

Amount

Percent

Carrying

Amount

Percent

Carrying

Amount

Percent

Available for Sale

U.S. Government Treasury

$

24,679

2.6

%

$

22,050

2.1

%

$

187,868

18.9

%

U.S. Government Agency

145,034

15.0

186,052

17.3

237,578

23.9

States and Political Subdivisions

39,083

4.0

40,329

3.8

46,980

4.7

Mortgage-Backed Securities

63,303

6.6

69,405

6.5

88,869

8.9

Corporate Debt Securities

57,552

6.0

88,236

8.2

86,222

8.7

Other Securities

8,251

0.9

7,222

0.6

7,094

0.7

Total 

337,902

35.1

413,294

38.5

654,611

65.8

Held to Maturity

U.S. Government Treasury

457,681

47.4

457,374

42.6

115,499

11.6

Mortgage-Backed Securities

167,341

17.3

203,370

18.9

224,102

22.5

Total

625,022

64.7

660,744

61.5

339,601

34.1

Other Equity Securities

3,450

0.2

10

-

861

0.1

Total Investment Securities

$

966,374

100

%

$

1,074,048

100

%

$

995,073

100

%

The classification of a security is determined upon acquisition based on how the purchase will affect our asset/liability strategy

and future business plans and opportunities. Classification determinations will also factor in regulatory capital requirements,

volatility in earnings or other comprehensive income, and liquidity needs. Securities in the AFS portfolio are recorded at fair

value with unrealized gains and losses associated with these securities recorded net of tax, in the accumulated other

comprehensive loss component of shareowners’ equity. Securities designated as HTM are those acquired or owned with the

intent of holding them to maturity (final payment date). HTM investments are measured at amortized cost. It is neither

management’s current intent nor practice to participate in the trading of investment securities for the purpose of recognizing gains

and therefore we do not maintain a trading portfolio.

At December 31, 2023, there were 878 positions (combined AFS and HTM) with pre-tax unrealized losses totaling $63.2 million. 

The GNMA mortgage-backed securities, U.S. Treasuries, and SBA securities held carry the full faith and credit guarantee of the

U.S. Government and are deemed to be 0% risk-weighted assets. Other mortgage-backed securities held (Federal National

Mortgage Association and Federal Home Loan Mortgage Corporation) are issued by U.S. Government sponsored entities. Direct

obligations of U.S. Government agencies (Federal Farm Credit Bank and Federal Home Loan Bank of Atlanta) are also owned. 

We believe the long history of no credit losses on government securities indicates that the expectation of nonpayment of the

amortized cost basis is zero. A large portion of the SBA securities float monthly or quarterly with the prime rate and are

uncapped. The remaining positions owned are municipal and corporate bonds. At December 31, 2023, 14 corporate bond

positions had a total allowance for credit loss of $17,000 and 17 municipal bond positions had a total allowance for credit loss of

$8,000. All of these positions maintain an overall rating of at least “A-”, and all are expected to mature at par. 

The average maturity and duration of our investment portfolio was 2.91 and 2.53 years at December 31, 2023, respectively, and

3.57 and 3.20 years at December 31, 2022, respectively. The average life of our investment portfolio decreased primarily due to

the natural aging of the portfolio in conjunction with a majority of the cash flow from the investment portfolio not being

reinvested in order to fund loan growth. 

The weighted average taxable equivalent yield of our investment portfolio at December 31, 2023 was 2.02% versus 2.03% in

2022. This relatively unchanged yield reflected a minimal reinvestment of investment securities. Our bond portfolio contained

no investments in obligations, other than U.S. Governments, of any state, municipality, political subdivision, or any other issuer

that exceeded 10% of our shareowners’ equity at December 31, 2023. 

Table 13 and Note 2 in the Notes to Consolidated Financial Statements present a detailed analysis of our investment securities as

to type, maturity, unrealized losses, and yield at December 31.

61

Table 13

MATURITY DISTRIBUTION OF INVESTMENT SECURITIES

Within 1 year

1 - 5 years

5 - 10 years

After 10 years

Total

(Dollars in

Thousands)

Amount

WAY

(3)

Amount

WAY

(3)

Amount

WAY

(3)

Amount

WAY

(3)

Amount

WAY

(3)

Available for Sale

U.S. Government

Treasury

$

10,557

1.97

%

$

14,122

0.79

%

$

-

-

%

$

-

-

%

$

24,679

1.54

%

U.S. Government

Agency

14,054

0.92

130,980

2.93

-

-

-

-

145,034

2.74

States and Political

Subdivisions

219

0.85

23,003

1.39

15,861

1.93

-

-

39,083

1.61

Mortgage-Backed

Securities

(1)

-

-

12,869

1.66

50,434

2.48

-

-

63,303

2.32

Corporate Debt

Securities

3,715

1.36

36,288

2.05

17,549

1.89

-

-

57,552

1.96

Other Securities

(2)

-

-

-

-

-

-

8,251

6.48

8,251

6.48

Total

$

28,545

1.60

%

$

217,262

2.47

%

$

83,844

2.25

%

$

8,251

6.48

%

$

337,902

2.40

%

Held to Maturity

U.S. Government

Treasury

$

89,799

1.87

%

$

367,882

1.72

%

$

-

-

%

$

-

-

%

$

457,681

1.75

%

Mortgage-Backed

Securities

(1)

3,201

2.86

151,466

1.83

12,674

2.93

-

-

167,341

1.93

Total

$

93,000

1.90

%

$

519,348

1.75

%

$

12,674

2.93

%

$

-

-

%

$

625,022

1.80

%

Equity Securities

$

-

-

%

$

-

-

%

$

-

-

%

$

3,450

1.93

%

$

3,450

1.93

%

Total Investment

Securities

$

121,545

1.83

%

$

736,610

1.96

%

$

96,518

2.34

%

$

11,701

6.48

%

$

966,374

2.02

%

(1)

 Based on weighted-average maturity.

(2)

 Federal Home Loan Bank Stock and Federal Reserve Bank Stock are included in this category for weighted average yield, but do not have stated maturities.

(3)

 Weighted average yield ("WAY") calculated based on current amortized cost balances – not presented on a tax equivalent basis.

Deposits

Average total deposits for 2023 were $3.670 billion, a decrease of $93.7 million, or 2.5%, from 2022. Average deposits increased

$356.5 million, or 10.5%, in 2022.

 For 2023, the decline was experienced in noninterest bearing deposits and savings accounts,

partially offset by increases in NOW, money market accounts and certificates of deposit. Our public funds balances have

historically realized

growth in the fourth quarter of the year when municipalities collect tax receipts and will be at a seasonal low

in the third quarter. At December 31, 2023, public funds balances totaled $709.8 million and at December 31, 2022, totaled

$720.7 million.

For 2022, the increase occurred in all deposit types except certificates of deposit, with the largest increases

occurring in noninterest bearing accounts, NOW accounts, and savings accounts.

The FOMC increased their benchmark rate by 100 basis points in 2023 to end the year at a range of 5.25% to 5.50% and follows

an aggressive 425 basis point increase during 2022. These rate increases have resulted in a shift in mix out of noninterest bearing

accounts into interest bearing accounts that we began experiencing in the fourth quarter of 2022. This shift occurred primarily in

NOW accounts, and, to a lesser degree, money market accounts and certificates of deposit. We have several strategies in place to

protect core deposits and mitigate deposit run-off, and we will continue to closely monitor several metrics such as the sensitivity

of our clients to our deposit rates, our overall liquidity position, and competitor rates when pricing deposits. This strategy is

consistent with previous rate cycles and allows us to manage the mix of our deposits as well as the overall client relationship

rather than competing solely on rate. 

Table 2 provides an analysis of our average deposits, by category, and average rates paid thereon for each of the last three fiscal

years. Table 14 reflects the shift in our deposit mix over the last year and Table 15 provides a maturity distribution of time

deposits in denominations of $250,000 and over at December 31, 2023. For 2023, noninterest bearing deposits represented 41.1%

of total average deposits. This compares to 44.9% in 2022 and 44.7% in 2021.

62

Table 14

SOURCES OF DEPOSIT GROWTH

2022 to

Percentage

Components of

2023

of Total

Total Deposits

(Average Balances - Dollars in Thousands)

Change

Change

2023

2022

2021

Noninterest Bearing Deposits

$

(183,475)

195.8

%

41.1

%

44.9

%

44.7

%

NOW Accounts

107,023

(114.2)

32.0

28.3

28.3

Money Market Accounts

16,174

(17.3)

8.2

7.5

8.2

Savings Accounts

(36,280)

38.7

16.1

16.7

15.8

Time Deposits

2,834

(3.0)

2.6

2.6

3

Total Deposits

$

(93,724)

100

%

100

%

100

%

100

%

Table 15

MATURITY DISTRIBUTION OF CERTIFICATES OF DEPOSITS GREATER THAN $250,000

2023

(Dollars in Thousands)

 Certificates 

of Deposit

Percent

Three months or less

$

3,717

18.2

%

Over three through six months

9,272

45.5

Over six through twelve months

3,607

17.7

Over twelve months

3,795

18.6

Total

$

20,391

100

%

Market Risk and Interest Rate Sensitivity

Overview.

Market risk arises from changes in interest rates, exchange rates, commodity prices, and equity prices. We have risk

management policies designed to monitor and limit exposure to market risk and we do not participate in activities that give rise to

significant market risk involving exchange rates, commodity prices, or equity prices. In asset and liability management activities,

our policies are designed to minimize structural interest rate risk.

Interest Rate Risk Management.

Our net income is largely dependent on net interest income. Net interest income is susceptible to

interest rate risk to the degree that interest-bearing liabilities mature or reprice on a different basis than interest-earning

assets. When interest-bearing liabilities mature or reprice more quickly than interest-earning assets in a given period, a significant

increase in market rates of interest could adversely affect net interest income. Similarly, when interest-earning assets mature or

reprice more quickly than interest-bearing liabilities, falling market interest rates could result in a decrease in net interest

income. Net interest income is also affected by changes in the portion of interest-earning assets that are funded by interest-

bearing liabilities rather than by other sources of funds, such as noninterest -bearing deposits and shareowners’ equity.

We have established what we believe to be a comprehensive interest rate risk management policy, which is administered by

management’s Asset Liability Management Committee (“ALCO”). The policy establishes limits of risk, which are quantitative

measures of the percentage change in net interest income (a measure of net interest income at risk) and the fair value of equity

capital (a measure of economic value of equity (“EVE”) at risk) resulting from a hypothetical change in interest rates for

maturities from one day to 30 years. We measure the potential adverse impacts that changing interest rates may have on our

short-term earnings, long-term value, and liquidity by employing simulation analysis through the use of computer modeling. The

simulation model captures optionality factors such as call features and interest rate caps and floors imbedded in investment and

loan portfolio contracts. As with any method of gauging interest rate risk, there are certain shortcomings inherent in the interest

rate modeling methodology used by us. When interest rates change, actual movements in different categories of interest-earning

assets and interest-bearing liabilities, loan prepayments, and withdrawals of time and other deposits, may deviate significantly

from assumptions used in the model. Finally, the methodology does not measure or reflect the impact that higher rates may have

on adjustable-rate loan clients’ ability to service their debts, or the impact of rate changes on demand for loan and deposit

products.

63

The statement of financial condition is subject to testing for interest rate shock possibilities to indicate the inherent interest rate

risk. We prepare a current base case and several alternative interest rate simulations (+/- 100, 200, 300, and 400 basis points

(bp)), at least once per quarter, and report the analysis to ALCO, our Market Risk Oversight Committee (“MROC”), our Risk

Oversight Committee (“ROC”) and the Board of Directors. We augment our interest rate shock analysis with alternative interest

rate scenarios on a quarterly basis that may include ramps, parallel shifts, and a flattening or steepening of the yield curve (non-

parallel shift). In addition, more frequent forecasts may be produced when interest rates are particularly uncertain or when other

business conditions so dictate.

Our goal is to structure the statement of financial condition so that net interest earnings at risk over 12-month and 24-month

periods and the economic value of equity at risk do not exceed policy guidelines at the various interest rate shock levels. We

attempt to achieve this goal by balancing, within policy limits, the volume of floating-rate liabilities with a similar volume of

floating-rate assets, by keeping the average maturity of fixed-rate asset and liability contracts reasonably matched, by managing

the mix of our core deposits, and by adjusting our rates to market conditions on a continuing basis. 

Analysis.

Measures of net interest income at risk produced by simulation analysis are indicators of an institution’s short-term

performance in alternative rate environments. These measures are typically based upon a relatively brief period, and do not

necessarily indicate the long-term prospects or economic value of the institution. 

Table 16

ESTIMATED CHANGES IN NET INTEREST INCOME

(1)

Percentage Change (12-month shock)

+400 bp

+300 bp

+200 bp

+100 bp

-100 bp

-200 bp

-300 bp

-400 bp

Policy Limit

-15.0

%

-12.5

%

-10.0

%

-7.5

%

-7.5

%

-10.0

%

-12.5

%

-15.0

%

December 31, 2023

3.0

%

2.1

%

1.3

%

0.7

%

-1.2

%

-3.6

%

-7.5

%

-12.8

%

December 31, 2022

11.3

%

8.4

%

5.5

%

2.8

%

-5.0

%

-12.3

%

-20.0

%

-27.1

%

Percentage Change (24-month shock)

+400 bp

+300 bp

+200 bp

+100 bp

-100 bp

-200 bp

-300 bp

-400 bp

Policy Limit

-17.5

%

-15.0

%

-12.5

%

-10.0

%

-10.0

%

-12.5

%

-15.0

%

-17.5

%

December 31, 2023

29.5

%

24.4

%

19.3

%

14.8

%

4.1

%

-3.5

%

-12.9

%

-23.6

%

December 31, 2022

31.3

%

25.2

%

19.0

%

13.1

%

-2.0

%

-13.8

%

-25.7

%

-36.3

%

The Net Interest Income at risk position was generally less favorable at December 31, 2023 compared to December 31, 2022 for

the 12-month and 24-month shocks for the rising rate scenarios and more favorable in the falling rate environments. The

exception to this is the rates +100 bps and +200 bps scenarios over a 24-month shock which became slightly more favorable

primarily due to the higher asset yields in the intermediate part of the inverted yield curve compared to the prior year. Strong loan

growth and a reduction in our overnight funds balance in 2023 resulted in less asset sensitivity, which is less favorable in rising

rate environments, and more favorable in a falling rate environment. 

Net Interest Income at risk is within our prescribed policy limits over both the 12-month and 24-month periods for all rising rate

scenarios with the exception of the down 400 bps scenario over the 24-month period primarily due to our limited ability to lower

our deposit rates relative to the decline in market rate for that scenario. 

The measures of equity value at risk indicate our ongoing economic value by considering the effects of changes in interest rates

on all of our cash flows by discounting the cash flows to estimate the present value of assets and liabilities. The difference

between these discounted values of the assets and liabilities is the economic value of equity, which in theory approximates the fair

value of our net assets.

Table 17

ESTIMATED CHANGES IN ECONOMIC VALUE OF EQUITY

(1)

Changes in Interest Rates

+400 bp

+300 bp

+200 bp

+100 bp

-100 bp

-200 bp

 -300 bp

-400 bp

Policy Limit

-30.0

%

-25.0

%

-20.0

%

-15.0

%

-15.0

%

-20.0

%

-25.0

%

-30.0

%

December 31, 2023

12.9

%

10.7

%

7.8

%

4.4

%

-6.4

%

-14.0

%

-23.6

%

-27.8

%

December 31, 2022

11.0

%

9.0

%

6.4

%

3.6

%

-7.4

%

-18.8

%

-30.9

%

-40.1

%

EVE Ratio (policy minimum 5.0%)

18.9

%

18.2

%

17.3

%

16.5

%

14.2

%

12.8

%

11.2

%

10.4

%

(1)

Down 200, 300 and 400 bp rate scenarios have been added due to the current interest rate environment.

64

At December 31, 2023, the economic value of equity was favorable in all rising rate scenarios and unfavorable in the falling rate

scenarios. EVE was within prescribed tolerance levels in all rate scenarios. Factors that can impact EVE values include the

absolute level of rates, the overall structure of the balance sheet (including liquidity levels), pre-payment speeds, loan floors, and

the change of model assumptions.

As the interest rate environment and the dynamics of the economy continue to change, additional simulations will be analyzed to

address not only the changing rate environment, but also the changing statement of financial condition mix, measured over

multiple years, to help assess the risk to the Company.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

In general terms, liquidity is a measurement of our ability to meet our cash needs. Our objective in managing our liquidity is to

maintain our ability to fund loan commitments, purchase securities, accommodate deposit withdrawals or repay other liabilities in

accordance with their terms, without an adverse impact on our current or future earnings. Our liquidity strategy is guided by

policies that are formulated and monitored by our ALCO and senior management, and which take into account the marketability

of assets, the sources and stability of funding and the level of unfunded commitments. We regularly evaluate all of our various

funding sources with an emphasis on accessibility, stability, reliability, and cost-effectiveness. For 2023 and 2022, our principal

source of funding was client deposits, supplemented by our short-term and long-term borrowings, primarily from our trust-

preferred securities, securities sold under repurchase agreements, federal funds purchased, and FHLB borrowings. We believe

that the cash generated from operations, our borrowing capacity and our access to capital resources are sufficient to meet our

future operating capital and funding requirements.

At December 31, 2023, we had the ability to generate approximately $1.488 billion (excludes overnight funds position of $229

million) in additional liquidity through various sources including various Federal Home Loan Bank borrowings, the Federal

Reserve Discount Window, federal funds purchased lines, and brokered deposits. We recognize the importance of maintaining

liquidity and have developed a Contingent Liquidity Plan, which addresses various liquidity stress levels and our response and

action based on the level of severity. We periodically test our credit facilities for access to the funds, but also understand that as

the severity of the liquidity level increases certain credit facilities may no longer be available. We conduct quarterly liquidity

stress tests and the results are reported to ALCO, MROC, ROC and the Board of Directors. We believe the liquidity available to

us is sufficient to meet our ongoing needs.

We also view our investment portfolio as a liquidity source and have the option to pledge securities in our portfolio as collateral

for borrowings or deposits, and/or to sell selected securities. Our portfolio consists of debt issued by the U.S. Treasury, U.S.

governmental agencies, municipal governments, and corporate entities. At December 31, 2023, the weighted-average maturity

and duration of our portfolio were 2.91 years and 2.53, respectively, and the AFS portfolio had a net unrealized tax-effected loss

of $22.3 million. 

Our average net overnight funds sold position (defined as funds sold plus interest-bearing deposits with other banks less funds

purchased) was $203.1 million in 2023 compared to an average net overnight funds sold position of $649.8 million in 2022. The

decline in our overnight funds position in 2023 reflected strong growth in average loans and lower average deposit balances. 

We expect capital expenditures over the next 12 months to be approximately $12.0 million, which will consist primarily of

technology purchases for banking offices, office leasehold improvements, business applications, and information technology

security needs as well as furniture and fixtures and banking office remodels. We expect that these capital expenditures will be

funded with existing resources without impairing our ability to meet our ongoing obligations.

Borrowings

Average short -term borrowings increased $3.6 million compared to 2022 as higher repurchase agreement balances (business

deposit accounts classified as repurchase agreements) of $11.8 million were partially offset by a $8.2 million decrease in

warehouse line of credit borrowings which reflected lower utilization of our warehouse lines of credit to support loans held for

sale. Additional detail on these warehouse borrowings is provided in Note 4 – Mortgage Banking Activities in the Consolidated

Financial Statements.

At December 31, 2023, total advances from the FHLB consisted of $0.3 million in outstanding debt comprised of one note. 

A

$20 million FHLB Daily Rate Credit advance was obtained for six days in November 2023 for general liquidity purposes. FHLB

advances are collateralized by a floating lien on certain 1-4 family residential mortgage loans, commercial real estate mortgage

loans, and home equity mortgage loans. 

65

We have issued two junior subordinated deferrable interest notes to wholly owned Delaware statutory trusts. The first note for

$30.9 million was issued to CCBG Capital Trust I in November 2004, of which $10 million was retired in April 2016. The

second note for $32.0 million was issued to CCBG Capital Trust II in May 2005. The interest payment for the CCBG Capital

Trust I borrowing is due quarterly and adjusts quarterly to a variable rate of three-month CME Term SOFR (secured overnight

financing rate) plus a margin of 1.90%. This note matures on December 31, 2034. The interest payment for the CCBG Capital

Trust II borrowing is due quarterly and adjusts quarterly to a variable interest rate based on three-month CME Term SOFR plus a

margin of 1.80%. This note matures on June 15, 2035. The proceeds from these borrowings were used to partially fund

acquisitions. Under the terms of each junior subordinated deferrable interest note, in the event of default or if we elect to defer

interest on the note, we may not, with certain exceptions, declare or pay dividends or make distributions on our capital stock or

purchase or acquire any of our capital stock. In the second quarter of 2020, we entered into a derivative cash flow hedge of our

interest rate risk related to our subordinated debt. The notional amount of the derivative is $30 million ($10 million of the CCBG

Capital Trust I borrowing and $20 million of the CCBG Capital Trust II borrowing). Under the swap arrangement, CCBG will

pay a fixed interest rate of 2.50% and receive a variable interest rate based on three-month CME Term SOFR. Additional detail

on the interest rate swap agreement is provided in Note 5 – Derivatives in the Consolidated Financial Statements.

See Note 11 – Short Term Borrowings and Note 12 – Long Term Borrowings in the Notes to Consolidated Financial Statements

for additional information on borrowings.

In the ordinary course of business, we have entered into contractual obligations and have made other commitments to make future

payments. Refer to the accompanying notes to consolidated financial statements elsewhere in this report for the expected timing

of such payments as of December 31, 2023. These include payments related to (i) long-term borrowings (Note 12 – Long-Term

Borrowings), (ii) short-term borrowings (Note 11 – Short-Term Borrowings), (iii) operating leases (Note 7 – Leases), (iv) time

deposits with stated maturities (Note 10 – Deposits), and (v) commitments to extend credit and standby letters of credit (Note 21 –

Commitments and Contingencies).

Capital Resources

Shareowners’ equity was $440.6 million at December 31, 2023 compared to $387.3 million at December 31, 2022. For 2023,

shareowners’ equity was positively impacted by net income attributable to common shareowners of $52.3 million, a $4.1 million

decrease in the accumulated other comprehensive loss for our pension plan, a $11.7 million decrease in the unrealized loss on

investment securities, the issuance of stock of $2.5 million, and stock compensation accretion of $1.3 million. Shareowners’

equity was reduced by common stock dividends of $12.9 million ($0.76 per share), the repurchase of stock of $3.7 million

(122,538 shares), net adjustments totaling $1.3 million related to transactions under our stock compensation plans, and a $0.7

million decrease in the fair value of the interest rate swap related to subordinated debt.

Additional historical information on capital changes is provided in the Consolidated Statements of Changes in Shareowners’

Equity in the Consolidated Financial Statements.

We continue to maintain a strong capital position. The ratio of shareowners' equity to total assets at December 31, 2023 was

10.24% compared to 8.57% at December 31, 2022. Further, our tangible common equity ratio was 8.26% (non-GAAP financial

measure) at December 31, 2023 compared to 6.65% at December 31, 2022. If our unrealized HTM securities losses of $21.5

million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 7.74%. 

The improvement in the ratios in 2023 was primarily attributable to strong earnings and a decrease in the unrealized loss on AFS

securities which is recognized in accumulated other comprehensive loss. 

We are subject to regulatory risk-based capital requirements that measure capital relative to risk-weighted assets and off-balance

sheet financial instruments. At December 31, 2023, our total risk-based capital ratio was 16.57% compared to 15.30% at

December 31, 2022. Our common equity tier 1 capital ratio was 13.52% and 12.38%, respectively, on these dates. Our leverage

ratio was 10.30% and 8.91%, respectively, on these dates. For a detailed discussion of our regulatory capital requirements, refer

to the “Regulatory Considerations – Capital Regulations” section on page 17. See Note 17 in the Notes to Consolidated Financial

Statements for additional information as to our capital adequacy.

At December 31, 2023, our common stock had a book value of $25.92 per diluted share compared to $22.73 at December 31,

2022. Book value is impacted by the net unrealized gains and losses on investment securities. At December 31, 2023, the net

unrealized loss was $25.7 million compared to an unrealized loss of $37.3 million at December 31, 2022. Book value is also

impacted by the recording of our unfunded pension liability through other comprehensive income in accordance with Accounting

Standards Codification Topic 715. At December 31, 2023, the net pension liability reflected in accumulated other comprehensive

loss was $0.4 million compared to $4.5 million at December 31, 2022. The favorable adjustment to our unfunded pension

liability was primarily attributable to a higher than estimated return on plan assets. These adjustments also favorably impacted

our tangible capital ratio. Further, book value is impacted by the periodic adjustment made to record temporary equity at

redemption value which totaled $0.1 million at December 31, 2023. There no adjustments made during 2022. 

66

In January 2019, our Board of Directors authorized the repurchase of up to 750,000 shares of our outstanding common stock over

a five-year period. Repurchases could be made in the open market or in privately negotiated transactions; however, we were not

obligated to repurchase any specified number of shares. 122,538 shares were repurchased in 2023 at an average price of $30.24

per share. No shares were repurchased in 2022 or 2021. 99,952 shares were repurchased in 2020 at an average price of $20.39

and 77,000 shares were repurchased in 2019 at an average price of $23.40. As of December 31, 2023, a total of 299,490 shares of

our outstanding common stock have been repurchased at an average price of $25.19 under our 2019 stock repurchase plan. 

Dividends

Adequate capital and financial strength are paramount to our stability and the stability of CCB. Cash dividends declared and paid

should not place unnecessary strain on our capital levels. When determining the level of dividends, the following factors are

considered:

●

Compliance with state and federal laws and regulations;

●

Our capital position and our ability to meet our financial obligations;

●

Projected earnings and asset levels; and

●

The ability of the Bank and us to fund dividends.

OFF-BALANCE SHEET ARRANGEMENTS

We are a party to financial instruments with off-balance sheet risks in the normal course of business to meet the financing needs

of our clients. See Note 21 in the Notes to Consolidated Financial Statements. 

If commitments arising from these financial instruments continue to require funding at historical levels, management does not

anticipate that such funding will adversely impact our ability to meet on-going obligations. In the event these commitments

require funding in excess of historical levels, management believes current liquidity, investment security maturities, available

advances from the FHLB and Federal Reserve Bank, and warehouse lines of credit provide a sufficient source of funds to meet

these commitments.

In conjunction with the sale and securitization of loans held for sale and their related servicing rights, we may be exposed to

liability resulting from recourse, repurchase, and make-whole agreements. If it is determined subsequent to our sale of a loan or

its related servicing rights that a breach of the representations or warranties made in the applicable sale agreement has occurred,

which may include guarantees that prepayments will not occur within a specified and customary time frame, we may have an

obligation to either (a) repurchase the loan for the unpaid principal balance, accrued interest, and related advances; (b) indemnify

the purchaser against any loss it suffers; or (c) make the purchaser whole for the economic benefits of the loan and its related

servicing rights.

Our repurchase, indemnification and make-whole obligations vary based upon the terms of the applicable agreements, the nature

of the asserted breach, and the status of the mortgage loan at the time a claim is made. We establish reserves for estimated losses

of this nature inherent in the origination of mortgage loans by estimating the losses inherent in the population of all loans sold

based on trends in claims and actual loss severities experienced. The reserve will include accruals for probable contingent losses

in addition to those identified in the pipeline of claims received. The estimation process is designed to include amounts based on

actual losses experienced from actual activity.

ACCOUNTING POLICIES

Critical Accounting Policies and Estimates

The consolidated financial statements and accompanying Notes to Consolidated Financial Statements are prepared in accordance

with accounting principles generally accepted in the United States of America, which require us to make various estimates and

assumptions (see Note 1 in the Notes to Consolidated Financial Statements). We believe that, of our significant accounting

policies, the following may involve a higher degree of judgment and complexity.

67

Allowance for Credit Losses

. The amount of the allowance for credit losses represents management’s best estimate of current

expected credit losses considering available information, from internal and external sources, relevant to assessing exposure to

credit loss over the contractual term of the instrument. Relevant available information includes historical credit loss experience,

current conditions, and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the

estimation of expected credit losses, adjustments to historical loss information may be made for changes in loan risk grades, loss

experience trends, loan prepayment trends, differences in current portfolio-specific risk characteristics, environmental conditions,

future expectations, or other relevant factors. While management utilizes its best judgment and information available, the

ultimate adequacy of our allowance accounts is dependent upon a variety of factors beyond our control, including the

performance of our portfolios, the economy, changes in interest rates, and the view of the regulatory authorities toward

classification of assets. Detailed information on the Allowance for Credit Losses valuation, and the assumptions used are provided

in Note 1 – Significant Accounting Policies of the Notes to Consolidated Financial Statements. 

Goodwill

. Goodwill represents the excess of the cost of acquired businesses over the fair value of their identifiable net

assets. We perform an impairment review on an annual basis or more frequently if events or changes in circumstances indicate

that the carrying value may not be recoverable. Adverse changes in the economic environment, declining operations, or other

factors could result in a decline in the estimated implied fair value of goodwill. If the estimated implied fair value of goodwill is

less than the carrying amount, a loss would be recognized to reduce the carrying amount to the estimated implied fair value.

We evaluate goodwill for impairment on an annual basis. Accounting Standards Update 2017-04, Intangibles – Goodwill and

Other (Topic 350): Simplifying Accounting for Goodwill Impairment allows for a qualitative assessment of goodwill impairment

indicators. If the assessment indicates that impairment has more than likely occurred, the Company must compare the estimated

fair value of the reporting unit to its carrying amount. If the carrying amount of the reporting unit exceeds its estimated fair value,

an impairment charge is recorded equal to the excess.

During the fourth quarter of 2023, we performed our annual impairment testing. We proceeded with qualitative assessment by

evaluating impairment indicators and concluded there were none that indicated that goodwill impairment had occurred. 

Pension Assumptions

.

We have a defined benefit pension plan for the benefit of a portion of our associates. On December 30,

2019, the plan was amended to remove plan eligibility for new associates hired after December 31, 2019. Our funding policy

with respect to the pension plan is to contribute, at a minimum, amounts sufficient to meet minimum funding requirements as set

by law. Pension expense is determined by an external actuarial valuation based on assumptions that are evaluated annually as of

December 31, the measurement date for the pension obligation. The service cost component of pension expense is reflected as

“Compensation Expense” in the Consolidated Statements of Income. All other components of pension expense are reflected as

“Other Expense”. 

The Consolidated Statements of Financial Condition reflect an accrued pension benefit cost due to funding levels and

unrecognized actuarial amounts. The most significant assumptions used in calculating the pension obligation are the weighted-

average discount rate used to determine the present value of the pension obligation, the weighted-average expected long-term rate

of return on plan assets, and the assumed rate of annual compensation increases. These assumptions are re-evaluated annually

with the external actuaries, taking into consideration both current market conditions and anticipated long-term market conditions.

The discount rate is determined by matching the anticipated defined pension plan cash flows to the spot rates of a corporate AA-

rated bond index/yield curve and solving for the single equivalent discount rate which would produce the same present value. 

This methodology is applied consistently from year to year. The discount rate utilized in 2023 was 5.63%. The estimated impact

to 2023 pension expense of a 25 basis point increase or decrease in the discount rate would have been an approximate $0.6

million decrease or increase, respectively. We anticipate using a 5.29% discount rate in 2024. 

Based on the balances at the December 31, 2023 measurement date, the estimated impact on accumulated other comprehensive

loss of a 25 basis point increase or decrease in the discount rate would have been a decrease or increase of approximately $3.2

million (after-tax). The estimated impact on accumulated other comprehensive loss of a 1% favorable/unfavorable variance in the

actual rate of return on plan assets versus the assumed rate of return on plan assets of 6.75% would have been an approximate

$0.8 million (after-tax) decrease/increase, respectively. 

The weighted-average expected long-term rate of return on plan assets is determined based on the current and anticipated future

mix of assets in the plan. The assets currently consist of equity securities, U.S. Government and Government agency debt

securities, and other securities (typically temporary liquid funds awaiting investment). The weighted-average expected long-term

rate of return on plan assets utilized for 2023 was 6.75%. The estimated impact to 2023 pension expense of a 25 basis point

increase or decrease in the rate of return would have been an approximate $0.3 million decrease or increase, respectively. We

anticipate using a rate of return on plan assets of 6.75% for 2024.

68

The assumed rate of annual compensation increases of 5.10% for 2023 was based on an experience study performed for the plan

during 2022. It is anticipated that this compensation increase assumption will remain unchanged for the next several years, until

the next experience study is performed.

Detailed information on the pension plan, the actuarially determined disclosures, and the assumptions used are provided in Note

15 of the Notes to Consolidated Financial Statements. 

Income Taxes

.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax

assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between

carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed,

reduces deferred tax assets to the amount expected to be realized. 

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax

examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is

greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax

benefit is recorded. 

We

recognize interest and/or penalties related to income tax matters in other expenses.

ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

See “Financial Condition - Market Risk and Interest Rate Sensitivity” in Management’s Discussion and Analysis of Financial

Condition and Results of Operations, above, which is incorporated herein by reference.

69

Item 8.

Financial Statements and Supplementary Data

2023 Report of Independent Registered Public Accounting Firm (PCAOB ID

686

)

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED FINANCIAL STATEMENTS

PAGE

70

Report of Independent Registered Public Accounting Firm

72

Consolidated Statements of Financial Condition

73

Consolidated Statements of Income

74

Consolidated Statements of Comprehensive Income

75

Consolidated Statements of Changes in Shareowners’ Equity

76

Consolidated Statements of Cash Flows

78

Notes to Consolidated Financial Statements

70

Report of Independent Registered Public Accounting Firm

To the Shareowners, Board of Directors and Audit Committee 

Capital City Bank Group, Inc.

Tallahassee, Florida

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial condition of Capital City Bank Group, Inc. (Company) as

of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, changes in shareowners’

equity, and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes (collectively

referred to as the “financial statements”). In our opinion, the financial statements referred to above present fairly, in all material

respects, the financial position of the Company as of December 2023 and 2022, and the results of its operations and its cash flows

for each of the years in the three-year period ended December 31, 2023, in conformity with accounting principles generally

accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)

(PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in

Internal Control – Integrated Framework: (2013), issued by the Committee of Sponsoring Organizations of the Treadway

Commission, and our report dated March 13, 2024 (except as to the effects of the material weakness described in Management’s

Annual Report on Internal Control over Financial Reporting (as revised), as to which the date is July 12, 2024), expressed an

adverse opinion on the effectiveness of the Company’s internal control over financial reporting because of a material weakness

described in Management’s Annual Report on Internal Control over Financial Reporting. 

Restatement of Previously Issued Financial Statements

As discussed in Note 1 to the consolidated financial statements, the 2023, 2022, and 2021 consolidated statements of cash flows

have been restated to correct a misstatement.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the

Company’s financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in

accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange

Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the

audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to

error or fraud. 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to

error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis,

evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting

principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial

statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below arises from the current-period audit of the financial statements that were

communicated or required to be communicated to the audit committee and that: 1) relate to accounts or disclosures that are

material to the financial statements and 2) involved our especially challenging, subjective, or complex judgments. The

communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and

we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the

accounts or disclosures to which it relates.

Allowance for Credit Losses

The Company’s loans held for investment portfolio totaled $2.73 billion as of December 31, 2023, and the allowance for credit

losses on loans held for investment was $29.9 million. The Company’s unfunded loan commitments totaled $748.4 million, with

an allowance for credit loss on unfunded loan commitments of $3.2 million. The Company’s held-to-maturity securities portfolios

totaled $625.0 million as of December 31, 2023, and there was no allowance for credit losses on held-to-maturity securities.

Together, these allowance amounts represent the allowance for credit losses (ACL). 

71

As more fully described in Notes 1, 2, 3 and 21 to the Company’s consolidated financial statements, the Company estimates its

exposure to expected credit losses as of the statement of financial condition date for existing financial instruments held at

amortized cost and off-balance sheet exposures, such as unfunded loan commitments, lines of credit and other unused

commitments that are not unconditionally cancelable by the Company.

The determination of the ACL requires management to exercise significant judgment and consider numerous subjective factors,

including determining qualitative factors utilized to adjust historical loss rates, loan credit risk grading and identifying loans

requiring individual evaluation among others. As disclosed by management, different assumptions and conditions could result in a

materially different amount for the estimate of the ACL. 

We identified the ACL at December 31, 2023 as a critical audit matter. Auditing the ACL involved a high degree of subjectivity

in evaluating management’s estimates, such as evaluating management’s identification of credit quality indicators, grouping of

loans determined to be similar into pools, estimating the remaining life of loans in a pool, assessment of economic conditions and

other environmental factors, evaluating the adequacy of specific allowances associated with individually evaluated loans and

assessing the appropriateness of loan credit risk grades.

The primary procedures we performed as of December 31, 2023 to address this critical audit matter included:

●

Obtained an understanding of the Company’s process for establishing the ACL, including the qualitative factor

adjustments of the ACL.

●

Tested the design and operating effectiveness of controls, including those related to technology, over the ACL,

including:

o

loan data completeness and accuracy 

o

reconciliation of loan balances accounted for at amortized cost and underlying detail

o

classifications of loans by loan pool 

o

historical charge-off data 

o

evaluation of appraisals 

o

the establishment of qualitative adjustments 

o

back testing and stress testing 

o

loan credit risk ratings 

o

establishment of specific ACL on individually evaluated loan 

o

management’s review and disclosure controls over the ACL 

●

Tested the completeness and accuracy of the information utilized in the ACL, including evaluating the relevance and

reliability of such information.

●

Tested the ACL model’s computational accuracy.

●

Evaluated the qualitative adjustments to the ACL, including assessing the basis for adjustments and the reasonableness

of the significant assumptions.

●

Tested the loan review functions and evaluated the reasonableness of loan credit risk ratings.

●

Evaluated the reasonableness of specific allowances on individually evaluated loans.

●

Evaluated the overall reasonableness of assumptions used by management considering trends identified within peer

groups.

●

Evaluated the accuracy and completeness of Accounting Standards Codification Topic 326,

Financial Instruments –

Credit Losses

, disclosures in the consolidated financial statements.

●

Evaluated credit quality trends in delinquencies, non-accruals, charge -offs and loan risk ratings.

●

Tested estimated utilization rate of unfunded loan commitments.

●

Evaluated documentation prepared to assess the methodology utilized in the ACL calculation for securities for

reasonableness.

Forvis Mazars, LLP

We have served as the Company’s auditor since 2021.

Little Rock, Arkansas

March 13, 2024 (except as to the effects of the restatement discussed in Note 1, as to which the date is July 12, 2024)

72

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

As of December 31,

(Dollars in Thousands)

2023

2022

ASSETS

Cash and Due From Banks

$

83,118

$

72,114

Federal Funds Sold and Interest Bearing Deposits

228,949

528,536

Total Cash and Cash Equivalents

312,067

600,650

Investment Securities, Available for Sale, at fair value (amortized cost of $

367,747

 and $

455,232

)

337,902

413,294

Investment Securities, Held to Maturity (fair value of $

591,751

 and $

612,701

)

625,022

660,744

Equity Securities

3,450

10

Total Investment Securities

966,374

1,074,048

Loans Held For Sale, at fair value

28,211

26,909

Loans, Held for Investment

2,733,918

2,547,685

Allowance for Credit Losses

(29,941)

(25,068)

Loans Held for Investment, Net

2,703,977

2,522,617

Premises and Equipment, Net

81,266

82,138

Goodwill and Other Intangibles

92,933

93,093

Other Real Estate Owned

1

431

Other Assets

119,648

119,337

Total Assets

$

4,304,477

$

4,519,223

LIABILITIES

Deposits:

Noninterest Bearing Deposits

$

1,377,934

$

1,653,620

Interest Bearing Deposits

2,323,888

2,285,697

Total Deposits

3,701,822

3,939,317

Short-Term Borrowings

35,341

56,793

Subordinated Notes Payable

52,887

52,887

Other Long-Term Borrowings

315

513

Other Liabilities

66,080

73,675

Total Liabilities

3,856,445

4,123,185

Temporary Equity

7,407

8,757

SHAREOWNERS’ EQUITY

Preferred Stock, $

0.01

 par value;

3,000,000

 shares authorized;

no

 shares issued and outstanding

-

-

Common Stock, $

0.01

 par value;

90,000,000

 shares authorized;

16,950,222

 and

16,986,785

shares issued and outstanding at December 31, 2023 and 2022, respectively

170

170

Additional Paid-In Capital

36,326

37,331

Retained Earnings

426,275

387,009

Accumulated Other Comprehensive Loss, Net of Tax

(22,146)

(37,229)

Total Shareowners’ Equity

440,625

387,281

Total Liabilities, Temporary Equity, and Shareowners’ Equity

$

4,304,477

$

4,519,223

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

73

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

For the Years Ended December 31,

(Dollars in Thousands, Except Per Share Data)

2023

2022

2021

INTEREST INCOME

Loans, including Fees

$

152,250

$

106,444

$

96,561

Investment Securities:

Taxable

18,652

15,917

8,724

Tax Exempt

40

38

68

Federal Funds Sold and Interest Bearing Deposits

10,126

9,511

998

Total Interest Income

181,068

131,910

106,351

INTEREST EXPENSE

Deposits

17,582

3,444

839

Short-Term Borrowings

2,051

1,761

1,360

Subordinated Notes Payable

2,427

1,652

1,228

Other Long-Term Borrowings

20

31

63

Total Interest Expense

22,080

6,888

3,490

NET INTEREST INCOME

158,988

125,022

102,861

Provision for Credit Losses

9,714

7,494

(1,553)

Net Interest Income After Provision for Credit Losses

149,274

117,528

104,414

NONINTEREST INCOME

Deposit Fees

21,325

22,121

18,882

Bank Card Fees

14,918

15,401

15,274

Wealth Management Fees

16,337

18,059

13,693

Mortgage Banking Revenues

10,400

11,909

52,425

Other

8,630

7,691

7,271

Total Noninterest Income

71,610

75,181

107,545

NONINTEREST EXPENSE

Compensation

93,787

91,519

101,470

Occupancy, Net

27,660

24,574

23,932

Other

35,576

35,541

37,106

Total Noninterest Expense

157,023

151,634

162,508

INCOME BEFORE INCOME TAXES

63,861

41,075

49,451

Income Tax Expense 

13,040

7,798

9,835

NET INCOME

$

50,821

$

33,277

$

39,616

Loss (Income) Attributable to Noncontrolling Interests

1,437

135

(6,220)

NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS

$

52,258

$

33,412

$

33,396

BASIC NET INCOME PER SHARE

$

3.08

$

1.97

$

1.98

DILUTED NET INCOME PER SHARE

$

3.07

$

1.97

$

1.98

Average Basic Common Shares Outstanding

16,987

16,951

16,863

Average Diluted Common Shares Outstanding

17,023

16,985

16,893

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

74

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Years Ended December 31,

(Dollars in Thousands)

2023

2022

2021

NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS

$

52,258

$

33,412

$

33,396

Other comprehensive income (loss), before tax:

Investment Securities:

Net unrealized (loss) gain on securities available-for-sale

12,076

(35,814)

(9,673)

Unrealized losses on securities transferred from available-for-sale to

 held-to-maturity

-

(9,384)

-

Amortization of unrealized losses on securities transferred from

 available-for-sale to held-to-maturity

3,479

1,469

26

Derivative:

Change in net unrealized gain on effective cash flow derivative

(878)

4,146

1,476

Benefit Plans:

Reclassification adjustment for amortization of prior service cost

156

292

234

Reclassification adjustment for amortization of net loss

112

4,752

10,806

Defined benefit plan settlement (gain) charge

(291)

2,321

3,072

Current year actuarial gain

4,905

4,223

31,339

Total Benefit Plans

4,882

11,588

45,451

Other comprehensive income (loss), before tax:

19,559

(27,995)

37,280

Deferred tax (expense) benefit related to other comprehensive income

(4,476)

6,980

(9,352)

Other comprehensive income (loss), net of tax

15,083

(21,015)

27,928

TOTAL COMPREHENSIVE INCOME

$

67,341

$

12,397

$

61,324

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 

75

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY

Accumulated

Other

Comprehensive

Loss, 

Net of Taxes

(Dollars in Thousands, Except Share Data)

Shares

Outstanding

Common

Stock

Additional

Paid-In

Capital

Retained

Earnings

Total

Balance, January 1, 2021

16,790,573

$

168

$

32,283

$

332,528

$

(44,142)

$

320,837

Net Income Attributable to Common Shareowners

-

-

-

33,396

-

33,396

Reclassification to Temporary Equity

(1)

-

-

-

9,323

-

9,323

Other Comprehensive Income, Net of Tax

-

-

-

-

27,928

27,928

Cash Dividends ($

0.62

 per share)

-

-

-

(10,459)

-

(10,459)

Stock Based Compensation

-

-

843

-

-

843

Stock Compensation Plan Transactions, net 

101,487

1

1,297

-

-

1,298

Balance, December 31, 2021

16,892,060

169

34,423

364,788

(16,214)

383,166

Net Income Attributable to Common Shareowners

-

-

-

33,412

-

33,412

Other Comprehensive Loss, Net of Tax

-

-

-

-

(21,015)

(21,015)

Cash Dividends ($

0.66

 per share)

-

-

-

(11,191)

-

(11,191)

Stock Based Compensation

-

-

1,630

-

-

1,630

Stock Compensation Plan Transactions, net 

94,725

1

1,278

-

-

1,279

Balance, December 31, 2022

16,986,785

170

37,331

387,009

(37,229)

387,281

Net Income Attributable to Common Shareowners

-

-

-

52,258

-

52,258

Reclassification to Temporary Equity

(1)

-

-

-

(87)

-

(87)

Other Comprehensive Income, Net of Tax

-

-

-

-

15,083

15,083

Cash Dividends ($

0.76

 per share)

-

-

-

(12,905)

-

(12,905)

Stock Based Compensation

-

-

1,237

-

-

1,237

Stock Compensation Plan Transactions, net 

85,975

-

1,468

-

-

1,468

Repurchase of Common Stock

(122,538)

-

(3,710)

-

-

(3,710)

Balance, December 31, 2023

16,950,222

$

170

$

36,326

$

426,275

$

(22,146)

$

440,625

(1)

Adjustments to redemption value for non-controlling interest in CCHL

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

76

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31,

(As Restated)

(As Restated)

(As Restated)

(Dollars in Thousands)

2023

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Adjustments to Reconcile Net Income to Cash From Operating Activities:

 Provision for Credit Losses

9,714

7,494

(1,553)

 Depreciation

7,918

7,596

7,607

 Amortization of Premiums, Discounts, and Fees, net

4,221

7,772

14,072

 Amortization of Intangible Assets

160

160

107

 Gain on Securities Transactions

3

-

-

 Pension Settlement (Gain) Charges

(291)

2,321

3,072

 Originations of Loans Held for Sale

(406,803)

(390,191)

(1,228,946)

 Proceeds From Sales of Loans Held for Sale

404,332

437,907

1,349,124

 Mortgage Banking Revenues

(10,400)

(11,909)

(52,425)

 Net Additions for Capitalized Mortgage Servicing Rights

419

726

72

 Change in Valuation Provision for Mortgage Servicing Rights

-

-

(250)

 Stock Compensation

1,237

1,630

843

 Net Tax Benefit from Stock Compensation

(48)

(27)

(4)

 Deferred Income Taxes

(483)

(3,870)

(4,157)

 Net Change in Operating Leases

79

(108)

(165)

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

(2,053)

(422)

(1,662)

 Net (Increase) Decrease in Other Assets

(1,029)

(8,636)

10,885

 Net (Decrease) Increase in Other Liabilities

(4,452)

8,837

(7,846)

 Net Cash Provided By Operating Activities

54,782

92,692

122,170

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(1,483)

(219,865)

(251,525)

 Payments, Maturities, and Calls

36,600

55,314

78,544

Securities Available for Sale:

 Purchases

(8,379)

(52,238)

(523,961)

 Proceeds from the Sale of Securities

30,420

3,365

495

 Payments, Maturities, and Calls

62,861

81,596

178,425

Equity Securities:

 Purchases

(13,566)

-

-

 Net Decrease in Equity Securities

10,127

-

-

Purchases of Loans Held for Investment

(2,488)

(16,753)

(20,209)

Proceeds from Sales of Loans

47,314

104,475

92,360

Net Increase in Loans Held for Investment

(226,896)

(720,670)

(10,061)

Net Cash Paid for Acquisitions

-

-

(4,482)

Proceeds From Sales of Other Real Estate Owned

3,995

2,406

4,502

Purchases of Premises and Equipment, net

(7,046)

(6,322)

(5,193)

Noncontrolling Interest Contributions

-

2,867

7,139

Net Cash Used In Investing Activities

(68,541)

(765,825)

(453,966)

CASH FLOWS FROM FINANCING ACTIVITIES

Net (Decrease) Increase in Deposits

(237,495)

226,455

495,302

Net (Decrease) Increase in Short-Term Borrowings

(21,452)

22,114

(45,938)

Repayment of Other Long-Term Borrowings

(199)

(249)

(1,332)

Dividends Paid

(12,905)

(11,191)

(10,459)

Payments to Repurchase Common Stock

(3,710)

-

-

Issuance of Common Stock Under Compensation Plans

937

1,300

1,028

Net Cash (Used in) Provided By Financing Activities

(274,824)

238,429

438,601

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

(288,583)

(434,704)

106,805

Cash and Cash Equivalents at Beginning of Year

600,650

1,035,354

928,549

Cash and Cash Equivalents at End of Year

$

312,067

$

600,650

$

1,035,354

Supplemental Cash Flow Disclosures:

 Interest Paid

$

21,775

$

6,586

$

3,547

 Income Taxes Paid

$

9,118

$

7,466

$

16,339

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

35,745

$

108,798

$

98,081

 Loans and Premises Transferred to Other Real Estate Owned

$

1,512

$

2,398

$

1,717

77

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

78

Notes to Consolidated Financial Statements

Note 1

SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Capital City Bank Group, Inc. (“CCBG”) provides a full range of banking and banking-related services to individual and

corporate clients through its wholly-owned subsidiary, Capital City Bank (“CCB” or the “Bank” and together with CCBG, the

“Company”), 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 include the accounts of CCBG and CCB. CCBG also maintains an insurance subsidiary,

Capital City Strategic Wealth, LLC. CCB has two primary subsidiaries, which are wholly owned, Capital City Trust Company

and Capital City Investments. On March 1, 2020, CCB acquired a

51

% membership interest in Brand Mortgage Group, LLC

(“Brand”) which is now operated as Capital City Home Loans, LLC (“CCHL”), a consolidated entity in the Company’s financial

statements. The terms of the transaction included a buyout call/put option for CCB to purchase the remaining

49

% of the

membership interests in CCHL (“the

49

% Interest”) that are held by BMGBMG, LLC (“BMG”). The option requires 12 months

advance notice to the other party, and under the terms of the option, January 1, 2025 is the earliest date the transfer of the

49

%

Interest may be completed. On December 20, 2023, BMG notified CCB that BMG will exercise its put option and the transfer of

the

49

% Interest will become effective on January 1, 2025. 

The Company, which operates a single reportable business segment that is comprised of commercial banking within the states of

Florida, Georgia, and Alabama, follows accounting principles generally accepted in the United States of America and reporting

practices applicable to the banking industry. The principles which materially affect the financial position, results of operations

and cash flows are summarized below.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a

voting interest entity or a variable interest entity under accounting principles generally accepted in the United States of America.

Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself

independently and provide the equity holders with the obligation to absorb losses, the right to receive residual returns and the

right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at

least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (“VIE’s”) are

entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in an entity is

present when an enterprise has a variable interest, or a combination of variable interests, that will absorb a majority of the entity’s

expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial

interest, known as the primary beneficiary, consolidates the VIE. Two of CCBG’s wholly owned subsidiaries, CCBG Capital

Trust I (established November 1, 2004) and CCBG Capital Trust II (established May 24, 2005) are VIEs for which the Company

is not the primary beneficiary. Accordingly, the accounts of these entities are not included in the Company’s consolidated

financial statements.

Certain previously reported amounts have been reclassified to conform to the current year’s presentation. All material inter-

company transactions and accounts have been eliminated in consolidation. The Company has evaluated subsequent events for

potential recognition and/or disclosure through the date the consolidated financial statements included in this Annual Report on

Form 10-K/A were filed with the United States Securities and Exchange Commission.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of

America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the

disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and

expenses during the reporting period. Actual results could vary from these estimates. Material estimates that are particularly

susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses, pension expense,

income taxes, loss contingencies, valuation of other real estate owned, and valuation of goodwill and their respective analysis of

impairment.

Restatement of Previously Issued Consolidated Financial Statements

79

Restated herein are the Company’s Impacted Statements of Cash Flows for the years ended December 31, 202 3, December 31,

2022 and December 31, 2021 and for each of the three month periods ended March 31, 2023 and 2022, six month periods ended

June 30, 2023 and 2022 and nine month periods ended September 30, 2023 and 2022. 

Prior Restatement Background

On December 22, 2023, the Company filed a Form 10-K/A for the year ended December 31, 2022 to amend and restate certain

items related to inter-company transactions between its subsidiaries, CCHL and CCB, involving residential mortgage loan

purchases that were not properly recorded. The material impact to Consolidated Statements of Income, Consolidated Statements

of Financial Condition and various key performance indicators resulted in a restatement of the Company’s financial statements for

the year ended December 31, 2022, and the three, six and nine months ended March 31, 2022 and 2023, June 30, 2022 and 2023,

and September 30, 2022, respectively (collectively, the “Original Restated Financial Statements”). As part of the Company’s

assessment of the misstatements noted in the Form 10-K/A filed December 22, 2023, it was concluded that the impact of the inter-

company loan sale and participation transactions was immaterial to the consolidated financial statements for the year ended

December 31, 2021. 

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2023, the

Company concluded that it had not appropriately eliminated intercompany loan sale and participations transactions from the

Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 in the Original Restated Financial

Statements. On March 13, 2024, the Company filed its Form 10-K for the year ended December 31, 2023 including restatements

of the Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 (“collectively, the “Subsequently

Restated Financial Statements”). The Subsequently Restated Financial Statements had no impact on the Company’s Consolidated

Statements of Financial Condition, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income,

Consolidated Statements in Changes in Shareowners’ Equity or the Notes to the Consolidated Financial Statements.

Description of Current Misstatements

In connection with the preparation of the Company’s financial statements for the first quarter of 2024, the Company identified

changes needed in preparing its consolidated financial statements, specifically, its Consolidated Statement of Cash Flows, related

to certain construction/permanent loan sales. These changes require restatements of the Impacted Statements of Cash Flows in

both the Original Restated Financial Statements and Subsequently Restated Financial Statements to correct misstatements of the

following line items within the Impacted Statements of Cash Flows:

Within the Cash Flows from Operating Activities section:

●

An understatement of $

100.1

 million, overstatement of $

47.6

 million and overstatement $

33.8

 million for Originations of

Loans Held for Sale for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An understatement of $

88.5

 million, overstatement of $

37.5

 million and overstatement of $

27.6

 million for Proceeds

from Sales of Loans Held for Sale for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An overstatement of $

11.6

 million, understatement of $

10.2

 million and understatement of $

6.2

 million for Net Cash

Provided by Operating Activities for the years ended December 31, 2023, 2022 and 2021, respectively. 

Within the Cash Flows from Investing Activities section:

●

An understatement of $

35.7

 million, understatement of $

114.7

 million, and overstatement of $

98.6

 million for Net

(Increase) Decrease in Loans Held for Investment for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An understatement of $

47.3

 million, $

104.5

 million, and $

92.4

 million for Proceeds From Sales of Loans for the years

ended December 31, 2023, 2022 and 2021, respectively.

●

An overstatement of $

11.6

 million, understatement of $

10.2

 million and understatement $

6.2

 million for Net Cash Used

in Investing Activities for the years ended December 31, 2023, 2022 and 2021, respectively. 

Within the Supplemental Noncash Items section:

●

Disclosure of noncash activity related to Loans Transferred from Loans Held for Investment to Loans Held for Sale, net

for the years ended December, 31, 2023, 2022 and 2021 which totaled $

35.7

 million, $

108.8

 million, and $

98.1

 million,

respectively.

The impacts of the restatement for the years ended December 31, 2023, 2022 and 2021 as described above are reflected in the

Impacted Statements of Cash Flows and had no impact on the Consolidated Statements of Financial Condition, Consolidated

Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements in Changes in Shareowners’

Equity or the Notes to the Consolidated Financial Statements. The impacts of the restatement for each of the interim periods are

presented in Note 24, Restated Interim Consolidated Statements of Cash Flows (Unaudited).

Description of Current Restatement Tables

80

The following tables present the amounts previously reported and a reconciliation of the restatement amounts reported on the

restated Consolidated Statement of Cash Flows for the years ended December 31, 2023, December 31, 2022 and December 31,

2021. The amounts previously reported were derived from the Company’s Annual Report on Form 10-K for the year ended

December 31, 2023 filed with the SEC on March 13, 2024.

81

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

52,258

$

-

$

52,258

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

9,714

-

9,714

 Depreciation

7,918

-

7,918

 Amortization of Premiums, Discounts, and Fees, net

4,221

-

4,221

 Amortization of Intangible Assets

160

-

160

Gain on Securities Transactions

3

-

3

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held-for-Sale

(306,714)

(100,089)

(406,803)

 Proceeds From Sales of Loans Held-for-Sale

315,812

88,520

404,332

 Mortgage Banking Revenues

(10,400)

-

(10,400)

 Net Additions for Capitalized Mortgage Servicing Rights

419

-

419

 Stock Compensation

1,237

-

1,237

 Net Tax Benefit From Stock-Based Compensation

(48)

-

(48)

 Deferred Income Taxes Benefit

(483)

-

(483)

 Net Change in Operating Leases

79

-

79

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

(2,053)

-

(2,053)

 Net Increase in Other Assets

(1,029)

-

(1,029)

 Net Decrease in Other Liabilities

(4,452)

-

(4,452)

Net Cash Provided By Operating Activities

66,351

(11,569)

54,782

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(1,483)

-

(1,483)

 Payments, Maturities, and Calls

36,600

-

36,600

Securities Available for Sale:

 Purchases

(8,379)

-

(8,379)

 Proceeds from Sale of Securities

30,420

-

30,420

 Payments, Maturities, and Calls

62,861

-

62,861

Equity Securities

 Purchases

(13,566)

-

(13,566)

 Net Decrease in Equity Securities

10,127

-

10,127

Purchase of loans held for investment

(2,488)

-

(2,488)

Net Increase in Loans Held for Investment

(191,151)

(35,745)

(226,896)

Proceeds from Sales of Loans

-

47,314

47,314

Proceeds From Sales of Other Real Estate Owned

3,995

-

3,995

Purchases of Premises and Equipment, net

(7,046)

-

(7,046)

Net Cash Used In Investing Activities

(80,110)

11,569

(68,541)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(237,495)

-

(237,495)

Net Decrease in Other Short-Term Borrowings

(21,452)

-

(21,452)

Repayment of Other Long-Term Borrowings

(199)

-

(199)

Dividends Paid

(12,905)

-

(12,905)

Payments to Repurchase Common Stock

(3,710)

-

(3,710)

Issuance of Common Stock Under Compensation Plans

937

-

937

Net Cash Provided By Financing Activities

(274,824)

-

(274,824)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(288,583)

-

(288,583)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

312,067

$

-

$

312,067

Supplemental Cash Flow Disclosures:

 Interest Paid

$

21,775

$

-

$

21,775

 Income Taxes Paid

$

9,118

$

-

$

9,118

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

35,745

$

35,745

 Loans and Premises Transferred to Other Real Estate Owned

$

1,512

$

-

$

1,512

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

82

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,412

$

-

$

33,412

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

7,494

-

7,494

 Depreciation

7,596

-

7,596

 Amortization of Premiums, Discounts, and Fees, net

7,772

-

7,772

 Amortization of Intangible Assets

160

-

160

 Pension Settlement Charge

2,321

-

2,321

 Originations of Loans Held-for-Sale

(437,827)

47,636

(390,191)

 Proceeds From Sales of Loans Held-for-Sale

475,359

(37,452)

437,907

 Mortgage Banking Revenues

(11,909)

-

(11,909)

 Net Additions for Capitalized Mortgage Servicing Rights

726

-

726

 Stock Compensation

1,630

-

1,630

 Net Tax Benefit From Stock-Based Compensation

(27)

-

(27)

 Deferred Income Taxes Benefit

(3,870)

-

(3,870)

 Net Change in Operating Leases

(108)

-

(108)

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

(422)

-

(422)

 Net Increase in Other Assets

(8,636)

-

(8,636)

 Net Decrease in Other Liabilities

8,837

-

8,837

Net Cash Provided By Operating Activities

82,508

10,184

92,692

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(219,865)

-

(219,865)

 Payments, Maturities, and Calls

55,314

-

55,314

Securities Available for Sale:

 Purchases

(52,238)

-

(52,238)

 Proceeds from Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

81,596

-

81,596

Purchase of loans held for investment

(16,753)

-

(16,753)

Net Increase in Loans Held for Investment

(606,011)

(114,659)

(720,670)

Proceeds From Sales of Loans

-

104,475

104,475

Proceeds From Sales of Other Real Estate Owned

2,406

-

2,406

Purchases of Premises and Equipment, net

(6,322)

-

(6,322)

Noncontrolling interest contributions received

2,867

-

2,867

Net Cash Used In Investing Activities

(755,641)

(10,184)

(765,825)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

226,455

-

226,455

Net Increase in Other Short-Term Borrowings

22,114

-

22,114

Repayment of Other Long-Term Borrowings

(249)

-

(249)

Dividends Paid

(11,191)

-

(11,191)

Issuance of Common Stock Under Compensation Plans

1,300

-

1,300

Net Cash Provided By Financing Activities

238,429

-

238,429

NET DECREASE IN CASH AND CASH EQUIVALENTS

(434,704)

-

(434,704)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

600,650

$

-

$

600,650

Supplemental Cash Flow Disclosures:

 Interest Paid

$

6,586

$

-

$

6,586

 Income Taxes Paid

$

7,466

$

-

$

7,466

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

108,798

$

108,798

 Loans and Premises Transferred to Other Real Estate Owned

$

2,398

$

-

$

2,398

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

83

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2021

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,396

$

-

$

33,396

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

(1,553)

-

(1,553)

 Depreciation

7,607

-

7,607

 Amortization of Premiums, Discounts, and Fees, net

14,072

-

14,072

 Amortization of Intangible Assets

107

-

107

 Pension Settlement Charge

3,072

-

3,072

 Originations of Loans Held-for-Sale

(1,262,746)

33,800

(1,228,946)

 Proceeds From Sales of Loans Held-for-Sale

1,376,678

(27,554)

1,349,124

 Mortgage Banking Revenues

(52,425)

-

(52,425)

 Net Additions for Capitalized Mortgage Servicing Rights

72

-

72

 Change in Valuation Provision for Mortgage Servicing Rights

(250)

-

(250)

 Stock Compensation

843

-

843

 Net Tax Benefit From Stock-Based Compensation

(4)

-

(4)

 Deferred Income Taxes Benefit

(4,157)

-

(4,157)

 Net Change in Operating Leases

(165)

-

(165)

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

(1,662)

-

(1,662)

 Net Decrease in Other Assets

10,885

-

10,885

 Net Decrease in Other Liabilities

(7,846)

-

(7,846)

Net Cash Provided By Operating Activities

115,924

6,246

122,170

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(251,525)

-

(251,525)

 Payments, Maturities, and Calls

78,544

-

78,544

Securities Available for Sale:

 Purchases

(523,961)

-

(523,961)

 Proceeds from Sale of Securities

495

-

495

 Payments, Maturities, and Calls

178,425

-

178,425

Purchase of loans held for investment

(20,209)

-

(20,209)

Net Decrease (Increase) in Loans Held for Investment

88,545

(98,606)

(10,061)

Proceeds from Sales of Loans

-

92,360

92,360

Net Cash Paid for Acquisitions

(4,482)

-

(4,482)

Proceeds From Sales of Other Real Estate Owned

4,502

-

4,502

Purchases of Premises and Equipment, net

(5,193)

-

(5,193)

Noncontrolling interest contributions received

7,139

-

7,139

Net Cash Used In Investing Activities

(447,720)

(6,246)

(453,966)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

495,302

-

495,302

Net Decrease in Other Short-Term Borrowings

(45,938)

-

(45,938)

Repayment of Other Long-Term Borrowings

(1,332)

-

(1,332)

Dividends Paid

(10,459)

-

(10,459)

Issuance of Common Stock Under Compensation Plans

1,028

-

1,028

Net Cash Provided By Financing Activities

438,601

-

438,601

NET DECREASE IN CASH AND CASH EQUIVALENTS

106,805

-

106,805

Cash and Cash Equivalents at Beginning of Period 

928,549

-

928,549

Cash and Cash Equivalents at End of Period 

$

1,035,354

$

-

$

1,035,354

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,547

$

-

$

3,547

 Income Taxes Paid

$

16,339

$

-

$

16,339

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

98,081

$

98,081

 Loans and Premises Transferred to Other Real Estate Owned

$

1,717

$

-

$

1,717

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

84

Significant Accounting Principles

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, and federal funds

sold. Generally, federal funds are purchased and sold for one-day periods and all other cash equivalents have a maturity of 90

days or less. The Company is required to maintain average reserve balances with the Federal Reserve Bank based upon a

percentage of deposits. On March 26, 2020, the Federal Reserve reduced the amount of the required reserve balance to

zero

. 

The Company maintains certain cash balances that are restricted under warehouse lines of credit and master repurchase

agreements. The restricted cash balance at December 31, 2023 was $

0.1

 million.

Investment Securities

Investment securities are classified as held-to-maturity (“HTM”) and carried at amortized cost when the Company has the positive

intent and ability to hold them until maturity. Investment securities not classified as HTM are classified as available-for-sale

(“AFS”) and carried at fair value. The Company does not have trading investment securities. Investment securities classified as

equity securities that do not have readily determinable fair values, are measured at cost and remeasured to fair value when

impaired or upon observable transaction prices. The Company determines the appropriate classification of securities at the time

of purchase. For reporting and risk management purposes, the Company further segments investment securities by the issuer of

the security which correlates to its risk profile: U.S. government treasury, U.S. government agency, state and political

subdivisions, mortgage-backed securities, and corporate debt securities. Certain equity securities with limited marketability, such

as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are classified as AFS and carried at cost. 

Interest income includes amortization and accretion of purchase premiums and discounts. Realized gains and losses are derived

from the amortized cost of the security sold. Gains and losses on the sale of securities are recorded on the trade date and are

determined using the specific identification method. Securities transferred from AFS to HTM are recorded at amortized cost plus

or minus any unrealized gain or loss at the time of transfer. Any existing unrecognized gain or loss continues to be reported in

accumulated other comprehensive loss (net of tax) and amortized as an adjustment to interest income over the remaining life of

the security. Any existing allowance for credit loss is reversed at the time of transfer. Subsequent to transfer, the allowance for

credit losses on the transferred security is evaluated in accordance with the accounting policy for HTM securities. Additionally,

any allowance amounts reversed or established as part of the transfer are presented on a gross basis in the Consolidated Statement

of Income. 

The accrual of interest is generally suspended on securities more than 90 days past due with respect to principal or interest. When

a security is placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and

thus not included in the estimate of credit losses. 

Credit losses and changes thereto, are established as an allowance for credit loss through a provision for credit loss expense. 

Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when

either of the criteria regarding intent or requirement to sell is met.

Certain 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 considers the long history of no credit losses on these

securities indicates that the expectation of nonpayment of the amortized cost basis is 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 not assess or record expected

credit losses due to the zero loss assumption.

85

Impairment - Available -for-Sale Securities

.

Unrealized gains on AFS securities are excluded from earnings and reported, net of tax, in other comprehensive income. For AFS

securities that are in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely

than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent

or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities

that do not meet the aforementioned criteria or have a zero loss assumption, the Company evaluates whether the decline in fair

value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair

value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically

related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of cash flows to

be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows

expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded

through a provision for credit loss expense, limited by the amount that fair value is less than the amortized cost basis. Any

impairment that is not credit related is recognized in other comprehensive income. 

Allowance for Credit Losses - Held-to-Maturity Securities.

Management measures expected credit losses on each individual HTM debt security that has not been deemed to have a zero

assumption. Each security that is not deemed to have zero credit losses is individually measured based on net realizable value, or

the difference between the discounted value of the expected cash flows, based on the original effective rate, and the recorded

amortized basis of the security. To the extent a shortfall is related to credit loss, an allowance for credit loss is recorded through a

provision for credit loss expense.

Loans Held for Investment

Loans held for investment (“HFI”) are stated at amortized cost which includes the principal amount outstanding, net premiums

and discounts, and net deferred loan fees and costs. Accrued interest receivable on loans is reported in other assets and is not

included in the amortized cost basis of loans. Interest income is accrued on the effective yield method based on outstanding

principal balances and includes loan late fees. Fees charged to originate loans and direct loan origination costs are deferred and

amortized over the life of the loan as a yield adjustment. 

The Company defines loans as past due when one full payment is past due or a contractual maturity is over 30 days late. The

accrual of interest is generally suspended on loans more than 90 days past due with respect to principal or interest. When a loan is

placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and thus a policy

election has been made to not include accrued interest in the estimate of credit losses. Interest income on nonaccrual loans is

recognized when the ultimate collectability is no longer considered 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. 

Loan charge-offs on commercial and investor real estate loans are recorded when the facts and circumstances of the individual

loan confirm the loan is not fully collectible and the loss is reasonably quantifiable. Factors considered in making these

determinations are the borrower’s and any guarantor’s ability and willingness to pay, the status of the account in bankruptcy court

(if applicable), and collateral value. Charge-off decisions for consumer loans are dictated by the Federal Financial Institutions

Examination Council’s Uniform Retail Credit Classification and Account Management Policy which establishes standards for the

classification and treatment of consumer loans, which generally require charge-off after 120 days of delinquency.

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures designed to

maximize loan income within an acceptable level of risk. Reporting systems are used to monitor loan originations, loan ratings,

concentrations, loan delinquencies, nonperforming and potential problem loans, and other credit quality metrics. The ongoing

review of loan portfolio quality and trends by Management and the Credit Risk Oversight Committee support the process for

estimating the allowance for credit losses.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net

amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is

reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the

allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the

aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable

off-balance sheet credit exposures is provided for through the credit loss provision, but recorded separately in other liabilities.

86

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to

past events, current conditions, and reasonable and supportable forecasts. Historical loan default and loss experience provides the

basis for the estimation of expected credit losses. Adjustments to historical loss information incorporate management’s view of

current conditions and forecasts. 

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

Loans That Do Not Share Risk Characteristics (Individually Analyzed)

Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans deemed to be collateral dependent

have differing risk characteristics and are individually analyzed to estimate the expected credit loss. A loan is collateral

dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the liquidation and

sale of the underlying collateral. For collateral dependent loans where foreclosure is probable, the expected credit loss is

measured based on the difference between the fair value of the collateral (less selling cost) and the amortized cost basis of the

asset. For collateral dependent loans where foreclosure is not probable, the Company has elected the practical expedient allowed

by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 326-20 to measure the

expected credit loss under the same approach as those loans where foreclosure is probable. For loans with balances greater than

$250,000, the fair value of the collateral is obtained through independent appraisal of the underlying collateral. For loans with

balances less than $250,000, the Company has made a policy election to measure expected loss for these individual loans utilizing

loss rates for similar loan types. 

Loans That Share Similar Risk Characteristics (Pooled Loans)

The general steps in determining expected credit losses for the pooled loan component of the allowance are as follows:

●

Segment loans into pools according to similar risk characteristics

●

Develop historical loss rates for each loan pool segment

●

Incorporate the impact of forecasts

●

Incorporate the impact of other qualitative factors 

●

Calculate and review pool specific allowance for credit loss estimate

A discounted cash flow methodology is utilized to calculate expected cash flows for the life of each individual loan. The

discounted present value of expected cash flow is then compared to the loan’s amortized cost basis to determine the credit loss

estimate. Individual loan results are aggregated at the pool level in determining total reserves for each loan pool. 

The primary inputs used to calculate expected cash flows include historical loss rates which reflect probability of default (“PD”)

and loss given default (“LGD”), and prepayment rates. The historical look-back period is a key factor in the calculation of the PD

rate and is based on management’s assessment of current and forecasted conditions and may vary by loan pool. Loans subject to

the Company’s risk rating process are further sub-segmented by risk rating in the calculation of PD rates. LGD rates generally

reflect the historical average net loss rate by loan pool. Expected cash flows are further adjusted to incorporate the impact of loan

prepayments which will vary by loan segment and interest rate conditions. In general, prepayment rates are based on observed

prepayment rates occurring in the loan portfolio and consideration of forecasted interest rates.

87

In developing loss rates, adjustments are made to incorporate the impact of forecasted conditions. Certain assumptions are also

applied, including the length of the forecast and reversion periods. The forecast period is the period within which management is

able to make a reasonable and supportable assessment of future conditions. The reversion period is the period beyond which

management believes it can develop a reasonable and supportable forecast, and bridges the gap between the forecast period and

the use of historical default and loss rates. The remainder period reflects the remaining life of the loan. The length of the forecast

and reversion periods are periodically evaluated and based on management’s assessment of current and forecasted conditions and

may vary by loan pool. For purposes of developing a reasonable and supportable assessment of future conditions, management

utilizes established industry and economic data points and sources, including the Federal Open Market Committee forecast, with

the forecasted unemployment rate being a significant factor. PD rates for the forecast period will be adjusted accordingly based

on management’s assessment of future conditions. PD rates for the remainder period will reflect the historical mean PD rate. 

Reversion period PD rates reflect the difference between forecast and remainder period PD rates calculated using a straight-line

adjustment over the reversion period. 

Loss rates are further adjusted to account for other risk factors that impact loan defaults and losses. These adjustments are based

on management’s assessment of trends and conditions that impact credit risk and resulting credit losses, more specifically internal

and external factors that are independent of and not reflected in the quantitative loss rate calculations. Risk factors management

considers in this assessment include trends in underwriting standards, nature/volume/terms of loan originations, past due loans,

loan review systems, collateral valuations, concentrations, legal/regulatory/political conditions, and the unforeseen impact of

natural disasters.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk through a

contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for

credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense and is recorded in other

liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses

on commitments expected to be funded over its estimated life and applies the same estimated loss rate as determined for current

outstanding loan balances by segment. Off-balance sheet credit exposures are identified and classified in the same categories as

the allowance for credit losses with similar risk characteristics that have been previously mentioned.

Mortgage Banking Activities

Mortgage Loans Held for Sale and Revenue Recognition

Mortgage loans held for sale (“HFS”) are carried at fair value under the fair value option with changes in fair value recorded in

mortgage banking revenues on the Consolidated Statements of Income. The fair value of mortgage loans held for sale committed

to investors is calculated using observable market information such as the investor commitment, assignment of trade or other

mandatory delivery commitment prices. The Company bases loans committed to Federal National Mortgage Association

(“FNMA”), Government National Mortgage Association (“GNMA”), and Federal Home Loan Mortgage Corporation

(“FHLMC”) (“Agency”) investors based on the Agency’s quoted mortgage backed security (“MBS”) prices. The fair value of

mortgage loans held for sale not committed to investors is based on quoted best execution secondary market prices. If no such

quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, such as MBS prices, adjusted for

the specific attributes of that loan, which would be used by other market participants.

Gains and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales

proceeds and carrying value of the related loans upon sale and are recorded in mortgage banking revenues on the Consolidated

Statements of Income. Sales proceeds reflect the cash received from investors through the sale of the loan and servicing release

premium. If the related mortgage loan is sold with servicing retained, the MSR addition is recorded in mortgage banking revenues

on the Consolidated Statements of Income. Mortgage banking revenues also includes the unrealized gains and losses associated

with the changes in the fair value of mortgage loans held for sale, and the realized and unrealized gains and losses from derivative

instruments.

Mortgage loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is

considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the

Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right)

to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets

through either an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before

their maturity or the ability to unilaterally cause the holder to return specific assets. The Company typically considers the above

criteria to have been met upon acceptance and receipt of sales proceeds from the purchaser.

88

Government National Mortgage Association (“GNMA”) optional repurchase programs allow financial institutions to buy back

individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides

servicing. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan

for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and

Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option

becomes unconditional. When the Company is deemed to have regained effective control over these loans under the

unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the Consolidated

Statement of Financial Condition, regardless of whether there is intent to exercise the buy-back option. These loans are reported

in other assets with the offsetting liability being reported in other liabilities. 

Derivative Instruments (IRLC/Forward Commitments)

The Company holds and issues derivative financial instruments such as interest rate lock commitments (“IRLCs”) and other

forward sale commitments. IRLCs are subject to price risk primarily related to fluctuations in market interest rates. To hedge the

interest rate risk on certain IRLCs, the Company uses forward sale commitments, such as to-be-announced securities (“TBAs”) or

mandatory delivery commitments with investors. Management expects these forward sale commitments to experience changes in

fair value opposite to the changes in fair value of the IRLCs thereby reducing earnings volatility. Forward sale commitments are

also used to hedge the interest rate risk on mortgage loans held for sale that are not committed to investors and still subject to

price risk. If the mandatory delivery commitments are not fulfilled, the Company pays a pair-off fee. Best effort forward sale

commitments are also executed with investors, whereby certain loans are locked with a borrower and simultaneously committed

to an investor at a fixed price. If the best effort IRLC does not fund, there is no obligation to fulfill the investor commitment.

The Company considers various factors and strategies in determining what portion of the IRLCs and uncommitted mortgage loans

held for sale to economically hedge. All derivative instruments are recognized as other assets or other liabilities on the

Consolidated Statements of Financial Condition at their fair value. Changes in the fair value of the derivative instruments are

recognized in mortgage banking revenues on the Consolidated Statements of Income in the period in which they occur. Gains and

losses resulting from the pairing-out of forward sale commitments are recognized in mortgage banking revenues on the

Consolidated Statements of Income. The Company accounts for all derivative instruments as free-standing derivative instruments

and does not designate any for hedge accounting.

Mortgage Servicing Rights (“MSRs”) and Revenue Recognition 

The Company sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Upon

sale, an MSR asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for

performing servicing activities. As the Company has not elected to subsequently measure any class of servicing assets under the

fair value measurement method, the Company follows the amortization method. MSRs are amortized to noninterest income

(other income) in proportion to and over the period of estimated net servicing income, and are assessed for impairment at each

reporting date. MSRs are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair

value, and included in other assets, net, on the Consolidated Statements of Financial Condition. 

The Company periodically evaluates its MSRs asset for impairment. Impairment is assessed based on fair value at each reporting

date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk

characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall,

prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. 

Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally

increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the

amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the

temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-

temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is

recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is

available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and

valuation allowance, precluding subsequent recoveries.

89

Derivative/Hedging Activities

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s

intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized

asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the

variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument

with no hedging designation (“standalone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the

offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the

gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods

during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are

not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in

current earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest

expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are

reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the

items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management

objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation

includes linking fair value or cash flow hedges to specific assets and liabilities on the Consolidated Statement of Financial

Condition or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s

inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in

fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative

is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or

terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the

derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair

value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability

is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of

the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still

expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the

same periods, in which the hedged transactions will affect earnings.

Long-Lived Assets

Premises and equipment is stated at cost less accumulated depreciation, computed on the straight-line method over the estimated

useful lives for each type of asset with premises being depreciated over a range of

10

 to

40

 years, and equipment being

depreciated over a range of

3

 to

10

 years. Additions, renovations and leasehold improvements to premises are capitalized and

depreciated over the lesser of the useful life or the remaining lease term. Repairs and maintenance are charged to noninterest

expense as incurred.

Long-lived assets are evaluated for impairment if circumstances suggest that their carrying value may not be recoverable, by

comparing the carrying value to estimated undiscounted cash flows. If the asset is deemed impaired, an impairment charge is

recorded equal to the carrying value less the fair value. See Note 6 – Premises and Equipment for additional information.

Leases

The Company has entered into various operating leases, primarily for banking offices. Generally, these leases have initial lease

terms from one to ten years. Many of the leases have one or more lease renewal options. The exercise of lease renewal options is

at the Company’s sole discretion. The Company does not consider exercise of any lease renewal options reasonably certain. 

Certain leases contain early termination options. No renewal options or early termination options have been included in the

calculation of the operating right-of-use assets or operating lease liabilities. Certain lease agreements provide for periodic

adjustments to rental payments for inflation. At the commencement date of the lease, the Company recognizes a lease liability at

the present value of the lease payments not yet paid, discounted using the discount rate for the lease or the Company’s

incremental borrowing rate. As the majority of the Company’s leases do not provide an implicit rate, the Company uses its

incremental borrowing rate at the commencement date in determining the present value of lease payments. The incremental

borrowing rate is based on the term of the lease. At the commencement date, the Company also recognizes a right-of-use asset

measured at (i) the initial measurement of the lease liability; (ii) any lease payments made to the lessor at or before the

commencement date less any lease incentives received; and (iii) any initial direct costs incurred by the lessee. Leases with an

initial term of 12 months or less are not recorded on the Consolidated Statement of Financial Condition. For these short-term

leases, lease expense is recognized on a straight-line basis over the lease term. The Company has no leases classified as finance

leases. See Note 7 – Leases for additional information.

90

Bank Owned Life Insurance

The Company, through its subsidiary bank, has purchased life insurance policies on certain key officers. Bank owned life

insurance is recorded at the amount that can be realized under the insurance contract at the statement of financial condition date,

which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangibles

Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. In accordance

with FASB ASC Topic 350, the Company determined it has one goodwill reporting unit. Goodwill is tested for impairment

annually during the fourth quarter or on an interim basis if an event occurs or circumstances change that would more likely than

not reduce the fair value of the reporting unit below its carrying value. Other intangible assets relate to customer intangibles

purchased as part of a business acquisition. Intangible assets are tested for impairment at least annually or whenever changes in

circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. See Note 8

– Goodwill and Other Intangibles for additional information

. 

Other Real Estate Owned

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of cost or fair value

less estimated selling costs, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by

management and the assets are carried at the lower of carrying amount or fair value less cost to sell. The valuation of foreclosed

assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Revenue and

expenses from operations and changes in value are included in noninterest expense.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when

the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. See Note 21 – Commitments and

Contingencies for additional information.

Noncontrolling Interest

To the extent the Company’s interest in a consolidated entity represents less than 100% of the entity’s equity, the Company

recognizes noncontrolling interests in subsidiaries. In the case of the CCHL acquisition, the noncontrolling interest represents

equity which is redeemable or convertible for cash at the option of the equity holder and is classified within temporary equity in

the mezzanine section of the Consolidated Statements of Financial Condition. The call/put option is redeemable at the option of

either CCBG (call) or the noncontrolling interest holder (put) on or after January 1, 2025, and therefore, not entirely within

CCBG’s control. The subsidiary’s net income or loss and related dividends are allocated to CCBG and the noncontrolling interest

holder based on their relative ownership percentages. The noncontrolling interest carrying value is adjusted on a quarterly basis

to the higher of the carrying value or current redemption value, at the Statement of Financial Condition date, through a

corresponding adjustment to retained earnings. The redemption value is calculated quarterly and is based on the higher of a

predetermined book value or pre-tax earnings multiple. To the extent the redemption value exceeds the fair value of the

noncontrolling interest, the Company’s earnings per share attributable to common shareowners is adjusted by that amount. The

Company uses an independent valuation expert to assist in estimating the fair value of the noncontrolling interest using: 1) the

discounted cash flow methodology under the income approach, and (2) the guideline public company methodology under the

market approach. The estimated fair value is derived from equally weighting the result of each of the two methodologies. The

estimation of the fair value includes significant assumptions concerning: (1) projected loan volumes; (2) projected pre-tax profit

margins; (3) tax rates and (4) discount rates.

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and

liabilities (excluding deferred tax assets and liabilities related to business combinations or components of other comprehensive

income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying

amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces

deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the

generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. The income tax effects related

to settlements of share-based payment awards are reported in earnings as an increase or decrease in income tax expense. 

The Company files a consolidated federal income tax return and a separate federal tax return for CCHL. Each subsidiary files a

separate state income tax return.

91

Earnings Per Common Share

Basic earnings per common share is based on net income divided by the weighted -average number of common shares outstanding

during the period excluding non-vested stock. Diluted earnings per common share include the dilutive effect of stock options and

non-vested stock awards granted using the treasury stock method. A reconciliation of the weighted-average shares used in

calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per

common share for the reported periods is provided in Note 16 — Earnings Per Share.

Comprehensive Income

Comprehensive income includes all changes in shareowners’ equity during a period, except those resulting from transactions with

shareowners. Besides net income, other components of the Company’s comprehensive income include the after tax effect of

changes in the net unrealized gain/loss on securities AFS, unrealized gain/loss on cash flow derivatives, and changes in the funded

status of defined benefit and supplemental executive retirement plans. Comprehensive income is reported in the accompanying

Consolidated Statements of Comprehensive Income and Changes in Shareowners’ Equity.

Stock Based Compensation

Compensation cost is recognized for share-based awards issued to employees, based on the fair value of these awards at the date

of grant. Compensation cost is recognized over the requisite service period, generally defined as the vesting period. The market

price of the Company’s common stock at the date of the grant is used for restricted stock awards. For stock purchase plan awards,

a Black-Scholes model is utilized to estimate the fair value of the award. The impact of forfeitures of share-based awards on

compensation expense is recognized as forfeitures occur.

Revenue Recognition

FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information

about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or

services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to

customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or

services recognized as performance obligations are satisfied.

The majority of the Company’s revenue -generating transactions are not subject to ASC 606, including revenue generated from

financial instruments, such as our loans, letters of credit, and investment securities, and revenue related to the sale of residential

mortgages in the secondary market, as these activities are subject to other GAAP discussed elsewhere within our disclosures. The

Company recognizes revenue from these activities as it is earned based on contractual terms, as transactions occur, or as services

are provided and collectability is reasonably assured. Descriptions of the major revenue-generating activities that are within the

scope of ASC 606, which are presented in the accompanying Consolidated Statements of Income as components of non-interest

income are as follows:

Deposit Fees - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and

consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-

based revenue. Revenue is recognized when the Company’s performance obligation is completed which is generally monthly for

account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally

received at the time the performance obligations are satisfied.

Wealth Management - trust fees and retail brokerage fees – trust fees represent monthly fees due from wealth management clients

as consideration for managing the client’s assets. Trust services include custody of assets, investment management, fees for trust

services and similar fiduciary activities. Revenue is recognized when the Company’s performance obligation is completed each

month or quarter, which is the time that payment is received. Also, retail brokerage fees are received from a third-party broker-

dealer, for which the Company acts as an agent, as part of a revenue-sharing agreement for fees earned from customers that are

referred to the third party. These fees are for transactional and advisory services and are paid by the third party on a monthly

basis and recognized ratably throughout the quarter as the Company’s performance obligation is satisfied.

Bank Card Fees – bank card related fees primarily includes interchange income from client use of consumer and business debit

cards. Interchange income is a fee paid by a merchant bank to the card-issuing bank through the interchange network. 

Interchange fees are set by the credit card associations and are based on cardholder purchase volumes. The Company records

interchange income as transactions occur.

92

Gains and Losses from the Sale of Bank Owned Property – the performance obligation in the sale of other real estate owned

typically will be the delivery of control over the property to the buyer. If the Company is not providing the financing of the sale,

the transaction price is typically identified in the purchase and sale agreement. However, if the Company provides seller

financing, the Company must determine a transaction price, depending on if the sale contract is at market terms and taking into

account the credit risk inherent in the arrangement. 

Insurance Commissions – insurance commissions recorded by the Company are received from various insurance carriers based on

contractual agreements to sell policies to customers on behalf of the carriers. The performance obligation for the Company is to

sell life and health insurance policies to customers. This performance obligation is met when a new policy is sold (effective date)

or when an existing policy renews. New policies and renewals generally have a one-year term. In the agreements with the

insurance carriers, a commission rate is agreed upon. The commission is recognized at the time of the sale of the policy (effective

date) or when a policy renews. Insurance commissions are recorded within other noninterest income. 

Other non-interest income primarily includes items such as mortgage banking fees (gains from the sale of residential mortgage

loans held for sale), bank-owned life insurance, and safe deposit box fees, none of which are subject to the requirements of ASC

606.

The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affects the

determination of the amount and timing of revenue from the above-described contracts with clients.

Recently Adopted Accounting Pronouncements

Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt

Restructurings and Vintage Disclosures”.

The amendments eliminate the accounting guidance for troubled debt restructurings by

creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings

made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross

write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The

amendments in this update are for fiscal years beginning after December 15, 2022, including interim periods within those fiscal

years. The Company adopted ASU 2022-02 using the prospective approach and the adoption of the standard did not have a

material impact on its consolidated financial statements. 

Issued But Not Yet Effective Accounting Standards

ASU No. 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. ASU 2023-01 will be

effective for the Company on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect that ASU

2023-02 will have 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. ASU 2023-02

will be effective for the Company on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect

that ASU 2023-02 will have on its consolidated financial statements and related 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. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to

the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of

that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has

not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment

will be removed from the Codification and will not become effective for any entities. The Company is currently evaluating the

provisions of the amendments and the impact on its future consolidated statements . 

93

ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.”

ASU 2023-09 is intended to enhance

transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about

income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and income

taxes paid information. Retrospective application in all prior periods is permitted. ASU 2023-09 will be effective for the company

on January 1, 2025. The Company is currently evaluating the impact of the incremental income taxes information that will be

required to be disclosed as well as the impact to Note 13- Income Taxes.

94

Note 2

INVESTMENT SECURITIES

Investment Portfolio Composition

. The following tables summarize the amortized cost and related fair value of investment

securities AFS and securities HTM, the corresponding amounts of gross unrealized gains and losses, and allowance for credit

losses.

Available for Sale

Amortized

Unrealized

Unrealized

Allowance for

Carrying

(Dollars in Thousands)

Cost

Gains

Losses

Credit Losses

Value

December 31, 2023

U.S. Government Treasury

$

25,947

$

1

$

1,269

$

-

$

24,679

U.S. Government Agency

152,983

104

8,053

-

145,034

States and Political Subdivisions

43,951

1

4,861

(8)

39,083

Mortgage-Backed Securities

(1)

73,015

2

9,714

-

63,303

Corporate Debt Securities

63,600

-

6,031

(17)

57,552

Other Securities

(2)

8,251

-

-

-

8,251

Total 

$

367,747

$

108

$

29,928

$

(25)

$

337,902

December 31, 2022

U.S. Government Treasury

$

23,977

$

1

$

1,928

$

-

$

22,050

U.S. Government Agency

198,888

27

12,863

-

186,052

States and Political Subdivisions

47,197

-

6,855

(13)

40,329

Mortgage-Backed Securities

(1)

80,829

2

11,426

-

69,405

Corporate Debt Securities

97,119

19

8,874

(28)

88,236

Other Securities

(2)

7,222

-

-

-

7,222

Total 

$

455,232

$

49

$

41,946

$

(41)

$

413,294

Held to Maturity

Amortized

Unrealized

Unrealized

Fair

(Dollars in Thousands)

Cost

Gains

Losses

Value

December 31, 2023

U.S. Government Treasury

$

457,681

$

-

$

16,492

$

441,189

Mortgage-Backed Securities

167,341

13

16,792

150,562

Total 

$

625,022

$

13

$

33,284

$

591,751

December 31, 2022

U.S. Government Treasury

$

457,374

$

-

$

25,641

$

431,733

Mortgage-Backed Securities

203,370

8

22,410

180,968

Total 

$

660,744

$

8

$

48,051

$

612,701

(1)

Comprised of residential mortgage-backed securities.

(2)

Includes Federal Home Loan Bank and Federal Reserve Bank recorded at cost of $

3.2

 million and $

5.1

 million, respectively, at

December 31, 2023 and of $

2.1

 million and $

5.1

 million, respectively, at December 31, 2022.

At December 31, 2023, and 2022, the investment portfolio had $

3.5

 million and $

0.01

 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 $

578.5

 million and $

656.1

 million at December 31, 2023 and 2022, respectively, were

pledged to secure public deposits and for other purposes.

At December 31, 2023 and 2022, there were

no

 holdings of securities of any one issuer, other than the U.S. Government and its

agencies, in an amount greater than 10% of shareowners’ equity.

95

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.

During the third quarter of 2022, the Company transferred certain securities from the AFS to HTM classification. Transfers are

made at fair value on the date of the transfer. The

33

 securities had an amortized cost basis and fair value of $

168.4

 million and

$

159.0

 million, respectively at the time of the transfer. The net unamortized, unrealized loss on the transferred securities included

in accumulated other comprehensive loss in the accompanying Consolidated Statement of Financial Condition totaled $

4.5

million and $

7.9

 million at December 31, 2023 and 2022, respectively. This amount will be amortized out of accumulated other

comprehensive loss over the remaining life of the underlying securities as an adjustment of the yield on those securities.

Investment Sales

. During 2023, the Company sold $

30.4

 million of investment securities. There were no significant sales of

investment securities during 2022 and 2021.

Maturity Distribution

. The following table shows the Company’s AFS and HTM investment securities maturity distribution

based on contractual maturity at December 31, 2023. Expected maturities may differ from contractual maturities because

borrowers may have the right to call or prepay obligations. Mortgage-backed securities and certain amortizing U.S. government

agency securities are shown separately since they are not due at a certain maturity date. Equity securities do not have a

contractual maturity date.

Available for Sale

Held to Maturity

Amortized

Fair

Amortized

Fair

(Dollars in Thousands)

Cost

Value

Cost

Value

Due in one year or less

$

28,545

$

27,854

$

90,119

$

88,588

Due after one through five years

138,299

127,843

367,562

352,601

Due after five through ten years

39,090

33,420

-

-

Mortgage-Backed Securities

73,015

63,303

167,341

150,562

U.S. Government Agency

80,547

77,231

-

-

Other Securities

8,251

8,251

-

-

Total 

$

367,747

$

337,902

$

625,022

$

591,751

96

Unrealized Losses

. The following table summarizes the investment securities with unrealized losses at December 31, aggregated

by major security type and length of time in a continuous unrealized loss position:

Less Than 12 Months

Greater Than 12 Months

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in Thousands)

Value

Losses

Value

Losses

Value

Losses

December 31, 2023

Available for Sale

U.S. Government Treasury

$

-

$

-

$

19,751

$

1,269

$

19,751

$

1,269

U.S. Government Agency

12,890

74

121,220

7,979

134,110

8,053

States and Political Subdivisions

1,149

31

37,785

4,830

38,934

4,861

Mortgage-Backed Securities

23

-

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

14

148,282

16,778

149,068

16,792

Total 

$

154,666

$

3,192

$

435,592

$

30,092

$

590,258

$

33,284

December 31, 2022

Available for Sale 

U.S. Government Treasury

$

983

$

-

$

19,189

$

1,928

$

20,172

$

1,928

U.S. Government Agency

63,112

2,572

113,004

10,291

176,116

12,863

States and Political Subdivisions

1,425

2

38,760

6,853

40,185

6,855

Mortgage-Backed Securities

6,594

959

60,458

10,467

67,052

11,426

Equity Securities

26,959

878

58,601

7,996

85,560

8,874

Total 

99,073

4,411

290,012

37,535

389,085

41,946

Held to Maturity

U.S. Government Treasury

177,552

11,018

254,181

14,623

431,733

25,641

Mortgage-Backed Securities

88,723

6,814

91,462

15,596

180,185

22,410

Total 

$

266,275

$

17,832

$

345,643

$

30,219

$

611,918

$

48,051

At December 31, 2023, there were

878

 positions (combined AFS and HTM securities) with pre-tax unrealized losses totaling

$

63.2

 million. At December 31, 2022 there were

928

 positions (combined AFS and HTM securities) with pre-tax unrealized

losses totaling $

90.0

 million. For 2023,

86

 of these of these positions were U.S. Treasury bonds and carry the full faith and credit

of the U.S. Government. 

691

 of these positions were U.S. government agency and mortgage-backed 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

zero

. The remaining

101

 positions (municipal securities and corporate

bonds) have a credit component. At December 31, 2023, all collateralized mortgage obligation securities (“CMO”), MBS, Small

Business Administration securities (“SBA”), U.S. Agency, and U.S. Treasury bonds held were AAA rated. At December 31,

2023, corporate debt securities had an allowance for credit losses of $

17,000

 and municipal securities had an allowance $

8,000

. 

No

ne of the securities held by the Company were past due or in nonaccrual status at December 31, 2023.

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 large portion 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

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

no

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.

97

Note 3

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES

Loan Portfolio Composition

. The composition of the HFI loan portfolio at December 31 was as follows:

(Dollars in Thousands)

2023

2022

Commercial, Financial and Agricultural

$

225,190

$

247,362

Real Estate – Construction

196,091

234,519

Real Estate – Commercial Mortgage

825,456

782,557

Real Estate – Residential

(1)

1,004,219

749,513

Real Estate – Home Equity

210,920

208,217

Consumer

(2)

272,042

325,517

Loans Held for Investment, Net of Unearned Income

$

2,733,918

$

2,547,685

(1) 

Includes loans in process with outstanding balances of $

3.2

 million and $

6.1

 million for 2023 and 2022, respectively.

(2)

 Includes overdraft balances of $

1

.0 million and $

1.1

 million for December 31, 2023 and 2022, respectively.

Net deferred costs, which include premiums on purchased loans, included in loans were $

7.8

 million at December 31, 2023 and

$

5.1

 million at December 31, 2022. 

Accrued interest receivable on loans which is excluded from amortized cost totaled $

10.1

 million at December 31, 2023 and $

8.0

million at December 31, 2022, and is reported separately in Other Assets. 

The Company has pledged a floating lien on certain 1-4 family residential mortgage loans, commercial real estate mortgage loans,

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

. The Company will purchase newly originated 1-4 family real estate secured adjustable-rate loans

from CCHL, a related party effective on March 1, 2020 (see Note 1 – Significant Accounting Policies). These loan purchases

totaled $

364.8

 million and $

421.7

 million for the years ended December 31, 2023 and 2022, respectively, and were not credit

impaired. In addition, the Company purchased commercial real estate loans that were not credit impaired from a third party

totaling $

15.0

 million for the year ended December 31, 2022.

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 methodology is discussed further in Note 1 – Significant

Accounting Policies. 

98

The following table details the activity in the allowance for credit losses by portfolio segment for the years ended December 31. 

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

Real Estate

(Dollars in Thousands)

Agricultural

Construction

Mortgage

Residential

Home Equity

Consumer

Total

2023

Beginning Balance

$

1,506

$

2,654

$

4,815

$

10,741

$

1,864

$

3,488

$

25,068

 Provision for Credit Losses

210

(154)

1,035

4,141

(233)

4,596

9,595

 Charge-Offs

(511)

-

(120)

(79)

(39)

(8,543)

(9,292)

 Recoveries 

277

2

52

253

226

3,760

4,570

 Net (Charge-Offs) Recoveries

(234)

2

(68)

174

187

(4,783)

(4,722)

Ending Balance

$

1,482

$

2,502

$

5,782

$

15,056

$

1,818

$

3,301

$

29,941

2022

Beginning Balance

$

2,191

$

3,302

$

5,810

$

4,129

$

2,296

$

3,878

$

21,606

 Provision for Credit Losses

316

(658)

(746)

6,328

(422)

2,579

7,397

 Charge-Offs

(1,308)

-

(355)

-

(193)

(6,050)

(7,906)

 Recoveries

307

10

106

284

183

3,081

3,971

 Net (Charge-Offs) Recoveries

(1,001)

10

(249)

284

(10)

(2,969)

(3,935)

Ending Balance

$

1,506

$

2,654

$

4,815

$

10,741

$

1,864

$

3,488

$

25,068

2021

Beginning Balance

$

2,204

$

2,479

$

7,029

$

5,440

$

3,111

$

3,553

$

23,816

 Provision for Credit Losses

(227)

813

(1,679)

(1,956)

(1,125)

1,332

(2,842)

 Charge-Offs

(239)

-

(405)

(108)

(103)

(3,972)

(4,827)

 Recoveries

453

10

865

753

413

2,965

5,459

 Net (Charge-Offs) Recoveries

214

10

460

645

310

(1,007)

632

Ending Balance

$

2,191

$

3,302

$

5,810

$

4,129

$

2,296

$

3,878

$

21,606

The $

4.9

 million increase in the allowance for credit losses in 2023 reflected a credit loss provision of $

9.6

 million and net loan

charge-offs of $

4.7

 million. The $

3.5

 million increase in the allowance in 2022 reflected a credit loss provision of $

7.4

 million

and net loan charge-offs of $

3.9

 million. The increases in the allowance for both 2023 and 2022 were primarily attributable to

incremental allowance related to loan growth, primarily residential real estate, and slower prepayment speeds (due to higher

interest rates). For 2022, a higher projected rate of unemployment and its effect on rates of default was also a contributing factor. 

Four unemployment rate forecast scenarios continue to be utilized to estimate probability of default and are weighted based on

management’s estimate of probability. See Note 1 – Significant accounting policies for more on the calculation of the provision

for credit losses. See Note 21 – Commitments and Contingencies for information on the provision for credit losses related to off-

balance sheet commitments.

99

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 at December 31,

30-59 

60-89 

90 + 

Total

Total

Nonaccrual

Total

(Dollars in Thousands)

DPD

DPD

DPD

Past Due

Current

Loans

Loans

2023

Commercial, Financial and Agricultural

$

311

$

105

$

-

$

416

$

224,463

$

311

$

225,190

Real Estate – Construction

206

-

-

206

195,563

322

196,091

Real Estate – Commercial Mortgage

794

-

-

794

823,753

909

825,456

Real Estate – Residential

670

34

-

704

1,000,525

2,990

1,004,219

Real Estate – Home Equity

268

-

-

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

2022

Commercial, Financial and Agricultural

$

109

$

126

$

-

$

235

$

247,086

$

41

$

247,362

Real Estate – Construction

359

-

-

359

234,143

17

234,519

Real Estate – Commercial Mortgage

158

149

-

307

781,605

645

782,557

Real Estate – Residential

845

530

-

1,375

747,899

239

749,513

Real Estate – Home Equity

-

35

-

35

207,411

771

208,217

Consumer

3,666

1,852

-

5,518

319,415

584

325,517

Total

$

5,137

$

2,692

$

-

$

7,829

$

2,537,559

$

2,297

$

2,547,685

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 Company did not recognize a significant amount of interest income on nonaccrual loans for the years ended December 31,

2023 and 2022. 

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.

2023

2022

Nonaccrual

Nonaccrual

90 + Days

Nonaccrual

Nonaccrual

90 + Days

With No

With

Still

With No

With

Still

(Dollars in Thousands)

ACL

ACL

Accruing

ACL

ACL

Accruing

Commercial, Financial and Agricultural

$

-

$

311

$

-

$

-

$

41

$

-

Real Estate – Construction

-

322

-

-

17

-

Real Estate – Commercial Mortgage

781

128

-

389

256

-

Real Estate – Residential

1,705

1,285

-

-

239

-

Real Estate – Home Equity

-

999

-

-

771

-

Consumer

-

711

-

-

584

-

Total Nonaccrual Loans

$

2,486

$

3,756

$

-

$

389

$

1,908

$

-

100

Collateral Dependent Loans

. The following table presents the amortized cost basis of collateral dependent loans at December 31:

2023

2022

Real Estate

Non Real Estate

Real Estate

Non Real Estate

(Dollars in Thousands)

Secured

Secured

Secured

Secured

Commercial, Financial and Agricultural

$

-

$

30

$

-

$

-

Real Estate – Construction

275

-

-

-

Real Estate – Commercial Mortgage

1,296

-

389

-

Real Estate – Residential

1,706

-

160

-

Real Estate – Home Equity

-

-

130

-

Consumer

-

-

21

-

Total

$

3,277

$

30

$

700

$

-

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 December 31, 2023 and 2022, the Company had $

0.5

 million and

$

0.6

 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 December 31, 2023, the Company did

no

t maintain any 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 of the

Company (the “Board”) 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 loan

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, or equipment. Collateral values are determined based upon third-party appraisals and evaluations. 

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

101

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 consist 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, 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 category includes personal installment loans, direct and indirect automobile financing, and overdraft

lines of credit. The majority of the consumer loan category consists of indirect and direct 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.

102

The following table summarizes gross loans held for investment at 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).

Term Loans by Origination Year

Revolving

(Dollars in Thousands)

2023

2022

2021

2020

2019

Prior

Loans

Total

Commercial, Financial,

Agricultural:

Pass

$

57,320

$

66,671

$

28,933

$

10,610

$

7,758

$

7,502

$

44,350

$

223,144

Special Mention

168

608

356

10

9

-

76

1,227

Substandard

164

177

98

77

20

122

161

819

Total

$

57,652

$

67,456

$

29,387

$

10,697

$

7,787

$

7,624

$

44,587

$

225,190

Current-Period Gross

Writeoffs

$

6

$

252

$

65

$

31

$

41

$

19

$

97

$

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

-

47

576

651

-

-

-

1,274

Total

$

102,315

$

68,812

$

19,296

$

863

$

188

$

-

$

4,617

$

196,091

Current-Period Gross

Writeoffs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

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

$

-

$

120

Real Estate - Residential:

Pass

$

372,394

$

400,437

$

83,108

$

35,879

$

24,848

$

68,685

$

8,252

$

993,603

Special Mention

268

89

83

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

$

-

$

-

$

79

$

-

$

-

$

-

$

-

$

79

Real Estate - Home

Equity:

Performing

$

890

$

48

$

127

$

11

$

386

$

950

$

207,509

$

209,921

Nonperforming

-

-

-

-

-

-

999

999

Total 

$

890

48

127

11

386

950

208,508

210,920

Current-Period Gross

Writeoffs

$

-

$

-

$

-

$

-

$

-

$

-

$

39

$

39

Consumer:

Performing

$

68,496

$

90,031

$

70,882

$

21,314

$

10,210

$

4,258

$

5,431

$

270,622

Nonperforming

293

355

58

4

-

-

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

$

99

$

162

$

8,543

103

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

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.

December 31, 2023

December 31, 2022

Unpaid Principal

Unpaid Principal

(Dollars in Thousands)

Balance/Notional

Fair Value

Balance/Notional

Fair Value

Residential Mortgage Loans Held for Sale

$

27,944

$

28,211

$

26,274

$

26,909

Residential Mortgage Loan Commitments

(1)

23,545

523

36,535

819

Forward Sales Contracts

(2)

24,500

209

15,500

187

$

28,943

$

27,915

(1)

Recorded in other assets at fair value

(2)

Recorded in other assets and (other liabilities) at fair value

At December 31, 2023, the Company had

no

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

0.7

 million of

loans were on nonaccrual status. At December 31, 2022, the Company had $

0.6

 million residential mortgage loans held for sale

30-89 days past due and $

0.1

 million of loans were on nonaccrual status. 

Mortgage banking revenues for the year ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

Net realized gain on sales of mortgage loans

$

5,297

$

5,565

$

49,355

Net change in unrealized gain on mortgage loans held for sale

(252)

(1,164)

(2,410)

Net change in the fair value of mortgage loan commitments

(296)

(439)

(3,567)

Net change in the fair value of forward sales contracts

(395)

192

900

Pair-Offs on net settlement of forward sales contracts

367

4,956

2,956

Mortgage servicing rights additions

651

565

1,416

Net origination fees

5,028

2,234

3,775

Total mortgage banking revenues

$

10,400

$

11,909

$

52,425

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.

104

The following represents a summary of mortgage servicing rights.

(Dollars in Thousands)

2023

2022

Number of residential mortgage loans serviced for others

450

1,769

Outstanding principal balance of residential mortgage loans serviced for others

$

108,897

$

410,470

Weighted average interest rate

5.37%

3.62%

Remaining contractual term (in months)

309

298

Conforming conventional loans serviced by the Company are sold to the 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 GNMA, whereby the Company is insured against loss by the Federal

Housing Administration or partially guaranteed against loss by the Veterans Administration. At December 31, 2023, the

servicing portfolio balance consisted of the following loan types: FNMA (

53.3

%), GNMA (

4.7

%), and private investor (

42.0

%). 

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

At December 31, 2023 the Company did

no

t have delinquent residential mortgage loans currently in GNMA pools serviced by the

Company and had $

0.3

 million at December 31, 2022. The right to repurchase these loans and the corresponding liability has

been recorded in other assets and other liabilities, respectively, in the Consolidated Statements of Financial Condition. During the

years ended December 31, 2023 and 2022, respectively, the Company repurchased $

0.3

 million and $

1.7

 million of GNMA

delinquent or defaulted mortgage loans with the intention to modify their terms and include the loans in new GNMA pools. 

Activity in the capitalized mortgage servicing rights for the year ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

Beginning balance

$

2,599

$

3,774

$

3,452

Additions due to loans sold with servicing retained

651

565

1,416

Deletions and amortization

(232)

(1,291)

(1,344)

Valuation Allowance reversal

-

-

250

Sale of Servicing Rights

(1)

(2,187)

(449)

-

Ending balance

$

831

$

2,599

$

3,774

(1)

In 2023, the Company sold an MSR portfolio with an unpaid principal balance of $

334

 million for a sales price of $

4.0

 million,

 recognizing a $

1.38

 million gain on sale, recorded in other noninterest income on the Consolidated Statement of Income.

In 2022, the Company sold an MSR portfolio with an unpaid principal balance of $

50

 million for a sales price of $

0.6

 million,

 recognizing a $

0.2

 million gain on sale, recorded in other noninterest income on the Consolidated Statement of Income.

The Company did

no

t record any permanent impairment losses on mortgage servicing rights for the years ended December 31,

2023 and 2022. 

The key unobservable inputs used in determining the fair value of the Company’s mortgage servicing rights at December 31, was

as follows:

2023

2022

Minimum

Maximum

Minimum

Maximum

Discount rates

9.50%

12.00%

9.50%

12.00%

Annual prepayment speeds

11.23%

17.79%

12.33%

20.23%

Cost of servicing (per loan)

$

85

95

$

85

95

105

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

14.22

% at December 31, 2023 and

13.42

% at December 31, 2022. 

Warehouse Line Borrowings

The Company has the following warehouse lines of credit and master repurchase agreements with various financial institutions at

December 31, 2023.

Amounts

(Dollars in Thousands)

Outstanding

$

25

 million master repurchase agreement without defined expiration. Interest is at the SOFR rate plus

2.00%

 to

plus

3.00%

, with a floor rate of

3.25%

 to

4.25%

. A cash pledge deposit of $

0.1

 million is required by the

lender.

$

192

$

60

 million warehouse line of credit agreement expiring in

December 2024

. Interest is at the SOFR plus

2.75%

to

3.25%

.

8,192

$

8,384

Warehouse line borrowings are classified as short-term borrowings. At December 31, 2022, warehouse line borrowings totaled

$

50.2

 million. At December 31, 2023, the Company had mortgage loans held for sale and construction permanent loans 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 December 31, 2023. 

The Company intends to renew the warehouse lines of credit and master repurchase agreements when they mature.

The Company has extended a $

50

 million warehouse line of credit to CCHL. 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 at December 31, 2023 and December 31,

2022 was $

31.4

 million and $

22.9

 million, 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 $

30

 million at December 31, 2023 and 2022 were designated 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 loss (“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 loss related to

derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate subordinated

debt.

106

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)

Interest rate swaps related to subordinated debt:

December 31, 2023

Other Assets

$

30,000

$

5,317

6.5

December 31, 2022

Other Assets

$

30,000

$

6,195

7.5

The following table presents the net gains (losses) recorded in AOCI and the Consolidated Statement of Income related to the

cash flow derivative instruments (interest rate swaps related to subordinated debt).

Amount of Gain

Amount of Gain

(Loss) Recognized

(Loss) Reclassified

(Dollars in Thousands)

Category

in AOCI

from AOCI to Income

December 31, 2023

Interest Expense

$

3,969

$

1,395

December 31, 2022

Interest Expense

$

4,625

$

337

December 31, 2021

Interest Expense

$

1,530

$

(151)

The Company estimates there will be approximately $

1.3

 million reclassified as a decrease to interest expense within the next 12

months.

At December 31, 2023 and 2022, the Company had a collateral liability of $

5.5

 million and $

5.8

 million, respectively.

Note 6

PREMISES AND EQUIPMENT

The composition of the Company’s premises and equipment at December 31 was as follows:

(Dollars in Thousands)

2023

2022

Land

$

22,393

$

22,847

Buildings

110,472

109,849

Fixtures and Equipment

61,051

59,627

Total Premises and Equipment

193,916

192,323

Accumulated Depreciation

(112,650)

(110,185)

Premises and Equipment, Net

$

81,266

$

82,138

Depreciation expense for the above premises and equipment was approximately $

7.9

. million, $

7.6

 million, and $

7.6

 million in

2023, 2022, and 2021, respectively

.

107

Note 7

LEASES

Operating leases in which the Company is the lessee are recorded as operating lease right of use (“ROU”) assets and operating

liabilities, included in

other assets

 and

liabilities

, respectively, on its Consolidated Statement of Financial Condition. 

Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease

liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease

liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate

that represents the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is

comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a

straight-line basis over the lease term, and is recorded in occupancy expense in the Consolidated Statement of Income. 

The Company’s operating leases primarily relate to banking offices with remaining lease terms from

one

 to

forty-two years

. The

Company’s leases are not complex and do not contain residual value guarantees, variable lease payments, or significant

assumptions or judgments made in applying the requirements of ASC Topic 842. Operating leases with an initial term of 12

months or less are not recorded on the Consolidated Statement of Financial Condition and the related lease expense is recognized

on a straight-line basis over the lease term. At December 31, 2023, ROU assets and liabilities were $

27.0

 million and $

27.4

million, respectively. At December 31, 2022, the operating lease ROU assets and liabilities were $

22.3

 million and $

22.7

 million,

respectively. The Company does not have any finance leases or any significant lessor agreements.

The table below summarizes our lease expense and other information at December 31, related to the Company’s operating leases:

(Dollars in Thousands)

2023

2022

2021

Operating lease expense

$

2,919

$

1,719

$

1,445

Short-term lease expense

622

658

663

Total lease expense

$

3,541

$

2,377

$

2,108

Other information:

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

2,847

$

1,937

$

1,609

Right-of-use assets obtained in exchange for new operating lease liabilities

6,748

12,475

784

Weighted-average remaining lease term — operating leases (in years)

16.9

19.5

25.3

Weighted-average discount rate — operating leases

3.5

%

3.1

%

2.0

%

The table below summarizes the maturity of remaining lease liabilities:

(Dollars in Thousands)

December 31, 2023

2024

$

3,127

2025

3,105

2026

2,966

2027

2,888

2028

2,611

2028 and thereafter

20,670

Total

$

35,367

Less: Interest

(7,976)

Present Value of Lease Liability

$

27,391

A related party is the lessor in an operating lease with the Company. The terms of this lease agreement are further described in

Note 19 – Related Party Transactions.

108

Note 8

GOODWILL AND OTHER INTANGIBLES

At December 31, 2023 and 2022, the Company had goodwill of $

91.8

 million. Goodwill is tested for impairment on an annual

basis, or more often if impairment indicators exist. Testing allows for a qualitative assessment of goodwill impairment indicators. 

If the assessment indicates that impairment has more than likely occurred, the Company must compare the estimated fair value of

the reporting unit to its carrying amount. If the carrying amount of the reporting unit exceeds its estimated fair value, an

impairment charge is recorded equal to the excess.

On April 30, 2021, CCSW acquired substantially all of the assets of Strategic Wealth Group, LLC (“SWG”), including advisory,

service, and insurance carrier agreements, and the assignment of all related revenues thereof. Under the terms of the purchase

agreement, SWG principles became officers of CCSW and will continue the operation of their

five

 offices in South Georgia

offering wealth management services and comprehensive risk management and asset protection services for individuals and

businesses.

CCBG paid $

4.5

 million in cash consideration and recorded goodwill of $

2.8

 million and a customer relationship

intangible asset (

10 year

 life) of $

1.6

 million. Amortization expense related to the customer relationship intangible totaled $

0.2

million in each of 2023 and 2022. The intangible asset balance as of December 31, 2023 and December 31, 2022 was $

1.2

million and $

1.3

 million, respectively. The estimated amortization expense for each of the eight succeeding fiscal years is $

0.2

million per year.

During the fourth quarter of 2023, the Company performed its annual goodwill impairment testing and determined that

no

goodwill impairment existed at December 31, 2023 and

no

 goodwill impairment existed at December 31, 2022. The Company

will continue to evaluate goodwill for impairment as defined by ASC Topic 350.

Note 9

OTHER REAL ESTATE OWNED

The following table presents other real estate owned activity at December 31,

(Dollars in Thousands)

2023

2022

2021

Beginning Balance

$

431

$

17

$

808

Additions

1,512

2,398

1,717

Valuation Write-Downs

(16)

(11)

(31)

Sales

(1,926)

(1,973)

(2,809)

Other

-

-

332

Ending Balance

$

1

$

431

$

17

Net expenses applicable to other real estate owned for the three years ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

Gains from the Sale of Properties

$

(2,072)

$

(480)

$

(1,711)

Losses from the Sale of Properties

3

47

18

Rental Income from Properties

-

(21)

-

Property Carrying Costs

84

106

174

Valuation Adjustments

16

11

31

Total

$

(1,969)

$

(337)

$

(1,488)

Note 10

DEPOSITS

The composition of the Company’s interest bearing deposits at December 31 was as follows:

(Dollars in Thousands)

2023

2022

NOW Accounts

$

1,327,420

$

1,290,494

Money Market Accounts

319,319

267,383

Savings Deposits

547,634

637,374

Time Deposits

129,515

90,446

Total Interest Bearing Deposits

$

2,323,888

$

2,285,697

109

At December 31, 2023 and 2022, $

1.0

 million and $

1.1

 million in overdrawn deposit accounts were reclassified as loans,

respectively.

The amount of time deposits that meet or exceed the FDIC insurance limit of $250,000 totaled $

14.7

 million and $

11.1

 million at

December 31, 2023 and 2022, respectively.

At December 31, the scheduled maturities of time deposits were as follows:

(Dollars in Thousands)

2023

2024

$

112,448

2025

7,349

2026

3,554

2027

4,211

2028

1,953

Total

$

129,515

Interest expense on deposits for the three years ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

NOW Accounts

$

12,375

$

2,800

$

294

Money Market Accounts

3,670

203

134

Savings Deposits

598

309

263

Time Deposits < $250,000

117

129

145

Time Deposits > $250,000

822

3

3

Total Interest Expense

$

17,582

$

3,444

$

839

110

Note 11

SHORT-TERM BORROWINGS

Short-term borrowings included the following:

(Dollars in Thousands)

Federal Funds

Purchased

Securities 

Sold Under

Repurchase

Agreements

(1)

Other 

Short-Term

Borrowings

(2)

2023

Balance at December 31

$

-

$

26,957

$

8,384

Maximum indebtedness at any month end

-

32,426

42,345

Daily average indebtedness outstanding

12

19,917

24,134

Average rate paid for the year

7.03

%

2.57

%

6.37

%

Average rate paid on period-end borrowings

-

%

2.81

%

9.51

%

2022

Balance at December 31

$

-

$

6,582

$

50,211

Maximum indebtedness at any month end

-

9,452

50,211

Daily average indebtedness outstanding

2

8,095

32,386

Average rate paid for the year

3.39

%

0.17

%

5.40

%

Average rate paid on period-end borrowings

-

%

0.40

%

7.61

%

2021

Balance at December 31

$

-

$

4,955

$

29,602

Maximum indebtedness at any month end

-

6,755

58,309

Daily average indebtedness outstanding

2

5,762

47,748

Average rate paid for the year

2.39

%

0.04

%

2.84

%

Average rate paid on period-end borrowings

-

%

0.04

%

2.36

%

(1)

Balances are fully collateralized by government treasury or agency securities held in the Company's investment portfolio.

(2)

Comprised of warehouse lines of credit totaling $

8.4

 million at December 31, 2023.

Note 12

LONG-TERM BORROWINGS

Federal Home Loan Bank Advances. 

The Company had one FHLB long-term advance totaling $

0.3

 million at December 31,

2023. 

The advance matures in 2025 and has a rate of 4.80%. The Company had one FHLB long-term advance totaling $0.5

million at December 31, 2022 with a weighted-average rate of 4.80%.

 The FHLB advances are collateralized by a floating lien on

certain 1-4 family residential mortgage loans, commercial real estate mortgage loans, and home equity mortgage loans. Interest

on the FHLB advances is paid on a monthly basis.

Scheduled minimum future principal payments on our other long-term borrowings at December 31 were as follows:

(Dollars in Thousands)

2023

2024

$

198

2025

116

Total

$

314

Junior Subordinated Deferrable Interest Notes. 

The Company has issued

two

 junior subordinated deferrable interest notes to

wholly owned Delaware statutory trusts. The first note for $

30.9

 million was issued to CCBG Capital Trust I. The second note

for $

32.0

 million was issued to CCBG Capital Trust II. The

two

 trusts are considered variable interest entities for which the

Company is not the primary beneficiary. Accordingly, the accounts of the trusts are not included in the Company’s consolidated

financial statements. See Note 1 - Significant Accounting Policies for additional information about the Company’s consolidation

policy. Details of the Company’s transaction with the two trusts are provided below.

111

In November 2004, CCBG Capital Trust I issued $

30.0

 million of trust preferred securities which represent interest in the assets

of the trust. The interest payments are due quarterly and adjust quarterly to a variable rate of 

3-month CME Term SOFR

 plus a

margin of

1.90

%. The trust preferred securities will mature on

December 31, 2034

, and are redeemable upon approval of the

Federal Reserve in whole or in part at the option of the Company at any time after December 31, 2009 and in whole at any time

upon occurrence of certain events affecting their tax or regulatory capital treatment. Distributions on the trust preferred securities

are payable quarterly on March 31, June 30, September 30, and December 31 of each year. CCBG Capital Trust I also issued

$

0.9

 million of common equity securities to CCBG. The proceeds of the offering of trust preferred securities and common equity

securities were used to purchase a $

30.9

 million junior subordinated deferrable interest note issued by the Company, which has

terms similar to the trust preferred securities. On April 12, 2016, the Company retired $

10

 million in face value of trust preferred

securities that were auctioned as part of a liquidation of a pooled collateralized debt obligation fund. The trust preferred securities

were originally issued through CCBG Capital Trust I.

In May 2005, CCBG Capital Trust II issued $

31.0

 million of trust preferred securities which represent interest in the assets of the

trust. The interest payments are due quarterly and adjust quarterly to a variable rate of

3-month CME Term SOFR

 plus a margin

of

1.80

%. The trust preferred securities will mature on

June 15, 2035

, and are redeemable upon approval of the Federal

Reserve in whole or in part at the option of the Company and in whole at any time upon occurrence of certain events affecting

their tax or regulatory capital treatment. Distributions on the trust preferred securities are payable quarterly on March 15, June

15, September 15, and December 15 of each year. CCBG Capital Trust II also issued $

0.9

 million of common equity securities to

CCBG. The proceeds of the offering of trust preferred securities and common equity securities were used to purchase a $

32.0

million junior subordinated deferrable interest note issued by the Company, which has terms substantially similar to the trust

preferred securities. 

The Company has the right to defer payments of interest on the two notes at any time or from time to time for a period of up to

twenty consecutive quarterly interest payment periods. Under the terms of each note, in the event that under certain

circumstances there is an event of default under the note or the Company has elected to defer interest on the note, the Company

may not, with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of

its capital stock. At December 31, 2023, the Company has paid all interest payments in full. 

The Company has entered into agreements to guarantee the payments of distributions on the trust preferred securities and

payments of redemption of the trust preferred securities. Under these agreements, the Company also agrees, on a subordinated

basis, to pay expenses and liabilities of the two trusts other than those arising under the trust preferred securities. The obligations

of the Company under the two junior subordinated notes, the trust agreements establishing the two trusts, the guarantee and

agreement as to expenses and liabilities, in aggregate, constitute a full and unconditional guarantee by the Company of the two

trusts’ obligations under the two trust preferred security issuances.

Despite the fact that the accounts of CCBG Capital Trust I and CCBG Capital Trust II are not included in the Company’s

consolidated financial statements, the $

20.0

 million and $

31.0

 million, respectively, in trust preferred securities issued by these

subsidiary trusts are included in the Tier 1 Capital of Capital City Bank Group, Inc. as allowed by Federal Reserve guidelines.

112

Note 13 

INCOME TAXES

The provision for income taxes reflected in the Consolidated Statements of Comprehensive Income is comprised of the following

components:

(Dollars in Thousands)

2023

2022

2021

Current:

Federal

$

11,630

$

10,646

$

12,039

State

1,893

1,022

1,044

13,523

11,668

13,083

Deferred:

Federal

(391)

(2,994)

(3,246)

State

(351)

(899)

(10)

Change in Valuation Allowance

259

23

8

(483)

(3,870)

(3,248)

Total:

Federal

11,239

7,652

8,793

State

1,542

123

1,034

Change in Valuation Allowance

259

23

8

Total

$

13,040

$

7,798

$

9,835

Income taxes provided were different than the tax expense computed by applying the statutory federal income tax rate of

21

% to

pre-tax income as a result of the following:

(Dollars in Thousands)

2023

2022

2021

Tax Expense at Federal Statutory Rate

$

13,411

$

8,625

$

10,385

Increases (Decreases) Resulting From:

Tax-Exempt Interest Income

(259)

(248)

(271)

State Taxes, Net of Federal Benefit

1,218

94

819

Other

(1,695)

(546)

375

Change in Valuation Allowance

259

23

8

Tax-Exempt Cash Surrender Value Life Insurance Benefit

(187)

(175)

(173)

Noncontrolling Interest

293

25

(1,308)

Actual Tax Expense

$

13,040

$

7,798

$

9,835

Deferred income tax liabilities and assets result from differences between assets and liabilities measured for financial reporting

purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that

are currently in effect. 

113

The net deferred tax asset and the temporary differences comprising that balance at December 31, 2023 and 2022 are as follows:

(Dollars in Thousands)

2023

2022

Deferred Tax Assets Attributable to:

Allowance for Credit Losses

$

7,236

$

6,042

Accrued Pension/SERP

144

1,530

State Net Operating Loss and Tax Credit Carry-Forwards

2,069

1,920

Other Real Estate Owned

887

917

Accrued SERP Liability

2,594

3,246

Lease Liability

5,911

4,547

Net Unrealized Losses on Investment Securities

8,601

12,499

Other

2,665

3,043

Investment in Partnership

3,241

1,544

Total Deferred Tax Assets

$

33,348

$

35,288

Deferred Tax Liabilities Attributable to:

Depreciation on Premises and Equipment

$

3,733

$

3,382

Deferred Loan Fees and Costs

2,614

2,372

Intangible Assets

3,344

3,310

Accrued Pension Liability

1,688

1,043

Right of Use Asset

5,829

4,474

Investments

469

469

Other

1,851

2,099

Total Deferred Tax Liabilities

19,528

17,149

Valuation Allowance

1,930

1,671

Net Deferred Tax Asset

$

11,890

$

16,468

In the opinion of management, it is more likely than not that all of the deferred tax assets, with the exception of certain state net

operating loss carry-forwards and certain state tax credit carry-forwards expected to expire prior to utilization, will be realized. 

Accordingly, a valuation allowance of $

1.9

 million and $

1.7

 million is recorded at December 31, 2023 and December 31, 2022,

respectively. At December 31, 2023, the Company had state loss and tax credit carry-forwards of approximately $

2.1

 million,

which expire at various dates from

2024

 through

2037

.

The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits:.

(Dollars in Thousands)

2023

2022

2021

Balance at January 1,

$

136

$

52

$

-

Additions Based on Tax Positions Related to Current Year

97

84

52

Balance at December 31

$

233

$

136

$

52

Of this total, $

0.2

 million represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the

effective tax rate in future periods. The Company does not expect the total amount of unrecognized tax benefits to significantly

increase or decrease in the next twelve months. 

It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in their respective

federal or state income taxes accounts. There were

no

 penalties and interest related to income taxes recorded in the Consolidated

Statements of Income for the years ended December 31, 2023, 2022, and 2021. There were

no

 amounts accrued in the

Consolidated Statements of Financial Condition for penalties and interest as of December 31, 2023 and 2022.

The Company files a consolidated U.S. federal income tax return and a separate U.S. federal income tax return for CCHL. Each

subsidiary files various returns in states where its banking offices are located. The Company is no longer subject to U.S. federal

or state tax examinations for years before 2020.

114

Note 14

STOCK-BASED COMPENSATION

At December 31, 2023, the Company had three stock-based compensation plans, consisting of the 2021 Associate Incentive Plan

(“AIP”), the 2021 Associate Stock Purchase Plan (“ASPP”), and the 2021 Director Stock Purchase Plan (“DSPP”). These plans,

which were approved by the shareowners in April 2021, replaced substantially similar plans approved by the shareowners in

2011. Total compensation expense associated with these plans for 2021 through 2023 was $

1.6

 million, $

2.3

 million, and $

2.1

million, respectively. 

AIP.

 The AIP allows key associates and directors to earn various forms of equity-based incentive compensation. Under the AIP,

there were

700,000

 shares reserved for issuance. On an annual basis, the Company, pursuant to the terms and conditions of the

AIP, will create an annual incentive plan (“Plan”), under which all participants are eligible to earn performance shares. Awards to

associates under the 2021 Plan were tied to internally established goals. At base level targets, the grant-date fair value of the

shares eligible to be awarded in 2023 was approximately $

1.1

 million. For 2023, a total of

27,577

 shares were eligible for

issuance, but additional shares could be earned if performance exceeded established goals. A total of

26,614

 shares were earned

for 2023 that were issued in January 2024. For the years ended December 31, 2023 and 2022, Directors earned

8,840

 and

11,847

shares, respectively, under the Plan. The Company recognized expense of $

1.1

 million, $

1.9

 million, and $

1.2

 million for the

years ended December 31, 2023, 2022 and 2021, respectively, related to the AIP. 

Executive Long-Term Incentive Plan (“LTIP”)

. The Company has established a Performance Share Unit Plan under the

provisions of the AIP that allows William G. Smith, Jr., the Chairman, President, and Chief Executive Officer of CCBG, Inc. and

Thomas A. Barron, the President of CCB to earn shares based on the compound annual growth rate in diluted earnings per share

over a three-year period. The Company recognized expense of $

0.9

 million, $

0.2

 million, and $

0.2

 million for the years ended

December 31, 2023, 2022 and 2021, respectively. Shares issued under the plan were

4,909

,

6,849

, and

27,915

 for the years ended

December 31, 2023, 2022 and 2021, respectively. A total of

17,334

 shares were earned in 2023 that were issued in January 2024. 

After deducting the shares earned, but not issued, in 2023 under the AIP and LTIP,

492,247

 shares remain eligible for issuance

under the 2021 AIP.

DSPP. 

The Company’s DSPP allows the directors to purchase the Company’s common stock at a price equal to

90

% of the

closing price on the date of purchase. Stock purchases under the DSPP are limited to the amount of the directors’ annual retainer

and meeting fees. Under the DSPP, there were

300,000

 shares reserved for issuance. The Company recognized $

0.1

 million in

expense under the DSPP for each of the years ended December 31, 2023, 2022 and 2021. The Company issued shares under the

DSPP totaling

13,090

,

14,977

 and

19,362

 for the years ended December 31, 2023, 2022 and 2021, respectively. At December 31,

2023, there were

252,571

 shares eligible for issuance under the DSPP.

ASPP. 

Under the Company’s ASPP, substantially all associates may purchase the Company’s common stock through payroll

deductions at a price equal to

90

% of the lower of the fair market value at the beginning or end of each six-month offering

period. Stock purchases under the ASPP are limited to

10

% of an associate’s eligible compensation, up to a maximum of $

25,000

(fair market value on each enrollment date) in any plan year. Under the ASPP, there were

400,000

 shares of common stock

reserved for issuance. The Company recognized $

0.1

 million in expense under the ASPP for each of the years ended December

31, 2023, 2022 and 2021, respectively. The Company issued shares under the ASPP totaling

17,651

,

31,101

 and

22,126

 for the

years ended December 31, 2023, 2022 and 2021, respectively. At December 31, 2023,

329,122

 shares remained eligible for

issuance under the ASPP.

Based on the Black-Scholes option pricing model, the weighted average estimated fair value of each of the purchase rights

granted under the ASPP was $

5.32

 for 2023. For 2022 and 2021, the weighted average fair value purchase right granted was

$

4.03

 and $

3.96

, respectively. In calculating compensation, the fair value of each stock purchase right was estimated on the date

of grant using the following weighted average assumptions:

2023

2022

2021

Dividend yield

2.3

%

2.4

%

2.5

%

Expected volatility

22.5

%

17.6

%

21.8

%

Risk-free interest rate

5.1

%

1.4

%

0.1

%

Expected life (in years)

0.5

0.5

0.5

115

Note 15

EMPLOYEE BENEFIT PLANS

Pension Plan

The Company sponsors a noncontributory pension plan covering a portion of its associates. On December 30, 2019, the plan was

amended to remove plan eligibility for new associates hired after December 31, 2019. There were no amendments to the Plan in

2020 or 2021. The Plan was also amended in December 2022, effective January 1, 2020, increasing the required minimum

distribution age to

72

, per the SECURE Act 1.0. Benefits under this plan generally are based on the associate’s total years of

service and average of the

five

 highest years of compensation during the

ten years

 immediately preceding their departure. The

Company’s general funding policy is to contribute amounts sufficient to meet minimum funding requirements as set by law and to

ensure deductibility for federal income tax purposes. 

The following table details on a consolidated basis the changes in benefit obligation, changes in plan assets, the funded status of

the plan, components of pension expense, amounts recognized in the Company’s Consolidated Statements of Financial Condition,

and major assumptions used to determine these amounts.

116

(Dollars in Thousands)

2023

2022

2021

Change in Projected Benefit Obligation:

Benefit Obligation at Beginning of Year

$

108,151

$

172,508

$

212,566

Service Cost

3,488

6,289

6,971

Interest Cost

5,831

4,665

4,885

Actuarial Loss (Gain)

6,936

(39,962)

(14,934)

Benefits Paid

(3,843)

(2,139)

(2,087)

Expenses Paid

(276)

(416)

(259)

Settlements

-

(32,794)

(34,634)

Projected Benefit Obligation at End of Year

$

120,287

$

108,151

$

172,508

Change in Plan Assets:

Fair Value of Plan Assets at Beginning of Year

$

104,276

$

165,274

$

171,775

Actual Return on Plan Assets

19,138

(25,649)

30,479

Employer Contributions

6,000

-

-

Benefits Paid

(3,843)

(2,139)

(2,087)

Expenses Paid

(276)

(416)

(259)

Settlements

-

(32,794)

(34,634)

Fair Value of Plan Assets at End of Year

$

125,295

$

104,276

$

165,274

Funded Status of Plan and Accrued Liability Recognized at End of Year:

Other (Assets) Liabilities

$

(5,008)

$

3,875

$

7,234

Accumulated Benefit Obligation at End of Year

$

102,642

$

91,770

$

149,569

Components of Net Periodic Benefit Costs:

Service Cost

$

3,488

$

6,289

$

6,971

Interest Cost

5,831

4,665

4,885

Expected Return on Plan Assets

(6,805)

(10,701)

(11,147)

Amortization of Prior Service Costs

5

15

15

Net Loss Amortization

934

1,713

6,764

Net Loss Settlements

-

2,321

3,072

Net Periodic Benefit Cost

$

3,453

$

4,302

$

10,560

Weighted-Average Assumptions Used to Determine Benefit Obligation:

Discount Rate

5.29%

5.63%

3.11%

Rate of Compensation Increase

(1)

5.10%

5.10%

4.40%

Measurement Date

12/31/23

12/31/22

12/31/21

Weighted-Average Assumptions Used to Determine Benefit Cost:

Discount Rate

5.63%

3.11%

2.88%

Expected Return on Plan Assets

6.75%

6.75%

6.75%

Rate of Compensation Increase

(1)

5.10%

4.40%

4.00%

Amortization Amounts from Accumulated Other Comprehensive Loss:

Net Actuarial Loss (Gain) 

$

(5,397)

$

(3,612)

$

(34,265)

Prior Service Cost

(5)

(15)

(15)

Net Loss

(934)

(4,034)

(9,836)

Deferred Tax Expense

1,606

1,942

11,183

Other Comprehensive Gain, net of tax

$

(4,730)

$

(5,719)

$

(32,933)

Amounts Recognized in Accumulated Other Comprehensive Loss:

Net Actuarial Losses

$

1,322

$

7,653

$

15,300

Prior Service Cost

-

5

20

Deferred Tax Benefit

(335)

(1,941)

(3,884)

Accumulated Other Comprehensive Loss, net of tax

$

987

$

5,717

$

11,436

(1)

 The Company utilized an age-graded approach that varies the rate based on the age of the participants.

117

During 2022 and 2021, lump sum payments made under the Company’s defined benefit pension plan triggered settlement

accounting. In accordance with applicable accounting guidance for defined benefit plans, the Company recorded 

no

 settlement

losses during 2023 and $

2.3

 million and $

3.1

 million during 2022 and 2021, respectively.

The service cost component of net periodic benefit cost is reflected in compensation expense in the accompanying Consolidated

Statements of Income. The other components of net periodic cost are included in “other” within the noninterest expense category

in the Consolidated Statements of Income. See Note 1 – Significant Accounting Policies for additional information.

The Company expects to recognize $

0.2

 million of the net actuarial loss reflected in accumulated other comprehensive loss at

December 31, 2023 as a component of net periodic benefit cost during 2024.

Plan Assets.

The Company’s pension plan asset allocation at December 31, 2023 and 2022, and the target asset allocation for

2023 are as follows:

Target

Percentage of Plan

Allocation

Assets at December 31

(1)

2024

2023

2022

Equity Securities

68

%

70

%

73

%

Debt Securities

27

%

18

%

23

%

Cash and Cash Equivalents

5

%

12

%

4

%

Total

100

%

100

%

100

%

(1)

Represents asset allocation at December 31 which may differ from the average target allocation for the year due to the year-

end cash contribution to the plan.

The Company’s pension plan assets are overseen by the CCBG Retirement Committee. Capital City Trust Company acts as the

investment manager for the plan. The investment strategy is to maximize return on investments while minimizing risk. The

Company believes the best way to accomplish this goal is to take a conservative approach to its investment strategy by investing

in mutual funds that include various high-grade equity securities and investment -grade debt issuances with varying investment

strategies. The target asset allocation will periodically be adjusted based on market conditions and will operate within the

following investment policy statement allocation ranges: equity securities ranging from

55

% and

81

%, debt securities ranging

from

17

% and

37

%, and cash and cash equivalents ranging from

0

% and

10

%. The overall expected long-term rate of return on

assets is a weighted-average expectation for the return on plan assets. The Company considers historical performance data and

economic/financial data to arrive at expected long-term rates of return for each asset category.

The major categories of assets in the Company’s pension plan at December 31 are presented in the following table. Assets are

segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure

fair value (see Note 22 – Fair Value Measurements).

(Dollars in Thousands)

2023

2022

Level 1:

U.S. Treasury Securities

$

16,126

$

17,264

Mutual Funds

92,991

81,231

Cash and Cash Equivalents

15,717

5,327

Level 2:

Corporate Notes/Bonds

461

454

Total Fair Value of Plan Assets

$

125,295

$

104,276

118

Expected Benefit Payments.

 At December 31, expected benefit payments related to the defined benefit pension plan were as

follows:

(Dollars in Thousands)

2023

2024

$

10,105

2025

11,119

2026

10,496

2027

10,042

2028

8,983

2029 through 2033

45,942

Total

$

96,687

Contributions. 

The following table details the amounts contributed to the pension plan in 2023 and 2022, and the expected

amount to be contributed in 2024.

Expected

Contribution

(Dollars in Thousands)

2022

2023

2024

(1)

Actual Contributions

$

-

$

6,000

$

5,000

(1)

 For 2023, the Company will have the option to make a cash contribution to the plan or utilize pre-funding balances.

Supplemental Executive Retirement Plan

The Company has a Supplemental Executive Retirement Plan (“SERP”) and a Supplemental Executive Retirement Plan II

(“SERP II”) covering selected executive officers. Benefits under this plan generally are based on the same service and

compensation as used for the pension plan, except the benefits are calculated without regard to the limits set by the Internal

Revenue Code on compensation and benefits. The net benefit payable from the SERP is the difference between this gross benefit

and the benefit payable by the pension plan. The SERP II was adopted by the Company’s Board on May 21, 2020 and covers

certain executive officers that were not covered by the SERP.

119

The following table details on a consolidated basis the changes in benefit obligation, the funded status of the plan, components of

pension expense, amounts recognized in the Company’s Consolidated Statements of Financial Condition, and major assumptions

used to determine these amounts.

(Dollars in Thousands)

2023

2022

2021

Change in Projected Benefit Obligation:

Benefit Obligation at Beginning of Year

$

10,948

$

13,534

$

13,402

Service Cost

18

31

35

Interest Cost

501

315

243

Actuarial (Gain) Loss

201

(2,932)

(146)

Net Settlements

(2,464)

-

-

Projected Benefit Obligation at End of Year

$

9,204

$

10,948

$

13,534

Funded Status of Plan and Accrued Liability Recognized at End of Year:

Other Liabilities

$

9,204

$

10,948

$

13,534

Accumulated Benefit Obligation at End of Year

$

8,943

$

10,887

$

12,803

Components of Net Periodic Benefit Costs:

Service Cost

$

18

$

31

$

35

Interest Cost

501

315

243

Amortization of Prior Service Cost

151

277

277

Net Loss Amortization

(531)

718

970

Net Gain Settlements

(291)

-

-

Net Periodic Benefit Cost

$

(152)

$

1,341

$

1,525

Weighted-Average Assumptions Used to Determine Benefit Obligation:

Discount Rate

5.11%

5.45%

2.80%

Rate of Compensation Increase

(1)

5.10%

5.10%

4.40%

Measurement Date

12/31/23

12/31/22

12/31/21

Weighted-Average Assumptions Used to Determine Benefit Cost:

Discount Rate

5.45%

2.80%

2.38%

Rate of Compensation Increase

(1)

5.10%

4.40%

4.00%

Amortization Amounts from Accumulated Other Comprehensive Loss:

Net Actuarial Loss (Gain)

$

201

$

(2,932)

$

(146)

Prior Service (Benefit) Cost

(151)

(277)

(219)

Net Gain (Loss)

531

(718)

(970)

Settlement Gain 

291

-

-

Deferred Tax (Benefit) Expense

(222)

995

154

Other Comprehensive (Gain) Loss, net of tax

$

650

$

(2,932)

$

(1,181)

Amounts Recognized in Accumulated Other Comprehensive Loss:

Net Actuarial (Loss) Gain

$

(753)

$

(1,775)

$

1,875

Prior Service Cost

-

151

429

Deferred Tax Benefit (Expense)

191

412

(584)

Accumulated Other Comprehensive (Loss) Gain, net of tax

$

(562)

$

(1,212)

$

1,720

(1)

 The Company utilized an age-graded approach that varies the rate based on the age of the participants.

The Company expects to recognize approximately $

0.3

 million of the net actuarial gain reflected in accumulated other

comprehensive loss at December 31, 2023 as a component of net periodic benefit cost during 2024. 

In June 2023, lump sum retirement distributions to two plan participants required the application of settlement accounting. The

amount of the settlement gain was $

0.3

 million.

120

Expected Benefit Payments

. As of December 31, expected benefit payments related to the SERP were as follows:

(Dollars in Thousands)

2023

2024

$

8,800

2025

32

2026

38

2027

42

2028

64

2029 through 2033

748

Total

$

9,724

401(k) Plan

The Company has a 401(k) Plan which enables CCB and CCBG associates to defer a portion of their salary on a pre-tax

basis. The plan covers substantially all associates of the Company who meet minimum age requirements. The plan is designed to

enable participants to contribute any amount, up to the maximum annual limit allowed by the IRS, of their compensation withheld

in any plan year placed in the 401(k) Plan trust account. Matching contributions of

50

% from the Company are made for up to

6

% of the participant’s compensation for eligible associates. Further, in addition to the

50

% match, all associates hired after

December 31, 2019 will receive annually a contribution by the Company equal to

3

% of their compensation. For 2023, the

Company made annual matching contributions of $

1.7

 million. For 2022 and 2021, the Company made annual matching

contributions of $

1.4

 million and $

1.0

 million, respectively. The participant may choose to invest their contributions into thirty-

four investment options available to 401(k) participants, including the Company’s common stock. A total of

50,000

 shares of

CCBG common stock have been reserved for issuance. Shares issued to participants have historically been purchased in the open

market. 

CCHL has a 401(k) Plan available to all CCHL associates who are employed. The plan allows participants to contribute any

amount, up to the maximum annual limit allowed by the IRS, of their compensation withheld in any plan year placed in the

401(k) Plan trust account. A discretionary matching contribution is determined annually by CCHL. For 2023, 2022, and 2021,

matching contributions were made by CCHL up to

3

% of eligible participant’s compensation totaling $

0.4

 million, $

0.4

 million,

and $

0.7

 million, respectively. 

Other Plans

The Company has a Dividend Reinvestment and Optional Stock Purchase Plan. A total of

250,000

 shares have been reserved for

issuance. In recent years, shares for the Dividend Reinvestment and Optional Stock Purchase Plan have been acquired in the open

market and, thus, the Company did

no

t issue any new shares under this plan in 2023, 2022 and 2021.

Note 16

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars and Per Share Data in Thousands)

2023

2022

2021

Numerator:

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Denominator:

Denominator for Basic Earnings Per Share Weighted -Average Shares

16,987

16,951

16,863

Effects of Dilutive Securities Stock Compensation Plans

36

34

30

Denominator for Diluted Earnings Per Share Adjusted Weighted -Average 

 Shares and Assumed Conversions

17,023

16,985

16,893

Basic Earnings Per Share

$

3.08

$

1.97

$

1.98

Diluted Earnings Per Share

$

3.07

$

1.97

$

1.98

121

Note 17

REGULATORY MATTERS

Regulatory Capital Requirements

. The Company (on a consolidated basis) and the Bank are subject to various regulatory capital

requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain

mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on

the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt

corrective action

,

the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their

assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and

classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. 

Prompt corrective action provisions are not applicable to bank holding companies. A detailed description of these regulatory

capital requirements is provided in the section captioned “Regulatory Considerations – Capital Regulations” section on page 17.

Management believes, at December 31, 2023 and 2022, that the Company and the Bank meet all capital adequacy requirements to

which they are subject. At December 31, 2023, the most recent notification from the Federal Deposit Insurance Corporation

categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well

capitalized, an institution must maintain minimum common equity Tier 1, total risk-based, Tier 1 risk based and Tier 1 leverage

ratios as set forth in the following tables. There are not conditions or events since the notification that management believes have

changed the Bank’s category. The Company and Bank’s actual capital amounts and ratios at December 31, 2023 and 2022 are

presented in the following table.

122

To Be Well -

Capitalized Under

Required

Prompt

For Capital

Corrective

Actual

Adequacy Purposes

Action Provisions

(Dollars in Thousands)

Amount

Ratio

Amount

Ratio

Amount

Ratio

2023

Common Equity Tier 1:

CCBG

$

373,206

13.52%

$

124,192

4.50%

*

*

CCB

383,211

13.89%

124,158

4.50%

$

179,340

6.50%

Tier 1 Capital:

CCBG

424,206

15.37%

165,589

6.00%

*

*

CCB

383,211

13.89%

165,545

6.00%

220,726

8.00%

Total Capital:

CCBG

457,339

16.57%

220,785

8.00%

*

*

CCB

416,343

15.09%

220,726

8.00%

275,908

10.00%

Tier 1 Leverage:

CCBG

424,206

10.30%

164,691

4.00%

*

*

CCB

383,211

9.31%

164,680

4.00%

205,850

5.00%

2022

Common Equity Tier 1:

CCBG

$

335,512

12.38%

$

121,918

4.50%

*

*

CCB

358,882

13.25%

121,913

4.50%

$

176,096

6.50%

Tier 1 Capital:

CCBG

386,512

14.27%

162,557

6.00%

*

*

CCB

358,882

13.25%

162,550

6.00%

216,733

8.00%

Total Capital:

CCBG

414,569

15.30%

216,743

8.00%

*

*

CCB

386,067

14.25%

216,733

8.00%

270,917

10.00%

Tier 1 Leverage:

CCBG

386,512

8.91%

173,546

4.00%

*

*

CCB

358,882

8.27%

173,505

4.00%

216,881

5.00%

* Not applicable to bank holding companies.

Dividend Restrictions

. In the ordinary course of business, the Company is dependent upon dividends from its banking subsidiary

to provide funds for the payment of dividends to shareowners and to provide for other cash requirements. Banking regulations

may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends

declared would cause the regulatory capital of the Company’s banking subsidiary to fall below specified minimum levels. 

Approval is also required if dividends declared exceed the net profits of the banking subsidiary for that year combined with the

retained net profits for proceeding two years. In 2024, the bank subsidiary may declare dividends without regulatory approval of

$

44.4

 million plus an additional amount equal to net profits of the Company’s subsidiary bank for 2024 up to the date of any such

dividend declaration.

123

Note 18

ACCUMULATED OTHER COMPREHENSIVE LOSS

FASB Topic ASC 220, “Comprehensive Income” requires that certain transactions and other economic events that bypass the

Consolidated Statements of Income be displayed as other comprehensive income. Total comprehensive income is reported in

the Consolidated Statements of Comprehensive Income (net of tax) and Changes in Shareowners’ Equity (net of tax). 

The following table shows the amounts allocated to accumulated other comprehensive loss.

Accumulated

Securities

Other

Available

Interest Rate

Retirement

Comprehensive

 (Dollars in Thousands)

for Sale

Swap

Plans

Loss

Balance as of January 1, 2023

$

(37,349)

$

4,625

$

(4,505)

$

(37,229)

Other comprehensive income (loss) during the period

11,658

(655)

4,080

15,083

Balance as of December 31, 2023

$

(25,691)

$

3,970

$

(425)

$

(22,146)

Balance as of January 1, 2022

$

(4,588)

$

1,530

$

(13,156)

$

(16,214)

Other comprehensive (loss) income during the period

(32,761)

3,095

8,651

(21,015)

Balance as of December 31, 2022

$

(37,349)

$

4,625

$

(4,505)

$

(37,229)

Balance as of January 1, 2021

$

2,700

$

428

$

(47,270)

$

(44,142)

Other comprehensive (loss) income during the period

(7,288)

1,102

34,114

27,928

Balance as of December 31, 2021

$

(4,588)

$

1,530

$

(13,156)

$

(16,214)

Note 19

RELATED PARTY TRANSACTIONS

At December 31, 2023 and 2022, certain officers and directors were indebted to the Bank in the aggregate amount of $

6.3

 million

and $

7.3

 million, respectively. During 2023 and 2022, $

1.7

 million and $

8.5

 million in new loans were made and repayments

totaled $

2.7

 million and $

5.0

 million, respectively. These loans were all current at December 31, 2023 and 2022.

Deposits from certain directors, executive officers, and their related interests totaled $

36.9

 million and $

66.3

 million at December

31, 2023 and 2022, respectively.

The Company leases land from a partnership (Smith Interests General Partnership L.L.P.) in which William G. Smith, Jr. has an

interest. The Company made lease payments totaling $

0.2

 million in 2023 and in December 2023 the lease payments adjusted to

$

0.1

 million annually due to a reduction in the size of the parcel leased by the Company. The payments under the lease

agreement provide for annual lease payments of approximately $

0.1

 million annually through December 2033, and thereafter,

increase by

5

% every

10

 years until 2053 at which time the rent amount will adjust based on reappraisal of the parcel rental value. 

The Company then has

four

 successive options to extend the lease for

five years

 each with rental increases of

5

% at each

extension. 

William G. Smith, III, the son of our Chairman, President and Chief Executive Officer, William G. Smith, Jr., is employed as

President, North Florida Region at Capital City Bank. In 2023, William G. Smith, III’s total compensation (consisting of annual

base salary, annual bonus, and stock-based compensation) was determined in accordance with the Company’s standard

employment and compensation practices applicable to associates with similar responsibilities and positions.

124

Note 20

OTHER NONINTEREST EXPENSE

Components of other noninterest expense in excess of

1

% of the sum of total interest income and noninterest income, which are

not disclosed separately elsewhere, are presented below for each of the respective years.

(Dollars in Thousands)

2023

2022

2021

Legal Fees

$

1,721

$

1,413

$

1,411

Professional Fees

6,245

5,437

5,633

Telephone

2,729

2,851

2,975

Advertising

3,349

3,208

2,683

Processing Services

6,984

6,534

6,569

Insurance – Other

3,120

2,409

2,096

Pension – Other

76

(3,043)

1,913

Pension – Settlement

(291)

2,321

3,072

Other

11,643

14,411

10,754

Total

$

35,576

35,541

37,106

Note 21

COMMITMENTS AND CONTINGENCIES

Lending Commitments

. The Company is a party to financial instruments with off-balance sheet risks in the normal course of

business to meet the financing needs of its clients. These financial instruments consist of commitments to extend credit and

standby letters of credit.

The Company’s maximum exposure to credit loss under standby letters of credit and commitments to extend credit is

represented by the contractual amount of those instruments. The Company uses the same credit policies in establishing

commitments and issuing letters of credit as it does for on-balance sheet instruments. At December 31, the amounts associated

with the Company’s off-balance sheet obligations were as follows:

2023

2022

(Dollars in Thousands)

Fixed

Variable

Total

Fixed

Variable

Total

Commitments to Extend Credit

(1)

$

207,605

$

534,745

$

742,350

$

243,614

$

531,873

$

775,487

Standby Letters of Credit

6,094

-

6,094

5,619

-

5,619

Total

$

213,699

$

534,745

$

748,444

$

249,233

$

531,873

$

781,106

(1)

 Commitments include unfunded loans, revolving lines of credit, and off-balance sheet residential loan commitments.

Commitments to extend credit are agreements to lend to a client so long as there is no violation of any condition established in

the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not

necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third

party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities. In

general, management does not anticipate any material losses as a result of participating in these types of transactions. However,

any potential losses arising from such transactions are reserved for in the same manner as management reserves for its other

credit facilities.

For both on- and off-balance sheet financial instruments, the Company requires collateral to support such instruments when it is

deemed necessary. The Company evaluates each client’s creditworthiness on a case-by-case basis. The amount of collateral

obtained upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies, but

may include deposits held in financial institutions; U.S. Treasury securities; other marketable securities; real estate; accounts

receivable; property, plant and equipment; and inventory.

125

The allowance for credit losses for off-balance sheet credit commitments that are not unconditionally cancellable by the Bank is

adjusted as a provision for credit loss expense and is recorded in other liabilities. The following table shows the activity in the

allowance.

(Dollars in Thousands)

2023

2022

2021

Beginning Balance

$

2,989

$

2,897

$

1,644

Provision for Credit Losses

202

92

1,253

Ending Balance

$

3,191

$

2,989

$

2,897

Other Commitments

. In the normal course of business, the Company enters into lease commitments which are classified as

operating leases. See Note 7 – Leases for additional information on the maturity of the Company’s operating lease commitments. 

The Company has an outstanding commitment of up to $

1.0

 million in a bank tech venture capital fund focused on finding and

funding technology solutions for community banks. During 2022 and 2023, the Company contributed $

0.1

 million and $

0.4

million, respectively to the bank tech venture capital fund. At December 31, 2023, the Company had a remaining outstanding

commitment of $

0.5

 million to the bank tech capital venture fund. 

The Company, in 2022, committed $

7.2

 million to a solar tax equity investment of which $

1.0

 million was paid in 2022 and $

6.2

million was paid in 2023. After utilization of the related tax credits, the balance of this investment at December 31, 2023 was

$

0.4

 million. Further, in 2023, the Company committed $

7.0

 million to a second solar tax equity investment of which $

7.0

 was

paid in 2023. After utilization of the related tax credits, the balance of this investment at December 31, 2023 was $

1.7

 million. 

Contingencies

. The Company is a party to lawsuits and claims arising out of the normal course of business. In management’s

opinion, there are

no

 known pending claims or litigation, the outcome of which would, individually or in the aggregate, have a

material effect on the consolidated results of operations, financial position, or cash flows of the Company.

Indemnification Obligation

. The Company is a member of the Visa U.S.A. network. Visa U.S.A believes that its member banks

are required to indemnify it for potential future settlement of certain litigation (the “Covered Litigation”) that relates to several

antitrust lawsuits challenging the practices of Visa and MasterCard International. In 2008, the Company, as a member of the Visa

U.S.A. network, obtained Class B shares of Visa, Inc. upon its initial public offering. Since its initial public offering, Visa, Inc.

has funded a litigation reserve for the Covered Litigation resulting in a reduction in the Class B shares held by the Company. 

During the first quarter of 2011, the Company sold its remaining Class B shares. Associated with this sale, the Company entered

into a swap contract with the purchaser of the shares that requires a payment to the counterparty in the event that Visa, Inc. makes

subsequent revisions to the conversion ratio for its Class B shares. Fixed charges included in the swap liability are payable

quarterly until the litigation reserve is fully liquidated and at which time the aforementioned swap contract will be terminated. 

Conversion ratio payments and ongoing fixed quarterly charges are reflected in earnings in the period incurred. Payments during

2023 totaled $

0.8

 million. Payments totaled $

0.9

 million and $

0.8

 million for the years 2022 and 2021, respectively. At

December 31, 2023, there was

no

 amount payable. There was $

0.1

 million payable December 31, 2022 and 2021.

Note 22

FAIR VALUE MEASUREMENTS

The fair value of an asset or liability is the exchange price that would be received were the Bank to sell that asset or paid to

transfer that liability (exit price) in an orderly transaction occurring in the principal market (or most advantageous market in the

absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that

are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are

consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset

or liability. ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices

in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as

follows:

●

Level 1 Inputs -

Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has

the ability to access at the measurement date

.

●

Level 2 Inputs -

Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices

for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are

observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that

are derived principally from, or corroborated, by market data by correlation or other means

.

126

●

Level 3 Inputs -

Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own

assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Securities Available for Sale. 

U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. Other securities

classified as AFS are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value

measurements from an independent pricing service. The fair value measurements consider observable data that may include

dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, credit

information and the bond’s terms and conditions, among other things.

In general, the Company does not purchase securities that have a complicated structure. The Company’s entire portfolio consists

of traditional investments, nearly all of which are U.S. Treasury obligations, federal agency bullet or mortgage pass-through

securities, or general obligation or revenue based municipal bonds. Pricing for such instruments is easily obtained. At least

annually, the Company will validate prices supplied by the independent pricing service by comparing them to prices obtained

from an independent third-party source.

Equity Securities.

Investments securities classified as equity securities are carried at cost and the share of earnings or losses is

reported through net income as an adjustment to the investment balance. These securities are not readily marketable and therefore

are classified as a Level 3 input within the fair value hierarchy.

Loans Held for Sale

. The fair value of residential mortgage loans held for sale based on Level 2 inputs is determined, when

possible, using either quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value is

determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used

by other market participants. The Company has elected the fair value option accounting for its held for sale loans. 

Mortgage Banking Derivative Instruments.

The fair values of IRLCs are derived by valuation models incorporating market

pricing for instruments with similar characteristics, commonly referred to as best execution pricing, or investor commitment

prices for best effort IRLCs which have unobservable inputs, such as an estimate of the fair value of the servicing rights expected

to be recorded upon sale of the loans, net estimated costs to originate the loans, and the pull-through rate, and are therefore

classified as Level 3 within the fair value hierarchy. The fair value of forward sale commitments is based on observable market

pricing for similar instruments and are therefore classified as Level 2 within the fair value hierarchy.

Interest Rate Swap.

The Company’s derivative positions are classified as Level 2 within the fair value hierarchy and are valued

using models generally accepted in the financial services industry and that use actively quoted or observable market input values

from external market data providers. The fair value derivatives are determined using discounted cash flow models.

Fair Value Swap

. The Company entered into a stand-alone derivative contract with the purchaser of its Visa Class B shares. The

valuation represents the amount due and payable to the counterparty based upon the revised share conversion rate, if any, during

the period. At December 31, 2023, there was

no

 amount payable and at December 31, 2022, there was $

0.1

 million payable. 

127

A summary of fair values for assets and liabilities at December 31 consisted of the following:

(Dollars in Thousands)

Level 1

Level 2

Level 3

Total Fair

Inputs

Inputs

Inputs

Value

2023

ASSETS:

Securities Available for Sale:

U.S. Government Treasury

$

24,679

$

-

$

-

$

24,679

U.S. Government Agency

-

145,034

-

145,034

States and Political Subdivisions

-

39,083

-

39,083

Mortgage-Backed Securities

-

63,303

-

63,303

Corporate Debt Securities

-

57,552

-

57,552

Equity Securities

-

-

3,450

3,450

Loans Held for Sale

-

28,211

-

28,211

Interest Rate Swap Derivative

-

5,317

-

5,317

Residential Mortgage Loan Commitments ("IRLC")

-

-

523

523

LIABILITIES:

Forward Sales Contracts ("Hedge Derivative")

-

209

-

209

2022

ASSETS:

Securities Available for Sale:

U.S. Government Treasury

$

22,050

$

-

$

-

$

22,050

U.S. Government Agency

-

186,052

-

186,052

State and Political Subdivisions

-

40,329

-

40,329

Mortgage-Backed Securities

-

69,405

-

69,405

Corporate Debt Securities

-

88,236

-

88,236

Equity Securities

-

-

10

10

Loans Held for Sale

-

26,909

-

26,909

Interest Rate Swap Derivative

-

6,195

-

6,195

Forward Sales Contracts ("Hedge Derivative")

-

187

-

187

Residential Mortgage Loan Commitments ("IRLC")

-

-

819

819

Mortgage Banking Activities. 

The Company had Level 3 issuances and transfers related to mortgage banking activities of $

13.2

million and $

11.6

 million, respectively, for the year ended December 31, 2023. The Company had Level 3 issuances and

transfers related to mortgage banking activities of $

15.4

 million and $

28.5

 million, respectively, for the year ended December 31,

2022. Issuances are valued based on the change in fair value of the underlying mortgage loan from inception of the IRLC to the

statement of financial condition date, adjusted for pull-through rates and costs to originate. IRLCs transferred out of Level 3

represent IRLCs that were funded and moved to mortgage loans held for sale, at fair value.

Assets Measured at Fair Value on a Non-Recurring Basis

Certain assets are measured at fair value on a non-recurring basis (i.e., the assets are not measured at fair value on an ongoing

basis but are subject to fair value adjustments in certain circumstances). An example would be assets exhibiting evidence of

impairment. The following is a description of valuation methodologies used for assets measured on a non-recurring basis. 

Collateral Dependent Loans

. Impairment for collateral dependent loans is measured using the fair value of the collateral less

selling costs. The fair value of collateral is determined by an independent valuation or professional appraisal in conformance with

banking regulations. Collateral values are estimated using Level 3 inputs due to the volatility in the real estate market, and the

judgment and estimation involved in the real estate appraisal process. Collateral dependent loans are reviewed and evaluated on

at least a quarterly basis for additional impairment and adjusted accordingly. Valuation techniques are consistent with those

techniques applied in prior periods. Collateral dependent loans had a carrying value of $

3.3

 million with a valuation allowance of

$

0.1

 million at December 31, 2023. Collateral dependent loans had a carrying value of $

0.7

 million with a valuation allowance of

$

0.1

 million at December 31, 2022.

128

Other Real Estate Owned

. During 2023 and 2022, certain foreclosed assets, upon initial recognition, were measured and reported

at fair value through a charge-off to the allowance for credit losses based on the fair value of the foreclosed asset less estimated

cost to sell. At December 31, 2023 and 2022, these assets were recorded at fair value, which is determined by an independent

valuation or professional appraisal in conformance with banking regulations. On an ongoing basis, we obtain updated appraisals

on foreclosed assets and record valuation adjustments as necessary. The fair value of foreclosed assets is estimated using Level 3

inputs due to the judgment and estimation involved in the real estate valuation process. 

Mortgage Servicing Rights

. Residential mortgage loan servicing rights are evaluated for impairment at each reporting period

based upon the fair value of the rights as compared to the carrying amount. Fair value is determined by a third-party valuation

model using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk

characteristics of the underlying loans (predominantly loan type and note interest rate). The fair value is estimated using Level 3

inputs, including a discount rate, weighted average prepayment speed, and the cost of loan servicing. Further detail on the key

inputs utilized are provided in Note 4 – Mortgage Banking Activities. At December 31, 2023 and 2022, there was

no

 valuation

allowance for mortgage servicing rights.

Other Fair Value Disclosures

The Company is required to disclose the estimated fair value of financial instruments, both assets and liabilities, for which it is

practical to estimate fair value and the following is a description of valuation methodologies used for those assets and liabilities.

Cash and Short-Term Investments. 

The carrying amount of cash and short-term investments is used to approximate fair value,

given the short time frame to maturity and as such assets do not present unanticipated credit concerns.

Securities Held to Maturity

. Securities held to maturity are valued in accordance with the methodology previously noted in the

caption “Assets and Liabilities Measured at Fair Value on a Recurring Basis – Securities Available for Sale”.

Other Equity Securities.

Other equity securities are accounted for under the equity method (Topic 323) and recorded at cost.

These securities are not readily marketable securities and are reflected in Other Assets on the Statement of Financial Condition.

Loans.

 The loan portfolio is segregated into categories and the fair value of each loan category is calculated using present value

techniques based upon projected cash flows and estimated discount rates. Pursuant to the adoption of ASU 2016-01,

Recognition

and Measurement of Financial Assets and Financial Liabilities

, the values reported reflect the incorporation of a liquidity

discount to meet the objective of “exit price” valuation. 

Deposits.

 The fair value of Noninterest Bearing Deposits, NOW Accounts, Money Market Accounts and Savings Accounts are

the amounts payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using

present value techniques and rates currently offered for deposits of similar remaining maturities.

Subordinated Notes Payable.

 The fair value of each note is calculated using present value techniques, based upon projected cash

flows and estimated discount rates as well as rates being offered for similar obligations.

Short-Term and Long-Term Borrowings.

 The fair value of each note is calculated using present value techniques, based upon

projected cash flows and estimated discount rates as well as rates being offered for similar debt.

129

A summary of estimated fair values of significant financial instruments at December 31 consisted of the following:

2023

(Dollars in Thousands)

Carrying

Level 1

Level 2

Level 3

Value

Inputs

Inputs

Inputs

ASSETS:

Cash

$

83,118

$

83,118

$

-

$

-

Fed Funds Sold and Interest Bearing Deposits

228,949

228,949

-

-

Investment Securities, Held to Maturity

625,022

441,189

150,562

-

Other Equity Securities

(1)

2,848

-

2,848

-

Mortgage Servicing Rights

831

-

-

1,280

Loans, Net of Allowance for Credit Losses

2,703,977

-

-

2,510,529

LIABILITIES:

Deposits

$

3,701,822

$

-

$

3,243,896

$

-

Short-Term Borrowings

35,341

-

35,341

-

Subordinated Notes Payable

52,887

-

44,323

-

Long-Term Borrowings

315

-

315

-

2022

(Dollars in Thousands)

Carrying

Level 1

Level 2

Level 3

Value

Inputs

Inputs

Inputs

ASSETS:

Cash

$

72,114

$

72,114

$

-

$

-

Short-Term Investments

528,536

528,536

-

-

Investment Securities, Held to Maturity

660,774

431,733

180,968

-

Other Equity Securities

(1)

2,848

-

2,848

-

Mortgage Servicing Rights

2,599

-

-

4,491

Loans, Net of Allowance for Credit Losses

2,522,617

-

-

2,377,229

LIABILITIES:

Deposits

$

3,939,317

$

-

$

3,310,383

$

-

Short-Term Borrowings

56,793

-

56,793

-

Subordinated Notes Payable

52,887

-

45,763

-

Long-Term Borrowings

513

-

513

-

All non-financial instruments are excluded from the above table. The disclosures also do not include goodwill. Accordingly, the

aggregate fair value amounts presented do not represent the underlying value of the Company.

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured

at fair value on a non-recurring basis at December 31, 2023 and December 31, 2022.

130

Note 23

PARENT COMPANY FINANCIAL INFORMATION

The following are condensed statements of financial condition of the parent company at December 31:

Parent Company Statements of Financial Condition

(Dollars in Thousands, Except Per Share Data)

2023

2022

ASSETS

Cash and Due From Subsidiary Bank

$

54,004

$

42,737

Equity Securities

569

199

Investment in Subsidiary Bank

445,441

404,892

Goodwill and Other Intangibles

3,838

3,998

Other Assets

10,758

11,297

Total Assets

$

514,610

$

463,123

LIABILITIES

Subordinated Notes Payable

$

52,887

$

52,887

Other Liabilities

21,098

22,955

Total Liabilities

73,985

75,842

SHAREOWNERS’ EQUITY

Common Stock, $

0.01

 par value;

90,000,000

 shares authorized;

16,950,222

 and

16,986,785

shares issued and outstanding at December 31, 2023 and 2022, respectively

170

170

Additional Paid-In Capital

36,326

37,331

Retained Earnings

426,275

387,009

Accumulated Other Comprehensive Loss, Net of Tax

(22,146)

(37,229)

Total Shareowners’ Equity

440,625

387,281

Total Liabilities and Shareowners’ Equity

$

514,610

$

463,123

131

The operating results of the parent company for the three years ended December 31 are shown below:

Parent Company Statements of Operations

(Dollars in Thousands)

2023

2022

2021

OPERATING INCOME

Income Received from Subsidiary Bank:

Administrative Fees

$

6,367

$

5,396

$

5,516

Dividends

30,000

23,000

10,000

Other Income

453

253

174

Total Operating Income

36,820

28,649

15,690

OPERATING EXPENSE

Salaries and Associate Benefits

4,257

5,034

3,558

Interest on Subordinated Notes Payable

2,427

1,652

1,233

Professional Fees

859

616

1,113

Advertising 

214

232

134

Legal Fees

683

370

589

Other

1,670

2,186

2,087

Total Operating Expense

10,110

10,090

8,714

Earnings Before Income Taxes and Equity in Undistributed

Earnings of Subsidiary Bank

26,710

18,559

6,976

Income Tax Benefit

(650)

(661)

(717)

Earnings Before Equity in Undistributed Earnings of Subsidiary Bank

27,360

19,220

7,693

Equity in Undistributed Earnings of Subsidiary Bank

24,898

14,192

25,703

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

132

The cash flows for the parent company for the three years ended December 31 were as follows:

Parent Company Statements of Cash Flows

(Dollars in Thousands)

2023

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Adjustments to Reconcile Net Income to Net Cash Provided By

 Operating Activities:

Equity in Undistributed Earnings of Subsidiary Bank

(24,898)

(14,192)

(25,703)

Stock Compensation

1,468

1,278

843

Amortization of Intangible Asset

160

160

107

Increase in Other Assets

(117)

(336)

(21)

Increase in Other Liabilities

(1,557)

5,847

3,131

Net Cash Provided By Operating Activities

$

27,314

$

26,169

$

11,753

CASH FROM INVESTING ACTIVITIES:

Purchase of Equity Securities

$

(369)

$

(79)

$

(120)

Net Cash Paid for Acquisition

-

-

(4,482)

Decrease (Increase) in Investment in Subsidiaries

-

770

(10,770)

Net Cash Provided by (Used in) Investing Activities

$

(369)

$

691

$

(15,372)

CASH FROM FINANCING ACTIVITIES:

Repayment of Long-Term Borrowings

-

-

(900)

Dividends Paid

(12,905)

(11,191)

(10,459)

Issuance of Common Stock Under Compensation Plans

937

1,300

1,028

Payments to Repurchase Common Stock

(3,710)

-

-

Net Cash Used In Financing Activities

$

(15,678)

$

(9,891)

$

(10,331)

Net Increase (Decrease) in Cash and Due from Subsidiary Bank

11,267

16,969

(13,950)

Cash and Due from Subsidiary Bank at Beginning of Year

42,737

25,768

39,718

Cash and Due from Subsidiary Bank at End of Year

$

54,004

$

42,737

$

25,768

Note 24

RESTATED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

As further described in Note 1, the Impacted Statements of Cash Flows for each of the three-month periods ended March 31, 2023

and 2022, six-month periods ended June 30, 2023 and 2022, and nine-month periods ended September 30, 2023 and 2022 have

been restated and are reflected in the tables that follow. See “Restatement of Previously Issued Consolidated Financial

Statements” in Note 1. The unaudited interim Consolidated Statements of Cash Flows reflect all adjustments that are, in the

opinion of management, necessary for a fair statement of the cash flows for the interim periods presented. Restated amounts are

computed independently for each interim period presented; therefore, the sum of the interim amounts may not equal the total

amount for the respective year due to rounding.

133

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

As Restated

(Dollars in Thousands)

For Three

Months

Ended 

Mar 31, 2022

For Six

Months

Ended 

Jun 30, 2022

For Nine

Months

Ended 

Sept 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

6,938

$

14,198

$

23,803

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

32

1,724

3,878

 Depreciation

1,907

3,802

5,689

 Amortization of Premiums, Discounts, and Fees, net

2,610

5,053

6,618

 Amortization of Intangible Assets

40

80

120

 Pension Settlement Charge

209

378

480

 Originations of Loans Held-for-Sale

(162,448)

(268,058)

(343,899)

 Proceeds From Sales of Loans Held-for-Sale

174,153

307,349

390,756

 Mortgage Banking Revenues

(4,055)

(8,912)

(11,807)

 Net Additions for Capitalized Mortgage Servicing Rights

364

360

570

 Stock Compensation

245

489

904

 Net Tax Benefit From Stock-Based Compensation

(19)

(19)

(19)

 Deferred Income Taxes Benefit

(6,682)

(9,887)

(12,854)

 Net Change in Operating Leases

(27)

(72)

(83)

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

-

(26)

(136)

 Net Decrease in Other Assets

1,897

3,516

3,696

 Net Increase in Other Liabilities

7,036

22,040

12,839

Net Cash Provided By Operating Activities

22,200

72,015

80,555

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(194,448)

(218,548)

(219,865)

 Payments, Maturities, and Calls

14,441

28,111

40,096

Securities Available for Sale:

 Purchases

(25,139)

(37,044)

(41,880)

 Proceeds from Sale of Securities

3,365

3,365

3,365

 Payments, Maturities, and Calls

24,824

47,413

64,301

Purchase of loans held for investment

(381)

(15,985)

(16,324)

Net Increase in Loans Held for Investment

(96,732)

(359,417)

(520,473)

Proceeds from Sales of Loans

37,766

66,877

88,521

Proceeds From Sales of Other Real Estate Owned

-

30

1,683

Purchases of Premises and Equipment, net

(1,013)

(3,322)

(4,013)

Noncontrolling interest contributions received

1,838

2,573

2,867

Net Cash Used In Investing Activities

(235,479)

(485,947)

(601,722)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

52,645

73,396

46,516

Net (Decrease) Increase in Other Short-Term Borrowings

(3,692)

4,784

17,592

Repayment of Other Long-Term Borrowings

(78)

(150)

(200)

Dividends Paid

(2,712)

(5,424)

(8,307)

Issuance of Common Stock Under Compensation Plans

190

496

577

Net Cash Provided By Financing Activities

46,353

73,102

56,178

NET DECREASE IN CASH AND CASH EQUIVALENTS

(166,926)

(340,830)

(464,989)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

1,035,354

1,035,354

Cash and Cash Equivalents at End of Period 

$

868,428

$

694,524

$

570,365

Supplemental Cash Flow Disclosures:

 Interest Paid

$

715

$

1,617

$

3,588

 Income Taxes Paid

$

20

$

3,765

$

6,410

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

37,973

$

67,324

$

89,836

 Loans and Premises Transferred to Other Real Estate Owned

$

-

$

77

$

1,543

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

134

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

As Restated

(Dollars in Thousands)

For Three

Months

Ended 

Mar 31, 2023

For Six

Months

Ended 

Jun 30, 2023

For Nine

Months

Ended 

Sept 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

13,709

$

27,883

$

40,539

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,099

5,296

7,689

 Depreciation

1,969

3,927

5,920

 Amortization of Premiums, Discounts, and Fees, net

1,067

2,117

3,216

 Amortization of Intangible Assets

40

80

120

 Pension Settlement Charge

-

(291)

(291)

 Originations of Loans Held-for-Sale

(75,626)

(203,266)

(308,263)

 Proceeds From Sales of Loans Held-for-Sale

73,706

191,180

303,731

 Mortgage Banking Revenues

(2,871)

(6,234)

(8,072)

 Net Additions for Capitalized Mortgage Servicing Rights

(91)

(253)

(392)

 Stock Compensation

536

764

1,110

 Deferred Income Taxes Benefit

(1,170)

(2,849)

(2,464)

 Net Change in Operating Leases

(3)

(3)

(12)

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

(1,858)

(1,900)

(1,915)

 Net (Increase) Decrease in Other Assets

(4,349)

4,593

8,207

 Net Increase in Other Liabilities

12,471

3,815

1,069

Net Cash Provided By Operating Activities

20,629

24,859

50,192

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

8,820

18,992

28,159

Securities Available for Sale:

 Purchases

(2,017)

(4,634)

(9,399)

 Proceeds from Sale of Securities

-

-

30,420

 Payments, Maturities, and Calls

16,559

32,490

53,045

Purchase of loans held for investment

(923)

(1,463)

(2,249)

Net Increase in Loans Held for Investment

(127,336)

(164,319)

(194,631)

Proceeds from Sales of Loans

20,084

26,645

39,125

Proceeds From Sales of Other Real Estate Owned

2,699

3,772

3,840

Purchases of Premises and Equipment, net

(1,886)

(3,851)

(5,459)

Net Cash Used In Investing Activities

(84,000)

(92,368)

(57,149)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(115,397)

(150,451)

(398,872)

Net Decrease in Other Short-Term Borrowings

(30,161)

(6,120)

(15,097)

Repayment of Other Long-Term Borrowings

(50)

(99)

(149)

Dividends Paid

(3,064)

(6,121)

(9,518)

Payments to Repurchase Common Stock

(819)

(2,022)

(3,121)

Issuance of Common Stock Under Compensation Plans

164

480

562

Net Cash Provided By Financing Activities

(149,327)

(164,333)

(426,195)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(212,698)

(231,842)

(433,152)

Cash and Cash Equivalents at Beginning of Period 

600,650

600,650

600,650

Cash and Cash Equivalents at End of Period 

$

387,952

$

368,808

$

167,498

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,723

$

8,720

$

15,026

 Income Taxes Paid

$

7,466

$

3,860

$

7,395

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

16,859

$

26,076

$

33,625

 Loans and Premises Transferred to Other Real Estate Owned

$

423

$

1,442

$

1,495

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

135

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Three Months Ended March 31, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income 

$

6,938

$

-

$

6,938

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

32

-

32

 Depreciation

1,907

-

1,907

 Amortization of Premiums, Discounts, and Fees, net

2,610

-

2,610

 Amortization of Intangible Assets

40

-

40

 Pension Settlement Charges

209

-

209

 Originations of Loans Held for Sale

(177,933)

15,485

(162,448)

 Proceeds From Sales of Loans Held for Sale

188,264

(14,111)

174,153

 Mortgage Banking Revenues

(4,055)

-

(4,055)

 Net Additions for Capitalized Mortgage Servicing Rights

364

-

364

 Stock Compensation

245

-

245

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(6,682)

-

(6,682)

 Net Change in Operating Leases

(27)

-

(27)

 Net Decrease in Other Assets

1,897

-

1,897

 Net Increase in Other Liabilities

7,036

-

7,036

Net Cash Provided By Operating Activities

20,826

1,374

22,200

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(194,448)

-

(194,448)

 Payments, Maturities, and Calls

14,441

-

14,441

Securities Available for Sale:

 Purchases

(25,139)

-

(25,139)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

24,824

-

24,824

Purchases of Loans Held for Investment

(381)

-

(381)

Net Increase in Loans Held for Investment

(57,592)

(39,140)

(96,732)

Proceeds from Sales of Loans

-

37,766

37,766

Purchases of Premises and Equipment, net

(1,013)

-

(1,013)

Noncontrolling Interest Contributions

1,838

-

1,838

Net Cash Used In Investing Activities

(234,105)

(1,374)

(235,479)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

52,645

-

52,645

Net Decrease in Other Short-Term Borrowings

(3,692)

-

(3,692)

Repayment of Other Long-Term Borrowings

(78)

-

(78)

Dividends Paid

(2,712)

-

(2,712)

Issuance of Common Stock Under Compensation Plans

190

-

190

Net Cash Provided By Financing Activities

46,353

-

46,353

NET DECREASE IN CASH AND CASH EQUIVALENTS

(166,926)

-

(166,926)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

868,428

$

-

$

868,428

Supplemental Cash Flow Disclosures:

 Interest Paid

$

715

$

-

$

715

 Income Taxes Paid

$

20

$

-

$

20

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

37,973

$

37,973

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

136

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

14,198

$

-

$

14,198

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

1,724

-

1,724

 Depreciation

3,802

-

3,802

 Amortization of Premiums, Discounts, and Fees, net

5,053

-

5,053

 Amortization of Intangible Assets

80

-

80

 Pension Settlement Charges

378

-

378

 Originations of Loans Held for Sale

(316,372)

48,314

(268,058)

 Proceeds From Sales of Loans Held for Sale

352,830

(45,481)

307,349

 Mortgage Banking Revenues

(8,912)

-

(8,912)

 Net Additions for Capitalized Mortgage Servicing Rights

360

-

360

 Stock Compensation

489

-

489

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(9,887)

-

(9,887)

 Net Change in Operating Leases

(72)

-

(72)

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

(26)

-

(26)

 Net Decrease in Other Assets

3,516

-

3,516

 Net Increase in Other Liabilities

22,040

-

22,040

Net Cash Provided By Operating Activities

69,182

2,833

72,015

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(218,548)

-

(218,548)

 Payments, Maturities, and Calls

28,111

-

28,111

Securities Available for Sale:

 Purchases

(37,044)

-

(37,044)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

47,413

-

47,413

Purchases of Loans Held for Investment

(15,985)

-

(15,985)

Net Increase in Loans Held for Investment

(289,707)

(69,710)

(359,417)

Proceeds from Sales of Loans

-

66,877

66,877

Proceeds From Sales of Other Real Estate Owned

30

-

30

Purchases of Premises and Equipment, net

(3,322)

-

(3,322)

Noncontrolling Interest Contributions

2,573

-

2,573

Net Cash Used In Investing Activities

(483,114)

(2,833)

(485,947)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

73,396

-

73,396

Net Increase in Other Short-Term Borrowings

4,784

-

4,784

Repayment of Other Long-Term Borrowings

(150)

-

(150)

Dividends Paid

(5,424)

-

(5,424)

Issuance of Common Stock Under Compensation Plans

496

-

496

Net Cash Provided By Financing Activities

73,102

-

73,102

NET DECREASE IN CASH AND CASH EQUIVALENTS

(340,830)

-

(340,830)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

694,524

$

-

$

694,524

Supplemental Cash Flow Disclosures:

 Interest Paid

$

1,617

$

-

$

1,617

 Income Taxes Paid

$

3,765

$

-

$

3,765

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

67,324

$

67,324

 Loans and Premises Transferred to Other Real Estate Owned

$

77

$

-

$

77

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

137

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Nine Months Ended September 30, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

23,803

$

-

$

23,803

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,878

-

3,878

 Depreciation

5,689

-

5,689

 Amortization of Premiums, Discounts, and Fees, net

6,618

-

6,618

 Amortization of Intangible Assets

120

-

120

 Pension Settlement Charge

480

-

480

 Originations of Loans Held for Sale

(399,041)

55,142

(343,899)

 Proceeds From Sales of Loans Held for Sale

440,219

(49,463)

390,756

 Mortgage Banking Revenues

(11,807)

-

(11,807)

 Net Additions for Capitalized Mortgage Servicing Rights

570

-

570

 Stock Compensation

904

-

904

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(12,854)

-

(12,854)

 Net Change in Operating Leases

(83)

-

(83)

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

(136)

-

(136)

 Net Decrease in Other Assets

3,696

-

3,696

 Net Increase in Other Liabilities

12,839

-

12,839

Net Cash Provided By Operating Activities

74,876

5,679

80,555

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(219,865)

-

(219,865)

 Payments, Maturities, and Calls

40,096

-

40,096

Securities Available for Sale:

 Purchases

(41,880)

-

(41,880)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

64,301

-

64,301

Purchases of Loans Held for Investment

(16,324)

-

(16,324)

Net Increase in Loans Held for Investment

(426,273)

(94,200)

(520,473)

Proceeds from Sales of Loans

-

88,521

88,521

Proceeds From Sales of Other Real Estate Owned

1,683

-

1,683

Purchases of Premises and Equipment, net

(4,013)

-

(4,013)

Noncontrolling Interest Contributions

2,867

-

2,867

Net Cash Used In Investing Activities

(596,043)

(5,679)

(601,722)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

46,516

-

46,516

Net Increase in Other Short-Term Borrowings

17,592

-

17,592

Repayment of Other Long-Term Borrowings

(200)

-

(200)

Dividends Paid

(8,307)

-

(8,307)

Issuance of Common Stock Under Compensation Plans

577

-

577

Net Cash Provided By Financing Activities

56,178

-

56,178

NET DECREASE IN CASH AND CASH EQUIVALENTS

(464,989)

-

(464,989)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

570,365

$

-

$

570,365

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,588

$

-

$

3,588

 Income Taxes Paid

$

6,410

$

-

$

6,410

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

89,836

$

89,836

 Loans and Premises Transferred to Other Real Estate Owned

$

1,543

$

-

$

1,543

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

138

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Three Months Ended March 31, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income 

$

13,709

$

-

$

13,709

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,099

-

3,099

 Depreciation

1,969

-

1,969

 Amortization of Premiums, Discounts, and Fees, net

1,067

-

1,067

 Amortization of Intangible Assets

40

-

40

 Originations of Loans Held for Sale

(62,745)

(12,881)

(75,626)

 Proceeds From Sales of Loans Held for Sale

64,050

9,656

73,706

 Mortgage Banking Revenues

(2,871)

-

(2,871)

 Net Additions for Capitalized Mortgage Servicing Rights

(91)

-

(91)

 Stock Compensation

536

-

536

 Deferred Income Taxes Benefit

(1,170)

-

(1,170)

 Net Change in Operating Leases

(3)

-

(3)

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

(1,858)

-

(1,858)

 Net Increase in Other Assets

(4,349)

-

(4,349)

 Net Increase in Other Liabilities

12,471

-

12,471

Net Cash Provided By Operating Activities

23,854

(3,225)

20,629

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

8,820

-

8,820

Securities Available for Sale:

 Purchases

(2,017)

-

(2,017)

 Payments, Maturities, and Calls

16,559

-

16,559

Purchases of Loans Held for Investment

(923)

-

(923)

Net Increase in Loans Held for Investment

(110,477)

(16,859)

(127,336)

Proceeds from Sales of Loans

-

20,084

20,084

Proceeds From Sales of Other Real Estate Owned

2,699

-

2,699

Purchases of Premises and Equipment, net

(1,886)

-

(1,886)

Net Cash Used In Investing Activities

(87,225)

3,225

(84,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(115,397)

-

(115,397)

Net Decrease in Other Short-Term Borrowings

(30,161)

-

(30,161)

Repayment of Other Long-Term Borrowings

(50)

-

(50)

Dividends Paid

(3,064)

-

(3,064)

Payments to Repurchase Common Stock

(819)

-

(819)

Issuance of Common Stock Under Compensation Plans

164

-

164

Net Cash Provided By Financing Activities

(149,327)

-

(149,327)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(212,698)

-

(212,698)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

387,952

$

-

$

387,952

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,723

$

-

$

3,723

 Income Taxes Paid

$

7,466

$

-

$

7,466

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

16,859

$

16,859

 Loans and Premises Transferred to Other Real Estate Owned

$

423

$

-

$

423

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

139

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

27,883

$

-

$

27,883

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

5,296

-

5,296

 Depreciation

3,927

-

3,927

 Amortization of Premiums, Discounts, and Fees, net

2,117

-

2,117

 Amortization of Intangible Assets

80

-

80

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held for Sale

(164,173)

(39,093)

(203,266)

 Proceeds From Sales of Loans Held for Sale

152,657

38,523

191,180

 Mortgage Banking Revenues

(6,234)

-

(6,234)

 Net Additions for Capitalized Mortgage Servicing Rights

(253)

-

(253)

 Stock Compensation

764

-

764

 Deferred Income Taxes Benefit

(2,849)

-

(2,849)

 Net Change in Operating Leases

(3)

-

(3)

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

(1,900)

-

(1,900)

 Net Decrease in Other Assets

4,593

-

4,593

 Net Increase in Other Liabilities

3,815

-

3,815

Net Cash Provided By Operating Activities

25,429

(570)

24,859

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

18,992

-

18,992

Securities Available for Sale:

 Purchases

(4,634)

-

(4,634)

 Payments, Maturities, and Calls

32,490

-

32,490

Purchases of Loans Held for Investment

(1,463)

-

(1,463)

Net Increase in Loans Held for Investment

(138,244)

(26,075)

(164,319)

Proceeds from Sales of Loans

-

26,645

26,645

Proceeds From Sales of Other Real Estate Owned

3,772

-

3,772

Purchases of Premises and Equipment, net

(3,851)

-

(3,851)

Net Cash Used In Investing Activities

(92,938)

570

(92,368)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(150,451)

-

(150,451)

Net Decrease in Other Short-Term Borrowings

(6,120)

-

(6,120)

Repayment of Other Long-Term Borrowings

(99)

-

(99)

Dividends Paid

(6,121)

-

(6,121)

Payments to Repurchase Common Stock

(2,022)

-

(2,022)

Issuance of Common Stock Under Compensation Plans

480

-

480

Net Cash Provided By Financing Activities

(164,333)

-

(164,333)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(231,842)

-

(231,842)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

368,808

$

-

$

368,808

Supplemental Cash Flow Disclosures:

 Interest Paid

$

8,720

$

-

$

8,720

 Income Taxes Paid

$

3,860

$

-

$

3,860

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

26,076

$

26,076

 Loans and Premises Transferred to Other Real Estate Owned

$

1,442

$

-

$

1,442

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

140

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Nine Months Ended September 30, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

40,539

$

-

$

40,539

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

7,689

-

7,689

 Depreciation

5,920

-

5,920

 Amortization of Premiums, Discounts, and Fees, net

3,216

-

3,216

 Amortization of Intangible Assets

120

-

120

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held for Sale

(246,198)

(62,065)

(308,263)

 Proceeds From Sales of Loans Held for Sale

247,166

56,565

303,731

 Mortgage Banking Revenues

(8,072)

-

(8,072)

 Net Additions for Capitalized Mortgage Servicing Rights

(392)

-

(392)

 Stock Compensation

1,110

-

1,110

 Deferred Income Taxes Benefit

(2,464)

-

(2,464)

 Net Change in Operating Leases

(12)

-

(12)

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

(1,915)

-

(1,915)

 Net Decrease in Other Assets

8,207

-

8,207

 Net Increase in Other Liabilities

1,069

-

1,069

Net Cash Provided By Operating Activities

55,692

(5,500)

50,192

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

28,159

-

28,159

Securities Available for Sale:

 Purchases

(9,399)

-

(9,399)

 Proceeds from the Sale of Securities

30,420

-

30,420

 Payments, Maturities, and Calls

53,045

-

53,045

Purchases of Loans Held for Investment

(2,249)

-

(2,249)

Net Increase in Loans Held for Investment

(161,006)

(33,625)

(194,631)

Proceeds from Sales of Loans

-

39,125

39,125

Proceeds From Sales of Other Real Estate Owned

3,840

-

3,840

Purchases of Premises and Equipment, net

(5,459)

-

(5,459)

Net Cash Used In Investing Activities

(62,649)

5,500

(57,149)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(398,872)

-

(398,872)

Net Decrease in Other Short-Term Borrowings

(15,097)

-

(15,097)

Repayment of Other Long-Term Borrowings

(149)

-

(149)

Dividends Paid

(9,518)

-

(9,518)

Payments to Repurchase Common Stock

(3,121)

-

(3,121)

Issuance of Common Stock Under Compensation Plans

562

-

562

Net Cash Provided By Financing Activities

(426,195)

-

(426,195)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(433,152)

-

(433,152)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

167,498

$

-

$

167,498

Supplemental Cash Flow Disclosures:

 Interest Paid

$

15,026

$

-

$

15,026

 Income Taxes Paid

$

7,395

$

-

$

7,395

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

33,625

$

33,625

 Loans and Premises Transferred to Other Real Estate Owned

$

1,495

$

-

$

1,495

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

141

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures for 2023. 

At December 31, 2023, the end of the period covered by this

Annual Report on Form 10-K/A, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated

the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of

1934). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer each concluded that our disclosure

controls and procedures were ineffective as of December 31, 2023 due to the identification of the material weakness discussed in

“Existence of Material Weakness as of December 31, 2023” below. 

Evaluation of Disclosure Controls and Procedures for 2022.

As discussed in Part III, Item 9A, of the Company’s Annual Report

on Form 10-K/A for the year ended December 31, 2022 filed with the SEC on December 22, 2023 (the “2022 Form 10-K/A”), our

management, including our Chief Executive Officer and Chief Financial Officer, after re-assessing the effectiveness of our

disclosure controls and procedures, concluded that our disclosure controls and procedures were ineffective as of December 31,

2022 due to the identification of the material weakness discussed in “Existence of Material Weakness as of December 31, 2023”

below.

Evaluation of Disclosure Controls and Procedures for 2021.

At December 31, 2021, the end of the period covered by the

Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 1, 2022 (the “2021

Form 10-K”), our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of

our disclosure controls and procedures. Based upon that evaluation, at the time the 2021 Form 10-K was filed, our Chief

Executive Officer and Chief Financial Officer each concluded that at December 31, 2021, we maintained effective disclosure

controls and procedures. Subsequent to that evaluation, management conducted a reevaluation, concluding that our disclosure

controls and procedures were ineffective as of December 31, 2021 due to the identification of the material weakness discussed in

“Existence of Material Weakness as of December 31, 2023” below.

Management’s Report on Internal Control Over Financial Reporting.

Our management is responsible for establishing and

maintaining effective internal control over financial reporting. Internal control over financial reporting is a process designed to

provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for

external purposes in accordance with U.S. generally accepted accounting principles.

Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of

its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is

subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting can also be

circumvented by collusion or improper management override. Because of such limitations, there is a risk that material

misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these

inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process

safeguards to reduce, though not eliminate, this risk.

Management is also responsible for the preparation and fair presentation of the consolidated financial statements and other

financial information contained in this report. The accompanying consolidated financial statements were prepared in conformity

with U.S. generally accepted accounting principles and include, as necessary, best estimates and judgments by management.

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial

Officer, we conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in

Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission

(2013 framework) (the COSO criteria). Based on this evaluation under the framework in Internal Control - Integrated

Framework, our management has concluded that our internal control over financial reporting, as such term is defined in Exchange

Act Rule 13a-15(f), was ineffective as of December 31, 2023 due to the identification of the material weakness discussed below.

As discussed in Part III, Item 9A, of the 2022 Form 10-K/A, management conducted a reevaluation under the framework in

Internal Control - Integrated Framework as of December 31, 2022 and concluded that our internal control over financial reporting

was ineffective as of December 31, 2022 due to the identification of the material weakness discussed in “Existence of Material

Weakness as of December 31, 2023” below. At the time the 2021 Form 10-K was filed, under the framework in Internal Control -

Integrated Framework, our management concluded that we maintained effective internal control over financial reporting as of

December 31, 2021. Subsequent to that evaluation, management conducted a reevaluation, concluding that our internal control

over financial reporting was ineffective as of December 31, 2021 due to the identification of the material weakness discussed in

“Existence of Material Weakness as of December 31, 2023” below. 

142

Existence of Material Weakness as of December 31, 2023

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is

a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be

prevented or detected on a timely basis. As a result of the material weakness noted below, management has concluded that our

internal control over financial reporting was not effective as of December 31, 2023. Based on management’s assessment

described above, the Company's control over the review of significant inter-company mortgage loan sales and servicing

transactions was not designed effectively. Specifically, management’s review control over the completeness and accuracy of

elimination entries in the consolidation process was not designed effectively, as the review was not sufficiently precise to identify

all the necessary elimination entries between CCB and its subsidiary, CCHL. The Company determined inter-company

transactions related to the sale of residential mortgage loans were not properly eliminated and net loan fees were not properly

recorded. Further, financial information obtained from CCHL for certain construction/permanent loan activity was not in

sufficient detail to appropriately classify this activity within the Statement of Cash Flows. Specifically, management’s review

control over the completeness, accuracy and review of financial information provided from CCHL related to the Statement of

Cash Flows was not designed effectively as the review was not sufficiently precise to identify all errors in financial reporting. The

material weakness has resulted in the restatement of the Company’s consolidated financial statements as of and for the year ended

December 31, 2023, December 31, 2022 and the restatement of the Company’s Consolidated Statement of Cash Flows for the

year ended December 31, 2021. 

Remediation Plan

Since identifying the material weakness described above, management, with oversight from the Audit Committee and input from

the Board of Directors, has devoted substantial resources to the ongoing implementation of remediation efforts. These

remediation efforts, summarized below are intended to address both the identified material weakness and to enhance the

Company’s overall internal control over financial reporting and disclosure controls and procedures. Based on additional

procedures and post-closing review, management concluded that the consolidated financial statements included in this report

present fairly, in all material respects, our financial position, results of operations, and cash flows for the periods presented, in

conformity with GAAP.

The internal control and procedural enhancements and remedial actions that have been implemented include:

1.

Enhance the precision level review of activity within existing accounts that are subject to elimination during

consolidation, to ensure appropriate elimination; 

2.

Enhance review procedures to identify new inter-company accounts and activities subject to elimination during

consolidation; 

3.

Increase the granularity of general ledger mapping for inter-company accounts subject to elimination during

consolidation; 

4.

Enhance financial close checklist and pre-close meeting agenda to assist the reviewer identifying and assessing inter-

company activities that are subject to elimination in a timely manner; and

5.

Enhance the detail of review procedures of financial information obtained from a subsidiary to identify, assess and

validate appropriate classification when preparing the consolidated financial statements, including when reviewing items

in the operating, investing or financing activity sections within the Statement of Cash Flows.

To remediate the material weakness, the Company implemented the internal control and procedural enhancements noted above in

items 1-4 during the fourth quarter of 2023 and implemented the enhancement noted above in item 5 during the first quarter of

2024. The material weakness cannot be considered remediated until the applicable controls have operated for a sufficient period

of time and management has concluded, through testing, that these controls are designed and operating effectively. Accordingly,

management will continue to monitor and evaluate the effectiveness of our internal control over financial reporting and the

disclosure controls and procedures.

Forvis Mazars, LLP, an independent registered public accounting firm, has audited our consolidated financial statements as of and

for the year ended December 31, 2023, and adversely opined as to the effectiveness of internal control over financial reporting at

December 31, 2023, as stated in its report, which is included herein on page 145.

Change in Internal Control. 

Except as identified above with respect to remediation of the material weakness, there have been no

changes in our internal control during our most recently completed fiscal quarter that materially affected, or are likely to

materially affect, our internal control over financial reporting. 

143

Report of Independent Registered Public Accounting Firm

To the Shareowners, Board of Directors and Audit Committee 

Capital City Bank Group, Inc.

Tallahassee, Florida

Opinion on the Internal Control over Financial Reporting

We have audited Capital City Bank Group, Inc.’s (the “Company”) internal control over financial reporting as of December 31,

2023, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring

Organizations of the Treadway Commission (COSO).

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there

is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be

prevented or detected on a timely basis. The following material weakness has been identified and included in management’s

assessment. 

●

The Company's control over the review of significant inter-company mortgage loan sales and servicing transactions was

not designed effectively. Specifically, the Company’s management review control over the completeness and accuracy of

elimination entries in the consolidation process was not designed effectively, as the review was not sufficiently precise to

identify all of the necessary elimination entries between Capital City Bank and its subsidiary, Capital City Home Loans.

The Company determined inter-company transactions related to the sale of residential mortgage loans were not properly

eliminated and net loan fees were not properly recorded. Further, financial information obtained from Capital City Home

Loans for certain construction/permanent loan activity was not in sufficient detail to appropriately classify this activity

within the Statement of Cash Flows. Specifically, the Company’s management review control over the completeness

and accuracy and review of financial information provided from Capital City Home Loans related to the Statement of

Cash Flows was not designed effectively as the review was not sufficiently precise to identify all errors in financial

reporting.

This material weakness was considered in determining the nature, timing, and extent of auditing procedures applied in our audit

of the Company’s consolidated financial statements, and this report does not affect our report dated March 13, 2024 (except for

the restatement described in Note 1 to the consolidated financial statements, as to which the date is July 12, 2024), on those

consolidated financial statements.

In our opinion, because of the effect of the material weakness described above on the achievement of the objectives of the control

criteria, the Company has not maintained effective internal control over financial reporting as of December 31, 2023, based on

criteria established in Internal Control – Integrated Framework: (2013) issued by the COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)

(“PCAOB”) the consolidated financial statements of the Company as of December 31, 2023 and 2022, and for each of the years in

the three-year period ended December 31, 2023, and our report dated March 13, 2024 (except for the restatement described in

Note 1 to the consolidated financial statements, as to which the date is July 12, 2024), expressed an unqualified opinion on those

consolidated financial statements. 

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its

assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report

on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over

financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in

accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange

Commission and the PCAOB.

144

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the

audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all

material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk

that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the

assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We

believe that our audit provides a reasonable basis for our opinion.

Definitions and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of reliable financial statements for external purposes in accordance with

generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and

procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions

and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and

expenditures of the company are being made only in accordance with authorizations of management and directors of the

company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or

disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,

projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate

because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Forvis Mazars, LLP

Little Rock, Arkansas

March 13, 2024 (except for the material weakness, as to which the date is July 12, 2024)

145

Item 9B. Other Information

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

None.

146

Part III

Item 10. Directors, Executive Officers, and Corporate Governance

Incorporated herein by reference to the sections entitled “Proposal No. 1 – Election of Directors”, “Corporate Governance at

Capital City,” “Share Ownership, ” and “Board Committee Membership” in the Registrant’s Proxy Statement as filed with the

Securities and Exchange Commission on March 14, 2024.

Item 11. Executive Compensation

Incorporated herein by reference to the sections entitled “Compensation Discussion and Analysis,” “Executive Compensation,”

and “Director Compensation” in the Registrant’s Proxy Statement filed with the Securities and Exchange Commission on March

14, 2024.

Effective October 2, 2023, the Board of Directors updated our compensation recovery policy in accordance with the requirements

of the Nasdaq listing standard adopted pursuant to SEC rules (the “Clawback Policy”). The Clawback Policy provides, among

other things, that we will seek to recover any erroneously awarded incentive-based compensation received by covered executives

of the Company (which are determined from time to time by the Compensation Committee of the Board and includes current and

former executive officers) during the three completed fiscal years preceding any date on which we are required to prepare an

accounting restatement due to our material noncompliance with any financial reporting requirement under the securities laws.

In connection with this Form 10-K/A, the Company considered whether the restatement of the Impacted Statements of Cash

Flows required recoupment of incentive-based compensation under the Clawback Policy. The Company concluded that the

restated activity affecting the Impacted Statements of Cash Flows does not impact related performance metrics used for executive

management’s compensation and therefore no recovery of incentive-based compensation was required.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareowners Matters. 

Information required by Item 12 of Form 10-K is incorporated by reference from the information contained in the sections

captioned “Share Ownership” and “Equity Compensation Plan Information” in the Registrant’s Proxy Statement filed with the

Securities and Exchange Commission on March 14, 2024.

Item 13.

Certain Relationships and Related Transactions, and Director Independence

Incorporated herein by reference to the sections entitled “Transactions With Related Persons” and “Corporate Governance at

Capital City” in the Registrant’s Proxy Statement filed with the Securities and Exchange Commission on March 14, 2024. 

Item 14.

Principal Accountant Fees and Services

Incorporated herein by reference to the section entitled “Audit Committee Matters” in the Registrant’s Proxy Statement filed with

the Securities and Exchange Commission on March 14, 2024. 

147

PART IV

Item 15. Exhibits and Financial Statement Schedules 

The following documents are filed as part of this report

 1. Financial Statements

 Report of Independent Registered Public Accounting Firm

 Consolidated Statements of Financial Condition at the End of Fiscal Years 2023 and 2022

 Consolidated Statements of Income for Fiscal Years 2023, 2022, and 2021

 Consolidated Statements of Comprehensive Income for Fiscal Years 2023, 2022, and 2021

Consolidated Statements of Changes in Shareowners’ Equity for Fiscal Years 2023, 2022, and 2021

 Consolidated Statements of Cash Flows for Fiscal Years 2023, 2022, and 2021

 Notes to Consolidated Financial Statements

 2. Financial Statement Schedules

Other schedules and exhibits are omitted because the required information either is not applicable or is shown in the

financial statements or the notes thereto.

 3. Exhibits Required to be Filed by Item 601 of Regulation S-K

Reg. S-K

Exhibit 

Table

Item No. Description of Exhibit

3.1

Amended and Restated Articles of Incorporation - incorporated herein by reference to Exhibit 3.1 of

the Registrant’s Form 8-K (filed 5/3/21) (No. 0-13358).

3.2

Amended and Restated Bylaws - incorporated herein by reference to Exhibit 3.2 of the Registrant’s

Form 8-K (filed 5/3/21) (No. 0-13358).

4.1 See Exhibits 3.1 and 3.2 for provisions of Amended and Restated Articles of Incorporation and

Amended and Restated Bylaws, which define the rights of the Registrant’s shareowners.

4.2

Capital City Bank Group, Inc. 2021 Director Stock Purchase Plan - incorporated herein by reference to

Exhibit 4.3 of the Registrant’s Form S-8 (filed 5/14/21) (No. 333-256134).

4.3

Capital City Bank Group, Inc. 2021 Associate Stock Purchase Plan - incorporated herein by reference

to Exhibit 4.4 of the Registrant’s Form S-8 (filed 5/14/21) (No. 333-256134).

4.4 

Capital City Bank Group, Inc. 2021 Associate Incentive Plan - incorporated herein by reference to

Exhibit 4.5 of the Registrant’s Form S-8 (filed 5/14/21) (No. 333-256134).

4.5 In accordance with Regulation S-K, Item 601(b)(4)(iii)(A) certain instruments defining the rights of

holders of long-term debt of Capital City Bank Group, Inc. not exceeding 10% of the total assets of

Capital City Bank Group, Inc. and its consolidated subsidiaries have been omitted. The Registrant

agrees to furnish a copy of any such instruments to the Commission upon request.

10.1

Capital City Bank Group, Inc. 1996 Dividend Reinvestment and Optional Stock Purchase Plan -

incorporated herein by reference to Exhibit 10 of the Registrant’s Form S-3 (filed 01/30/97) (No. 333-

20683).

10.2

Capital City Bank Group, Inc. Supplemental Executive Retirement Plan - incorporated herein by

reference to Exhibit 10(d) of the Registrant’s Form 10-K (filed 3/27/03) (No. 0-13358).

10.3

Capital City Bank Group, Inc. 401(k) Profit Sharing Plan – incorporated herein by reference to Exhibit

4.3 of Registrant’s Form S-8 (filed 09/30/97) (No. 333-36693).

10.4

Capital City Bank Group, Inc. Supplemental Executive Retirement Plan II - incorporated herein by

reference to Exhibit 10.1 of the Registrant's Form 10-Q (filed 8/3/2020) (No. 0-13358).

10.5

Form of Participant Agreement for Long-Term Incentive Plan – incorporated herein by reference to

Exhibit 10.6 of the Registrant’s Form 10-K (filed 3/1/2023)(No.0-13358).

148

14

Capital City Bank Group, Inc. Code of Ethics for the Chief Financial Officer and Senior Financial

Officers - incorporated herein by reference to Exhibit 14 of the Registrant's Form 8-K (filed 3/11/05)

(No. 0-13358).

21

Capital City Bank Group, Inc. Subsidiaries, as of December 31, 2023.**

23.1

Consent of Independent Registered Public Accounting Firm.**

31.1

Certification of CEO pursuant to Securities and Exchange Act Section 302 of the Sarbanes-Oxley Act

of 2002.**

31.2

Certification of CFO pursuant to Securities and Exchange Act Section 302 of the Sarbanes-Oxley Act

of 2002.**

32.1

Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002.**

32.2

Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002.**

97

Clawback Policy

**

101.SCH XBRL Taxonomy Extension Schema Document**

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document**

101.LAB XBRL Taxonomy Extension Label Linkbase Document**

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document**

101.DEF XBRL Taxonomy Extension Definition Linkbase Document**

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*

Information required to be presented in Exhibit 11 is provided in Note 14 to the consolidated financial statements under

Part II, Item 8 of this Form 10-K/A in accordance with the provisions of U.S. generally accepted accounting principles.

**

Filed electronically herewith. 

Item 16. Form 10-K/A Summary

None.

149

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this

report to be signed on July 12, 2024, on its behalf by the undersigned, thereunto duly authorized.

CAPITAL CITY BANK GROUP, INC.

/s/ William G. Smith, Jr. 

William G. Smith, Jr.

Chairman, President and Chief Executive Officer

(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed on July 12, 2024 by the

following persons in the capacities indicated.

/s/ William G. Smith, Jr. 

William G. Smith, Jr.

Chairman, President and Chief Executive Officer

(Principal Executive Officer)

/s/ Jeptha E. Larkin 

Jeptha E. Larkin

Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

150

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this

report to be signed on July 12, 2024, on its behalf by the undersigned, thereunto duly authorized.

Directors:

/s/ Robert Antoine

/s/ William Eric Grant

 Robert Antoine

William Eric Grant

/s/ Thomas A. Barron

/s/ Laura L. Johnson

 Thomas A. Barron

 Laura L. Johnson

/s/ William F. Butler

/s/ John G. Sample, Jr.

 William F. Butler

 John G. Sample, Jr

/s/ Stanley W. Connally, Jr.

/s/ William G. Smith, Jr.

 Stanley W. Connally, Jr

 William G. Smith, Jr.

/s/ Marshall M. Criser III

/s/ Ashbel C. Williams

 Marshall M. Criser III

 Ashbel C. Williams

/s/ Kimberly A. Crowell

/s/ Bonnie Davenport

 Kimberly A. Crowell

 Bonnie Davenport

EX-21

1

Exhibit 21. Capital City Bank Group, Inc. Subsidiaries, at December 31, 2023.

Direct

Subsidiaries:

Capital City Bank

Capital City Strategic Wealth, LLC (Florida)

CCBG Capital Trust I (Delaware)

CCBG Capital Trust II (Delaware)

Indirect Subsidiaries:

Capital City Banc Investments, Inc. (Florida)

Capital City Trust Company (Florida)

Capital City Home Loans, LLC (Georgia)

FNB Financial Services, LLC (Florida)

Southeastern Oaks, LLC (Florida)

Capital City Wealth Advisors, Inc. (Florida) 

Southern Live Oak Investments, Inc. (Delaware)

Red Hills REIT, Inc. (Florida)

EX-23.1

1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the Registration Statement on Form S-3D (Registration No. 333-20683) and the

Registration Statements on Form S-8 (Registration Nos. 333-36693 and 333-256134) of Capital City Bank Group, Inc.

(Company) of our report dated March 13, 2024 (except as to the effects of the restatement discussed in Note 1, as to which the

date is July 12, 2024) on our audits of the consolidated financial statements of the Company as of December 31, 2023 and 2022,

and for each of the years in the three-year period ended December 31, 2023, which report is included in this Annual Report on

Form 10-K/A. We also consent to the incorporation by reference of our report dated March 13, 2024 (except as to the material

weakness, as to which the date is July 12, 2024), on our audit of the internal control over financial reporting of the Company as of

December 31, 2023, which report is included in this Annual Report on Form 10-K/A.

Forvis Mazars, LLP

Little Rock, Arkansas

July 12, 2024

EX-31.1

1

Exhibit 31.1

Certification of CEO Pursuant to Securities Exchange Act

Rule 13a-14(a) / 15d-14(a) as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, William G. Smith, Jr., certify that:

1. I have reviewed this annual report on Form 10-K/A of Capital City Bank Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material

fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading

with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the

periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined

in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this

report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period

covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred

during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that

has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial

reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control

over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize

and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant

role in the registrant’s internal control over financial reporting.

/s/ William G. Smith, Jr. 

William G. Smith, Jr.

Chairman, President and 

Chief Executive Officer

Date: July 12, 2024

EX-31.2

1

Exhibit 31.2

Certification of CFO Pursuant to Securities Exchange Act

Rule 13a-14(a) / 15d-14(a) as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Jeptha E. Larkin, certify that:

1. I have reviewed this annual report on Form 10-K/A of Capital City Bank Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material

fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading

with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the

periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined

in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this

report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period

covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred

during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that

has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial

reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control

over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize

and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant

role in the registrant’s internal control over financial reporting.

/s/ Jeptha E. Larkin 

Jeptha E. Larkin

Executive Vice President and 

Chief Financial Officer

Date: July 12, 2024

EX-32.1

1

Exhibit 32.1

Certification of CEO Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 

of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the

undersigned certifies that, to the undersigned’s knowledge, (1) this Annual Report of Capital City Bank Group, Inc. (the

“Company”) on Form 10-K/A for the year ended December 31, 2023, as filed with the Securities and Exchange Commission on

the date hereof (this “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as

amended, and (2) the information contained in this Report fairly presents, in all material respects, the financial condition of the

Company and its results of operations as of and for the periods covered therein.

/s/ William G. Smith, Jr. 

William G. Smith, Jr.

Chairman, President and

Chief Executive Officer

Date: July 12, 2024

EX-32.2

1

Exhibit 32.2

Certification of CFO Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 

of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the

undersigned certifies that, to the undersigned’s knowledge, (1) this Annual Report of Capital City Bank Group, Inc. (the

“Company”) on Form 10-K/A for the year ended December 31, 2023, as filed with the Securities and Exchange Commission on

the date hereof (this “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as

amended, and (2) the information contained in this Report fairly presents, in all material respects, the financial condition of the

Company and its results of operations as of and for the periods covered therein.

/s/ Jeptha E. Larkin 

Jeptha E. Larkin

Executive Vice President and 

Chief Financial Officer

Date: July 12, 2024

EX-97

1

Exhibit 97

CLAWBACK POLICY FOR EXECUTIVE OFFICERS

Introduction

The Board of Directors of Capital City Bank Group, Inc. (the “Company”) has adopted this Policy to provide for the recoupment

of certain executive compensation in the event of an accounting restatement resulting from material noncompliance with financial

reporting requirements under the federal securities laws. This Policy is designed to comply with Section 10D of the Securities

Exchange Act of 1934 (the “Exchange Act”) and the related listing standards of the NASDAQ.

Covered Executives

This Policy applies to the Company’s current and former executive officers, as may be determined from time to time by the

Compensation Committee of the Board (the “Committee”) in accordance with Section 10D of the Exchange Act and the listing

standards referred to above (“Covered Executives”). Each Covered Executive shall be required to sign and return to the Company

an acknowledgment of this Policy in the form attached hereto as Exhibit A, pursuant to which the Covered Executive will agree to

be bound by, and comply with, the terms of this Policy.

Administration

This Policy shall be administered by the Committee. The Committee is authorized to interpret and construe this Policy and to

make all determinations necessary, appropriate, or advisable for the administration of this Policy, and any such determinations

made by the Committee shall be made in the Committee’s sole discretion, and shall be final and binding on all affected

individuals. 

Recoupment; Accounting Restatement

In the event the Company is required to prepare an accounting restatement of its financial statements due to the Company’s

material noncompliance with any financial reporting requirement under the securities laws,

including any required accounting

restatement to correct an error in previously issued financial statements that is material to the previously issued financial

statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in

the current period,

the Company shall recover reasonably promptly from any Covered Executive any excess Incentive-Based

Compensation (as defined below) received by such Covered Executive (a) after beginning service as an executive officer; (b) who

served as an executive officer at any time during the performance period for that Incentive-Based Compensation; (c) while the

Company has a class of securities listed on a national securities exchange or a national securities association; and (d) during the

three completed fiscal years immediately preceding the date that the Company is required to prepare an accounting restatement.

Each Covered Executive shall surrender any such excess Incentive-Based Compensation to the Company, at such time or times,

and via such method or methods, as determined by the Committee in accordance with this Policy. Notwithstanding the foregoing,

this Policy will not (a) require the recovery of Incentive-Based Compensation received by an individual before beginning service

as an executive officer, or (b) apply to an individual who is an executive officer at the time recovery is required if that individual

was not an executive officer at any time during the period for which the Incentive-Based Compensation is subject to recovery. 

The date on which the Company is required to prepare an accounting restatement is the earlier of (a) the date the Committee

concludes or reasonably should have concluded that the Company’s previously issued financial statements contain a material

error; or (b) the date a court, regulator, or other legally authorized body directs the Company to restate its previously issued

financial statements to correct a material error.

Incentive-Based Compensation will be deemed to have been received in the fiscal

period during which the financial reporting measure specified in the applicable Incentive-Based Compensation award is attained,

even if the payment or grant occurs after the end of that period.

Incentive Compensation

2

For purposes of this Policy, “Incentive-Based Compensation” means any compensation that is granted, earned, or vested based

wholly or in part upon the attainment of a financial reporting measure, which means a measure that is determined and presented in

accordance with the accounting principles used in preparing the Company’s financial statements, and any measure that is derived

wholly or in part from such measures. For avoidance of doubt, a financial reporting measure need not be presented within the

Company’s financial statements or included in a filing with the Securities and Exchange Commission. Financial reporting

measures include, but are not limited to: Company stock price; total shareholder return; revenues; net income; operating income;

earnings before interest, taxes, depreciation, and amortization; financial ratios; profitability of one or more reportable segments;

net assets or net asset value per share; funds from operations; liquidity measures such as working capital or operating cash flow;

return measures such as return on invested capital or return on assets; and earnings measures such as earnings per share.

Excess Incentive-Based Compensation: Amount Subject to Recovery

The amount to be recovered will be the excess of the Incentive-Based Compensation paid to the Covered Executive based on the

erroneous data over the Incentive-Based Compensation that would have been paid to the Covered Executive had it been based on

the restated results, as determined by the Committee. The amount of recovery will be computed without regard to any taxes paid.

If the Committee cannot determine the amount of excess Incentive-Based Compensation received by the Covered Executive

directly from the information in the accounting restatement, then it will make its determination based on a reasonable estimate of

the effect of the accounting restatement.

Method of Recoupment

The Committee will determine, in its sole discretion, the method for recouping Incentive-Based Compensation hereunder, which

may include, without limitation, one or more of the following: (a) requiring reimbursement of cash Incentive-Based

Compensation previously paid; (b) seeking recovery of any gain realized on the vesting, exercise, settlement, sale, transfer, or

other disposition of any equity-based awards; (c) offsetting the recouped amount from any compensation otherwise owed by the

Company to the Covered Executive; (d) cancelling outstanding vested or unvested equity awards; or (e) taking any other remedial

and recovery action permitted by law.

If a Covered Executive fails to repay Incentive-Based Compensation that is owed to the Company under this Policy, the Company

shall take all appropriate action to recover such Incentive-Based Compensation from the Covered Executive, and the Covered

Executive shall be required to reimburse the Company for all expenses (including legal expenses) incurred by the Company in

recovering such Incentive-Based Compensation.

No Indemnification

The Company shall not (a) indemnify any Covered Executive against the loss of any incorrectly awarded Incentive-Based

Compensation that is forfeited or recovered pursuant to this Policy or (b) pay or reimburse the Covered Executives for premiums

for any insurance policy covering any such potential losses. 

Interpretation

It is intended that this Policy be interpreted in a manner that is consistent with the requirements of Section 10D of the Exchange

Act and any applicable rules or standards adopted by the Securities and Exchange Commission or any national securities

exchange on which the Company’s securities are listed (together, the “Applicable Laws”).

To the extent the Applicable Laws

require recovery of Incentive-Based Compensation in additional circumstances beyond those specified in this Policy, nothing in

this Policy shall be deemed to limit or restrict the right or obligation of the Company to recover Incentive-Based Compensation to

the fullest extent required by the Applicable Laws.

Effective Date

This Policy shall be effective as of October 2, 2023 (the “Effective Date”) and shall apply to Incentive-Based Compensation that

is approved, awarded or granted to Covered Executives on or after that date.

Amendment; Termination

The Board may amend this Policy from time to time in its discretion. The Board may terminate this Policy at any time, except as

may be provided under Applicable Laws.

Other Recoupment Rights

3

The Board intends that this Policy will be applied to the fullest extent of the law. The Committee may require that any

employment agreement, equity award agreement, or similar agreement entered into on or after the Effective Date shall, as a

condition to the grant of any benefit thereunder, require a Covered Executive to agree to abide by the terms of this Policy. Any

right of recoupment under this Policy is in addition to, and not in lieu of, any other remedies or rights of recoupment or offset that

may be available to the Company pursuant to (a) the terms of any similar policy in any employment agreement, equity award

agreement (regardless of whether implemented at any time prior to or following the adoption or amendment of this Policy), or

similar agreement and any other legal remedies available to the Company; (b) any other legal requirements, including, but not

limited to, Section 304 of Sarbanes-Oxley Act of 2002 (“SOX”); and (c) any other legal rights or remedies available to the

Company. Any amounts paid to the Company pursuant to Section 304 of SOX shall be considered in determining any amounts

recovered under this Policy.

Supersedure

This Policy will supersede any provisions in any agreement, plan or other arrangement applicable to any Covered Executive that

(a) exempt any Incentive-Based Compensation from the application of this Policy, (b) waive or otherwise prohibit or restricts the

Company’s right to recover any erroneously awarded Incentive-Based Compensation, including, without limitation, in connection

with exercising any right of setoff as provided herein, or (c) require or provide for indemnification to the extent that such

indemnification is prohibited under the section entitled “No Indemnification” above.

Impracticability

The Company shall recover any excess Incentive-Based Compensation in accordance with this Policy unless such recovery would

be impracticable, as determined by the Committee in accordance with Rule 10D -1 of the Exchange Act and the related listing

standards of the NASDAQ.

Successors

This Policy shall be binding and enforceable against all Covered Executives and their beneficiaries, heirs, executors,

administrators, or other legal representatives.

Severability

If any provision of this Policy or the application of such provision to any Covered Executive shall be adjudicated to be invalid,

illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this

Policy, and the invalid, illegal, or unenforceable provisions shall be deemed amended to the minimum extent necessary to render

any such provision (or the application of such provision) valid, legal, or enforceable.

Date of Last Approval:

 October 26, 2023

4

EXHIBIT A

CAPITAL CITY BANK GROUP, INC.

COMPENSATION RECOUPMENT POLICY

ACKNOWLEDGEMENT FORM

By signing below, the undersigned acknowledges and confirms that the undersigned has received and reviewed a copy of

the Capital City Bank Group, Inc. (the “Company”) Compensation Recoupment Policy (the “Policy”). 

By signing this Acknowledgement Form, the undersigned acknowledges and agrees that the undersigned is and will

continue to be subject to the Policy and that the Policy will apply both during and after the undersigned’s employment with the

Company. Further, by signing below, the undersigned agrees to abide by the terms of the Policy, including, without limitation, by

returning any erroneously awarded Incentive-Based Compensation (as defined in the Policy) to the Company to the extent

required by, and in a manner consistent with, the Policy. 

COVERED EXECUTIVE 

Signature 

Print Name

Date

XML

Document and Entity Information - USD ($)

12 Months Ended

Dec. 31, 2023

Jun. 28, 2024

Jun. 30, 2023

Document And Entity Information

Document Type

10-K/A

Document Annual Report

true

Document Fiscal Period Focus

FY

Current Fiscal Year End Date

--12-31

Document Period End Date

Dec. 31, 2023

Document Fiscal Year Focus

2023

Document Transition Report

false

Commission file number

0-13358

Entity Registrant Name

Capital City Bank Group, Inc.

Entity's state or country of incorporation

FL

Employer Identification Number

59-2273542

Entity Address Address Line1

217 North Monroe Street

Entity Address City Or Town

Tallahassee

Entity Address State Or Province

FL

Entity Address Postal Zip Code

32301

City area code

850

Local phone number

402-7821

Title of 12(b) Security

Common Stock, $0.01 par value

Trading Symbol

CCBG

Name of the Exchange

NASDAQ

Entity a Well-known Seasoned Issuer

No

Entity's Reporting Status Current

No

Entity Interactive Data Current

Yes

Entity Filer Category

Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

Entity Shell Company

false

Icfr Auditor Attestation Flag

true

Document Fin Stmt Error Correction Flag

true

Document Fin Stmt Restatement Recovery Analysis Flag

true

Entity Public Float

$ 400,209,385

Entity Common Stock, Shares Outstanding

16,941,553

Documents incorporated by reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of our Proxy Statement for the Annual Meeting of Shareowners held on April 23, 2024, are incorporated by reference in Part III.

Amendment Flag

true

Entity a Voluntary Filer

No

Entity Central Index Key

0000726601

Auditor

686

Auditor name

Forvis Mazars, LLP

Auditor location

Little Rock, Arkansas

Amendment Description

EXPLANATORY NOTE Capital City Bank Group, Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-K/A (the “Amendment” or “Form 10-K/A”) to amend and restate certain items in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 13, 2024 (the “Original Form 10-K”). Except as described below, no other information included in the Original Form 10-K is being amended or updated by this Amendment and this Amendment does not purport to reflect any information or events subsequent to the filing of the Original Form 10-K. Restatement Background As previously disclosed in the Company’s Current Report on Form 8-K filed with the SEC on May 13, 2024, in preparation of its financial statements for the first quarter of 2024, the Company identified changes needed in preparing its consolidated financial statements, specifically its Consolidated Statement of Cash Flows related to certain construction/permanent loan sales. As a result, as further discussed below, the Company’s Consolidated Statements of Cash Flows for the following periods (collectively, the “Impacted Statements of Cash Flows”) should no longer be relied upon: (1) years ended December 31, 2023, 2022, and 2021, (2) the three-month periods ended March 31, 2023 and 2022, (3) the six-month periods ended June 30, 2023 and 2022, and (4) the nine-month periods ended September 30, 2023 and 2022. Company management, after consultation and discussion with the Audit Committee of the Board of Directors of the Company and the Company’s independent registered public accounting firm, Forvis Mazars, LLP, determined that the Impacted Statements of Cash Flows should no longer be relied upon. The Company has not filed and does not intend to file amendments to the Company’s previously filed Quarterly Reports on Form 10-Q containing any of the Impacted Statements of Cash Flow or the Company’s Annual Reports on Form 10-K for the years ended December 31, 2022 and 2021. This Form 10-K/A contains restatements of the Impacted Statements of Cash Flows. Accordingly, investors and others should rely on the financial information and other disclosures regarding the affected period as disclosed in this Form 10-K/A and in the Company’s future filings with the SEC (as applicable). For additional information, see “Part II – Item 8. Financial Statements and Supplementary – Note 1 – Restatement of Previously Issued Consolidated Financial Statements” in this Form 10-K/A. This Form 10-K/A also amends and restates the following items included in the Original Form 10-K as appropriate to reflect the restatement and revision of the relevant items: Cover Page; Item 8. Financial Statements and Supplementary Data; Item 9A. Controls and Procedures: Part III, Items 10 through 14; and Item 15. Exhibits and Financial Statement Schedules. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is also including with this Form 10-K/A currently dated certifications of the Company’s Chief Executive Officer and Chief Financial Officer (attached as Exhibits 31.1, 31.2, 32.1, and 32.2). This Form 10-K/A also contains a modified report from Forvis Mazars on the consolidated financial statements for years ended December 31, 2023, 2022 and 2021, a modified Forvis Mazars opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, 2022 and 2021, and a new consent of Forvis Mazars (attached as Exhibit 23.1). The Company is also filing this Amendment to check the box on the cover page of this Amendment following “Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).” The Company has conducted such analysis and has determined that the previously mentioned changes affecting the Impacted Statements of Cash Flows does not impact related performance metrics used for executive management’s compensation, and therefore that no recovery of incentive-based compensation was required. For additional information, see “Part III – Item 11. Executive Compensation” in this Form 10-K/A. Except as discussed above and as further described herein, the Company has not modified or updated the disclosures presented in the Original Form 10-K. Accordingly, this Form 10-K/A does not reflect events occurring after the filing of the Original Form 10-K or modify or update those disclosures affected by any such subsequent events. Information not affected by the restatements reflects disclosures made at the time of the filing of the Original Form 10-K. Forward-looking statements included in this Form 10-K/A represent management’s views as of the date of the Original Form 10-K and should not be assumed to be accurate as of any date thereafter. This Form 10-K/A should be read in conjunction with the Company’s filings made with the SEC subsequent to the filing of the Original Form 10-K, including any amendment to those filings.

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Cash and Due From Banks	$ 83,118	$ 72,114
Federal Funds Sold and Interest Bearing Deposits	228,949	528,536
Total Cash and Cash Equivalents	312,067	600,650
Investment Securities, Available for Sale, at fair value (amortized cost of $367,747 and $455,232)	337,902	413,294
Investment Securities, Held to Maturity (fair value of $591,751 and $612,701)	625,022	660,744
Equity Securities	3,450	10
Total Investment Securities	966,374	1,074,048
Loans Held For Sale, at fair value	28,211	26,909
Loans, Held for Investment	2,733,918	2,547,685
Allowance for Credit Losses	(29,941)	(25,068)
Loans Held for Investment, Net	2,703,977	2,522,617
Premises and Equipment, Net	81,266	82,138
Goodwill and Other Intangibles	92,933	93,093
Other Real Estate Owned	1	431
Other Assets	119,648	119,337
Total Assets	4,304,477	4,519,223
Deposits [Abstract]
Noninterest Bearing Deposits	1,377,934	1,653,620
Interest Bearing Deposits	2,323,888	2,285,697
Total Deposits	3,701,822	3,939,317
Short-Term Borrowings	35,341	56,793
Subordinated Notes Payable	52,887	52,887
Other Long-Term Borrowings	315	513
Other Liabilities	66,080	73,675
Total Liabilities	3,856,445	4,123,185
Temporary Equity	7,407	8,757
SHAREOWNERS' EQUITY
Preferred Stock, $.01 par value; 3,000,000 shares authorized; no shares issued and outstanding
Common Stock, $.01 par value; 90,000,000 shares authorized;16,950,222 and 16,986,785 shares issued and outstanding at December 31, 2023 and 2022, respectively	170	170
Additional Paid-In Capital	36,326	37,331
Retained Earnings	426,275	387,009
Accumulated Other Comprehensive Loss, Net of Tax	(22,146)	(37,229)
Total Shareowners' Equity	440,625	387,281
Total Liabilities, Temporary Equity, and Shareowners' Equity	$ 4,304,477	$ 4,519,223

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Investment securities, available for sale, amortized cost	$ 367,747	$ 455,232
Investment securities, held to maturity, fair value	$ 591,751	$ 612,701
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, authorized	3,000,000	3,000,000
Preferred Stock, issued	0	0
Preferred Stock, outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, authorized	90,000,000	90,000,000
Common Stock, issued	16,950,222	16,986,785
Common Stock, outstanding	16,950,222	16,986,785

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
INTEREST INCOME
Loans, including Fees	$ 152,250	$ 106,444	$ 96,561
Investment Securities:
Taxable	18,652	15,917	8,724
Tax Exempt	40	38	68
Federal Funds Sold and Interest Bearing Deposits	10,126	9,511	998
Total Interest Income	181,068	131,910	106,351
INTEREST EXPENSE
Deposits	17,582	3,444	839
Short-Term Borrowings	2,051	1,761	1,360
Subordinated Notes Payable	2,427	1,652	1,228
Other Long-Term Borrowings	20	31	63
Total Interest Expense	22,080	6,888	3,490
NET INTEREST INCOME	158,988	125,022	102,861
Provision for Credit Losses	9,714	7,494	(1,553)
Net Interest Income After Provision for Credit Losses	149,274	117,528	104,414
NONINTEREST INCOME
Other	8,630	7,691	7,271
Total Noninterest Income	71,610	75,181	107,545
NONINTEREST EXPENSE
Compensation	93,787	91,519	101,470
Occupancy, Net	27,660	24,574	23,932
Other	35,576	35,541	37,106
Total Noninterest Expense	157,023	151,634	162,508
INCOME BEFORE INCOME TAXES	63,861	41,075	49,451
Income Tax Expense	13,040	7,798	9,835
NET INCOME	50,821	33,277	39,616
Loss (Income) Attributable to Noncontrolling Interests	1,437	135	(6,220)
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$ 52,258	$ 33,412	$ 33,396
BASIC NET INCOME PER SHARE (in dollars per share)	$ 3.08	$ 1.97	$ 1.98
DILUTED NET INCOME PER SHARE (in dollars per share)	$ 3.07	$ 1.97	$ 1.98
Average Basic Common Shares Outstanding (in shares)	16,987	16,951	16,863
Average Diluted Common Shares Outstanding (in shares)	17,023	16,985	16,893
Deposit fees [Member]
NONINTEREST INCOME
Revenue, fees and commissions	$ 21,325	$ 22,121	$ 18,882
Bank card fees [Member]
NONINTEREST INCOME
Revenue, fees and commissions	14,918	15,401	15,274
Wealth management fees [Member]
NONINTEREST INCOME
Revenue, fees and commissions	16,337	18,059	13,693
Mortgage Banking Revenues [Member]
NONINTEREST INCOME
Revenue, fees and commissions	$ 10,400	$ 11,909	$ 52,425

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$ 52,258	$ 33,412	$ 33,396
Investment Securities:
Net unrealized (loss) gain on securities available-for-sale	12,076	(35,814)	(9,673)
Unrealized losses on securities transferred from available-for-sale to held-to-maturity	0	(9,384)	0
Amortization of unrealized losses on securities transferred from available-for-sale to held-to-maturity	3,479	1,469	26
Change in net unrealized gain on effective cash flow derivative	(878)	4,146	1,476
Benefit Plans:
Reclassification adjustment for amortization of prior service cost	156	292	234
Reclassification adjustment for amortization of net loss	112	4,752	10,806
Defined benefit plan settlement (gain) charge	(291)	2,321	3,072
Current year actuarial gain	4,905	4,223	31,339
Total Benefit Plans	4,882	11,588	45,451
Other comprehensive income (loss), before tax:	19,559	(27,995)	37,280
Deferred tax (expense) benefit related to other comprehensive income	(4,476)	6,980	(9,352)
Other comprehensive income (loss), net of tax	15,083	(21,015)	27,928
TOTAL COMPREHENSIVE INCOME	$ 67,341	$ 12,397	$ 61,324

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY - USD ($) $ in Thousands		Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss, Net of Taxes [Member]
Balance beginning at Dec. 31, 2020		$ 320,837	$ 168	$ 32,283	$ 332,528	$ (44,142)
Balance beginning (in shares) at Dec. 31, 2020		16,790,573
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income Attributable to Common Shareowners		$ 33,396	0	0	33,396	0
Reclassification to Temporary Equity	[1]	9,323	0	0	9,323	0
Other Comprehensive (Income) Loss, Net of Tax		27,928	0	0	0	27,928
Cash Dividends		(10,459)	0	0	(10,459)	0
Stock Based Compensation		843	0	843	0	0
Stock Compensation Plan Transactions, net		1,298	$ 1	1,297	0	0
Stock Compensation Plan Transactions, net (in shares)			101,487
Balance ending (Impact Of Adoption Of ASC 326 [Member]) at Dec. 31, 2021		$ 383,166	$ 169	34,423	364,788	(16,214)
Balance ending (in shares) at Dec. 31, 2021		16,892,060
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income Attributable to Common Shareowners		$ 33,412	0	0	33,412	0
Other Comprehensive (Income) Loss, Net of Tax		(21,015)	0	0	0	(21,015)
Cash Dividends		(11,191)	0	0	(11,191)	0
Stock Based Compensation		1,630	0	1,630	0	0
Stock Compensation Plan Transactions, net		$ 1,279	$ 1	1,278	0	0
Stock Compensation Plan Transactions, net (in shares)		94,725	94,725
Balance ending at Dec. 31, 2022		$ 387,281	$ 170	37,331	387,009	(37,229)
Balance ending (in shares) at Dec. 31, 2022		16,986,785	16,986,785
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income Attributable to Common Shareowners		$ 52,258	$ 0	0	52,258	0
Reclassification to Temporary Equity	[1]	(87)	0	0	(87)	0
Other Comprehensive (Income) Loss, Net of Tax		15,083	0	0	0	15,083
Cash Dividends		(12,905)	0	0	(12,905)	0
Stock Based Compensation		1,237	0	1,237	0	0
Stock Compensation Plan Transactions, net		$ 1,468	$ 0	1,468	0	0
Stock Compensation Plan Transactions, net (in shares)		85,975	85,975
Repurchase of Common Stock		$ (3,710)	$ 0	(3,710)	0	0
Repurchase of Common Stock (in shares)			(122,538)
Balance ending at Dec. 31, 2023		$ 440,625	$ 170	$ 36,326	$ 426,275	$ (22,146)
Balance ending (in shares) at Dec. 31, 2023		16,950,222	16,950,222

[1] (1) Adjustments to redemption value for non-controlling interest in CCHL

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]
Cash Dividends (in dollars per share)	$ 0.76	$ 0.66	$ 0.62

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income Attributable to Common Shareowners	$ 13,709	$ 6,938	$ 27,883	$ 14,198	$ 40,539	$ 23,803	$ 52,258	$ 33,412	$ 33,396
Adjustments to Reconcile Net Income to Cash From Operating Activities:
Provision for Credit Losses	3,099	32	5,296	1,724	7,689	3,878	9,714	7,494	(1,553)
Depreciation	1,969	1,907	3,927	3,802	5,920	5,689	7,918	7,596	7,607
Amortization of Premiums, Discounts, and Fees, net	1,067	2,610	2,117	5,053	3,216	6,618	4,221	7,772	14,072
Amortization of Intangible Assets	40	40	80	80	120	120	160	160	107
Gain on Securities Transactions							3	0	0
Pension Settlement (Gain) Charges	0	209	(291)	378	(291)	480	(291)	2,321	3,072
Originations of Loans Held for Sale	(75,626)	(162,448)	(203,266)	(268,058)	(308,263)	(343,899)	(406,803)	(390,191)	(1,228,946)
Proceeds From Sales of Loans Held for Sale	73,706	174,153	191,180	307,349	303,731	390,756	404,332	437,907	1,349,124
Mortgage Banking Revenues	(2,871)	(4,055)	(6,234)	(8,912)	(8,072)	(11,807)	(10,400)	(11,909)	(52,425)
Net Additions for Capitalized Mortgage Servicing Rights	(91)	364	(253)	360	(392)	570	419	726	72
Change in Valuation Provision for Mortgage Servicing Rights							0	0	(250)
Stock Compensation	536	245	764	489	1,110	904	1,237	1,630	843
Net Tax Benefit from Stock Compensation		(19)		(19)		(19)	(48)	(27)	(4)
Deferred Income Taxes	(1,170)	(6,682)	(2,849)	(9,887)	(2,464)	(12,854)	(483)	(3,870)	(4,157)
Net Change in Operating Leases	(3)	(27)	(3)	(72)	(12)	(83)	79	(108)	(165)
Net Gain on Sales and Write-Downs of Other Real Estate Owned	(1,858)	0	(1,900)	(26)	(1,915)	(136)	(2,053)	(422)	(1,662)
Net (Increase) Decrease in Other Assets	(4,349)	1,897	4,593	3,516	8,207	3,696	(1,029)	(8,636)	10,885
Net (Decrease) Increase in Other Liabilities	12,471	7,036	3,815	22,040	1,069	12,839	(4,452)	8,837	(7,846)
Net Cash Provided By Operating Activities	20,629	22,200	24,859	72,015	50,192	80,555	54,782	92,692	122,170
Securities Held to Maturity:
Purchases		(194,448)		(218,548)		(219,865)	(1,483)	(219,865)	(251,525)
Payments, Maturities, and Calls	8,820	14,441	18,992	28,111	28,159	40,096	36,600	55,314	78,544
Securities Available for Sale:
Purchases	(2,017)	(25,139)	(4,634)	(37,044)	(9,399)	(41,880)	(8,379)	(52,238)	(523,961)
Proceeds from the Sale of Securities	0	3,365	0	3,365	30,420	3,365	30,420	3,365	495
Payments, Maturities, and Calls	16,559	24,824	32,490	47,413	53,045	64,301	62,861	81,596	178,425
Equity Securities:
Purchases							(13,566)	0	0
Net Decrease in Equity Securities							10,127	0	0
Purchases of Loans Held for Investment	(923)	(381)	(1,463)	(15,985)	(2,249)	(16,324)	(2,488)	(16,753)	(20,209)
Proceeds from Sales of Loans	20,084	37,766	26,645	66,877	39,125	88,521	47,314	104,475	92,360
Net Increase in Loans Held for Investment	(127,336)	(96,732)	(164,319)	(359,417)	(194,631)	(520,473)	(226,896)	(720,670)	(10,061)
Net Cash Paid for Acquisitions							0	0	(4,482)
Proceeds From Sales of Other Real Estate Owned	2,699	0	3,772	30	3,840	1,683	3,995	2,406	4,502
Purchases of Premises and Equipment, net	(1,886)	(1,013)	(3,851)	(3,322)	(5,459)	(4,013)	(7,046)	(6,322)	(5,193)
Noncontrolling Interest Contributions		1,838		2,573		2,867	0	2,867	7,139
Net Cash Used In Investing Activities	(84,000)	(235,479)	(92,368)	(485,947)	(57,149)	(601,722)	(68,541)	(765,825)	(453,966)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(115,397)	52,645	(150,451)	73,396	(398,872)	46,516	(237,495)	226,455	495,302
Net (Decrease) Increase in Short-Term Borrowings	(30,161)	(3,692)	(6,120)	4,784	(15,097)	17,592	(21,452)	22,114	(45,938)
Repayment of Other Long-Term Borrowings	(50)	(78)	(99)	(150)	(149)	(200)	(199)	(249)	(1,332)
Dividends Paid	(3,064)	(2,712)	(6,121)	(5,424)	(9,518)	(8,307)	(12,905)	(11,191)	(10,459)
Payments to Repurchase Common Stock	(819)		(2,022)		(3,121)		(3,710)	0	0
Issuance of Common Stock Under Compensation Plans	164	190	480	496	562	577	937	1,300	1,028
Net Cash (Used in) Provided By Financing Activities	(149,327)	46,353	(164,333)	73,102	(426,195)	56,178	(274,824)	238,429	438,601
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(212,698)	(166,926)	(231,842)	(340,830)	(433,152)	(464,989)	(288,583)	(434,704)	106,805
Cash and Cash Equivalents at Beginning of Year	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	928,549
Cash and Cash Equivalents at End of Year	387,952	868,428	368,808	694,524	167,498	570,365	312,067	600,650	1,035,354
Supplemental Cash Flow Disclosures:
Interest Paid	3,723	715	8,720	1,617	15,026	3,588	21,775	6,586	3,547
Income Taxes Paid	7,466	20	3,860	3,765	7,395	6,410	9,118	7,466	16,339
Supplemental Noncash Items:
Loans Transferred from Held for Investment to Held-for-Sale, net	16,859	37,973	26,076	67,324	33,625	89,836	35,745	108,798	98,081
Loans and Premises Transferred to Other Real Estate Owned	$ 423	$ 0	$ 1,442	$ 77	$ 1,495	$ 1,543	$ 1,512	$ 2,398	$ 1,717

XML

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

Note 1

SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Capital City Bank Group, Inc. (“CCBG”) provides a full range of banking and banking-related services to individual and

corporate clients through its wholly-owned subsidiary, Capital City Bank (“CCB” or the “Bank” and together with CCBG, the

“Company”), 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 include the accounts of CCBG and CCB. CCBG also maintains an insurance subsidiary,

Capital City Strategic Wealth, LLC. CCB has two primary subsidiaries, which are wholly owned, Capital City Trust Company

and Capital City Investments. On March 1, 2020, CCB acquired a

51

% membership interest in Brand Mortgage Group, LLC

(“Brand”) which is now operated as Capital City Home Loans, LLC (“CCHL”), a consolidated entity in the Company’s financial

statements. The terms of the transaction included a buyout call/put option for CCB to purchase the remaining

49

% of the

membership interests in CCHL (“the

49

% Interest”) that are held by BMGBMG, LLC (“BMG”). The option requires 12 months

advance notice to the other party, and under the terms of the option, January 1, 2025 is the earliest date the transfer of the

49

%

Interest may be completed. On December 20, 2023, BMG notified CCB that BMG will exercise its put option and the transfer of

the

49

% Interest will become effective on January 1, 2025. 

The Company, which operates a single reportable business segment that is comprised of commercial banking within the states of

Florida, Georgia, and Alabama, follows accounting principles generally accepted in the United States of America and reporting

practices applicable to the banking industry. The principles which materially affect the financial position, results of operations

and cash flows are summarized below.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a

voting interest entity or a variable interest entity under accounting principles generally accepted in the United States of America.

Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself

independently and provide the equity holders with the obligation to absorb losses, the right to receive residual returns and the

right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at

least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (“VIE’s”) are

entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in an entity is

present when an enterprise has a variable interest, or a combination of variable interests, that will absorb a majority of the entity’s

expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial

interest, known as the primary beneficiary, consolidates the VIE. Two of CCBG’s wholly owned subsidiaries, CCBG Capital

Trust I (established November 1, 2004) and CCBG Capital Trust II (established May 24, 2005) are VIEs for which the Company

is not the primary beneficiary. Accordingly, the accounts of these entities are not included in the Company’s consolidated

financial statements.

Certain previously reported amounts have been reclassified to conform to the current year’s presentation. All material inter-

company transactions and accounts have been eliminated in consolidation. The Company has evaluated subsequent events for

potential recognition and/or disclosure through the date the consolidated financial statements included in this Annual Report on

Form 10-K/A were filed with the United States Securities and Exchange Commission.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of

America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the

disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and

expenses during the reporting period. Actual results could vary from these estimates. Material estimates that are particularly

susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses, pension expense,

income taxes, loss contingencies, valuation of other real estate owned, and valuation of goodwill and their respective analysis of

impairment.

Restatement of Previously Issued Consolidated Financial Statements

Restated herein are the Company’s Impacted Statements of Cash Flows for the years ended December 31, 202 3, December 31,

2022 and December 31, 2021 and for each of the three month periods ended March 31, 2023 and 2022, six month periods ended

June 30, 2023 and 2022 and nine month periods ended September 30, 2023 and 2022. 

Prior Restatement Background

On December 22, 2023, the Company filed a Form 10-K/A for the year ended December 31, 2022 to amend and restate certain

items related to inter-company transactions between its subsidiaries, CCHL and CCB, involving residential mortgage loan

purchases that were not properly recorded. The material impact to Consolidated Statements of Income, Consolidated Statements

of Financial Condition and various key performance indicators resulted in a restatement of the Company’s financial statements for

the year ended December 31, 2022, and the three, six and nine months ended March 31, 2022 and 2023, June 30, 2022 and 2023,

and September 30, 2022, respectively (collectively, the “Original Restated Financial Statements”). As part of the Company’s

assessment of the misstatements noted in the Form 10-K/A filed December 22, 2023, it was concluded that the impact of the inter-

company loan sale and participation transactions was immaterial to the consolidated financial statements for the year ended

December 31, 2021. 

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2023, the

Company concluded that it had not appropriately eliminated intercompany loan sale and participations transactions from the

Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 in the Original Restated Financial

Statements. On March 13, 2024, the Company filed its Form 10-K for the year ended December 31, 2023 including restatements

of the Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 (“collectively, the “Subsequently

Restated Financial Statements”). The Subsequently Restated Financial Statements had no impact on the Company’s Consolidated

Statements of Financial Condition, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income,

Consolidated Statements in Changes in Shareowners’ Equity or the Notes to the Consolidated Financial Statements.

Description of Current Misstatements

In connection with the preparation of the Company’s financial statements for the first quarter of 2024, the Company identified

changes needed in preparing its consolidated financial statements, specifically, its Consolidated Statement of Cash Flows, related

to certain construction/permanent loan sales. These changes require restatements of the Impacted Statements of Cash Flows in

both the Original Restated Financial Statements and Subsequently Restated Financial Statements to correct misstatements of the

following line items within the Impacted Statements of Cash Flows:

Within the Cash Flows from Operating Activities section:

●

An understatement of $

100.1

 million, overstatement of $

47.6

 million and overstatement $

33.8

 million for Originations of

Loans Held for Sale for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An understatement of $

88.5

 million, overstatement of $

37.5

 million and overstatement of $

27.6

 million for Proceeds

from Sales of Loans Held for Sale for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An overstatement of $

11.6

 million, understatement of $

10.2

 million and understatement of $

6.2

 million for Net Cash

Provided by Operating Activities for the years ended December 31, 2023, 2022 and 2021, respectively. 

Within the Cash Flows from Investing Activities section:

●

An understatement of $

35.7

 million, understatement of $

114.7

 million, and overstatement of $

98.6

 million for Net

(Increase) Decrease in Loans Held for Investment for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An understatement of $

47.3

 million, $

104.5

 million, and $

92.4

 million for Proceeds From Sales of Loans for the years

ended December 31, 2023, 2022 and 2021, respectively.

●

An overstatement of $

11.6

 million, understatement of $

10.2

 million and understatement $

6.2

 million for Net Cash Used

in Investing Activities for the years ended December 31, 2023, 2022 and 2021, respectively. 

Within the Supplemental Noncash Items section:

●

Disclosure of noncash activity related to Loans Transferred from Loans Held for Investment to Loans Held for Sale, net

for the years ended December, 31, 2023, 2022 and 2021 which totaled $

35.7

 million, $

108.8

 million, and $

98.1

 million,

respectively.

The impacts of the restatement for the years ended December 31, 2023, 2022 and 2021 as described above are reflected in the

Impacted Statements of Cash Flows and had no impact on the Consolidated Statements of Financial Condition, Consolidated

Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements in Changes in Shareowners’

Equity or the Notes to the Consolidated Financial Statements. The impacts of the restatement for each of the interim periods are

presented in Note 24, Restated Interim Consolidated Statements of Cash Flows (Unaudited).

Description of Current Restatement Tables

The following tables present the amounts previously reported and a reconciliation of the restatement amounts reported on the

restated Consolidated Statement of Cash Flows for the years ended December 31, 2023, December 31, 2022 and December 31,

2021. The amounts previously reported were derived from the Company’s Annual Report on Form 10-K for the year ended

December 31, 2023 filed with the SEC on March 13, 2024.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

52,258

$

-

$

52,258

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

9,714

-

9,714

 Depreciation

7,918

-

7,918

 Amortization of Premiums, Discounts, and Fees, net

4,221

-

4,221

 Amortization of Intangible Assets

160

-

160

Gain on Securities Transactions

3

-

3

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held-for-Sale

(306,714)

(100,089)

(406,803)

 Proceeds From Sales of Loans Held-for-Sale

315,812

88,520

404,332

 Mortgage Banking Revenues

(10,400)

-

(10,400)

 Net Additions for Capitalized Mortgage Servicing Rights

419

-

419

 Stock Compensation

1,237

-

1,237

 Net Tax Benefit From Stock-Based Compensation

(48)

-

(48)

 Deferred Income Taxes Benefit

(483)

-

(483)

 Net Change in Operating Leases

79

-

79

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

(2,053)

-

(2,053)

 Net Increase in Other Assets

(1,029)

-

(1,029)

 Net Decrease in Other Liabilities

(4,452)

-

(4,452)

Net Cash Provided By Operating Activities

66,351

(11,569)

54,782

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(1,483)

-

(1,483)

 Payments, Maturities, and Calls

36,600

-

36,600

Securities Available for Sale:

 Purchases

(8,379)

-

(8,379)

 Proceeds from Sale of Securities

30,420

-

30,420

 Payments, Maturities, and Calls

62,861

-

62,861

Equity Securities

 Purchases

(13,566)

-

(13,566)

 Net Decrease in Equity Securities

10,127

-

10,127

Purchase of loans held for investment

(2,488)

-

(2,488)

Net Increase in Loans Held for Investment

(191,151)

(35,745)

(226,896)

Proceeds from Sales of Loans

-

47,314

47,314

Proceeds From Sales of Other Real Estate Owned

3,995

-

3,995

Purchases of Premises and Equipment, net

(7,046)

-

(7,046)

Net Cash Used In Investing Activities

(80,110)

11,569

(68,541)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(237,495)

-

(237,495)

Net Decrease in Other Short-Term Borrowings

(21,452)

-

(21,452)

Repayment of Other Long-Term Borrowings

(199)

-

(199)

Dividends Paid

(12,905)

-

(12,905)

Payments to Repurchase Common Stock

(3,710)

-

(3,710)

Issuance of Common Stock Under Compensation Plans

937

-

937

Net Cash Provided By Financing Activities

(274,824)

-

(274,824)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(288,583)

-

(288,583)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

312,067

$

-

$

312,067

Supplemental Cash Flow Disclosures:

 Interest Paid

$

21,775

$

-

$

21,775

 Income Taxes Paid

$

9,118

$

-

$

9,118

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

35,745

$

35,745

 Loans and Premises Transferred to Other Real Estate Owned

$

1,512

$

-

$

1,512

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,412

$

-

$

33,412

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

7,494

-

7,494

 Depreciation

7,596

-

7,596

 Amortization of Premiums, Discounts, and Fees, net

7,772

-

7,772

 Amortization of Intangible Assets

160

-

160

 Pension Settlement Charge

2,321

-

2,321

 Originations of Loans Held-for-Sale

(437,827)

47,636

(390,191)

 Proceeds From Sales of Loans Held-for-Sale

475,359

(37,452)

437,907

 Mortgage Banking Revenues

(11,909)

-

(11,909)

 Net Additions for Capitalized Mortgage Servicing Rights

726

-

726

 Stock Compensation

1,630

-

1,630

 Net Tax Benefit From Stock-Based Compensation

(27)

-

(27)

 Deferred Income Taxes Benefit

(3,870)

-

(3,870)

 Net Change in Operating Leases

(108)

-

(108)

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

(422)

-

(422)

 Net Increase in Other Assets

(8,636)

-

(8,636)

 Net Decrease in Other Liabilities

8,837

-

8,837

Net Cash Provided By Operating Activities

82,508

10,184

92,692

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(219,865)

-

(219,865)

 Payments, Maturities, and Calls

55,314

-

55,314

Securities Available for Sale:

 Purchases

(52,238)

-

(52,238)

 Proceeds from Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

81,596

-

81,596

Purchase of loans held for investment

(16,753)

-

(16,753)

Net Increase in Loans Held for Investment

(606,011)

(114,659)

(720,670)

Proceeds From Sales of Loans

-

104,475

104,475

Proceeds From Sales of Other Real Estate Owned

2,406

-

2,406

Purchases of Premises and Equipment, net

(6,322)

-

(6,322)

Noncontrolling interest contributions received

2,867

-

2,867

Net Cash Used In Investing Activities

(755,641)

(10,184)

(765,825)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

226,455

-

226,455

Net Increase in Other Short-Term Borrowings

22,114

-

22,114

Repayment of Other Long-Term Borrowings

(249)

-

(249)

Dividends Paid

(11,191)

-

(11,191)

Issuance of Common Stock Under Compensation Plans

1,300

-

1,300

Net Cash Provided By Financing Activities

238,429

-

238,429

NET DECREASE IN CASH AND CASH EQUIVALENTS

(434,704)

-

(434,704)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

600,650

$

-

$

600,650

Supplemental Cash Flow Disclosures:

 Interest Paid

$

6,586

$

-

$

6,586

 Income Taxes Paid

$

7,466

$

-

$

7,466

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

108,798

$

108,798

 Loans and Premises Transferred to Other Real Estate Owned

$

2,398

$

-

$

2,398

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2021

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,396

$

-

$

33,396

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

(1,553)

-

(1,553)

 Depreciation

7,607

-

7,607

 Amortization of Premiums, Discounts, and Fees, net

14,072

-

14,072

 Amortization of Intangible Assets

107

-

107

 Pension Settlement Charge

3,072

-

3,072

 Originations of Loans Held-for-Sale

(1,262,746)

33,800

(1,228,946)

 Proceeds From Sales of Loans Held-for-Sale

1,376,678

(27,554)

1,349,124

 Mortgage Banking Revenues

(52,425)

-

(52,425)

 Net Additions for Capitalized Mortgage Servicing Rights

72

-

72

 Change in Valuation Provision for Mortgage Servicing Rights

(250)

-

(250)

 Stock Compensation

843

-

843

 Net Tax Benefit From Stock-Based Compensation

(4)

-

(4)

 Deferred Income Taxes Benefit

(4,157)

-

(4,157)

 Net Change in Operating Leases

(165)

-

(165)

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

(1,662)

-

(1,662)

 Net Decrease in Other Assets

10,885

-

10,885

 Net Decrease in Other Liabilities

(7,846)

-

(7,846)

Net Cash Provided By Operating Activities

115,924

6,246

122,170

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(251,525)

-

(251,525)

 Payments, Maturities, and Calls

78,544

-

78,544

Securities Available for Sale:

 Purchases

(523,961)

-

(523,961)

 Proceeds from Sale of Securities

495

-

495

 Payments, Maturities, and Calls

178,425

-

178,425

Purchase of loans held for investment

(20,209)

-

(20,209)

Net Decrease (Increase) in Loans Held for Investment

88,545

(98,606)

(10,061)

Proceeds from Sales of Loans

-

92,360

92,360

Net Cash Paid for Acquisitions

(4,482)

-

(4,482)

Proceeds From Sales of Other Real Estate Owned

4,502

-

4,502

Purchases of Premises and Equipment, net

(5,193)

-

(5,193)

Noncontrolling interest contributions received

7,139

-

7,139

Net Cash Used In Investing Activities

(447,720)

(6,246)

(453,966)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

495,302

-

495,302

Net Decrease in Other Short-Term Borrowings

(45,938)

-

(45,938)

Repayment of Other Long-Term Borrowings

(1,332)

-

(1,332)

Dividends Paid

(10,459)

-

(10,459)

Issuance of Common Stock Under Compensation Plans

1,028

-

1,028

Net Cash Provided By Financing Activities

438,601

-

438,601

NET DECREASE IN CASH AND CASH EQUIVALENTS

106,805

-

106,805

Cash and Cash Equivalents at Beginning of Period 

928,549

-

928,549

Cash and Cash Equivalents at End of Period 

$

1,035,354

$

-

$

1,035,354

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,547

$

-

$

3,547

 Income Taxes Paid

$

16,339

$

-

$

16,339

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

98,081

$

98,081

 Loans and Premises Transferred to Other Real Estate Owned

$

1,717

$

-

$

1,717

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

Significant Accounting Principles

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, and federal funds

sold. Generally, federal funds are purchased and sold for one-day periods and all other cash equivalents have a maturity of 90

days or less. The Company is required to maintain average reserve balances with the Federal Reserve Bank based upon a

percentage of deposits. On March 26, 2020, the Federal Reserve reduced the amount of the required reserve balance to

zero

. 

The Company maintains certain cash balances that are restricted under warehouse lines of credit and master repurchase

agreements. The restricted cash balance at December 31, 2023 was $

0.1

 million.

Investment Securities

Investment securities are classified as held-to-maturity (“HTM”) and carried at amortized cost when the Company has the positive

intent and ability to hold them until maturity. Investment securities not classified as HTM are classified as available-for-sale

(“AFS”) and carried at fair value. The Company does not have trading investment securities. Investment securities classified as

equity securities that do not have readily determinable fair values, are measured at cost and remeasured to fair value when

impaired or upon observable transaction prices. The Company determines the appropriate classification of securities at the time

of purchase. For reporting and risk management purposes, the Company further segments investment securities by the issuer of

the security which correlates to its risk profile: U.S. government treasury, U.S. government agency, state and political

subdivisions, mortgage-backed securities, and corporate debt securities. Certain equity securities with limited marketability, such

as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are classified as AFS and carried at cost. 

Interest income includes amortization and accretion of purchase premiums and discounts. Realized gains and losses are derived

from the amortized cost of the security sold. Gains and losses on the sale of securities are recorded on the trade date and are

determined using the specific identification method. Securities transferred from AFS to HTM are recorded at amortized cost plus

or minus any unrealized gain or loss at the time of transfer. Any existing unrecognized gain or loss continues to be reported in

accumulated other comprehensive loss (net of tax) and amortized as an adjustment to interest income over the remaining life of

the security. Any existing allowance for credit loss is reversed at the time of transfer. Subsequent to transfer, the allowance for

credit losses on the transferred security is evaluated in accordance with the accounting policy for HTM securities. Additionally,

any allowance amounts reversed or established as part of the transfer are presented on a gross basis in the Consolidated Statement

of Income. 

The accrual of interest is generally suspended on securities more than 90 days past due with respect to principal or interest. When

a security is placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and

thus not included in the estimate of credit losses. 

Credit losses and changes thereto, are established as an allowance for credit loss through a provision for credit loss expense. 

Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when

either of the criteria regarding intent or requirement to sell is met.

Certain 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 considers the long history of no credit losses on these

securities indicates that the expectation of nonpayment of the amortized cost basis is 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 not assess or record expected

credit losses due to the zero loss assumption.

Impairment - Available -for-Sale Securities

.

Unrealized gains on AFS securities are excluded from earnings and reported, net of tax, in other comprehensive income. For AFS

securities that are in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely

than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent

or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities

that do not meet the aforementioned criteria or have a zero loss assumption, the Company evaluates whether the decline in fair

value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair

value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically

related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of cash flows to

be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows

expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded

through a provision for credit loss expense, limited by the amount that fair value is less than the amortized cost basis. Any

impairment that is not credit related is recognized in other comprehensive income. 

Allowance for Credit Losses - Held-to-Maturity Securities.

Management measures expected credit losses on each individual HTM debt security that has not been deemed to have a zero

assumption. Each security that is not deemed to have zero credit losses is individually measured based on net realizable value, or

the difference between the discounted value of the expected cash flows, based on the original effective rate, and the recorded

amortized basis of the security. To the extent a shortfall is related to credit loss, an allowance for credit loss is recorded through a

provision for credit loss expense.

Loans Held for Investment

Loans held for investment (“HFI”) are stated at amortized cost which includes the principal amount outstanding, net premiums

and discounts, and net deferred loan fees and costs. Accrued interest receivable on loans is reported in other assets and is not

included in the amortized cost basis of loans. Interest income is accrued on the effective yield method based on outstanding

principal balances and includes loan late fees. Fees charged to originate loans and direct loan origination costs are deferred and

amortized over the life of the loan as a yield adjustment. 

The Company defines loans as past due when one full payment is past due or a contractual maturity is over 30 days late. The

accrual of interest is generally suspended on loans more than 90 days past due with respect to principal or interest. When a loan is

placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and thus a policy

election has been made to not include accrued interest in the estimate of credit losses. Interest income on nonaccrual loans is

recognized when the ultimate collectability is no longer considered 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. 

Loan charge-offs on commercial and investor real estate loans are recorded when the facts and circumstances of the individual

loan confirm the loan is not fully collectible and the loss is reasonably quantifiable. Factors considered in making these

determinations are the borrower’s and any guarantor’s ability and willingness to pay, the status of the account in bankruptcy court

(if applicable), and collateral value. Charge-off decisions for consumer loans are dictated by the Federal Financial Institutions

Examination Council’s Uniform Retail Credit Classification and Account Management Policy which establishes standards for the

classification and treatment of consumer loans, which generally require charge-off after 120 days of delinquency.

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures designed to

maximize loan income within an acceptable level of risk. Reporting systems are used to monitor loan originations, loan ratings,

concentrations, loan delinquencies, nonperforming and potential problem loans, and other credit quality metrics. The ongoing

review of loan portfolio quality and trends by Management and the Credit Risk Oversight Committee support the process for

estimating the allowance for credit losses.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net

amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is

reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the

allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the

aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable

off-balance sheet credit exposures is provided for through the credit loss provision, but recorded separately in other liabilities.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to

past events, current conditions, and reasonable and supportable forecasts. Historical loan default and loss experience provides the

basis for the estimation of expected credit losses. Adjustments to historical loss information incorporate management’s view of

current conditions and forecasts. 

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

Loans That Do Not Share Risk Characteristics (Individually Analyzed)

Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans deemed to be collateral dependent

have differing risk characteristics and are individually analyzed to estimate the expected credit loss. A loan is collateral

dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the liquidation and

sale of the underlying collateral. For collateral dependent loans where foreclosure is probable, the expected credit loss is

measured based on the difference between the fair value of the collateral (less selling cost) and the amortized cost basis of the

asset. For collateral dependent loans where foreclosure is not probable, the Company has elected the practical expedient allowed

by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 326-20 to measure the

expected credit loss under the same approach as those loans where foreclosure is probable. For loans with balances greater than

$250,000, the fair value of the collateral is obtained through independent appraisal of the underlying collateral. For loans with

balances less than $250,000, the Company has made a policy election to measure expected loss for these individual loans utilizing

loss rates for similar loan types. 

Loans That Share Similar Risk Characteristics (Pooled Loans)

The general steps in determining expected credit losses for the pooled loan component of the allowance are as follows:

●

Segment loans into pools according to similar risk characteristics

●

Develop historical loss rates for each loan pool segment

●

Incorporate the impact of forecasts

●

Incorporate the impact of other qualitative factors 

●

Calculate and review pool specific allowance for credit loss estimate

A discounted cash flow methodology is utilized to calculate expected cash flows for the life of each individual loan. The

discounted present value of expected cash flow is then compared to the loan’s amortized cost basis to determine the credit loss

estimate. Individual loan results are aggregated at the pool level in determining total reserves for each loan pool. 

The primary inputs used to calculate expected cash flows include historical loss rates which reflect probability of default (“PD”)

and loss given default (“LGD”), and prepayment rates. The historical look-back period is a key factor in the calculation of the PD

rate and is based on management’s assessment of current and forecasted conditions and may vary by loan pool. Loans subject to

the Company’s risk rating process are further sub-segmented by risk rating in the calculation of PD rates. LGD rates generally

reflect the historical average net loss rate by loan pool. Expected cash flows are further adjusted to incorporate the impact of loan

prepayments which will vary by loan segment and interest rate conditions. In general, prepayment rates are based on observed

prepayment rates occurring in the loan portfolio and consideration of forecasted interest rates.

In developing loss rates, adjustments are made to incorporate the impact of forecasted conditions. Certain assumptions are also

applied, including the length of the forecast and reversion periods. The forecast period is the period within which management is

able to make a reasonable and supportable assessment of future conditions. The reversion period is the period beyond which

management believes it can develop a reasonable and supportable forecast, and bridges the gap between the forecast period and

the use of historical default and loss rates. The remainder period reflects the remaining life of the loan. The length of the forecast

and reversion periods are periodically evaluated and based on management’s assessment of current and forecasted conditions and

may vary by loan pool. For purposes of developing a reasonable and supportable assessment of future conditions, management

utilizes established industry and economic data points and sources, including the Federal Open Market Committee forecast, with

the forecasted unemployment rate being a significant factor. PD rates for the forecast period will be adjusted accordingly based

on management’s assessment of future conditions. PD rates for the remainder period will reflect the historical mean PD rate. 

Reversion period PD rates reflect the difference between forecast and remainder period PD rates calculated using a straight-line

adjustment over the reversion period. 

Loss rates are further adjusted to account for other risk factors that impact loan defaults and losses. These adjustments are based

on management’s assessment of trends and conditions that impact credit risk and resulting credit losses, more specifically internal

and external factors that are independent of and not reflected in the quantitative loss rate calculations. Risk factors management

considers in this assessment include trends in underwriting standards, nature/volume/terms of loan originations, past due loans,

loan review systems, collateral valuations, concentrations, legal/regulatory/political conditions, and the unforeseen impact of

natural disasters.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk through a

contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for

credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense and is recorded in other

liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses

on commitments expected to be funded over its estimated life and applies the same estimated loss rate as determined for current

outstanding loan balances by segment. Off-balance sheet credit exposures are identified and classified in the same categories as

the allowance for credit losses with similar risk characteristics that have been previously mentioned.

Mortgage Banking Activities

Mortgage Loans Held for Sale and Revenue Recognition

Mortgage loans held for sale (“HFS”) are carried at fair value under the fair value option with changes in fair value recorded in

mortgage banking revenues on the Consolidated Statements of Income. The fair value of mortgage loans held for sale committed

to investors is calculated using observable market information such as the investor commitment, assignment of trade or other

mandatory delivery commitment prices. The Company bases loans committed to Federal National Mortgage Association

(“FNMA”), Government National Mortgage Association (“GNMA”), and Federal Home Loan Mortgage Corporation

(“FHLMC”) (“Agency”) investors based on the Agency’s quoted mortgage backed security (“MBS”) prices. The fair value of

mortgage loans held for sale not committed to investors is based on quoted best execution secondary market prices. If no such

quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, such as MBS prices, adjusted for

the specific attributes of that loan, which would be used by other market participants.

Gains and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales

proceeds and carrying value of the related loans upon sale and are recorded in mortgage banking revenues on the Consolidated

Statements of Income. Sales proceeds reflect the cash received from investors through the sale of the loan and servicing release

premium. If the related mortgage loan is sold with servicing retained, the MSR addition is recorded in mortgage banking revenues

on the Consolidated Statements of Income. Mortgage banking revenues also includes the unrealized gains and losses associated

with the changes in the fair value of mortgage loans held for sale, and the realized and unrealized gains and losses from derivative

instruments.

Mortgage loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is

considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the

Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right)

to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets

through either an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before

their maturity or the ability to unilaterally cause the holder to return specific assets. The Company typically considers the above

criteria to have been met upon acceptance and receipt of sales proceeds from the purchaser.

Government National Mortgage Association (“GNMA”) optional repurchase programs allow financial institutions to buy back

individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides

servicing. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan

for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and

Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option

becomes unconditional. When the Company is deemed to have regained effective control over these loans under the

unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the Consolidated

Statement of Financial Condition, regardless of whether there is intent to exercise the buy-back option. These loans are reported

in other assets with the offsetting liability being reported in other liabilities. 

Derivative Instruments (IRLC/Forward Commitments)

The Company holds and issues derivative financial instruments such as interest rate lock commitments (“IRLCs”) and other

forward sale commitments. IRLCs are subject to price risk primarily related to fluctuations in market interest rates. To hedge the

interest rate risk on certain IRLCs, the Company uses forward sale commitments, such as to-be-announced securities (“TBAs”) or

mandatory delivery commitments with investors. Management expects these forward sale commitments to experience changes in

fair value opposite to the changes in fair value of the IRLCs thereby reducing earnings volatility. Forward sale commitments are

also used to hedge the interest rate risk on mortgage loans held for sale that are not committed to investors and still subject to

price risk. If the mandatory delivery commitments are not fulfilled, the Company pays a pair-off fee. Best effort forward sale

commitments are also executed with investors, whereby certain loans are locked with a borrower and simultaneously committed

to an investor at a fixed price. If the best effort IRLC does not fund, there is no obligation to fulfill the investor commitment.

The Company considers various factors and strategies in determining what portion of the IRLCs and uncommitted mortgage loans

held for sale to economically hedge. All derivative instruments are recognized as other assets or other liabilities on the

Consolidated Statements of Financial Condition at their fair value. Changes in the fair value of the derivative instruments are

recognized in mortgage banking revenues on the Consolidated Statements of Income in the period in which they occur. Gains and

losses resulting from the pairing-out of forward sale commitments are recognized in mortgage banking revenues on the

Consolidated Statements of Income. The Company accounts for all derivative instruments as free-standing derivative instruments

and does not designate any for hedge accounting.

Mortgage Servicing Rights (“MSRs”) and Revenue Recognition 

The Company sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Upon

sale, an MSR asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for

performing servicing activities. As the Company has not elected to subsequently measure any class of servicing assets under the

fair value measurement method, the Company follows the amortization method. MSRs are amortized to noninterest income

(other income) in proportion to and over the period of estimated net servicing income, and are assessed for impairment at each

reporting date. MSRs are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair

value, and included in other assets, net, on the Consolidated Statements of Financial Condition. 

The Company periodically evaluates its MSRs asset for impairment. Impairment is assessed based on fair value at each reporting

date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk

characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall,

prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. 

Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally

increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the

amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the

temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-

temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is

recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is

available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and

valuation allowance, precluding subsequent recoveries.

Derivative/Hedging Activities

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s

intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized

asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the

variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument

with no hedging designation (“standalone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the

offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the

gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods

during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are

not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in

current earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest

expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are

reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the

items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management

objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation

includes linking fair value or cash flow hedges to specific assets and liabilities on the Consolidated Statement of Financial

Condition or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s

inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in

fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative

is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or

terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the

derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair

value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability

is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of

the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still

expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the

same periods, in which the hedged transactions will affect earnings.

Long-Lived Assets

Premises and equipment is stated at cost less accumulated depreciation, computed on the straight-line method over the estimated

useful lives for each type of asset with premises being depreciated over a range of

10

 to

40

 years, and equipment being

depreciated over a range of

3

 to

10

 years. Additions, renovations and leasehold improvements to premises are capitalized and

depreciated over the lesser of the useful life or the remaining lease term. Repairs and maintenance are charged to noninterest

expense as incurred.

Long-lived assets are evaluated for impairment if circumstances suggest that their carrying value may not be recoverable, by

comparing the carrying value to estimated undiscounted cash flows. If the asset is deemed impaired, an impairment charge is

recorded equal to the carrying value less the fair value. See Note 6 – Premises and Equipment for additional information.

Leases

The Company has entered into various operating leases, primarily for banking offices. Generally, these leases have initial lease

terms from one to ten years. Many of the leases have one or more lease renewal options. The exercise of lease renewal options is

at the Company’s sole discretion. The Company does not consider exercise of any lease renewal options reasonably certain. 

Certain leases contain early termination options. No renewal options or early termination options have been included in the

calculation of the operating right-of-use assets or operating lease liabilities. Certain lease agreements provide for periodic

adjustments to rental payments for inflation. At the commencement date of the lease, the Company recognizes a lease liability at

the present value of the lease payments not yet paid, discounted using the discount rate for the lease or the Company’s

incremental borrowing rate. As the majority of the Company’s leases do not provide an implicit rate, the Company uses its

incremental borrowing rate at the commencement date in determining the present value of lease payments. The incremental

borrowing rate is based on the term of the lease. At the commencement date, the Company also recognizes a right-of-use asset

measured at (i) the initial measurement of the lease liability; (ii) any lease payments made to the lessor at or before the

commencement date less any lease incentives received; and (iii) any initial direct costs incurred by the lessee. Leases with an

initial term of 12 months or less are not recorded on the Consolidated Statement of Financial Condition. For these short-term

leases, lease expense is recognized on a straight-line basis over the lease term. The Company has no leases classified as finance

leases. See Note 7 – Leases for additional information.

Bank Owned Life Insurance

The Company, through its subsidiary bank, has purchased life insurance policies on certain key officers. Bank owned life

insurance is recorded at the amount that can be realized under the insurance contract at the statement of financial condition date,

which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangibles

Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. In accordance

with FASB ASC Topic 350, the Company determined it has one goodwill reporting unit. Goodwill is tested for impairment

annually during the fourth quarter or on an interim basis if an event occurs or circumstances change that would more likely than

not reduce the fair value of the reporting unit below its carrying value. Other intangible assets relate to customer intangibles

purchased as part of a business acquisition. Intangible assets are tested for impairment at least annually or whenever changes in

circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. See Note 8

– Goodwill and Other Intangibles for additional information

. 

Other Real Estate Owned

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of cost or fair value

less estimated selling costs, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by

management and the assets are carried at the lower of carrying amount or fair value less cost to sell. The valuation of foreclosed

assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Revenue and

expenses from operations and changes in value are included in noninterest expense.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when

the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. See Note 21 – Commitments and

Contingencies for additional information.

Noncontrolling Interest

To the extent the Company’s interest in a consolidated entity represents less than 100% of the entity’s equity, the Company

recognizes noncontrolling interests in subsidiaries. In the case of the CCHL acquisition, the noncontrolling interest represents

equity which is redeemable or convertible for cash at the option of the equity holder and is classified within temporary equity in

the mezzanine section of the Consolidated Statements of Financial Condition. The call/put option is redeemable at the option of

either CCBG (call) or the noncontrolling interest holder (put) on or after January 1, 2025, and therefore, not entirely within

CCBG’s control. The subsidiary’s net income or loss and related dividends are allocated to CCBG and the noncontrolling interest

holder based on their relative ownership percentages. The noncontrolling interest carrying value is adjusted on a quarterly basis

to the higher of the carrying value or current redemption value, at the Statement of Financial Condition date, through a

corresponding adjustment to retained earnings. The redemption value is calculated quarterly and is based on the higher of a

predetermined book value or pre-tax earnings multiple. To the extent the redemption value exceeds the fair value of the

noncontrolling interest, the Company’s earnings per share attributable to common shareowners is adjusted by that amount. The

Company uses an independent valuation expert to assist in estimating the fair value of the noncontrolling interest using: 1) the

discounted cash flow methodology under the income approach, and (2) the guideline public company methodology under the

market approach. The estimated fair value is derived from equally weighting the result of each of the two methodologies. The

estimation of the fair value includes significant assumptions concerning: (1) projected loan volumes; (2) projected pre-tax profit

margins; (3) tax rates and (4) discount rates.

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and

liabilities (excluding deferred tax assets and liabilities related to business combinations or components of other comprehensive

income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying

amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces

deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the

generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. The income tax effects related

to settlements of share-based payment awards are reported in earnings as an increase or decrease in income tax expense. 

The Company files a consolidated federal income tax return and a separate federal tax return for CCHL. Each subsidiary files a

separate state income tax return.

Earnings Per Common Share

Basic earnings per common share is based on net income divided by the weighted -average number of common shares outstanding

during the period excluding non-vested stock. Diluted earnings per common share include the dilutive effect of stock options and

non-vested stock awards granted using the treasury stock method. A reconciliation of the weighted-average shares used in

calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per

common share for the reported periods is provided in Note 16 — Earnings Per Share.

Comprehensive Income

Comprehensive income includes all changes in shareowners’ equity during a period, except those resulting from transactions with

shareowners. Besides net income, other components of the Company’s comprehensive income include the after tax effect of

changes in the net unrealized gain/loss on securities AFS, unrealized gain/loss on cash flow derivatives, and changes in the funded

status of defined benefit and supplemental executive retirement plans. Comprehensive income is reported in the accompanying

Consolidated Statements of Comprehensive Income and Changes in Shareowners’ Equity.

Stock Based Compensation

Compensation cost is recognized for share-based awards issued to employees, based on the fair value of these awards at the date

of grant. Compensation cost is recognized over the requisite service period, generally defined as the vesting period. The market

price of the Company’s common stock at the date of the grant is used for restricted stock awards. For stock purchase plan awards,

a Black-Scholes model is utilized to estimate the fair value of the award. The impact of forfeitures of share-based awards on

compensation expense is recognized as forfeitures occur.

Revenue Recognition

FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information

about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or

services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to

customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or

services recognized as performance obligations are satisfied.

The majority of the Company’s revenue -generating transactions are not subject to ASC 606, including revenue generated from

financial instruments, such as our loans, letters of credit, and investment securities, and revenue related to the sale of residential

mortgages in the secondary market, as these activities are subject to other GAAP discussed elsewhere within our disclosures. The

Company recognizes revenue from these activities as it is earned based on contractual terms, as transactions occur, or as services

are provided and collectability is reasonably assured. Descriptions of the major revenue-generating activities that are within the

scope of ASC 606, which are presented in the accompanying Consolidated Statements of Income as components of non-interest

income are as follows:

Deposit Fees - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and

consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-

based revenue. Revenue is recognized when the Company’s performance obligation is completed which is generally monthly for

account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally

received at the time the performance obligations are satisfied.

Wealth Management - trust fees and retail brokerage fees – trust fees represent monthly fees due from wealth management clients

as consideration for managing the client’s assets. Trust services include custody of assets, investment management, fees for trust

services and similar fiduciary activities. Revenue is recognized when the Company’s performance obligation is completed each

month or quarter, which is the time that payment is received. Also, retail brokerage fees are received from a third-party broker-

dealer, for which the Company acts as an agent, as part of a revenue-sharing agreement for fees earned from customers that are

referred to the third party. These fees are for transactional and advisory services and are paid by the third party on a monthly

basis and recognized ratably throughout the quarter as the Company’s performance obligation is satisfied.

Bank Card Fees – bank card related fees primarily includes interchange income from client use of consumer and business debit

cards. Interchange income is a fee paid by a merchant bank to the card-issuing bank through the interchange network. 

Interchange fees are set by the credit card associations and are based on cardholder purchase volumes. The Company records

interchange income as transactions occur.

Gains and Losses from the Sale of Bank Owned Property – the performance obligation in the sale of other real estate owned

typically will be the delivery of control over the property to the buyer. If the Company is not providing the financing of the sale,

the transaction price is typically identified in the purchase and sale agreement. However, if the Company provides seller

financing, the Company must determine a transaction price, depending on if the sale contract is at market terms and taking into

account the credit risk inherent in the arrangement. 

Insurance Commissions – insurance commissions recorded by the Company are received from various insurance carriers based on

contractual agreements to sell policies to customers on behalf of the carriers. The performance obligation for the Company is to

sell life and health insurance policies to customers. This performance obligation is met when a new policy is sold (effective date)

or when an existing policy renews. New policies and renewals generally have a one-year term. In the agreements with the

insurance carriers, a commission rate is agreed upon. The commission is recognized at the time of the sale of the policy (effective

date) or when a policy renews. Insurance commissions are recorded within other noninterest income. 

Other non-interest income primarily includes items such as mortgage banking fees (gains from the sale of residential mortgage

loans held for sale), bank-owned life insurance, and safe deposit box fees, none of which are subject to the requirements of ASC

606.

The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affects the

determination of the amount and timing of revenue from the above-described contracts with clients.

Recently Adopted Accounting Pronouncements

Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt

Restructurings and Vintage Disclosures”.

The amendments eliminate the accounting guidance for troubled debt restructurings by

creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings

made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross

write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The

amendments in this update are for fiscal years beginning after December 15, 2022, including interim periods within those fiscal

years. The Company adopted ASU 2022-02 using the prospective approach and the adoption of the standard did not have a

material impact on its consolidated financial statements. 

Issued But Not Yet Effective Accounting Standards

ASU No. 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. ASU 2023-01 will be

effective for the Company on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect that ASU

2023-02 will have 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. ASU 2023-02

will be effective for the Company on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect

that ASU 2023-02 will have on its consolidated financial statements and related 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. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to

the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of

that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has

not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment

will be removed from the Codification and will not become effective for any entities. The Company is currently evaluating the

provisions of the amendments and the impact on its future consolidated statements . 

ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.”

ASU 2023-09 is intended to enhance

transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about

income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and income

taxes paid information. Retrospective application in all prior periods is permitted. ASU 2023-09 will be effective for the company

on January 1, 2025. The Company is currently evaluating the impact of the incremental income taxes information that will be

required to be disclosed as well as the impact to Note 13- Income Taxes.

XML

INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2023

Investment Securities [Abstract]

INVESTMENT SECURITIES

Note 2

INVESTMENT SECURITIES

Investment Portfolio Composition

. The following tables summarize the amortized cost and related fair value of investment

securities AFS and securities HTM, the corresponding amounts of gross unrealized gains and losses, and allowance for credit

losses.

Available for Sale

Amortized

Unrealized

Unrealized

Allowance for

Carrying

(Dollars in Thousands)

Cost

Gains

Losses

Credit Losses

Value

December 31, 2023

U.S. Government Treasury

$

25,947

$

1

$

1,269

$

-

$

24,679

U.S. Government Agency

152,983

104

8,053

-

145,034

States and Political Subdivisions

43,951

1

4,861

(8)

39,083

Mortgage-Backed Securities

(1)

73,015

2

9,714

-

63,303

Corporate Debt Securities

63,600

-

6,031

(17)

57,552

Other Securities

(2)

8,251

-

-

-

8,251

Total 

$

367,747

$

108

$

29,928

$

(25)

$

337,902

December 31, 2022

U.S. Government Treasury

$

23,977

$

1

$

1,928

$

-

$

22,050

U.S. Government Agency

198,888

27

12,863

-

186,052

States and Political Subdivisions

47,197

-

6,855

(13)

40,329

Mortgage-Backed Securities

(1)

80,829

2

11,426

-

69,405

Corporate Debt Securities

97,119

19

8,874

(28)

88,236

Other Securities

(2)

7,222

-

-

-

7,222

Total 

$

455,232

$

49

$

41,946

$

(41)

$

413,294

Held to Maturity

Amortized

Unrealized

Unrealized

Fair

(Dollars in Thousands)

Cost

Gains

Losses

Value

December 31, 2023

U.S. Government Treasury

$

457,681

$

-

$

16,492

$

441,189

Mortgage-Backed Securities

167,341

13

16,792

150,562

Total 

$

625,022

$

13

$

33,284

$

591,751

December 31, 2022

U.S. Government Treasury

$

457,374

$

-

$

25,641

$

431,733

Mortgage-Backed Securities

203,370

8

22,410

180,968

Total 

$

660,744

$

8

$

48,051

$

612,701

(1)

Comprised of residential mortgage-backed securities.

(2)

Includes Federal Home Loan Bank and Federal Reserve Bank recorded at cost of $

3.2

 million and $

5.1

 million, respectively, at

December 31, 2023 and of $

2.1

 million and $

5.1

 million, respectively, at December 31, 2022.

At December 31, 2023, and 2022, the investment portfolio had $

3.5

 million and $

0.01

 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 $

578.5

 million and $

656.1

 million at December 31, 2023 and 2022, respectively, were

pledged to secure public deposits and for other purposes.

At December 31, 2023 and 2022, there were

no

 holdings of securities of any one issuer, other than the U.S. Government and its

agencies, in an amount greater than 10% of shareowners’ equity.

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.

During the third quarter of 2022, the Company transferred certain securities from the AFS to HTM classification. Transfers are

made at fair value on the date of the transfer. The

33

 securities had an amortized cost basis and fair value of $

168.4

 million and

$

159.0

 million, respectively at the time of the transfer. The net unamortized, unrealized loss on the transferred securities included

in accumulated other comprehensive loss in the accompanying Consolidated Statement of Financial Condition totaled $

4.5

million and $

7.9

 million at December 31, 2023 and 2022, respectively. This amount will be amortized out of accumulated other

comprehensive loss over the remaining life of the underlying securities as an adjustment of the yield on those securities.

Investment Sales

. During 2023, the Company sold $

30.4

 million of investment securities. There were no significant sales of

investment securities during 2022 and 2021.

Maturity Distribution

. The following table shows the Company’s AFS and HTM investment securities maturity distribution

based on contractual maturity at December 31, 2023. Expected maturities may differ from contractual maturities because

borrowers may have the right to call or prepay obligations. Mortgage-backed securities and certain amortizing U.S. government

agency securities are shown separately since they are not due at a certain maturity date. Equity securities do not have a

contractual maturity date.

Available for Sale

Held to Maturity

Amortized

Fair

Amortized

Fair

(Dollars in Thousands)

Cost

Value

Cost

Value

Due in one year or less

$

28,545

$

27,854

$

90,119

$

88,588

Due after one through five years

138,299

127,843

367,562

352,601

Due after five through ten years

39,090

33,420

-

-

Mortgage-Backed Securities

73,015

63,303

167,341

150,562

U.S. Government Agency

80,547

77,231

-

-

Other Securities

8,251

8,251

-

-

Total 

$

367,747

$

337,902

$

625,022

$

591,751

Unrealized Losses

. The following table summarizes the investment securities with unrealized losses at December 31, aggregated

by major security type and length of time in a continuous unrealized loss position:

Less Than 12 Months

Greater Than 12 Months

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in Thousands)

Value

Losses

Value

Losses

Value

Losses

December 31, 2023

Available for Sale

U.S. Government Treasury

$

-

$

-

$

19,751

$

1,269

$

19,751

$

1,269

U.S. Government Agency

12,890

74

121,220

7,979

134,110

8,053

States and Political Subdivisions

1,149

31

37,785

4,830

38,934

4,861

Mortgage-Backed Securities

23

-

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

14

148,282

16,778

149,068

16,792

Total 

$

154,666

$

3,192

$

435,592

$

30,092

$

590,258

$

33,284

December 31, 2022

Available for Sale 

U.S. Government Treasury

$

983

$

-

$

19,189

$

1,928

$

20,172

$

1,928

U.S. Government Agency

63,112

2,572

113,004

10,291

176,116

12,863

States and Political Subdivisions

1,425

2

38,760

6,853

40,185

6,855

Mortgage-Backed Securities

6,594

959

60,458

10,467

67,052

11,426

Equity Securities

26,959

878

58,601

7,996

85,560

8,874

Total 

99,073

4,411

290,012

37,535

389,085

41,946

Held to Maturity

U.S. Government Treasury

177,552

11,018

254,181

14,623

431,733

25,641

Mortgage-Backed Securities

88,723

6,814

91,462

15,596

180,185

22,410

Total 

$

266,275

$

17,832

$

345,643

$

30,219

$

611,918

$

48,051

At December 31, 2023, there were

878

 positions (combined AFS and HTM securities) with pre-tax unrealized losses totaling

$

63.2

 million. At December 31, 2022 there were

928

 positions (combined AFS and HTM securities) with pre-tax unrealized

losses totaling $

90.0

 million. For 2023,

86

 of these of these positions were U.S. Treasury bonds and carry the full faith and credit

of the U.S. Government. 

691

 of these positions were U.S. government agency and mortgage-backed 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

zero

. The remaining

101

 positions (municipal securities and corporate

bonds) have a credit component. At December 31, 2023, all collateralized mortgage obligation securities (“CMO”), MBS, Small

Business Administration securities (“SBA”), U.S. Agency, and U.S. Treasury bonds held were AAA rated. At December 31,

2023, corporate debt securities had an allowance for credit losses of $

17,000

 and municipal securities had an allowance $

8,000

. 

No

ne of the securities held by the Company were past due or in nonaccrual status at December 31, 2023.

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 large portion 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

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

no

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.

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2023

Loans Held for Investment and Allowance for Credit Losses [Abstract]

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES

Note 3

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES

Loan Portfolio Composition

. The composition of the HFI loan portfolio at December 31 was as follows:

(Dollars in Thousands)

2023

2022

Commercial, Financial and Agricultural

$

225,190

$

247,362

Real Estate – Construction

196,091

234,519

Real Estate – Commercial Mortgage

825,456

782,557

Real Estate – Residential

(1)

1,004,219

749,513

Real Estate – Home Equity

210,920

208,217

Consumer

(2)

272,042

325,517

Loans Held for Investment, Net of Unearned Income

$

2,733,918

$

2,547,685

(1) 

Includes loans in process with outstanding balances of $

3.2

 million and $

6.1

 million for 2023 and 2022, respectively.

(2)

 Includes overdraft balances of $

1

.0 million and $

1.1

 million for December 31, 2023 and 2022, respectively.

Net deferred costs, which include premiums on purchased loans, included in loans were $

7.8

 million at December 31, 2023 and

$

5.1

 million at December 31, 2022. 

Accrued interest receivable on loans which is excluded from amortized cost totaled $

10.1

 million at December 31, 2023 and $

8.0

million at December 31, 2022, and is reported separately in Other Assets. 

The Company has pledged a floating lien on certain 1-4 family residential mortgage loans, commercial real estate mortgage loans,

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

. The Company will purchase newly originated 1-4 family real estate secured adjustable-rate loans

from CCHL, a related party effective on March 1, 2020 (see Note 1 – Significant Accounting Policies). These loan purchases

totaled $

364.8

 million and $

421.7

 million for the years ended December 31, 2023 and 2022, respectively, and were not credit

impaired. In addition, the Company purchased commercial real estate loans that were not credit impaired from a third party

totaling $

15.0

 million for the year ended December 31, 2022.

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 methodology is discussed further in Note 1 – Significant

Accounting Policies. 

The following table details the activity in the allowance for credit losses by portfolio segment for the years ended December 31. 

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

Real Estate

(Dollars in Thousands)

Agricultural

Construction

Mortgage

Residential

Home Equity

Consumer

Total

2023

Beginning Balance

$

1,506

$

2,654

$

4,815

$

10,741

$

1,864

$

3,488

$

25,068

 Provision for Credit Losses

210

(154)

1,035

4,141

(233)

4,596

9,595

 Charge-Offs

(511)

-

(120)

(79)

(39)

(8,543)

(9,292)

 Recoveries 

277

2

52

253

226

3,760

4,570

 Net (Charge-Offs) Recoveries

(234)

2

(68)

174

187

(4,783)

(4,722)

Ending Balance

$

1,482

$

2,502

$

5,782

$

15,056

$

1,818

$

3,301

$

29,941

2022

Beginning Balance

$

2,191

$

3,302

$

5,810

$

4,129

$

2,296

$

3,878

$

21,606

 Provision for Credit Losses

316

(658)

(746)

6,328

(422)

2,579

7,397

 Charge-Offs

(1,308)

-

(355)

-

(193)

(6,050)

(7,906)

 Recoveries

307

10

106

284

183

3,081

3,971

 Net (Charge-Offs) Recoveries

(1,001)

10

(249)

284

(10)

(2,969)

(3,935)

Ending Balance

$

1,506

$

2,654

$

4,815

$

10,741

$

1,864

$

3,488

$

25,068

2021

Beginning Balance

$

2,204

$

2,479

$

7,029

$

5,440

$

3,111

$

3,553

$

23,816

 Provision for Credit Losses

(227)

813

(1,679)

(1,956)

(1,125)

1,332

(2,842)

 Charge-Offs

(239)

-

(405)

(108)

(103)

(3,972)

(4,827)

 Recoveries

453

10

865

753

413

2,965

5,459

 Net (Charge-Offs) Recoveries

214

10

460

645

310

(1,007)

632

Ending Balance

$

2,191

$

3,302

$

5,810

$

4,129

$

2,296

$

3,878

$

21,606

The $

4.9

 million increase in the allowance for credit losses in 2023 reflected a credit loss provision of $

9.6

 million and net loan

charge-offs of $

4.7

 million. The $

3.5

 million increase in the allowance in 2022 reflected a credit loss provision of $

7.4

 million

and net loan charge-offs of $

3.9

 million. The increases in the allowance for both 2023 and 2022 were primarily attributable to

incremental allowance related to loan growth, primarily residential real estate, and slower prepayment speeds (due to higher

interest rates). For 2022, a higher projected rate of unemployment and its effect on rates of default was also a contributing factor. 

Four unemployment rate forecast scenarios continue to be utilized to estimate probability of default and are weighted based on

management’s estimate of probability. See Note 1 – Significant accounting policies for more on the calculation of the provision

for credit losses. See Note 21 – Commitments and Contingencies for information on the provision for credit losses related to off-

balance sheet 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 at December 31,

30-59 

60-89 

90 + 

Total

Total

Nonaccrual

Total

(Dollars in Thousands)

DPD

DPD

DPD

Past Due

Current

Loans

Loans

2023

Commercial, Financial and Agricultural

$

311

$

105

$

-

$

416

$

224,463

$

311

$

225,190

Real Estate – Construction

206

-

-

206

195,563

322

196,091

Real Estate – Commercial Mortgage

794

-

-

794

823,753

909

825,456

Real Estate – Residential

670

34

-

704

1,000,525

2,990

1,004,219

Real Estate – Home Equity

268

-

-

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

2022

Commercial, Financial and Agricultural

$

109

$

126

$

-

$

235

$

247,086

$

41

$

247,362

Real Estate – Construction

359

-

-

359

234,143

17

234,519

Real Estate – Commercial Mortgage

158

149

-

307

781,605

645

782,557

Real Estate – Residential

845

530

-

1,375

747,899

239

749,513

Real Estate – Home Equity

-

35

-

35

207,411

771

208,217

Consumer

3,666

1,852

-

5,518

319,415

584

325,517

Total

$

5,137

$

2,692

$

-

$

7,829

$

2,537,559

$

2,297

$

2,547,685

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 Company did not recognize a significant amount of interest income on nonaccrual loans for the years ended December 31,

2023 and 2022. 

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.

2023

2022

Nonaccrual

Nonaccrual

90 + Days

Nonaccrual

Nonaccrual

90 + Days

With No

With

Still

With No

With

Still

(Dollars in Thousands)

ACL

ACL

Accruing

ACL

ACL

Accruing

Commercial, Financial and Agricultural

$

-

$

311

$

-

$

-

$

41

$

-

Real Estate – Construction

-

322

-

-

17

-

Real Estate – Commercial Mortgage

781

128

-

389

256

-

Real Estate – Residential

1,705

1,285

-

-

239

-

Real Estate – Home Equity

-

999

-

-

771

-

Consumer

-

711

-

-

584

-

Total Nonaccrual Loans

$

2,486

$

3,756

$

-

$

389

$

1,908

$

-

Collateral Dependent Loans

. The following table presents the amortized cost basis of collateral dependent loans at December 31:

2023

2022

Real Estate

Non Real Estate

Real Estate

Non Real Estate

(Dollars in Thousands)

Secured

Secured

Secured

Secured

Commercial, Financial and Agricultural

$

-

$

30

$

-

$

-

Real Estate – Construction

275

-

-

-

Real Estate – Commercial Mortgage

1,296

-

389

-

Real Estate – Residential

1,706

-

160

-

Real Estate – Home Equity

-

-

130

-

Consumer

-

-

21

-

Total

$

3,277

$

30

$

700

$

-

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 December 31, 2023 and 2022, the Company had $

0.5

 million and

$

0.6

 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 December 31, 2023, the Company did

no

t maintain any 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 of the

Company (the “Board”) 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 loan

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, or 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 consist 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, 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 category includes personal installment loans, direct and indirect automobile financing, and overdraft

lines of credit. The majority of the consumer loan category consists of indirect and direct 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 table summarizes gross loans held for investment at 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).

Term Loans by Origination Year

Revolving

(Dollars in Thousands)

2023

2022

2021

2020

2019

Prior

Loans

Total

Commercial, Financial,

Agricultural:

Pass

$

57,320

$

66,671

$

28,933

$

10,610

$

7,758

$

7,502

$

44,350

$

223,144

Special Mention

168

608

356

10

9

-

76

1,227

Substandard

164

177

98

77

20

122

161

819

Total

$

57,652

$

67,456

$

29,387

$

10,697

$

7,787

$

7,624

$

44,587

$

225,190

Current-Period Gross

Writeoffs

$

6

$

252

$

65

$

31

$

41

$

19

$

97

$

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

-

47

576

651

-

-

-

1,274

Total

$

102,315

$

68,812

$

19,296

$

863

$

188

$

-

$

4,617

$

196,091

Current-Period Gross

Writeoffs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

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

$

-

$

120

Real Estate - Residential:

Pass

$

372,394

$

400,437

$

83,108

$

35,879

$

24,848

$

68,685

$

8,252

$

993,603

Special Mention

268

89

83

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

$

-

$

-

$

79

$

-

$

-

$

-

$

-

$

79

Real Estate - Home

Equity:

Performing

$

890

$

48

$

127

$

11

$

386

$

950

$

207,509

$

209,921

Nonperforming

-

-

-

-

-

-

999

999

Total 

$

890

48

127

11

386

950

208,508

210,920

Current-Period Gross

Writeoffs

$

-

$

-

$

-

$

-

$

-

$

-

$

39

$

39

Consumer:

Performing

$

68,496

$

90,031

$

70,882

$

21,314

$

10,210

$

4,258

$

5,431

$

270,622

Nonperforming

293

355

58

4

-

-

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

$

99

$

162

$

8,543

XML

MORTGAGE BANKING ACTIVITIES

12 Months Ended

Dec. 31, 2023

Mortgage Banking Activities [Abstract]

Mortgage Banking Activities

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

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.

December 31, 2023

December 31, 2022

Unpaid Principal

Unpaid Principal

(Dollars in Thousands)

Balance/Notional

Fair Value

Balance/Notional

Fair Value

Residential Mortgage Loans Held for Sale

$

27,944

$

28,211

$

26,274

$

26,909

Residential Mortgage Loan Commitments

(1)

23,545

523

36,535

819

Forward Sales Contracts

(2)

24,500

209

15,500

187

$

28,943

$

27,915

(1)

Recorded in other assets at fair value

(2)

Recorded in other assets and (other liabilities) at fair value

At December 31, 2023, the Company had

no

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

0.7

 million of

loans were on nonaccrual status. At December 31, 2022, the Company had $

0.6

 million residential mortgage loans held for sale

30-89 days past due and $

0.1

 million of loans were on nonaccrual status. 

Mortgage banking revenues for the year ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

Net realized gain on sales of mortgage loans

$

5,297

$

5,565

$

49,355

Net change in unrealized gain on mortgage loans held for sale

(252)

(1,164)

(2,410)

Net change in the fair value of mortgage loan commitments

(296)

(439)

(3,567)

Net change in the fair value of forward sales contracts

(395)

192

900

Pair-Offs on net settlement of forward sales contracts

367

4,956

2,956

Mortgage servicing rights additions

651

565

1,416

Net origination fees

5,028

2,234

3,775

Total mortgage banking revenues

$

10,400

$

11,909

$

52,425

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)

2023

2022

Number of residential mortgage loans serviced for others

450

1,769

Outstanding principal balance of residential mortgage loans serviced for others

$

108,897

$

410,470

Weighted average interest rate

5.37%

3.62%

Remaining contractual term (in months)

309

298

Conforming conventional loans serviced by the Company are sold to the 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 GNMA, whereby the Company is insured against loss by the Federal

Housing Administration or partially guaranteed against loss by the Veterans Administration. At December 31, 2023, the

servicing portfolio balance consisted of the following loan types: FNMA (

53.3

%), GNMA (

4.7

%), and private investor (

42.0

%). 

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

At December 31, 2023 the Company did

no

t have delinquent residential mortgage loans currently in GNMA pools serviced by the

Company and had $

0.3

 million at December 31, 2022. The right to repurchase these loans and the corresponding liability has

been recorded in other assets and other liabilities, respectively, in the Consolidated Statements of Financial Condition. During the

years ended December 31, 2023 and 2022, respectively, the Company repurchased $

0.3

 million and $

1.7

 million of GNMA

delinquent or defaulted mortgage loans with the intention to modify their terms and include the loans in new GNMA pools. 

Activity in the capitalized mortgage servicing rights for the year ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

Beginning balance

$

2,599

$

3,774

$

3,452

Additions due to loans sold with servicing retained

651

565

1,416

Deletions and amortization

(232)

(1,291)

(1,344)

Valuation Allowance reversal

-

-

250

Sale of Servicing Rights

(1)

(2,187)

(449)

-

Ending balance

$

831

$

2,599

$

3,774

(1)

In 2023, the Company sold an MSR portfolio with an unpaid principal balance of $

334

 million for a sales price of $

4.0

 million,

 recognizing a $

1.38

 million gain on sale, recorded in other noninterest income on the Consolidated Statement of Income.

In 2022, the Company sold an MSR portfolio with an unpaid principal balance of $

50

 million for a sales price of $

0.6

 million,

 recognizing a $

0.2

 million gain on sale, recorded in other noninterest income on the Consolidated Statement of Income.

The Company did

no

t record any permanent impairment losses on mortgage servicing rights for the years ended December 31,

2023 and 2022. 

The key unobservable inputs used in determining the fair value of the Company’s mortgage servicing rights at December 31, was

as follows:

2023

2022

Minimum

Maximum

Minimum

Maximum

Discount rates

9.50%

12.00%

9.50%

12.00%

Annual prepayment speeds

11.23%

17.79%

12.33%

20.23%

Cost of servicing (per loan)

$

85

95

$

85

95

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

14.22

% at December 31, 2023 and

13.42

% at December 31, 2022. 

Warehouse Line Borrowings

The Company has the following warehouse lines of credit and master repurchase agreements with various financial institutions at

December 31, 2023.

Amounts

(Dollars in Thousands)

Outstanding

$

25

 million master repurchase agreement without defined expiration. Interest is at the SOFR rate plus

2.00%

 to

plus

3.00%

, with a floor rate of

3.25%

 to

4.25%

. A cash pledge deposit of $

0.1

 million is required by the

lender.

$

192

$

60

 million warehouse line of credit agreement expiring in

December 2024

. Interest is at the SOFR plus

2.75%

to

3.25%

.

8,192

$

8,384

Warehouse line borrowings are classified as short-term borrowings. At December 31, 2022, warehouse line borrowings totaled

$

50.2

 million. At December 31, 2023, the Company had mortgage loans held for sale and construction permanent loans 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 December 31, 2023. 

The Company intends to renew the warehouse lines of credit and master repurchase agreements when they mature.

The Company has extended a $

50

 million warehouse line of credit to CCHL. 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 at December 31, 2023 and December 31,

2022 was $

31.4

 million and $

22.9

 million, respectively.

XML

DERIVATIVES

12 Months Ended

Dec. 31, 2023

Derivatives [Abstract]

Derivatives

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 $

30

 million at December 31, 2023 and 2022 were designated 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 loss (“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 loss 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)

Interest rate swaps related to subordinated debt:

December 31, 2023

Other Assets

$

30,000

$

5,317

6.5

December 31, 2022

Other Assets

$

30,000

$

6,195

7.5

The following table presents the net gains (losses) recorded in AOCI and the Consolidated Statement of Income related to the

cash flow derivative instruments (interest rate swaps related to subordinated debt).

Amount of Gain

Amount of Gain

(Loss) Recognized

(Loss) Reclassified

(Dollars in Thousands)

Category

in AOCI

from AOCI to Income

December 31, 2023

Interest Expense

$

3,969

$

1,395

December 31, 2022

Interest Expense

$

4,625

$

337

December 31, 2021

Interest Expense

$

1,530

$

(151)

The Company estimates there will be approximately $

1.3

 million reclassified as a decrease to interest expense within the next 12

months.

At December 31, 2023 and 2022, the Company had a collateral liability of $

5.5

 million and $

5.8

 million, respectively.

XML

PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2023

Premises and equipment [Abstract]

PREMISES AND EQUIPMENT

Note 6

PREMISES AND EQUIPMENT

The composition of the Company’s premises and equipment at December 31 was as follows:

(Dollars in Thousands)

2023

2022

Land

$

22,393

$

22,847

Buildings

110,472

109,849

Fixtures and Equipment

61,051

59,627

Total Premises and Equipment

193,916

192,323

Accumulated Depreciation

(112,650)

(110,185)

Premises and Equipment, Net

$

81,266

$

82,138

Depreciation expense for the above premises and equipment was approximately $

7.9

. million, $

7.6

 million, and $

7.6

 million in

2023, 2022, and 2021, respectively

XML

LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Note 7

LEASES

Operating leases in which the Company is the lessee are recorded as operating lease right of use (“ROU”) assets and operating

liabilities, included in

other assets

 and

liabilities

, respectively, on its Consolidated Statement of Financial Condition. 

Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease

liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease

liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate

that represents the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is

comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a

straight-line basis over the lease term, and is recorded in occupancy expense in the Consolidated Statement of Income. 

The Company’s operating leases primarily relate to banking offices with remaining lease terms from

one

 to

forty-two years

. The

Company’s leases are not complex and do not contain residual value guarantees, variable lease payments, or significant

assumptions or judgments made in applying the requirements of ASC Topic 842. Operating leases with an initial term of 12

months or less are not recorded on the Consolidated Statement of Financial Condition and the related lease expense is recognized

on a straight-line basis over the lease term. At December 31, 2023, ROU assets and liabilities were $

27.0

 million and $

27.4

million, respectively. At December 31, 2022, the operating lease ROU assets and liabilities were $

22.3

 million and $

22.7

 million,

respectively. The Company does not have any finance leases or any significant lessor agreements.

The table below summarizes our lease expense and other information at December 31, related to the Company’s operating leases:

(Dollars in Thousands)

2023

2022

2021

Operating lease expense

$

2,919

$

1,719

$

1,445

Short-term lease expense

622

658

663

Total lease expense

$

3,541

$

2,377

$

2,108

Other information:

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

2,847

$

1,937

$

1,609

Right-of-use assets obtained in exchange for new operating lease liabilities

6,748

12,475

784

Weighted-average remaining lease term — operating leases (in years)

16.9

19.5

25.3

Weighted-average discount rate — operating leases

3.5

%

3.1

%

2.0

%

The table below summarizes the maturity of remaining lease liabilities:

(Dollars in Thousands)

December 31, 2023

2024

$

3,127

2025

3,105

2026

2,966

2027

2,888

2028

2,611

2028 and thereafter

20,670

Total

$

35,367

Less: Interest

(7,976)

Present Value of Lease Liability

$

27,391

A related party is the lessor in an operating lease with the Company. The terms of this lease agreement are further described in

Note 19 – Related Party Transactions.

XML

GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Dec. 31, 2023

Goodwill And Other Intangibles [Abstract]

GOODWILL AND OTHER INTANGIBLES

Note 8

GOODWILL AND OTHER INTANGIBLES

At December 31, 2023 and 2022, the Company had goodwill of $

91.8

 million. Goodwill is tested for impairment on an annual

basis, or more often if impairment indicators exist. Testing allows for a qualitative assessment of goodwill impairment indicators. 

If the assessment indicates that impairment has more than likely occurred, the Company must compare the estimated fair value of

the reporting unit to its carrying amount. If the carrying amount of the reporting unit exceeds its estimated fair value, an

impairment charge is recorded equal to the excess.

On April 30, 2021, CCSW acquired substantially all of the assets of Strategic Wealth Group, LLC (“SWG”), including advisory,

service, and insurance carrier agreements, and the assignment of all related revenues thereof. Under the terms of the purchase

agreement, SWG principles became officers of CCSW and will continue the operation of their

five

 offices in South Georgia

offering wealth management services and comprehensive risk management and asset protection services for individuals and

businesses.

CCBG paid $

4.5

 million in cash consideration and recorded goodwill of $

2.8

 million and a customer relationship

intangible asset (

10 year

 life) of $

1.6

 million. Amortization expense related to the customer relationship intangible totaled $

0.2

million in each of 2023 and 2022. The intangible asset balance as of December 31, 2023 and December 31, 2022 was $

1.2

million and $

1.3

 million, respectively. The estimated amortization expense for each of the eight succeeding fiscal years is $

0.2

million per year.

During the fourth quarter of 2023, the Company performed its annual goodwill impairment testing and determined that

no

goodwill impairment existed at December 31, 2023 and

no

 goodwill impairment existed at December 31, 2022. The Company

will continue to evaluate goodwill for impairment as defined by ASC Topic 350.

XML

OTHER REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2023

Other Real Estate Owned [Abstract]

OTHER REAL ESTATE OWNED

Note 9

OTHER REAL ESTATE OWNED

The following table presents other real estate owned activity at December 31,

(Dollars in Thousands)

2023

2022

2021

Beginning Balance

$

431

$

17

$

808

Additions

1,512

2,398

1,717

Valuation Write-Downs

(16)

(11)

(31)

Sales

(1,926)

(1,973)

(2,809)

Other

-

-

332

Ending Balance

$

1

$

431

$

17

Net expenses applicable to other real estate owned for the three years ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

Gains from the Sale of Properties

$

(2,072)

$

(480)

$

(1,711)

Losses from the Sale of Properties

3

47

18

Rental Income from Properties

-

(21)

-

Property Carrying Costs

84

106

174

Valuation Adjustments

16

11

31

Total

$

(1,969)

$

(337)

$

(1,488)

XML

DEPOSITS

12 Months Ended

Dec. 31, 2023

Deposits [Abstract]

DEPOSITS

Note 10

DEPOSITS

The composition of the Company’s interest bearing deposits at December 31 was as follows:

(Dollars in Thousands)

2023

2022

NOW Accounts

$

1,327,420

$

1,290,494

Money Market Accounts

319,319

267,383

Savings Deposits

547,634

637,374

Time Deposits

129,515

90,446

Total Interest Bearing Deposits

$

2,323,888

$

2,285,697

At December 31, 2023 and 2022, $

1.0

 million and $

1.1

 million in overdrawn deposit accounts were reclassified as loans,

respectively.

The amount of time deposits that meet or exceed the FDIC insurance limit of $250,000 totaled $

14.7

 million and $

11.1

 million at

December 31, 2023 and 2022, respectively.

At December 31, the scheduled maturities of time deposits were as follows:

(Dollars in Thousands)

2023

2024

$

112,448

2025

7,349

2026

3,554

2027

4,211

2028

1,953

Total

$

129,515

Interest expense on deposits for the three years ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

NOW Accounts

$

12,375

$

2,800

$

294

Money Market Accounts

3,670

203

134

Savings Deposits

598

309

263

Time Deposits < $250,000

117

129

145

Time Deposits > $250,000

822

3

3

Total Interest Expense

$

17,582

$

3,444

$

839

XML

SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2023

Short Term Borrowings [Abstract]

SHORT-TERM BORROWINGS

Note 11

SHORT-TERM BORROWINGS

Short-term borrowings included the following:

(Dollars in Thousands)

Federal Funds

Purchased

Securities 

Sold Under

Repurchase

Agreements

(1)

Other 

Short-Term

Borrowings

(2)

2023

Balance at December 31

$

-

$

26,957

$

8,384

Maximum indebtedness at any month end

-

32,426

42,345

Daily average indebtedness outstanding

12

19,917

24,134

Average rate paid for the year

7.03

%

2.57

%

6.37

%

Average rate paid on period-end borrowings

-

%

2.81

%

9.51

%

2022

Balance at December 31

$

-

$

6,582

$

50,211

Maximum indebtedness at any month end

-

9,452

50,211

Daily average indebtedness outstanding

2

8,095

32,386

Average rate paid for the year

3.39

%

0.17

%

5.40

%

Average rate paid on period-end borrowings

-

%

0.40

%

7.61

%

2021

Balance at December 31

$

-

$

4,955

$

29,602

Maximum indebtedness at any month end

-

6,755

58,309

Daily average indebtedness outstanding

2

5,762

47,748

Average rate paid for the year

2.39

%

0.04

%

2.84

%

Average rate paid on period-end borrowings

-

%

0.04

%

2.36

%

(1)

Balances are fully collateralized by government treasury or agency securities held in the Company's investment portfolio.

(2)

Comprised of warehouse lines of credit totaling $

8.4

 million at December 31, 2023.

XML

LONG-TERM BORROWINGS

12 Months Ended

Dec. 31, 2023

Long-term Borrowings [Abstract]

LONG-TERM BORROWINGS

Note 12

LONG-TERM BORROWINGS

Federal Home Loan Bank Advances. 

The Company had one FHLB long-term advance totaling $

0.3

 million at December 31,

2023. 

The advance matures in 2025 and has a rate of 4.80%. The Company had one FHLB long-term advance totaling $0.5

million at December 31, 2022 with a weighted-average rate of 4.80%.

 The FHLB advances are collateralized by a floating lien on

certain 1-4 family residential mortgage loans, commercial real estate mortgage loans, and home equity mortgage loans. Interest

on the FHLB advances is paid on a monthly basis.

Scheduled minimum future principal payments on our other long-term borrowings at December 31 were as follows:

(Dollars in Thousands)

2023

2024

$

198

2025

116

Total

$

314

Junior Subordinated Deferrable Interest Notes. 

The Company has issued

two

 junior subordinated deferrable interest notes to

wholly owned Delaware statutory trusts. The first note for $

30.9

 million was issued to CCBG Capital Trust I. The second note

for $

32.0

 million was issued to CCBG Capital Trust II. The

two

 trusts are considered variable interest entities for which the

Company is not the primary beneficiary. Accordingly, the accounts of the trusts are not included in the Company’s consolidated

financial statements. See Note 1 - Significant Accounting Policies for additional information about the Company’s consolidation

policy. Details of the Company’s transaction with the two trusts are provided below.

In November 2004, CCBG Capital Trust I issued $

30.0

 million of trust preferred securities which represent interest in the assets

of the trust. The interest payments are due quarterly and adjust quarterly to a variable rate of 

3-month CME Term SOFR

 plus a

margin of

1.90

%. The trust preferred securities will mature on

December 31, 2034

, and are redeemable upon approval of the

Federal Reserve in whole or in part at the option of the Company at any time after December 31, 2009 and in whole at any time

upon occurrence of certain events affecting their tax or regulatory capital treatment. Distributions on the trust preferred securities

are payable quarterly on March 31, June 30, September 30, and December 31 of each year. CCBG Capital Trust I also issued

$

0.9

 million of common equity securities to CCBG. The proceeds of the offering of trust preferred securities and common equity

securities were used to purchase a $

30.9

 million junior subordinated deferrable interest note issued by the Company, which has

terms similar to the trust preferred securities. On April 12, 2016, the Company retired $

10

 million in face value of trust preferred

securities that were auctioned as part of a liquidation of a pooled collateralized debt obligation fund. The trust preferred securities

were originally issued through CCBG Capital Trust I.

In May 2005, CCBG Capital Trust II issued $

31.0

 million of trust preferred securities which represent interest in the assets of the

trust. The interest payments are due quarterly and adjust quarterly to a variable rate of

3-month CME Term SOFR

 plus a margin

of

1.80

%. The trust preferred securities will mature on

June 15, 2035

, and are redeemable upon approval of the Federal

Reserve in whole or in part at the option of the Company and in whole at any time upon occurrence of certain events affecting

their tax or regulatory capital treatment. Distributions on the trust preferred securities are payable quarterly on March 15, June

15, September 15, and December 15 of each year. CCBG Capital Trust II also issued $

0.9

 million of common equity securities to

CCBG. The proceeds of the offering of trust preferred securities and common equity securities were used to purchase a $

32.0

million junior subordinated deferrable interest note issued by the Company, which has terms substantially similar to the trust

preferred securities. 

The Company has the right to defer payments of interest on the two notes at any time or from time to time for a period of up to

twenty consecutive quarterly interest payment periods. Under the terms of each note, in the event that under certain

circumstances there is an event of default under the note or the Company has elected to defer interest on the note, the Company

may not, with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of

its capital stock. At December 31, 2023, the Company has paid all interest payments in full. 

The Company has entered into agreements to guarantee the payments of distributions on the trust preferred securities and

payments of redemption of the trust preferred securities. Under these agreements, the Company also agrees, on a subordinated

basis, to pay expenses and liabilities of the two trusts other than those arising under the trust preferred securities. The obligations

of the Company under the two junior subordinated notes, the trust agreements establishing the two trusts, the guarantee and

agreement as to expenses and liabilities, in aggregate, constitute a full and unconditional guarantee by the Company of the two

trusts’ obligations under the two trust preferred security issuances.

Despite the fact that the accounts of CCBG Capital Trust I and CCBG Capital Trust II are not included in the Company’s

consolidated financial statements, the $

20.0

 million and $

31.0

 million, respectively, in trust preferred securities issued by these

subsidiary trusts are included in the Tier 1 Capital of Capital City Bank Group, Inc. as allowed by Federal Reserve guidelines.

XML

INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax [Abstract]

INCOME TAXES

Note 13 

INCOME TAXES

The provision for income taxes reflected in the Consolidated Statements of Comprehensive Income is comprised of the following

components:

(Dollars in Thousands)

2023

2022

2021

Current:

Federal

$

11,630

$

10,646

$

12,039

State

1,893

1,022

1,044

13,523

11,668

13,083

Deferred:

Federal

(391)

(2,994)

(3,246)

State

(351)

(899)

(10)

Change in Valuation Allowance

259

23

8

(483)

(3,870)

(3,248)

Total:

Federal

11,239

7,652

8,793

State

1,542

123

1,034

Change in Valuation Allowance

259

23

8

Total

$

13,040

$

7,798

$

9,835

Income taxes provided were different than the tax expense computed by applying the statutory federal income tax rate of

21

% to

pre-tax income as a result of the following:

(Dollars in Thousands)

2023

2022

2021

Tax Expense at Federal Statutory Rate

$

13,411

$

8,625

$

10,385

Increases (Decreases) Resulting From:

Tax-Exempt Interest Income

(259)

(248)

(271)

State Taxes, Net of Federal Benefit

1,218

94

819

Other

(1,695)

(546)

375

Change in Valuation Allowance

259

23

8

Tax-Exempt Cash Surrender Value Life Insurance Benefit

(187)

(175)

(173)

Noncontrolling Interest

293

25

(1,308)

Actual Tax Expense

$

13,040

$

7,798

$

9,835

Deferred income tax liabilities and assets result from differences between assets and liabilities measured for financial reporting

purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that

are currently in effect. 

The net deferred tax asset and the temporary differences comprising that balance at December 31, 2023 and 2022 are as follows:

(Dollars in Thousands)

2023

2022

Deferred Tax Assets Attributable to:

Allowance for Credit Losses

$

7,236

$

6,042

Accrued Pension/SERP

144

1,530

State Net Operating Loss and Tax Credit Carry-Forwards

2,069

1,920

Other Real Estate Owned

887

917

Accrued SERP Liability

2,594

3,246

Lease Liability

5,911

4,547

Net Unrealized Losses on Investment Securities

8,601

12,499

Other

2,665

3,043

Investment in Partnership

3,241

1,544

Total Deferred Tax Assets

$

33,348

$

35,288

Deferred Tax Liabilities Attributable to:

Depreciation on Premises and Equipment

$

3,733

$

3,382

Deferred Loan Fees and Costs

2,614

2,372

Intangible Assets

3,344

3,310

Accrued Pension Liability

1,688

1,043

Right of Use Asset

5,829

4,474

Investments

469

469

Other

1,851

2,099

Total Deferred Tax Liabilities

19,528

17,149

Valuation Allowance

1,930

1,671

Net Deferred Tax Asset

$

11,890

$

16,468

In the opinion of management, it is more likely than not that all of the deferred tax assets, with the exception of certain state net

operating loss carry-forwards and certain state tax credit carry-forwards expected to expire prior to utilization, will be realized. 

Accordingly, a valuation allowance of $

1.9

 million and $

1.7

 million is recorded at December 31, 2023 and December 31, 2022,

respectively. At December 31, 2023, the Company had state loss and tax credit carry-forwards of approximately $

2.1

 million,

which expire at various dates from

2024

 through

2037

.

The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits:.

(Dollars in Thousands)

2023

2022

2021

Balance at January 1,

$

136

$

52

$

-

Additions Based on Tax Positions Related to Current Year

97

84

52

Balance at December 31

$

233

$

136

$

52

Of this total, $

0.2

 million represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the

effective tax rate in future periods. The Company does not expect the total amount of unrecognized tax benefits to significantly

increase or decrease in the next twelve months. 

It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in their respective

federal or state income taxes accounts. There were

no

 penalties and interest related to income taxes recorded in the Consolidated

Statements of Income for the years ended December 31, 2023, 2022, and 2021. There were

no

 amounts accrued in the

Consolidated Statements of Financial Condition for penalties and interest as of December 31, 2023 and 2022.

The Company files a consolidated U.S. federal income tax return and a separate U.S. federal income tax return for CCHL. Each

subsidiary files various returns in states where its banking offices are located. The Company is no longer subject to U.S. federal

or state tax examinations for years before 2020.

XML

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

Note 14

STOCK-BASED COMPENSATION

At December 31, 2023, the Company had three stock-based compensation plans, consisting of the 2021 Associate Incentive Plan

(“AIP”), the 2021 Associate Stock Purchase Plan (“ASPP”), and the 2021 Director Stock Purchase Plan (“DSPP”). These plans,

which were approved by the shareowners in April 2021, replaced substantially similar plans approved by the shareowners in

2011. Total compensation expense associated with these plans for 2021 through 2023 was $

1.6

 million, $

2.3

 million, and $

2.1

million, respectively. 

AIP.

 The AIP allows key associates and directors to earn various forms of equity-based incentive compensation. Under the AIP,

there were

700,000

 shares reserved for issuance. On an annual basis, the Company, pursuant to the terms and conditions of the

AIP, will create an annual incentive plan (“Plan”), under which all participants are eligible to earn performance shares. Awards to

associates under the 2021 Plan were tied to internally established goals. At base level targets, the grant-date fair value of the

shares eligible to be awarded in 2023 was approximately $

1.1

 million. For 2023, a total of

27,577

 shares were eligible for

issuance, but additional shares could be earned if performance exceeded established goals. A total of

26,614

 shares were earned

for 2023 that were issued in January 2024. For the years ended December 31, 2023 and 2022, Directors earned

8,840

 and

11,847

shares, respectively, under the Plan. The Company recognized expense of $

1.1

 million, $

1.9

 million, and $

1.2

 million for the

years ended December 31, 2023, 2022 and 2021, respectively, related to the AIP. 

Executive Long-Term Incentive Plan (“LTIP”)

. The Company has established a Performance Share Unit Plan under the

provisions of the AIP that allows William G. Smith, Jr., the Chairman, President, and Chief Executive Officer of CCBG, Inc. and

Thomas A. Barron, the President of CCB to earn shares based on the compound annual growth rate in diluted earnings per share

over a three-year period. The Company recognized expense of $

0.9

 million, $

0.2

 million, and $

0.2

 million for the years ended

December 31, 2023, 2022 and 2021, respectively. Shares issued under the plan were

4,909

,

6,849

, and

27,915

 for the years ended

December 31, 2023, 2022 and 2021, respectively. A total of

17,334

 shares were earned in 2023 that were issued in January 2024. 

After deducting the shares earned, but not issued, in 2023 under the AIP and LTIP,

492,247

 shares remain eligible for issuance

under the 2021 AIP.

DSPP. 

The Company’s DSPP allows the directors to purchase the Company’s common stock at a price equal to

90

% of the

closing price on the date of purchase. Stock purchases under the DSPP are limited to the amount of the directors’ annual retainer

and meeting fees. Under the DSPP, there were

300,000

 shares reserved for issuance. The Company recognized $

0.1

 million in

expense under the DSPP for each of the years ended December 31, 2023, 2022 and 2021. The Company issued shares under the

DSPP totaling

13,090

,

14,977

 and

19,362

 for the years ended December 31, 2023, 2022 and 2021, respectively. At December 31,

2023, there were

252,571

 shares eligible for issuance under the DSPP.

ASPP. 

Under the Company’s ASPP, substantially all associates may purchase the Company’s common stock through payroll

deductions at a price equal to

90

% of the lower of the fair market value at the beginning or end of each six-month offering

period. Stock purchases under the ASPP are limited to

10

% of an associate’s eligible compensation, up to a maximum of $

25,000

(fair market value on each enrollment date) in any plan year. Under the ASPP, there were

400,000

 shares of common stock

reserved for issuance. The Company recognized $

0.1

 million in expense under the ASPP for each of the years ended December

31, 2023, 2022 and 2021, respectively. The Company issued shares under the ASPP totaling

17,651

,

31,101

 and

22,126

 for the

years ended December 31, 2023, 2022 and 2021, respectively. At December 31, 2023,

329,122

 shares remained eligible for

issuance under the ASPP.

Based on the Black-Scholes option pricing model, the weighted average estimated fair value of each of the purchase rights

granted under the ASPP was $

5.32

 for 2023. For 2022 and 2021, the weighted average fair value purchase right granted was

$

4.03

 and $

3.96

, respectively. In calculating compensation, the fair value of each stock purchase right was estimated on the date

of grant using the following weighted average assumptions:

2023

2022

2021

Dividend yield

2.3

%

2.4

%

2.5

%

Expected volatility

22.5

%

17.6

%

21.8

%

Risk-free interest rate

5.1

%

1.4

%

0.1

%

Expected life (in years)

0.5

0.5

0.5

XML

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2023

Employee benefits plans [Abstract]

EMPLOYEE BENEFIT PLANS

Note 15

EMPLOYEE BENEFIT PLANS

Pension Plan

The Company sponsors a noncontributory pension plan covering a portion of its associates. On December 30, 2019, the plan was

amended to remove plan eligibility for new associates hired after December 31, 2019. There were no amendments to the Plan in

2020 or 2021. The Plan was also amended in December 2022, effective January 1, 2020, increasing the required minimum

distribution age to

72

, per the SECURE Act 1.0. Benefits under this plan generally are based on the associate’s total years of

service and average of the

five

 highest years of compensation during the

ten years

 immediately preceding their departure. The

Company’s general funding policy is to contribute amounts sufficient to meet minimum funding requirements as set by law and to

ensure deductibility for federal income tax purposes. 

The following table details on a consolidated basis the changes in benefit obligation, changes in plan assets, the funded status of

the plan, components of pension expense, amounts recognized in the Company’s Consolidated Statements of Financial Condition,

and major assumptions used to determine these amounts.

(Dollars in Thousands)

2023

2022

2021

Change in Projected Benefit Obligation:

Benefit Obligation at Beginning of Year

$

108,151

$

172,508

$

212,566

Service Cost

3,488

6,289

6,971

Interest Cost

5,831

4,665

4,885

Actuarial Loss (Gain)

6,936

(39,962)

(14,934)

Benefits Paid

(3,843)

(2,139)

(2,087)

Expenses Paid

(276)

(416)

(259)

Settlements

-

(32,794)

(34,634)

Projected Benefit Obligation at End of Year

$

120,287

$

108,151

$

172,508

Change in Plan Assets:

Fair Value of Plan Assets at Beginning of Year

$

104,276

$

165,274

$

171,775

Actual Return on Plan Assets

19,138

(25,649)

30,479

Employer Contributions

6,000

-

-

Benefits Paid

(3,843)

(2,139)

(2,087)

Expenses Paid

(276)

(416)

(259)

Settlements

-

(32,794)

(34,634)

Fair Value of Plan Assets at End of Year

$

125,295

$

104,276

$

165,274

Funded Status of Plan and Accrued Liability Recognized at End of Year:

Other (Assets) Liabilities

$

(5,008)

$

3,875

$

7,234

Accumulated Benefit Obligation at End of Year

$

102,642

$

91,770

$

149,569

Components of Net Periodic Benefit Costs:

Service Cost

$

3,488

$

6,289

$

6,971

Interest Cost

5,831

4,665

4,885

Expected Return on Plan Assets

(6,805)

(10,701)

(11,147)

Amortization of Prior Service Costs

5

15

15

Net Loss Amortization

934

1,713

6,764

Net Loss Settlements

-

2,321

3,072

Net Periodic Benefit Cost

$

3,453

$

4,302

$

10,560

Weighted-Average Assumptions Used to Determine Benefit Obligation:

Discount Rate

5.29%

5.63%

3.11%

Rate of Compensation Increase

(1)

5.10%

5.10%

4.40%

Measurement Date

12/31/23

12/31/22

12/31/21

Weighted-Average Assumptions Used to Determine Benefit Cost:

Discount Rate

5.63%

3.11%

2.88%

Expected Return on Plan Assets

6.75%

6.75%

6.75%

Rate of Compensation Increase

(1)

5.10%

4.40%

4.00%

Amortization Amounts from Accumulated Other Comprehensive Loss:

Net Actuarial Loss (Gain) 

$

(5,397)

$

(3,612)

$

(34,265)

Prior Service Cost

(5)

(15)

(15)

Net Loss

(934)

(4,034)

(9,836)

Deferred Tax Expense

1,606

1,942

11,183

Other Comprehensive Gain, net of tax

$

(4,730)

$

(5,719)

$

(32,933)

Amounts Recognized in Accumulated Other Comprehensive Loss:

Net Actuarial Losses

$

1,322

$

7,653

$

15,300

Prior Service Cost

-

5

20

Deferred Tax Benefit

(335)

(1,941)

(3,884)

Accumulated Other Comprehensive Loss, net of tax

$

987

$

5,717

$

11,436

(1)

 The Company utilized an age-graded approach that varies the rate based on the age of the participants.

During 2022 and 2021, lump sum payments made under the Company’s defined benefit pension plan triggered settlement

accounting. In accordance with applicable accounting guidance for defined benefit plans, the Company recorded 

no

 settlement

losses during 2023 and $

2.3

 million and $

3.1

 million during 2022 and 2021, respectively.

The service cost component of net periodic benefit cost is reflected in compensation expense in the accompanying Consolidated

Statements of Income. The other components of net periodic cost are included in “other” within the noninterest expense category

in the Consolidated Statements of Income. See Note 1 – Significant Accounting Policies for additional information.

The Company expects to recognize $

0.2

 million of the net actuarial loss reflected in accumulated other comprehensive loss at

December 31, 2023 as a component of net periodic benefit cost during 2024.

Plan Assets.

The Company’s pension plan asset allocation at December 31, 2023 and 2022, and the target asset allocation for

2023 are as follows:

Target

Percentage of Plan

Allocation

Assets at December 31

(1)

2024

2023

2022

Equity Securities

68

%

70

%

73

%

Debt Securities

27

%

18

%

23

%

Cash and Cash Equivalents

5

%

12

%

4

%

Total

100

%

100

%

100

%

(1)

Represents asset allocation at December 31 which may differ from the average target allocation for the year due to the year-

end cash contribution to the plan.

The Company’s pension plan assets are overseen by the CCBG Retirement Committee. Capital City Trust Company acts as the

investment manager for the plan. The investment strategy is to maximize return on investments while minimizing risk. The

Company believes the best way to accomplish this goal is to take a conservative approach to its investment strategy by investing

in mutual funds that include various high-grade equity securities and investment -grade debt issuances with varying investment

strategies. The target asset allocation will periodically be adjusted based on market conditions and will operate within the

following investment policy statement allocation ranges: equity securities ranging from

55

% and

81

%, debt securities ranging

from

17

% and

37

%, and cash and cash equivalents ranging from

0

% and

10

%. The overall expected long-term rate of return on

assets is a weighted-average expectation for the return on plan assets. The Company considers historical performance data and

economic/financial data to arrive at expected long-term rates of return for each asset category.

The major categories of assets in the Company’s pension plan at December 31 are presented in the following table. Assets are

segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure

fair value (see Note 22 – Fair Value Measurements).

(Dollars in Thousands)

2023

2022

Level 1:

U.S. Treasury Securities

$

16,126

$

17,264

Mutual Funds

92,991

81,231

Cash and Cash Equivalents

15,717

5,327

Level 2:

Corporate Notes/Bonds

461

454

Total Fair Value of Plan Assets

$

125,295

$

104,276

Expected Benefit Payments.

 At December 31, expected benefit payments related to the defined benefit pension plan were as

follows:

(Dollars in Thousands)

2023

2024

$

10,105

2025

11,119

2026

10,496

2027

10,042

2028

8,983

2029 through 2033

45,942

Total

$

96,687

Contributions. 

The following table details the amounts contributed to the pension plan in 2023 and 2022, and the expected

amount to be contributed in 2024.

Expected

Contribution

(Dollars in Thousands)

2022

2023

2024

(1)

Actual Contributions

$

-

$

6,000

$

5,000

(1)

 For 2023, the Company will have the option to make a cash contribution to the plan or utilize pre-funding balances.

Supplemental Executive Retirement Plan

The Company has a Supplemental Executive Retirement Plan (“SERP”) and a Supplemental Executive Retirement Plan II

(“SERP II”) covering selected executive officers. Benefits under this plan generally are based on the same service and

compensation as used for the pension plan, except the benefits are calculated without regard to the limits set by the Internal

Revenue Code on compensation and benefits. The net benefit payable from the SERP is the difference between this gross benefit

and the benefit payable by the pension plan. The SERP II was adopted by the Company’s Board on May 21, 2020 and covers

certain executive officers that were not covered by the SERP.

The following table details on a consolidated basis the changes in benefit obligation, the funded status of the plan, components of

pension expense, amounts recognized in the Company’s Consolidated Statements of Financial Condition, and major assumptions

used to determine these amounts.

(Dollars in Thousands)

2023

2022

2021

Change in Projected Benefit Obligation:

Benefit Obligation at Beginning of Year

$

10,948

$

13,534

$

13,402

Service Cost

18

31

35

Interest Cost

501

315

243

Actuarial (Gain) Loss

201

(2,932)

(146)

Net Settlements

(2,464)

-

-

Projected Benefit Obligation at End of Year

$

9,204

$

10,948

$

13,534

Funded Status of Plan and Accrued Liability Recognized at End of Year:

Other Liabilities

$

9,204

$

10,948

$

13,534

Accumulated Benefit Obligation at End of Year

$

8,943

$

10,887

$

12,803

Components of Net Periodic Benefit Costs:

Service Cost

$

18

$

31

$

35

Interest Cost

501

315

243

Amortization of Prior Service Cost

151

277

277

Net Loss Amortization

(531)

718

970

Net Gain Settlements

(291)

-

-

Net Periodic Benefit Cost

$

(152)

$

1,341

$

1,525

Weighted-Average Assumptions Used to Determine Benefit Obligation:

Discount Rate

5.11%

5.45%

2.80%

Rate of Compensation Increase

(1)

5.10%

5.10%

4.40%

Measurement Date

12/31/23

12/31/22

12/31/21

Weighted-Average Assumptions Used to Determine Benefit Cost:

Discount Rate

5.45%

2.80%

2.38%

Rate of Compensation Increase

(1)

5.10%

4.40%

4.00%

Amortization Amounts from Accumulated Other Comprehensive Loss:

Net Actuarial Loss (Gain)

$

201

$

(2,932)

$

(146)

Prior Service (Benefit) Cost

(151)

(277)

(219)

Net Gain (Loss)

531

(718)

(970)

Settlement Gain 

291

-

-

Deferred Tax (Benefit) Expense

(222)

995

154

Other Comprehensive (Gain) Loss, net of tax

$

650

$

(2,932)

$

(1,181)

Amounts Recognized in Accumulated Other Comprehensive Loss:

Net Actuarial (Loss) Gain

$

(753)

$

(1,775)

$

1,875

Prior Service Cost

-

151

429

Deferred Tax Benefit (Expense)

191

412

(584)

Accumulated Other Comprehensive (Loss) Gain, net of tax

$

(562)

$

(1,212)

$

1,720

(1)

 The Company utilized an age-graded approach that varies the rate based on the age of the participants.

The Company expects to recognize approximately $

0.3

 million of the net actuarial gain reflected in accumulated other

comprehensive loss at December 31, 2023 as a component of net periodic benefit cost during 2024. 

In June 2023, lump sum retirement distributions to two plan participants required the application of settlement accounting. The

amount of the settlement gain was $

0.3

 million.

Expected Benefit Payments

. As of December 31, expected benefit payments related to the SERP were as follows:

(Dollars in Thousands)

2023

2024

$

8,800

2025

32

2026

38

2027

42

2028

64

2029 through 2033

748

Total

$

9,724

401(k) Plan

The Company has a 401(k) Plan which enables CCB and CCBG associates to defer a portion of their salary on a pre-tax

basis. The plan covers substantially all associates of the Company who meet minimum age requirements. The plan is designed to

enable participants to contribute any amount, up to the maximum annual limit allowed by the IRS, of their compensation withheld

in any plan year placed in the 401(k) Plan trust account. Matching contributions of

50

% from the Company are made for up to

6

% of the participant’s compensation for eligible associates. Further, in addition to the

50

% match, all associates hired after

December 31, 2019 will receive annually a contribution by the Company equal to

3

% of their compensation. For 2023, the

Company made annual matching contributions of $

1.7

 million. For 2022 and 2021, the Company made annual matching

contributions of $

1.4

 million and $

1.0

 million, respectively. The participant may choose to invest their contributions into thirty-

four investment options available to 401(k) participants, including the Company’s common stock. A total of

50,000

 shares of

CCBG common stock have been reserved for issuance. Shares issued to participants have historically been purchased in the open

market. 

CCHL has a 401(k) Plan available to all CCHL associates who are employed. The plan allows participants to contribute any

amount, up to the maximum annual limit allowed by the IRS, of their compensation withheld in any plan year placed in the

401(k) Plan trust account. A discretionary matching contribution is determined annually by CCHL. For 2023, 2022, and 2021,

matching contributions were made by CCHL up to

3

% of eligible participant’s compensation totaling $

0.4

 million, $

0.4

 million,

and $

0.7

 million, respectively. 

Other Plans

The Company has a Dividend Reinvestment and Optional Stock Purchase Plan. A total of

250,000

 shares have been reserved for

issuance. In recent years, shares for the Dividend Reinvestment and Optional Stock Purchase Plan have been acquired in the open

market and, thus, the Company did

no

t issue any new shares under this plan in 2023, 2022 and 2021.

XML

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Note 16

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:

(Dollars and Per Share Data in Thousands)

2023

2022

2021

Numerator:

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Denominator:

Denominator for Basic Earnings Per Share Weighted -Average Shares

16,987

16,951

16,863

Effects of Dilutive Securities Stock Compensation Plans

36

34

30

Denominator for Diluted Earnings Per Share Adjusted Weighted -Average 

 Shares and Assumed Conversions

17,023

16,985

16,893

Basic Earnings Per Share

$

3.08

$

1.97

$

1.98

Diluted Earnings Per Share

$

3.07

$

1.97

$

1.98

XML

REGULATORY MATTERS

12 Months Ended

Dec. 31, 2023

Regulatory matters [Abstract]

REGULATORY MATTERS

Note 17

REGULATORY MATTERS

Regulatory Capital Requirements

. The Company (on a consolidated basis) and the Bank are subject to various regulatory capital

requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain

mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on

the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt

corrective action

,

the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their

assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and

classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. 

Prompt corrective action provisions are not applicable to bank holding companies. A detailed description of these regulatory

capital requirements is provided in the section captioned “Regulatory Considerations – Capital Regulations” section on page 17.

Management believes, at December 31, 2023 and 2022, that the Company and the Bank meet all capital adequacy requirements to

which they are subject. At December 31, 2023, the most recent notification from the Federal Deposit Insurance Corporation

categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well

capitalized, an institution must maintain minimum common equity Tier 1, total risk-based, Tier 1 risk based and Tier 1 leverage

ratios as set forth in the following tables. There are not conditions or events since the notification that management believes have

changed the Bank’s category. The Company and Bank’s actual capital amounts and ratios at December 31, 2023 and 2022 are

presented in the following table.

To Be Well -

Capitalized Under

Required

Prompt

For Capital

Corrective

Actual

Adequacy Purposes

Action Provisions

(Dollars in Thousands)

Amount

Ratio

Amount

Ratio

Amount

Ratio

2023

Common Equity Tier 1:

CCBG

$

373,206

13.52%

$

124,192

4.50%

*

*

CCB

383,211

13.89%

124,158

4.50%

$

179,340

6.50%

Tier 1 Capital:

CCBG

424,206

15.37%

165,589

6.00%

*

*

CCB

383,211

13.89%

165,545

6.00%

220,726

8.00%

Total Capital:

CCBG

457,339

16.57%

220,785

8.00%

*

*

CCB

416,343

15.09%

220,726

8.00%

275,908

10.00%

Tier 1 Leverage:

CCBG

424,206

10.30%

164,691

4.00%

*

*

CCB

383,211

9.31%

164,680

4.00%

205,850

5.00%

2022

Common Equity Tier 1:

CCBG

$

335,512

12.38%

$

121,918

4.50%

*

*

CCB

358,882

13.25%

121,913

4.50%

$

176,096

6.50%

Tier 1 Capital:

CCBG

386,512

14.27%

162,557

6.00%

*

*

CCB

358,882

13.25%

162,550

6.00%

216,733

8.00%

Total Capital:

CCBG

414,569

15.30%

216,743

8.00%

*

*

CCB

386,067

14.25%

216,733

8.00%

270,917

10.00%

Tier 1 Leverage:

CCBG

386,512

8.91%

173,546

4.00%

*

*

CCB

358,882

8.27%

173,505

4.00%

216,881

5.00%

* Not applicable to bank holding companies.

Dividend Restrictions

. In the ordinary course of business, the Company is dependent upon dividends from its banking subsidiary

to provide funds for the payment of dividends to shareowners and to provide for other cash requirements. Banking regulations

may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends

declared would cause the regulatory capital of the Company’s banking subsidiary to fall below specified minimum levels. 

Approval is also required if dividends declared exceed the net profits of the banking subsidiary for that year combined with the

retained net profits for proceeding two years. In 2024, the bank subsidiary may declare dividends without regulatory approval of

$

44.4

 million plus an additional amount equal to net profits of the Company’s subsidiary bank for 2024 up to the date of any such

dividend declaration.

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS

12 Months Ended

Dec. 31, 2023

Accumulated Other Comprehensive Loss [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

Note 18

ACCUMULATED OTHER COMPREHENSIVE LOSS

FASB Topic ASC 220, “Comprehensive Income” requires that certain transactions and other economic events that bypass the

Consolidated Statements of Income be displayed as other comprehensive income. Total comprehensive income is reported in

the Consolidated Statements of Comprehensive Income (net of tax) and Changes in Shareowners’ Equity (net of tax). 

The following table shows the amounts allocated to accumulated other comprehensive loss.

Accumulated

Securities

Other

Available

Interest Rate

Retirement

Comprehensive

 (Dollars in Thousands)

for Sale

Swap

Plans

Loss

Balance as of January 1, 2023

$

(37,349)

$

4,625

$

(4,505)

$

(37,229)

Other comprehensive income (loss) during the period

11,658

(655)

4,080

15,083

Balance as of December 31, 2023

$

(25,691)

$

3,970

$

(425)

$

(22,146)

Balance as of January 1, 2022

$

(4,588)

$

1,530

$

(13,156)

$

(16,214)

Other comprehensive (loss) income during the period

(32,761)

3,095

8,651

(21,015)

Balance as of December 31, 2022

$

(37,349)

$

4,625

$

(4,505)

$

(37,229)

Balance as of January 1, 2021

$

2,700

$

428

$

(47,270)

$

(44,142)

Other comprehensive (loss) income during the period

(7,288)

1,102

34,114

27,928

Balance as of December 31, 2021

$

(4,588)

$

1,530

$

(13,156)

$

(16,214)

XML

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

Note 19

RELATED PARTY TRANSACTIONS

At December 31, 2023 and 2022, certain officers and directors were indebted to the Bank in the aggregate amount of $

6.3

 million

and $

7.3

 million, respectively. During 2023 and 2022, $

1.7

 million and $

8.5

 million in new loans were made and repayments

totaled $

2.7

 million and $

5.0

 million, respectively. These loans were all current at December 31, 2023 and 2022.

Deposits from certain directors, executive officers, and their related interests totaled $

36.9

 million and $

66.3

 million at December

31, 2023 and 2022, respectively.

The Company leases land from a partnership (Smith Interests General Partnership L.L.P.) in which William G. Smith, Jr. has an

interest. The Company made lease payments totaling $

0.2

 million in 2023 and in December 2023 the lease payments adjusted to

$

0.1

 million annually due to a reduction in the size of the parcel leased by the Company. The payments under the lease

agreement provide for annual lease payments of approximately $

0.1

 million annually through December 2033, and thereafter,

increase by

5

% every

10

 years until 2053 at which time the rent amount will adjust based on reappraisal of the parcel rental value. 

The Company then has

four

 successive options to extend the lease for

five years

 each with rental increases of

5

% at each

extension. 

William G. Smith, III, the son of our Chairman, President and Chief Executive Officer, William G. Smith, Jr., is employed as

President, North Florida Region at Capital City Bank. In 2023, William G. Smith, III’s total compensation (consisting of annual

base salary, annual bonus, and stock-based compensation) was determined in accordance with the Company’s standard

employment and compensation practices applicable to associates with similar responsibilities and positions.

XML

OTHER NONINTEREST EXPENSE

12 Months Ended

Dec. 31, 2023

Other Noninterest Expense [Abstract]

OTHER NONINTEREST EXPENSE

Note 20

OTHER NONINTEREST EXPENSE

Components of other noninterest expense in excess of

1

% of the sum of total interest income and noninterest income, which are

not disclosed separately elsewhere, are presented below for each of the respective years.

(Dollars in Thousands)

2023

2022

2021

Legal Fees

$

1,721

$

1,413

$

1,411

Professional Fees

6,245

5,437

5,633

Telephone

2,729

2,851

2,975

Advertising

3,349

3,208

2,683

Processing Services

6,984

6,534

6,569

Insurance – Other

3,120

2,409

2,096

Pension – Other

76

(3,043)

1,913

Pension – Settlement

(291)

2,321

3,072

Other

11,643

14,411

10,754

Total

$

35,576

35,541

37,106

XML

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 21

COMMITMENTS AND CONTINGENCIES

Lending Commitments

. The Company is a party to financial instruments with off-balance sheet risks in the normal course of

business to meet the financing needs of its clients. These financial instruments consist of commitments to extend credit and

standby letters of credit.

The Company’s maximum exposure to credit loss under standby letters of credit and commitments to extend credit is

represented by the contractual amount of those instruments. The Company uses the same credit policies in establishing

commitments and issuing letters of credit as it does for on-balance sheet instruments. At December 31, the amounts associated

with the Company’s off-balance sheet obligations were as follows:

2023

2022

(Dollars in Thousands)

Fixed

Variable

Total

Fixed

Variable

Total

Commitments to Extend Credit

(1)

$

207,605

$

534,745

$

742,350

$

243,614

$

531,873

$

775,487

Standby Letters of Credit

6,094

-

6,094

5,619

-

5,619

Total

$

213,699

$

534,745

$

748,444

$

249,233

$

531,873

$

781,106

(1)

 Commitments include unfunded loans, revolving lines of credit, and off-balance sheet residential loan commitments.

Commitments to extend credit are agreements to lend to a client so long as there is no violation of any condition established in

the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not

necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third

party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities. In

general, management does not anticipate any material losses as a result of participating in these types of transactions. However,

any potential losses arising from such transactions are reserved for in the same manner as management reserves for its other

credit facilities.

For both on- and off-balance sheet financial instruments, the Company requires collateral to support such instruments when it is

deemed necessary. The Company evaluates each client’s creditworthiness on a case-by-case basis. The amount of collateral

obtained upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies, but

may include deposits held in financial institutions; U.S. Treasury securities; other marketable securities; real estate; accounts

receivable; property, plant and equipment; and inventory.

The allowance for credit losses for off-balance sheet credit commitments that are not unconditionally cancellable by the Bank is

adjusted as a provision for credit loss expense and is recorded in other liabilities. The following table shows the activity in the

allowance.

(Dollars in Thousands)

2023

2022

2021

Beginning Balance

$

2,989

$

2,897

$

1,644

Provision for Credit Losses

202

92

1,253

Ending Balance

$

3,191

$

2,989

$

2,897

Other Commitments

. In the normal course of business, the Company enters into lease commitments which are classified as

operating leases. See Note 7 – Leases for additional information on the maturity of the Company’s operating lease commitments. 

The Company has an outstanding commitment of up to $

1.0

 million in a bank tech venture capital fund focused on finding and

funding technology solutions for community banks. During 2022 and 2023, the Company contributed $

0.1

 million and $

0.4

million, respectively to the bank tech venture capital fund. At December 31, 2023, the Company had a remaining outstanding

commitment of $

0.5

 million to the bank tech capital venture fund. 

The Company, in 2022, committed $

7.2

 million to a solar tax equity investment of which $

1.0

 million was paid in 2022 and $

6.2

million was paid in 2023. After utilization of the related tax credits, the balance of this investment at December 31, 2023 was

$

0.4

 million. Further, in 2023, the Company committed $

7.0

 million to a second solar tax equity investment of which $

7.0

 was

paid in 2023. After utilization of the related tax credits, the balance of this investment at December 31, 2023 was $

1.7

 million. 

Contingencies

. The Company is a party to lawsuits and claims arising out of the normal course of business. In management’s

opinion, there are

no

 known pending claims or litigation, the outcome of which would, individually or in the aggregate, have a

material effect on the consolidated results of operations, financial position, or cash flows of the Company.

Indemnification Obligation

. The Company is a member of the Visa U.S.A. network. Visa U.S.A believes that its member banks

are required to indemnify it for potential future settlement of certain litigation (the “Covered Litigation”) that relates to several

antitrust lawsuits challenging the practices of Visa and MasterCard International. In 2008, the Company, as a member of the Visa

U.S.A. network, obtained Class B shares of Visa, Inc. upon its initial public offering. Since its initial public offering, Visa, Inc.

has funded a litigation reserve for the Covered Litigation resulting in a reduction in the Class B shares held by the Company. 

During the first quarter of 2011, the Company sold its remaining Class B shares. Associated with this sale, the Company entered

into a swap contract with the purchaser of the shares that requires a payment to the counterparty in the event that Visa, Inc. makes

subsequent revisions to the conversion ratio for its Class B shares. Fixed charges included in the swap liability are payable

quarterly until the litigation reserve is fully liquidated and at which time the aforementioned swap contract will be terminated. 

Conversion ratio payments and ongoing fixed quarterly charges are reflected in earnings in the period incurred. Payments during

2023 totaled $

0.8

 million. Payments totaled $

0.9

 million and $

0.8

 million for the years 2022 and 2021, respectively. At

December 31, 2023, there was

no

 amount payable. There was $

0.1

 million payable December 31, 2022 and 2021.

XML

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2023

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

Note 22

FAIR VALUE MEASUREMENTS

The fair value of an asset or liability is the exchange price that would be received were the Bank to sell that asset or paid to

transfer that liability (exit price) in an orderly transaction occurring in the principal market (or most advantageous market in the

absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that

are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are

consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset

or liability. ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices

in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as

follows:

●

Level 1 Inputs -

Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has

the ability to access at the measurement date

.

●

Level 2 Inputs -

Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices

for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are

observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that

are derived principally from, or corroborated, by market data by correlation or other means

.

●

Level 3 Inputs -

Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own

assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Securities Available for Sale. 

U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. Other securities

classified as AFS are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value

measurements from an independent pricing service. The fair value measurements consider observable data that may include

dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, credit

information and the bond’s terms and conditions, among other things.

In general, the Company does not purchase securities that have a complicated structure. The Company’s entire portfolio consists

of traditional investments, nearly all of which are U.S. Treasury obligations, federal agency bullet or mortgage pass-through

securities, or general obligation or revenue based municipal bonds. Pricing for such instruments is easily obtained. At least

annually, the Company will validate prices supplied by the independent pricing service by comparing them to prices obtained

from an independent third-party source.

Equity Securities.

Investments securities classified as equity securities are carried at cost and the share of earnings or losses is

reported through net income as an adjustment to the investment balance. These securities are not readily marketable and therefore

are classified as a Level 3 input within the fair value hierarchy.

Loans Held for Sale

. The fair value of residential mortgage loans held for sale based on Level 2 inputs is determined, when

possible, using either quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value is

determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used

by other market participants. The Company has elected the fair value option accounting for its held for sale loans. 

Mortgage Banking Derivative Instruments.

The fair values of IRLCs are derived by valuation models incorporating market

pricing for instruments with similar characteristics, commonly referred to as best execution pricing, or investor commitment

prices for best effort IRLCs which have unobservable inputs, such as an estimate of the fair value of the servicing rights expected

to be recorded upon sale of the loans, net estimated costs to originate the loans, and the pull-through rate, and are therefore

classified as Level 3 within the fair value hierarchy. The fair value of forward sale commitments is based on observable market

pricing for similar instruments and are therefore classified as Level 2 within the fair value hierarchy.

Interest Rate Swap.

The Company’s derivative positions are classified as Level 2 within the fair value hierarchy and are valued

using models generally accepted in the financial services industry and that use actively quoted or observable market input values

from external market data providers. The fair value derivatives are determined using discounted cash flow models.

Fair Value Swap

. The Company entered into a stand-alone derivative contract with the purchaser of its Visa Class B shares. The

valuation represents the amount due and payable to the counterparty based upon the revised share conversion rate, if any, during

the period. At December 31, 2023, there was

no

 amount payable and at December 31, 2022, there was $

0.1

 million payable. 

A summary of fair values for assets and liabilities at December 31 consisted of the following:

(Dollars in Thousands)

Level 1

Level 2

Level 3

Total Fair

Inputs

Inputs

Inputs

Value

2023

ASSETS:

Securities Available for Sale:

U.S. Government Treasury

$

24,679

$

-

$

-

$

24,679

U.S. Government Agency

-

145,034

-

145,034

States and Political Subdivisions

-

39,083

-

39,083

Mortgage-Backed Securities

-

63,303

-

63,303

Corporate Debt Securities

-

57,552

-

57,552

Equity Securities

-

-

3,450

3,450

Loans Held for Sale

-

28,211

-

28,211

Interest Rate Swap Derivative

-

5,317

-

5,317

Residential Mortgage Loan Commitments ("IRLC")

-

-

523

523

LIABILITIES:

Forward Sales Contracts ("Hedge Derivative")

-

209

-

209

2022

ASSETS:

Securities Available for Sale:

U.S. Government Treasury

$

22,050

$

-

$

-

$

22,050

U.S. Government Agency

-

186,052

-

186,052

State and Political Subdivisions

-

40,329

-

40,329

Mortgage-Backed Securities

-

69,405

-

69,405

Corporate Debt Securities

-

88,236

-

88,236

Equity Securities

-

-

10

10

Loans Held for Sale

-

26,909

-

26,909

Interest Rate Swap Derivative

-

6,195

-

6,195

Forward Sales Contracts ("Hedge Derivative")

-

187

-

187

Residential Mortgage Loan Commitments ("IRLC")

-

-

819

819

Mortgage Banking Activities. 

The Company had Level 3 issuances and transfers related to mortgage banking activities of $

13.2

million and $

11.6

 million, respectively, for the year ended December 31, 2023. The Company had Level 3 issuances and

transfers related to mortgage banking activities of $

15.4

 million and $

28.5

 million, respectively, for the year ended December 31,

2022. Issuances are valued based on the change in fair value of the underlying mortgage loan from inception of the IRLC to the

statement of financial condition date, adjusted for pull-through rates and costs to originate. IRLCs transferred out of Level 3

represent IRLCs that were funded and moved to mortgage loans held for sale, at fair value.

Assets Measured at Fair Value on a Non-Recurring Basis

Certain assets are measured at fair value on a non-recurring basis (i.e., the assets are not measured at fair value on an ongoing

basis but are subject to fair value adjustments in certain circumstances). An example would be assets exhibiting evidence of

impairment. The following is a description of valuation methodologies used for assets measured on a non-recurring basis. 

Collateral Dependent Loans

. Impairment for collateral dependent loans is measured using the fair value of the collateral less

selling costs. The fair value of collateral is determined by an independent valuation or professional appraisal in conformance with

banking regulations. Collateral values are estimated using Level 3 inputs due to the volatility in the real estate market, and the

judgment and estimation involved in the real estate appraisal process. Collateral dependent loans are reviewed and evaluated on

at least a quarterly basis for additional impairment and adjusted accordingly. Valuation techniques are consistent with those

techniques applied in prior periods. Collateral dependent loans had a carrying value of $

3.3

 million with a valuation allowance of

$

0.1

 million at December 31, 2023. Collateral dependent loans had a carrying value of $

0.7

 million with a valuation allowance of

$

0.1

 million at December 31, 2022.

Other Real Estate Owned

. During 2023 and 2022, certain foreclosed assets, upon initial recognition, were measured and reported

at fair value through a charge-off to the allowance for credit losses based on the fair value of the foreclosed asset less estimated

cost to sell. At December 31, 2023 and 2022, these assets were recorded at fair value, which is determined by an independent

valuation or professional appraisal in conformance with banking regulations. On an ongoing basis, we obtain updated appraisals

on foreclosed assets and record valuation adjustments as necessary. The fair value of foreclosed assets is estimated using Level 3

inputs due to the judgment and estimation involved in the real estate valuation process. 

Mortgage Servicing Rights

. Residential mortgage loan servicing rights are evaluated for impairment at each reporting period

based upon the fair value of the rights as compared to the carrying amount. Fair value is determined by a third-party valuation

model using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk

characteristics of the underlying loans (predominantly loan type and note interest rate). The fair value is estimated using Level 3

inputs, including a discount rate, weighted average prepayment speed, and the cost of loan servicing. Further detail on the key

inputs utilized are provided in Note 4 – Mortgage Banking Activities. At December 31, 2023 and 2022, there was

no

 valuation

allowance for mortgage servicing rights.

Other Fair Value Disclosures

The Company is required to disclose the estimated fair value of financial instruments, both assets and liabilities, for which it is

practical to estimate fair value and the following is a description of valuation methodologies used for those assets and liabilities.

Cash and Short-Term Investments. 

The carrying amount of cash and short-term investments is used to approximate fair value,

given the short time frame to maturity and as such assets do not present unanticipated credit concerns.

Securities Held to Maturity

. Securities held to maturity are valued in accordance with the methodology previously noted in the

caption “Assets and Liabilities Measured at Fair Value on a Recurring Basis – Securities Available for Sale”.

Other Equity Securities.

Other equity securities are accounted for under the equity method (Topic 323) and recorded at cost.

These securities are not readily marketable securities and are reflected in Other Assets on the Statement of Financial Condition.

Loans.

 The loan portfolio is segregated into categories and the fair value of each loan category is calculated using present value

techniques based upon projected cash flows and estimated discount rates. Pursuant to the adoption of ASU 2016-01,

Recognition

and Measurement of Financial Assets and Financial Liabilities

, the values reported reflect the incorporation of a liquidity

discount to meet the objective of “exit price” valuation. 

Deposits.

 The fair value of Noninterest Bearing Deposits, NOW Accounts, Money Market Accounts and Savings Accounts are

the amounts payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using

present value techniques and rates currently offered for deposits of similar remaining maturities.

Subordinated Notes Payable.

 The fair value of each note is calculated using present value techniques, based upon projected cash

flows and estimated discount rates as well as rates being offered for similar obligations.

Short-Term and Long-Term Borrowings.

 The fair value of each note is calculated using present value techniques, based upon

projected cash flows and estimated discount rates as well as rates being offered for similar debt.

A summary of estimated fair values of significant financial instruments at December 31 consisted of the following:

2023

(Dollars in Thousands)

Carrying

Level 1

Level 2

Level 3

Value

Inputs

Inputs

Inputs

ASSETS:

Cash

$

83,118

$

83,118

$

-

$

-

Fed Funds Sold and Interest Bearing Deposits

228,949

228,949

-

-

Investment Securities, Held to Maturity

625,022

441,189

150,562

-

Other Equity Securities

(1)

2,848

-

2,848

-

Mortgage Servicing Rights

831

-

-

1,280

Loans, Net of Allowance for Credit Losses

2,703,977

-

-

2,510,529

LIABILITIES:

Deposits

$

3,701,822

$

-

$

3,243,896

$

-

Short-Term Borrowings

35,341

-

35,341

-

Subordinated Notes Payable

52,887

-

44,323

-

Long-Term Borrowings

315

-

315

-

2022

(Dollars in Thousands)

Carrying

Level 1

Level 2

Level 3

Value

Inputs

Inputs

Inputs

ASSETS:

Cash

$

72,114

$

72,114

$

-

$

-

Short-Term Investments

528,536

528,536

-

-

Investment Securities, Held to Maturity

660,774

431,733

180,968

-

Other Equity Securities

(1)

2,848

-

2,848

-

Mortgage Servicing Rights

2,599

-

-

4,491

Loans, Net of Allowance for Credit Losses

2,522,617

-

-

2,377,229

LIABILITIES:

Deposits

$

3,939,317

$

-

$

3,310,383

$

-

Short-Term Borrowings

56,793

-

56,793

-

Subordinated Notes Payable

52,887

-

45,763

-

Long-Term Borrowings

513

-

513

-

All non-financial instruments are excluded from the above table. The disclosures also do not include goodwill. Accordingly, the

aggregate fair value amounts presented do not represent the underlying value of the Company.

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured

at fair value on a non-recurring basis at December 31, 2023 and December 31, 2022.

XML

PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2023

Parent Company Financial Information [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

Note 23

PARENT COMPANY FINANCIAL INFORMATION

The following are condensed statements of financial condition of the parent company at December 31:

Parent Company Statements of Financial Condition

(Dollars in Thousands, Except Per Share Data)

2023

2022

ASSETS

Cash and Due From Subsidiary Bank

$

54,004

$

42,737

Equity Securities

569

199

Investment in Subsidiary Bank

445,441

404,892

Goodwill and Other Intangibles

3,838

3,998

Other Assets

10,758

11,297

Total Assets

$

514,610

$

463,123

LIABILITIES

Subordinated Notes Payable

$

52,887

$

52,887

Other Liabilities

21,098

22,955

Total Liabilities

73,985

75,842

SHAREOWNERS’ EQUITY

Common Stock, $

0.01

 par value;

90,000,000

 shares authorized;

16,950,222

 and

16,986,785

shares issued and outstanding at December 31, 2023 and 2022, respectively

170

170

Additional Paid-In Capital

36,326

37,331

Retained Earnings

426,275

387,009

Accumulated Other Comprehensive Loss, Net of Tax

(22,146)

(37,229)

Total Shareowners’ Equity

440,625

387,281

Total Liabilities and Shareowners’ Equity

$

514,610

$

463,123

The operating results of the parent company for the three years ended December 31 are shown below:

Parent Company Statements of Operations

(Dollars in Thousands)

2023

2022

2021

OPERATING INCOME

Income Received from Subsidiary Bank:

Administrative Fees

$

6,367

$

5,396

$

5,516

Dividends

30,000

23,000

10,000

Other Income

453

253

174

Total Operating Income

36,820

28,649

15,690

OPERATING EXPENSE

Salaries and Associate Benefits

4,257

5,034

3,558

Interest on Subordinated Notes Payable

2,427

1,652

1,233

Professional Fees

859

616

1,113

Advertising 

214

232

134

Legal Fees

683

370

589

Other

1,670

2,186

2,087

Total Operating Expense

10,110

10,090

8,714

Earnings Before Income Taxes and Equity in Undistributed

Earnings of Subsidiary Bank

26,710

18,559

6,976

Income Tax Benefit

(650)

(661)

(717)

Earnings Before Equity in Undistributed Earnings of Subsidiary Bank

27,360

19,220

7,693

Equity in Undistributed Earnings of Subsidiary Bank

24,898

14,192

25,703

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

The cash flows for the parent company for the three years ended December 31 were as follows:

Parent Company Statements of Cash Flows

(Dollars in Thousands)

2023

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Adjustments to Reconcile Net Income to Net Cash Provided By

 Operating Activities:

Equity in Undistributed Earnings of Subsidiary Bank

(24,898)

(14,192)

(25,703)

Stock Compensation

1,468

1,278

843

Amortization of Intangible Asset

160

160

107

Increase in Other Assets

(117)

(336)

(21)

Increase in Other Liabilities

(1,557)

5,847

3,131

Net Cash Provided By Operating Activities

$

27,314

$

26,169

$

11,753

CASH FROM INVESTING ACTIVITIES:

Purchase of Equity Securities

$

(369)

$

(79)

$

(120)

Net Cash Paid for Acquisition

-

-

(4,482)

Decrease (Increase) in Investment in Subsidiaries

-

770

(10,770)

Net Cash Provided by (Used in) Investing Activities

$

(369)

$

691

$

(15,372)

CASH FROM FINANCING ACTIVITIES:

Repayment of Long-Term Borrowings

-

-

(900)

Dividends Paid

(12,905)

(11,191)

(10,459)

Issuance of Common Stock Under Compensation Plans

937

1,300

1,028

Payments to Repurchase Common Stock

(3,710)

-

-

Net Cash Used In Financing Activities

$

(15,678)

$

(9,891)

$

(10,331)

Net Increase (Decrease) in Cash and Due from Subsidiary Bank

11,267

16,969

(13,950)

Cash and Due from Subsidiary Bank at Beginning of Year

42,737

25,768

39,718

Cash and Due from Subsidiary Bank at End of Year

$

54,004

$

42,737

$

25,768

XML

RESTATED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

12 Months Ended

Dec. 31, 2023

Restated Interim Consolidated Statements of Cash Flows [Abstract]

Restated Interim Consolidated Statements of Cash Flows

Note 24

RESTATED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

As further described in Note 1, the Impacted Statements of Cash Flows for each of the three-month periods ended March 31, 2023

and 2022, six-month periods ended June 30, 2023 and 2022, and nine-month periods ended September 30, 2023 and 2022 have

been restated and are reflected in the tables that follow. See “Restatement of Previously Issued Consolidated Financial

Statements” in Note 1. The unaudited interim Consolidated Statements of Cash Flows reflect all adjustments that are, in the

opinion of management, necessary for a fair statement of the cash flows for the interim periods presented. Restated amounts are

computed independently for each interim period presented; therefore, the sum of the interim amounts may not equal the total

amount for the respective year due to rounding.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

As Restated

(Dollars in Thousands)

For Three

Months

Ended 

Mar 31, 2022

For Six

Months

Ended 

Jun 30, 2022

For Nine

Months

Ended 

Sept 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

6,938

$

14,198

$

23,803

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

32

1,724

3,878

 Depreciation

1,907

3,802

5,689

 Amortization of Premiums, Discounts, and Fees, net

2,610

5,053

6,618

 Amortization of Intangible Assets

40

80

120

 Pension Settlement Charge

209

378

480

 Originations of Loans Held-for-Sale

(162,448)

(268,058)

(343,899)

 Proceeds From Sales of Loans Held-for-Sale

174,153

307,349

390,756

 Mortgage Banking Revenues

(4,055)

(8,912)

(11,807)

 Net Additions for Capitalized Mortgage Servicing Rights

364

360

570

 Stock Compensation

245

489

904

 Net Tax Benefit From Stock-Based Compensation

(19)

(19)

(19)

 Deferred Income Taxes Benefit

(6,682)

(9,887)

(12,854)

 Net Change in Operating Leases

(27)

(72)

(83)

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

-

(26)

(136)

 Net Decrease in Other Assets

1,897

3,516

3,696

 Net Increase in Other Liabilities

7,036

22,040

12,839

Net Cash Provided By Operating Activities

22,200

72,015

80,555

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(194,448)

(218,548)

(219,865)

 Payments, Maturities, and Calls

14,441

28,111

40,096

Securities Available for Sale:

 Purchases

(25,139)

(37,044)

(41,880)

 Proceeds from Sale of Securities

3,365

3,365

3,365

 Payments, Maturities, and Calls

24,824

47,413

64,301

Purchase of loans held for investment

(381)

(15,985)

(16,324)

Net Increase in Loans Held for Investment

(96,732)

(359,417)

(520,473)

Proceeds from Sales of Loans

37,766

66,877

88,521

Proceeds From Sales of Other Real Estate Owned

-

30

1,683

Purchases of Premises and Equipment, net

(1,013)

(3,322)

(4,013)

Noncontrolling interest contributions received

1,838

2,573

2,867

Net Cash Used In Investing Activities

(235,479)

(485,947)

(601,722)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

52,645

73,396

46,516

Net (Decrease) Increase in Other Short-Term Borrowings

(3,692)

4,784

17,592

Repayment of Other Long-Term Borrowings

(78)

(150)

(200)

Dividends Paid

(2,712)

(5,424)

(8,307)

Issuance of Common Stock Under Compensation Plans

190

496

577

Net Cash Provided By Financing Activities

46,353

73,102

56,178

NET DECREASE IN CASH AND CASH EQUIVALENTS

(166,926)

(340,830)

(464,989)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

1,035,354

1,035,354

Cash and Cash Equivalents at End of Period 

$

868,428

$

694,524

$

570,365

Supplemental Cash Flow Disclosures:

 Interest Paid

$

715

$

1,617

$

3,588

 Income Taxes Paid

$

20

$

3,765

$

6,410

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

37,973

$

67,324

$

89,836

 Loans and Premises Transferred to Other Real Estate Owned

$

-

$

77

$

1,543

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)

As Restated

(Dollars in Thousands)

For Three

Months

Ended 

Mar 31, 2023

For Six

Months

Ended 

Jun 30, 2023

For Nine

Months

Ended 

Sept 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

13,709

$

27,883

$

40,539

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,099

5,296

7,689

 Depreciation

1,969

3,927

5,920

 Amortization of Premiums, Discounts, and Fees, net

1,067

2,117

3,216

 Amortization of Intangible Assets

40

80

120

 Pension Settlement Charge

-

(291)

(291)

 Originations of Loans Held-for-Sale

(75,626)

(203,266)

(308,263)

 Proceeds From Sales of Loans Held-for-Sale

73,706

191,180

303,731

 Mortgage Banking Revenues

(2,871)

(6,234)

(8,072)

 Net Additions for Capitalized Mortgage Servicing Rights

(91)

(253)

(392)

 Stock Compensation

536

764

1,110

 Deferred Income Taxes Benefit

(1,170)

(2,849)

(2,464)

 Net Change in Operating Leases

(3)

(3)

(12)

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

(1,858)

(1,900)

(1,915)

 Net (Increase) Decrease in Other Assets

(4,349)

4,593

8,207

 Net Increase in Other Liabilities

12,471

3,815

1,069

Net Cash Provided By Operating Activities

20,629

24,859

50,192

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

8,820

18,992

28,159

Securities Available for Sale:

 Purchases

(2,017)

(4,634)

(9,399)

 Proceeds from Sale of Securities

-

-

30,420

 Payments, Maturities, and Calls

16,559

32,490

53,045

Purchase of loans held for investment

(923)

(1,463)

(2,249)

Net Increase in Loans Held for Investment

(127,336)

(164,319)

(194,631)

Proceeds from Sales of Loans

20,084

26,645

39,125

Proceeds From Sales of Other Real Estate Owned

2,699

3,772

3,840

Purchases of Premises and Equipment, net

(1,886)

(3,851)

(5,459)

Net Cash Used In Investing Activities

(84,000)

(92,368)

(57,149)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(115,397)

(150,451)

(398,872)

Net Decrease in Other Short-Term Borrowings

(30,161)

(6,120)

(15,097)

Repayment of Other Long-Term Borrowings

(50)

(99)

(149)

Dividends Paid

(3,064)

(6,121)

(9,518)

Payments to Repurchase Common Stock

(819)

(2,022)

(3,121)

Issuance of Common Stock Under Compensation Plans

164

480

562

Net Cash Provided By Financing Activities

(149,327)

(164,333)

(426,195)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(212,698)

(231,842)

(433,152)

Cash and Cash Equivalents at Beginning of Period 

600,650

600,650

600,650

Cash and Cash Equivalents at End of Period 

$

387,952

$

368,808

$

167,498

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,723

$

8,720

$

15,026

 Income Taxes Paid

$

7,466

$

3,860

$

7,395

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

16,859

$

26,076

$

33,625

 Loans and Premises Transferred to Other Real Estate Owned

$

423

$

1,442

$

1,495

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Three Months Ended March 31, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income 

$

6,938

$

-

$

6,938

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

32

-

32

 Depreciation

1,907

-

1,907

 Amortization of Premiums, Discounts, and Fees, net

2,610

-

2,610

 Amortization of Intangible Assets

40

-

40

 Pension Settlement Charges

209

-

209

 Originations of Loans Held for Sale

(177,933)

15,485

(162,448)

 Proceeds From Sales of Loans Held for Sale

188,264

(14,111)

174,153

 Mortgage Banking Revenues

(4,055)

-

(4,055)

 Net Additions for Capitalized Mortgage Servicing Rights

364

-

364

 Stock Compensation

245

-

245

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(6,682)

-

(6,682)

 Net Change in Operating Leases

(27)

-

(27)

 Net Decrease in Other Assets

1,897

-

1,897

 Net Increase in Other Liabilities

7,036

-

7,036

Net Cash Provided By Operating Activities

20,826

1,374

22,200

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(194,448)

-

(194,448)

 Payments, Maturities, and Calls

14,441

-

14,441

Securities Available for Sale:

 Purchases

(25,139)

-

(25,139)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

24,824

-

24,824

Purchases of Loans Held for Investment

(381)

-

(381)

Net Increase in Loans Held for Investment

(57,592)

(39,140)

(96,732)

Proceeds from Sales of Loans

-

37,766

37,766

Purchases of Premises and Equipment, net

(1,013)

-

(1,013)

Noncontrolling Interest Contributions

1,838

-

1,838

Net Cash Used In Investing Activities

(234,105)

(1,374)

(235,479)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

52,645

-

52,645

Net Decrease in Other Short-Term Borrowings

(3,692)

-

(3,692)

Repayment of Other Long-Term Borrowings

(78)

-

(78)

Dividends Paid

(2,712)

-

(2,712)

Issuance of Common Stock Under Compensation Plans

190

-

190

Net Cash Provided By Financing Activities

46,353

-

46,353

NET DECREASE IN CASH AND CASH EQUIVALENTS

(166,926)

-

(166,926)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

868,428

$

-

$

868,428

Supplemental Cash Flow Disclosures:

 Interest Paid

$

715

$

-

$

715

 Income Taxes Paid

$

20

$

-

$

20

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

37,973

$

37,973

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

14,198

$

-

$

14,198

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

1,724

-

1,724

 Depreciation

3,802

-

3,802

 Amortization of Premiums, Discounts, and Fees, net

5,053

-

5,053

 Amortization of Intangible Assets

80

-

80

 Pension Settlement Charges

378

-

378

 Originations of Loans Held for Sale

(316,372)

48,314

(268,058)

 Proceeds From Sales of Loans Held for Sale

352,830

(45,481)

307,349

 Mortgage Banking Revenues

(8,912)

-

(8,912)

 Net Additions for Capitalized Mortgage Servicing Rights

360

-

360

 Stock Compensation

489

-

489

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(9,887)

-

(9,887)

 Net Change in Operating Leases

(72)

-

(72)

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

(26)

-

(26)

 Net Decrease in Other Assets

3,516

-

3,516

 Net Increase in Other Liabilities

22,040

-

22,040

Net Cash Provided By Operating Activities

69,182

2,833

72,015

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(218,548)

-

(218,548)

 Payments, Maturities, and Calls

28,111

-

28,111

Securities Available for Sale:

 Purchases

(37,044)

-

(37,044)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

47,413

-

47,413

Purchases of Loans Held for Investment

(15,985)

-

(15,985)

Net Increase in Loans Held for Investment

(289,707)

(69,710)

(359,417)

Proceeds from Sales of Loans

-

66,877

66,877

Proceeds From Sales of Other Real Estate Owned

30

-

30

Purchases of Premises and Equipment, net

(3,322)

-

(3,322)

Noncontrolling Interest Contributions

2,573

-

2,573

Net Cash Used In Investing Activities

(483,114)

(2,833)

(485,947)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

73,396

-

73,396

Net Increase in Other Short-Term Borrowings

4,784

-

4,784

Repayment of Other Long-Term Borrowings

(150)

-

(150)

Dividends Paid

(5,424)

-

(5,424)

Issuance of Common Stock Under Compensation Plans

496

-

496

Net Cash Provided By Financing Activities

73,102

-

73,102

NET DECREASE IN CASH AND CASH EQUIVALENTS

(340,830)

-

(340,830)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

694,524

$

-

$

694,524

Supplemental Cash Flow Disclosures:

 Interest Paid

$

1,617

$

-

$

1,617

 Income Taxes Paid

$

3,765

$

-

$

3,765

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

67,324

$

67,324

 Loans and Premises Transferred to Other Real Estate Owned

$

77

$

-

$

77

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Nine Months Ended September 30, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

23,803

$

-

$

23,803

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,878

-

3,878

 Depreciation

5,689

-

5,689

 Amortization of Premiums, Discounts, and Fees, net

6,618

-

6,618

 Amortization of Intangible Assets

120

-

120

 Pension Settlement Charge

480

-

480

 Originations of Loans Held for Sale

(399,041)

55,142

(343,899)

 Proceeds From Sales of Loans Held for Sale

440,219

(49,463)

390,756

 Mortgage Banking Revenues

(11,807)

-

(11,807)

 Net Additions for Capitalized Mortgage Servicing Rights

570

-

570

 Stock Compensation

904

-

904

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(12,854)

-

(12,854)

 Net Change in Operating Leases

(83)

-

(83)

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

(136)

-

(136)

 Net Decrease in Other Assets

3,696

-

3,696

 Net Increase in Other Liabilities

12,839

-

12,839

Net Cash Provided By Operating Activities

74,876

5,679

80,555

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(219,865)

-

(219,865)

 Payments, Maturities, and Calls

40,096

-

40,096

Securities Available for Sale:

 Purchases

(41,880)

-

(41,880)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

64,301

-

64,301

Purchases of Loans Held for Investment

(16,324)

-

(16,324)

Net Increase in Loans Held for Investment

(426,273)

(94,200)

(520,473)

Proceeds from Sales of Loans

-

88,521

88,521

Proceeds From Sales of Other Real Estate Owned

1,683

-

1,683

Purchases of Premises and Equipment, net

(4,013)

-

(4,013)

Noncontrolling Interest Contributions

2,867

-

2,867

Net Cash Used In Investing Activities

(596,043)

(5,679)

(601,722)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

46,516

-

46,516

Net Increase in Other Short-Term Borrowings

17,592

-

17,592

Repayment of Other Long-Term Borrowings

(200)

-

(200)

Dividends Paid

(8,307)

-

(8,307)

Issuance of Common Stock Under Compensation Plans

577

-

577

Net Cash Provided By Financing Activities

56,178

-

56,178

NET DECREASE IN CASH AND CASH EQUIVALENTS

(464,989)

-

(464,989)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

570,365

$

-

$

570,365

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,588

$

-

$

3,588

 Income Taxes Paid

$

6,410

$

-

$

6,410

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

89,836

$

89,836

 Loans and Premises Transferred to Other Real Estate Owned

$

1,543

$

-

$

1,543

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Three Months Ended March 31, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income 

$

13,709

$

-

$

13,709

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,099

-

3,099

 Depreciation

1,969

-

1,969

 Amortization of Premiums, Discounts, and Fees, net

1,067

-

1,067

 Amortization of Intangible Assets

40

-

40

 Originations of Loans Held for Sale

(62,745)

(12,881)

(75,626)

 Proceeds From Sales of Loans Held for Sale

64,050

9,656

73,706

 Mortgage Banking Revenues

(2,871)

-

(2,871)

 Net Additions for Capitalized Mortgage Servicing Rights

(91)

-

(91)

 Stock Compensation

536

-

536

 Deferred Income Taxes Benefit

(1,170)

-

(1,170)

 Net Change in Operating Leases

(3)

-

(3)

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

(1,858)

-

(1,858)

 Net Increase in Other Assets

(4,349)

-

(4,349)

 Net Increase in Other Liabilities

12,471

-

12,471

Net Cash Provided By Operating Activities

23,854

(3,225)

20,629

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

8,820

-

8,820

Securities Available for Sale:

 Purchases

(2,017)

-

(2,017)

 Payments, Maturities, and Calls

16,559

-

16,559

Purchases of Loans Held for Investment

(923)

-

(923)

Net Increase in Loans Held for Investment

(110,477)

(16,859)

(127,336)

Proceeds from Sales of Loans

-

20,084

20,084

Proceeds From Sales of Other Real Estate Owned

2,699

-

2,699

Purchases of Premises and Equipment, net

(1,886)

-

(1,886)

Net Cash Used In Investing Activities

(87,225)

3,225

(84,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(115,397)

-

(115,397)

Net Decrease in Other Short-Term Borrowings

(30,161)

-

(30,161)

Repayment of Other Long-Term Borrowings

(50)

-

(50)

Dividends Paid

(3,064)

-

(3,064)

Payments to Repurchase Common Stock

(819)

-

(819)

Issuance of Common Stock Under Compensation Plans

164

-

164

Net Cash Provided By Financing Activities

(149,327)

-

(149,327)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(212,698)

-

(212,698)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

387,952

$

-

$

387,952

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,723

$

-

$

3,723

 Income Taxes Paid

$

7,466

$

-

$

7,466

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

16,859

$

16,859

 Loans and Premises Transferred to Other Real Estate Owned

$

423

$

-

$

423

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

27,883

$

-

$

27,883

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

5,296

-

5,296

 Depreciation

3,927

-

3,927

 Amortization of Premiums, Discounts, and Fees, net

2,117

-

2,117

 Amortization of Intangible Assets

80

-

80

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held for Sale

(164,173)

(39,093)

(203,266)

 Proceeds From Sales of Loans Held for Sale

152,657

38,523

191,180

 Mortgage Banking Revenues

(6,234)

-

(6,234)

 Net Additions for Capitalized Mortgage Servicing Rights

(253)

-

(253)

 Stock Compensation

764

-

764

 Deferred Income Taxes Benefit

(2,849)

-

(2,849)

 Net Change in Operating Leases

(3)

-

(3)

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

(1,900)

-

(1,900)

 Net Decrease in Other Assets

4,593

-

4,593

 Net Increase in Other Liabilities

3,815

-

3,815

Net Cash Provided By Operating Activities

25,429

(570)

24,859

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

18,992

-

18,992

Securities Available for Sale:

 Purchases

(4,634)

-

(4,634)

 Payments, Maturities, and Calls

32,490

-

32,490

Purchases of Loans Held for Investment

(1,463)

-

(1,463)

Net Increase in Loans Held for Investment

(138,244)

(26,075)

(164,319)

Proceeds from Sales of Loans

-

26,645

26,645

Proceeds From Sales of Other Real Estate Owned

3,772

-

3,772

Purchases of Premises and Equipment, net

(3,851)

-

(3,851)

Net Cash Used In Investing Activities

(92,938)

570

(92,368)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(150,451)

-

(150,451)

Net Decrease in Other Short-Term Borrowings

(6,120)

-

(6,120)

Repayment of Other Long-Term Borrowings

(99)

-

(99)

Dividends Paid

(6,121)

-

(6,121)

Payments to Repurchase Common Stock

(2,022)

-

(2,022)

Issuance of Common Stock Under Compensation Plans

480

-

480

Net Cash Provided By Financing Activities

(164,333)

-

(164,333)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(231,842)

-

(231,842)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

368,808

$

-

$

368,808

Supplemental Cash Flow Disclosures:

 Interest Paid

$

8,720

$

-

$

8,720

 Income Taxes Paid

$

3,860

$

-

$

3,860

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

26,076

$

26,076

 Loans and Premises Transferred to Other Real Estate Owned

$

1,442

$

-

$

1,442

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Nine Months Ended September 30, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

40,539

$

-

$

40,539

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

7,689

-

7,689

 Depreciation

5,920

-

5,920

 Amortization of Premiums, Discounts, and Fees, net

3,216

-

3,216

 Amortization of Intangible Assets

120

-

120

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held for Sale

(246,198)

(62,065)

(308,263)

 Proceeds From Sales of Loans Held for Sale

247,166

56,565

303,731

 Mortgage Banking Revenues

(8,072)

-

(8,072)

 Net Additions for Capitalized Mortgage Servicing Rights

(392)

-

(392)

 Stock Compensation

1,110

-

1,110

 Deferred Income Taxes Benefit

(2,464)

-

(2,464)

 Net Change in Operating Leases

(12)

-

(12)

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

(1,915)

-

(1,915)

 Net Decrease in Other Assets

8,207

-

8,207

 Net Increase in Other Liabilities

1,069

-

1,069

Net Cash Provided By Operating Activities

55,692

(5,500)

50,192

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

28,159

-

28,159

Securities Available for Sale:

 Purchases

(9,399)

-

(9,399)

 Proceeds from the Sale of Securities

30,420

-

30,420

 Payments, Maturities, and Calls

53,045

-

53,045

Purchases of Loans Held for Investment

(2,249)

-

(2,249)

Net Increase in Loans Held for Investment

(161,006)

(33,625)

(194,631)

Proceeds from Sales of Loans

-

39,125

39,125

Proceeds From Sales of Other Real Estate Owned

3,840

-

3,840

Purchases of Premises and Equipment, net

(5,459)

-

(5,459)

Net Cash Used In Investing Activities

(62,649)

5,500

(57,149)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(398,872)

-

(398,872)

Net Decrease in Other Short-Term Borrowings

(15,097)

-

(15,097)

Repayment of Other Long-Term Borrowings

(149)

-

(149)

Dividends Paid

(9,518)

-

(9,518)

Payments to Repurchase Common Stock

(3,121)

-

(3,121)

Issuance of Common Stock Under Compensation Plans

562

-

562

Net Cash Provided By Financing Activities

(426,195)

-

(426,195)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(433,152)

-

(433,152)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

167,498

$

-

$

167,498

Supplemental Cash Flow Disclosures:

 Interest Paid

$

15,026

$

-

$

15,026

 Income Taxes Paid

$

7,395

$

-

$

7,395

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

33,625

$

33,625

 Loans and Premises Transferred to Other Real Estate Owned

$

1,495

$

-

$

1,495

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

XML

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

Capital City Bank Group, Inc. (“CCBG”) provides a full range of banking and banking-related services to individual and

corporate clients through its wholly-owned subsidiary, Capital City Bank (“CCB” or the “Bank” and together with CCBG, the

“Company”), 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

Basis of Presentation

The consolidated financial statements include the accounts of CCBG and CCB. CCBG also maintains an insurance subsidiary,

Capital City Strategic Wealth, LLC. CCB has two primary subsidiaries, which are wholly owned, Capital City Trust Company

and Capital City Investments. On March 1, 2020, CCB acquired a

51

% membership interest in Brand Mortgage Group, LLC

(“Brand”) which is now operated as Capital City Home Loans, LLC (“CCHL”), a consolidated entity in the Company’s financial

statements. The terms of the transaction included a buyout call/put option for CCB to purchase the remaining

49

% of the

membership interests in CCHL (“the

49

% Interest”) that are held by BMGBMG, LLC (“BMG”). The option requires 12 months

advance notice to the other party, and under the terms of the option, January 1, 2025 is the earliest date the transfer of the

49

%

Interest may be completed. On December 20, 2023, BMG notified CCB that BMG will exercise its put option and the transfer of

the

49

% Interest will become effective on January 1, 2025. 

The Company, which operates a single reportable business segment that is comprised of commercial banking within the states of

Florida, Georgia, and Alabama, follows accounting principles generally accepted in the United States of America and reporting

practices applicable to the banking industry. The principles which materially affect the financial position, results of operations

and cash flows are summarized below.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a

voting interest entity or a variable interest entity under accounting principles generally accepted in the United States of America.

Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself

independently and provide the equity holders with the obligation to absorb losses, the right to receive residual returns and the

right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at

least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (“VIE’s”) are

entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in an entity is

present when an enterprise has a variable interest, or a combination of variable interests, that will absorb a majority of the entity’s

expected losses, receive a majority of the entity’s expected residual returns, or both. The enterprise with a controlling financial

interest, known as the primary beneficiary, consolidates the VIE. Two of CCBG’s wholly owned subsidiaries, CCBG Capital

Trust I (established November 1, 2004) and CCBG Capital Trust II (established May 24, 2005) are VIEs for which the Company

is not the primary beneficiary. Accordingly, the accounts of these entities are not included in the Company’s consolidated

financial statements.

Certain previously reported amounts have been reclassified to conform to the current year’s presentation. All material inter-

company transactions and accounts have been eliminated in consolidation. The Company has evaluated subsequent events for

potential recognition and/or disclosure through the date the consolidated financial statements included in this Annual Report on

Form 10-K/A were filed with the United States Securities and Exchange Commission.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of

America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the

disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and

expenses during the reporting period. Actual results could vary from these estimates. Material estimates that are particularly

susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses, pension expense,

income taxes, loss contingencies, valuation of other real estate owned, and valuation of goodwill and their respective analysis of

impairment.

Restatement of Previously Issued Consolidated Financial Statements

Restatement of Previously Issued Consolidated Financial Statements

Restated herein are the Company’s Impacted Statements of Cash Flows for the years ended December 31, 202 3, December 31,

2022 and December 31, 2021 and for each of the three month periods ended March 31, 2023 and 2022, six month periods ended

June 30, 2023 and 2022 and nine month periods ended September 30, 2023 and 2022. 

Prior Restatement Background

On December 22, 2023, the Company filed a Form 10-K/A for the year ended December 31, 2022 to amend and restate certain

items related to inter-company transactions between its subsidiaries, CCHL and CCB, involving residential mortgage loan

purchases that were not properly recorded. The material impact to Consolidated Statements of Income, Consolidated Statements

of Financial Condition and various key performance indicators resulted in a restatement of the Company’s financial statements for

the year ended December 31, 2022, and the three, six and nine months ended March 31, 2022 and 2023, June 30, 2022 and 2023,

and September 30, 2022, respectively (collectively, the “Original Restated Financial Statements”). As part of the Company’s

assessment of the misstatements noted in the Form 10-K/A filed December 22, 2023, it was concluded that the impact of the inter-

company loan sale and participation transactions was immaterial to the consolidated financial statements for the year ended

December 31, 2021. 

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2023, the

Company concluded that it had not appropriately eliminated intercompany loan sale and participations transactions from the

Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 in the Original Restated Financial

Statements. On March 13, 2024, the Company filed its Form 10-K for the year ended December 31, 2023 including restatements

of the Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 (“collectively, the “Subsequently

Restated Financial Statements”). The Subsequently Restated Financial Statements had no impact on the Company’s Consolidated

Statements of Financial Condition, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income,

Consolidated Statements in Changes in Shareowners’ Equity or the Notes to the Consolidated Financial Statements.

Description of Current Misstatements

In connection with the preparation of the Company’s financial statements for the first quarter of 2024, the Company identified

changes needed in preparing its consolidated financial statements, specifically, its Consolidated Statement of Cash Flows, related

to certain construction/permanent loan sales. These changes require restatements of the Impacted Statements of Cash Flows in

both the Original Restated Financial Statements and Subsequently Restated Financial Statements to correct misstatements of the

following line items within the Impacted Statements of Cash Flows:

Within the Cash Flows from Operating Activities section:

●

An understatement of $

100.1

 million, overstatement of $

47.6

 million and overstatement $

33.8

 million for Originations of

Loans Held for Sale for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An understatement of $

88.5

 million, overstatement of $

37.5

 million and overstatement of $

27.6

 million for Proceeds

from Sales of Loans Held for Sale for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An overstatement of $

11.6

 million, understatement of $

10.2

 million and understatement of $

6.2

 million for Net Cash

Provided by Operating Activities for the years ended December 31, 2023, 2022 and 2021, respectively. 

Within the Cash Flows from Investing Activities section:

●

An understatement of $

35.7

 million, understatement of $

114.7

 million, and overstatement of $

98.6

 million for Net

(Increase) Decrease in Loans Held for Investment for the years ended December 31, 2023, 2022 and 2021, respectively.

●

An understatement of $

47.3

 million, $

104.5

 million, and $

92.4

 million for Proceeds From Sales of Loans for the years

ended December 31, 2023, 2022 and 2021, respectively.

●

An overstatement of $

11.6

 million, understatement of $

10.2

 million and understatement $

6.2

 million for Net Cash Used

in Investing Activities for the years ended December 31, 2023, 2022 and 2021, respectively. 

Within the Supplemental Noncash Items section:

●

Disclosure of noncash activity related to Loans Transferred from Loans Held for Investment to Loans Held for Sale, net

for the years ended December, 31, 2023, 2022 and 2021 which totaled $

35.7

 million, $

108.8

 million, and $

98.1

 million,

respectively.

The impacts of the restatement for the years ended December 31, 2023, 2022 and 2021 as described above are reflected in the

Impacted Statements of Cash Flows and had no impact on the Consolidated Statements of Financial Condition, Consolidated

Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements in Changes in Shareowners’

Equity or the Notes to the Consolidated Financial Statements. The impacts of the restatement for each of the interim periods are

presented in Note 24, Restated Interim Consolidated Statements of Cash Flows (Unaudited).

Description of Current Restatement Tables

The following tables present the amounts previously reported and a reconciliation of the restatement amounts reported on the

restated Consolidated Statement of Cash Flows for the years ended December 31, 2023, December 31, 2022 and December 31,

2021. The amounts previously reported were derived from the Company’s Annual Report on Form 10-K for the year ended

December 31, 2023 filed with the SEC on March 13, 2024.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

52,258

$

-

$

52,258

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

9,714

-

9,714

 Depreciation

7,918

-

7,918

 Amortization of Premiums, Discounts, and Fees, net

4,221

-

4,221

 Amortization of Intangible Assets

160

-

160

Gain on Securities Transactions

3

-

3

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held-for-Sale

(306,714)

(100,089)

(406,803)

 Proceeds From Sales of Loans Held-for-Sale

315,812

88,520

404,332

 Mortgage Banking Revenues

(10,400)

-

(10,400)

 Net Additions for Capitalized Mortgage Servicing Rights

419

-

419

 Stock Compensation

1,237

-

1,237

 Net Tax Benefit From Stock-Based Compensation

(48)

-

(48)

 Deferred Income Taxes Benefit

(483)

-

(483)

 Net Change in Operating Leases

79

-

79

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

(2,053)

-

(2,053)

 Net Increase in Other Assets

(1,029)

-

(1,029)

 Net Decrease in Other Liabilities

(4,452)

-

(4,452)

Net Cash Provided By Operating Activities

66,351

(11,569)

54,782

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(1,483)

-

(1,483)

 Payments, Maturities, and Calls

36,600

-

36,600

Securities Available for Sale:

 Purchases

(8,379)

-

(8,379)

 Proceeds from Sale of Securities

30,420

-

30,420

 Payments, Maturities, and Calls

62,861

-

62,861

Equity Securities

 Purchases

(13,566)

-

(13,566)

 Net Decrease in Equity Securities

10,127

-

10,127

Purchase of loans held for investment

(2,488)

-

(2,488)

Net Increase in Loans Held for Investment

(191,151)

(35,745)

(226,896)

Proceeds from Sales of Loans

-

47,314

47,314

Proceeds From Sales of Other Real Estate Owned

3,995

-

3,995

Purchases of Premises and Equipment, net

(7,046)

-

(7,046)

Net Cash Used In Investing Activities

(80,110)

11,569

(68,541)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(237,495)

-

(237,495)

Net Decrease in Other Short-Term Borrowings

(21,452)

-

(21,452)

Repayment of Other Long-Term Borrowings

(199)

-

(199)

Dividends Paid

(12,905)

-

(12,905)

Payments to Repurchase Common Stock

(3,710)

-

(3,710)

Issuance of Common Stock Under Compensation Plans

937

-

937

Net Cash Provided By Financing Activities

(274,824)

-

(274,824)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(288,583)

-

(288,583)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

312,067

$

-

$

312,067

Supplemental Cash Flow Disclosures:

 Interest Paid

$

21,775

$

-

$

21,775

 Income Taxes Paid

$

9,118

$

-

$

9,118

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

35,745

$

35,745

 Loans and Premises Transferred to Other Real Estate Owned

$

1,512

$

-

$

1,512

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,412

$

-

$

33,412

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

7,494

-

7,494

 Depreciation

7,596

-

7,596

 Amortization of Premiums, Discounts, and Fees, net

7,772

-

7,772

 Amortization of Intangible Assets

160

-

160

 Pension Settlement Charge

2,321

-

2,321

 Originations of Loans Held-for-Sale

(437,827)

47,636

(390,191)

 Proceeds From Sales of Loans Held-for-Sale

475,359

(37,452)

437,907

 Mortgage Banking Revenues

(11,909)

-

(11,909)

 Net Additions for Capitalized Mortgage Servicing Rights

726

-

726

 Stock Compensation

1,630

-

1,630

 Net Tax Benefit From Stock-Based Compensation

(27)

-

(27)

 Deferred Income Taxes Benefit

(3,870)

-

(3,870)

 Net Change in Operating Leases

(108)

-

(108)

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

(422)

-

(422)

 Net Increase in Other Assets

(8,636)

-

(8,636)

 Net Decrease in Other Liabilities

8,837

-

8,837

Net Cash Provided By Operating Activities

82,508

10,184

92,692

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(219,865)

-

(219,865)

 Payments, Maturities, and Calls

55,314

-

55,314

Securities Available for Sale:

 Purchases

(52,238)

-

(52,238)

 Proceeds from Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

81,596

-

81,596

Purchase of loans held for investment

(16,753)

-

(16,753)

Net Increase in Loans Held for Investment

(606,011)

(114,659)

(720,670)

Proceeds From Sales of Loans

-

104,475

104,475

Proceeds From Sales of Other Real Estate Owned

2,406

-

2,406

Purchases of Premises and Equipment, net

(6,322)

-

(6,322)

Noncontrolling interest contributions received

2,867

-

2,867

Net Cash Used In Investing Activities

(755,641)

(10,184)

(765,825)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

226,455

-

226,455

Net Increase in Other Short-Term Borrowings

22,114

-

22,114

Repayment of Other Long-Term Borrowings

(249)

-

(249)

Dividends Paid

(11,191)

-

(11,191)

Issuance of Common Stock Under Compensation Plans

1,300

-

1,300

Net Cash Provided By Financing Activities

238,429

-

238,429

NET DECREASE IN CASH AND CASH EQUIVALENTS

(434,704)

-

(434,704)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

600,650

$

-

$

600,650

Supplemental Cash Flow Disclosures:

 Interest Paid

$

6,586

$

-

$

6,586

 Income Taxes Paid

$

7,466

$

-

$

7,466

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

108,798

$

108,798

 Loans and Premises Transferred to Other Real Estate Owned

$

2,398

$

-

$

2,398

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2021

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,396

$

-

$

33,396

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

(1,553)

-

(1,553)

 Depreciation

7,607

-

7,607

 Amortization of Premiums, Discounts, and Fees, net

14,072

-

14,072

 Amortization of Intangible Assets

107

-

107

 Pension Settlement Charge

3,072

-

3,072

 Originations of Loans Held-for-Sale

(1,262,746)

33,800

(1,228,946)

 Proceeds From Sales of Loans Held-for-Sale

1,376,678

(27,554)

1,349,124

 Mortgage Banking Revenues

(52,425)

-

(52,425)

 Net Additions for Capitalized Mortgage Servicing Rights

72

-

72

 Change in Valuation Provision for Mortgage Servicing Rights

(250)

-

(250)

 Stock Compensation

843

-

843

 Net Tax Benefit From Stock-Based Compensation

(4)

-

(4)

 Deferred Income Taxes Benefit

(4,157)

-

(4,157)

 Net Change in Operating Leases

(165)

-

(165)

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

(1,662)

-

(1,662)

 Net Decrease in Other Assets

10,885

-

10,885

 Net Decrease in Other Liabilities

(7,846)

-

(7,846)

Net Cash Provided By Operating Activities

115,924

6,246

122,170

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(251,525)

-

(251,525)

 Payments, Maturities, and Calls

78,544

-

78,544

Securities Available for Sale:

 Purchases

(523,961)

-

(523,961)

 Proceeds from Sale of Securities

495

-

495

 Payments, Maturities, and Calls

178,425

-

178,425

Purchase of loans held for investment

(20,209)

-

(20,209)

Net Decrease (Increase) in Loans Held for Investment

88,545

(98,606)

(10,061)

Proceeds from Sales of Loans

-

92,360

92,360

Net Cash Paid for Acquisitions

(4,482)

-

(4,482)

Proceeds From Sales of Other Real Estate Owned

4,502

-

4,502

Purchases of Premises and Equipment, net

(5,193)

-

(5,193)

Noncontrolling interest contributions received

7,139

-

7,139

Net Cash Used In Investing Activities

(447,720)

(6,246)

(453,966)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

495,302

-

495,302

Net Decrease in Other Short-Term Borrowings

(45,938)

-

(45,938)

Repayment of Other Long-Term Borrowings

(1,332)

-

(1,332)

Dividends Paid

(10,459)

-

(10,459)

Issuance of Common Stock Under Compensation Plans

1,028

-

1,028

Net Cash Provided By Financing Activities

438,601

-

438,601

NET DECREASE IN CASH AND CASH EQUIVALENTS

106,805

-

106,805

Cash and Cash Equivalents at Beginning of Period 

928,549

-

928,549

Cash and Cash Equivalents at End of Period 

$

1,035,354

$

-

$

1,035,354

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,547

$

-

$

3,547

 Income Taxes Paid

$

16,339

$

-

$

16,339

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

98,081

$

98,081

 Loans and Premises Transferred to Other Real Estate Owned

$

1,717

$

-

$

1,717

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks, interest-bearing deposits in other banks, and federal funds

sold. Generally, federal funds are purchased and sold for one-day periods and all other cash equivalents have a maturity of 90

days or less. The Company is required to maintain average reserve balances with the Federal Reserve Bank based upon a

percentage of deposits. On March 26, 2020, the Federal Reserve reduced the amount of the required reserve balance to

zero

. 

The Company maintains certain cash balances that are restricted under warehouse lines of credit and master repurchase

agreements. The restricted cash balance at December 31, 2023 was $

0.1

 million.

Investment Securities

Investment Securities

Investment securities are classified as held-to-maturity (“HTM”) and carried at amortized cost when the Company has the positive

intent and ability to hold them until maturity. Investment securities not classified as HTM are classified as available-for-sale

(“AFS”) and carried at fair value. The Company does not have trading investment securities. Investment securities classified as

equity securities that do not have readily determinable fair values, are measured at cost and remeasured to fair value when

impaired or upon observable transaction prices. The Company determines the appropriate classification of securities at the time

of purchase. For reporting and risk management purposes, the Company further segments investment securities by the issuer of

the security which correlates to its risk profile: U.S. government treasury, U.S. government agency, state and political

subdivisions, mortgage-backed securities, and corporate debt securities. Certain equity securities with limited marketability, such

as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are classified as AFS and carried at cost. 

Interest income includes amortization and accretion of purchase premiums and discounts. Realized gains and losses are derived

from the amortized cost of the security sold. Gains and losses on the sale of securities are recorded on the trade date and are

determined using the specific identification method. Securities transferred from AFS to HTM are recorded at amortized cost plus

or minus any unrealized gain or loss at the time of transfer. Any existing unrecognized gain or loss continues to be reported in

accumulated other comprehensive loss (net of tax) and amortized as an adjustment to interest income over the remaining life of

the security. Any existing allowance for credit loss is reversed at the time of transfer. Subsequent to transfer, the allowance for

credit losses on the transferred security is evaluated in accordance with the accounting policy for HTM securities. Additionally,

any allowance amounts reversed or established as part of the transfer are presented on a gross basis in the Consolidated Statement

of Income. 

The accrual of interest is generally suspended on securities more than 90 days past due with respect to principal or interest. When

a security is placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and

thus not included in the estimate of credit losses. 

Credit losses and changes thereto, are established as an allowance for credit loss through a provision for credit loss expense. 

Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when

either of the criteria regarding intent or requirement to sell is met.

Certain 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 considers the long history of no credit losses on these

securities indicates that the expectation of nonpayment of the amortized cost basis is 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 not assess or record expected

credit losses due to the zero loss assumption.

Impairment - Available -for-Sale Securities

.

Unrealized gains on AFS securities are excluded from earnings and reported, net of tax, in other comprehensive income. For AFS

securities that are in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely

than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent

or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities

that do not meet the aforementioned criteria or have a zero loss assumption, the Company evaluates whether the decline in fair

value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair

value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically

related to the security, among other factors. If the assessment indicates that a credit loss exists, the present value of cash flows to

be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows

expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded

through a provision for credit loss expense, limited by the amount that fair value is less than the amortized cost basis. Any

impairment that is not credit related is recognized in other comprehensive income. 

Allowance for Credit Losses - Held-to-Maturity Securities.

Management measures expected credit losses on each individual HTM debt security that has not been deemed to have a zero

assumption. Each security that is not deemed to have zero credit losses is individually measured based on net realizable value, or

the difference between the discounted value of the expected cash flows, based on the original effective rate, and the recorded

amortized basis of the security. To the extent a shortfall is related to credit loss, an allowance for credit loss is recorded through a

provision for credit loss expense.

Loans Held for Investment

Loans Held for Investment

Loans held for investment (“HFI”) are stated at amortized cost which includes the principal amount outstanding, net premiums

and discounts, and net deferred loan fees and costs. Accrued interest receivable on loans is reported in other assets and is not

included in the amortized cost basis of loans. Interest income is accrued on the effective yield method based on outstanding

principal balances and includes loan late fees. Fees charged to originate loans and direct loan origination costs are deferred and

amortized over the life of the loan as a yield adjustment. 

The Company defines loans as past due when one full payment is past due or a contractual maturity is over 30 days late. The

accrual of interest is generally suspended on loans more than 90 days past due with respect to principal or interest. When a loan is

placed on nonaccrual status, all previously accrued and uncollected interest is reversed against current income and thus a policy

election has been made to not include accrued interest in the estimate of credit losses. Interest income on nonaccrual loans is

recognized when the ultimate collectability is no longer considered 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. 

Loan charge-offs on commercial and investor real estate loans are recorded when the facts and circumstances of the individual

loan confirm the loan is not fully collectible and the loss is reasonably quantifiable. Factors considered in making these

determinations are the borrower’s and any guarantor’s ability and willingness to pay, the status of the account in bankruptcy court

(if applicable), and collateral value. Charge-off decisions for consumer loans are dictated by the Federal Financial Institutions

Examination Council’s Uniform Retail Credit Classification and Account Management Policy which establishes standards for the

classification and treatment of consumer loans, which generally require charge-off after 120 days of delinquency.

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures designed to

maximize loan income within an acceptable level of risk. Reporting systems are used to monitor loan originations, loan ratings,

concentrations, loan delinquencies, nonperforming and potential problem loans, and other credit quality metrics. The ongoing

review of loan portfolio quality and trends by Management and the Credit Risk Oversight Committee support the process for

estimating the allowance for credit losses.

Allowance for Credit Losses

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net

amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is

reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the

allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the

aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable

off-balance sheet credit exposures is provided for through the credit loss provision, but recorded separately in other liabilities.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to

past events, current conditions, and reasonable and supportable forecasts. Historical loan default and loss experience provides the

basis for the estimation of expected credit losses. Adjustments to historical loss information incorporate management’s view of

current conditions and forecasts. 

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

Loans That Do Not Share Risk Characteristics (Individually Analyzed)

Loans that do not share similar risk characteristics are evaluated on an individual basis. Loans deemed to be collateral dependent

have differing risk characteristics and are individually analyzed to estimate the expected credit loss. A loan is collateral

dependent when the borrower is experiencing financial difficulty and repayment of the loan is dependent on the liquidation and

sale of the underlying collateral. For collateral dependent loans where foreclosure is probable, the expected credit loss is

measured based on the difference between the fair value of the collateral (less selling cost) and the amortized cost basis of the

asset. For collateral dependent loans where foreclosure is not probable, the Company has elected the practical expedient allowed

by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 326-20 to measure the

expected credit loss under the same approach as those loans where foreclosure is probable. For loans with balances greater than

$250,000, the fair value of the collateral is obtained through independent appraisal of the underlying collateral. For loans with

balances less than $250,000, the Company has made a policy election to measure expected loss for these individual loans utilizing

loss rates for similar loan types. 

Loans That Share Similar Risk Characteristics (Pooled Loans)

The general steps in determining expected credit losses for the pooled loan component of the allowance are as follows:

●

Segment loans into pools according to similar risk characteristics

●

Develop historical loss rates for each loan pool segment

●

Incorporate the impact of forecasts

●

Incorporate the impact of other qualitative factors 

●

Calculate and review pool specific allowance for credit loss estimate

A discounted cash flow methodology is utilized to calculate expected cash flows for the life of each individual loan. The

discounted present value of expected cash flow is then compared to the loan’s amortized cost basis to determine the credit loss

estimate. Individual loan results are aggregated at the pool level in determining total reserves for each loan pool. 

The primary inputs used to calculate expected cash flows include historical loss rates which reflect probability of default (“PD”)

and loss given default (“LGD”), and prepayment rates. The historical look-back period is a key factor in the calculation of the PD

rate and is based on management’s assessment of current and forecasted conditions and may vary by loan pool. Loans subject to

the Company’s risk rating process are further sub-segmented by risk rating in the calculation of PD rates. LGD rates generally

reflect the historical average net loss rate by loan pool. Expected cash flows are further adjusted to incorporate the impact of loan

prepayments which will vary by loan segment and interest rate conditions. In general, prepayment rates are based on observed

prepayment rates occurring in the loan portfolio and consideration of forecasted interest rates.

In developing loss rates, adjustments are made to incorporate the impact of forecasted conditions. Certain assumptions are also

applied, including the length of the forecast and reversion periods. The forecast period is the period within which management is

able to make a reasonable and supportable assessment of future conditions. The reversion period is the period beyond which

management believes it can develop a reasonable and supportable forecast, and bridges the gap between the forecast period and

the use of historical default and loss rates. The remainder period reflects the remaining life of the loan. The length of the forecast

and reversion periods are periodically evaluated and based on management’s assessment of current and forecasted conditions and

may vary by loan pool. For purposes of developing a reasonable and supportable assessment of future conditions, management

utilizes established industry and economic data points and sources, including the Federal Open Market Committee forecast, with

the forecasted unemployment rate being a significant factor. PD rates for the forecast period will be adjusted accordingly based

on management’s assessment of future conditions. PD rates for the remainder period will reflect the historical mean PD rate. 

Reversion period PD rates reflect the difference between forecast and remainder period PD rates calculated using a straight-line

adjustment over the reversion period. 

Loss rates are further adjusted to account for other risk factors that impact loan defaults and losses. These adjustments are based

on management’s assessment of trends and conditions that impact credit risk and resulting credit losses, more specifically internal

and external factors that are independent of and not reflected in the quantitative loss rate calculations. Risk factors management

considers in this assessment include trends in underwriting standards, nature/volume/terms of loan originations, past due loans,

loan review systems, collateral valuations, concentrations, legal/regulatory/political conditions, and the unforeseen impact of

natural disasters.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which it is exposed to credit risk through a

contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for

credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense and is recorded in other

liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses

on commitments expected to be funded over its estimated life and applies the same estimated loss rate as determined for current

outstanding loan balances by segment. Off-balance sheet credit exposures are identified and classified in the same categories as

the allowance for credit losses with similar risk characteristics that have been previously mentioned.

Mortgage Banking Activities

Mortgage Banking Activities

Mortgage Loans Held for Sale and Revenue Recognition

Mortgage loans held for sale (“HFS”) are carried at fair value under the fair value option with changes in fair value recorded in

mortgage banking revenues on the Consolidated Statements of Income. The fair value of mortgage loans held for sale committed

to investors is calculated using observable market information such as the investor commitment, assignment of trade or other

mandatory delivery commitment prices. The Company bases loans committed to Federal National Mortgage Association

(“FNMA”), Government National Mortgage Association (“GNMA”), and Federal Home Loan Mortgage Corporation

(“FHLMC”) (“Agency”) investors based on the Agency’s quoted mortgage backed security (“MBS”) prices. The fair value of

mortgage loans held for sale not committed to investors is based on quoted best execution secondary market prices. If no such

quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, such as MBS prices, adjusted for

the specific attributes of that loan, which would be used by other market participants.

Gains and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales

proceeds and carrying value of the related loans upon sale and are recorded in mortgage banking revenues on the Consolidated

Statements of Income. Sales proceeds reflect the cash received from investors through the sale of the loan and servicing release

premium. If the related mortgage loan is sold with servicing retained, the MSR addition is recorded in mortgage banking revenues

on the Consolidated Statements of Income. Mortgage banking revenues also includes the unrealized gains and losses associated

with the changes in the fair value of mortgage loans held for sale, and the realized and unrealized gains and losses from derivative

instruments.

Mortgage loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is

considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the

Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right)

to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets

through either an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before

their maturity or the ability to unilaterally cause the holder to return specific assets. The Company typically considers the above

criteria to have been met upon acceptance and receipt of sales proceeds from the purchaser.

Government National Mortgage Association (“GNMA”) optional repurchase programs allow financial institutions to buy back

individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides

servicing. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan

for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and

Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option

becomes unconditional. When the Company is deemed to have regained effective control over these loans under the

unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the Consolidated

Statement of Financial Condition, regardless of whether there is intent to exercise the buy-back option. These loans are reported

in other assets with the offsetting liability being reported in other liabilities. 

Derivative Instruments (IRLC/Forward Commitments)

The Company holds and issues derivative financial instruments such as interest rate lock commitments (“IRLCs”) and other

forward sale commitments. IRLCs are subject to price risk primarily related to fluctuations in market interest rates. To hedge the

interest rate risk on certain IRLCs, the Company uses forward sale commitments, such as to-be-announced securities (“TBAs”) or

mandatory delivery commitments with investors. Management expects these forward sale commitments to experience changes in

fair value opposite to the changes in fair value of the IRLCs thereby reducing earnings volatility. Forward sale commitments are

also used to hedge the interest rate risk on mortgage loans held for sale that are not committed to investors and still subject to

price risk. If the mandatory delivery commitments are not fulfilled, the Company pays a pair-off fee. Best effort forward sale

commitments are also executed with investors, whereby certain loans are locked with a borrower and simultaneously committed

to an investor at a fixed price. If the best effort IRLC does not fund, there is no obligation to fulfill the investor commitment.

The Company considers various factors and strategies in determining what portion of the IRLCs and uncommitted mortgage loans

held for sale to economically hedge. All derivative instruments are recognized as other assets or other liabilities on the

Consolidated Statements of Financial Condition at their fair value. Changes in the fair value of the derivative instruments are

recognized in mortgage banking revenues on the Consolidated Statements of Income in the period in which they occur. Gains and

losses resulting from the pairing-out of forward sale commitments are recognized in mortgage banking revenues on the

Consolidated Statements of Income. The Company accounts for all derivative instruments as free-standing derivative instruments

and does not designate any for hedge accounting.

Mortgage Servicing Rights (“MSRs”) and Revenue Recognition 

The Company sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Upon

sale, an MSR asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for

performing servicing activities. As the Company has not elected to subsequently measure any class of servicing assets under the

fair value measurement method, the Company follows the amortization method. MSRs are amortized to noninterest income

(other income) in proportion to and over the period of estimated net servicing income, and are assessed for impairment at each

reporting date. MSRs are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair

value, and included in other assets, net, on the Consolidated Statements of Financial Condition. 

The Company periodically evaluates its MSRs asset for impairment. Impairment is assessed based on fair value at each reporting

date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk

characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fall,

prepayment speeds are usually faster and the value of the MSRs asset generally decreases, requiring additional valuation reserve. 

Conversely, as mortgage interest rates rise, prepayment speeds are usually slower and the value of the MSRs asset generally

increases, requiring less valuation reserve. A valuation allowance is established, through a charge to earnings, to the extent the

amortized cost of the MSRs exceeds the estimated fair value by stratification. If it is later determined that all or a portion of the

temporary impairment no longer exists for a stratification, the valuation is reduced through a recovery to earnings. An other-than-

temporary impairment (i.e., recoverability is considered remote when considering interest rates and loan pay off activity) is

recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance is

available) and then against earnings. A direct write-down permanently reduces the carrying value of the MSRs asset and

valuation allowance, precluding subsequent recoveries.

Derivative/Hedging Activities

Derivative/Hedging Activities

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s

intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized

asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the

variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument

with no hedging designation (“standalone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the

offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the

gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods

during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are

not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in

current earnings. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest

expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are

reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the

items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management

objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation

includes linking fair value or cash flow hedges to specific assets and liabilities on the Consolidated Statement of Financial

Condition or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s

inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in

fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative

is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or

terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the

derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair

value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability

is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of

the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still

expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the

same periods, in which the hedged transactions will affect earnings.

Long-Lived Assets

Long-Lived Assets

Premises and equipment is stated at cost less accumulated depreciation, computed on the straight-line method over the estimated

useful lives for each type of asset with premises being depreciated over a range of

10

 to

40

 years, and equipment being

depreciated over a range of

3

 to

10

 years. Additions, renovations and leasehold improvements to premises are capitalized and

depreciated over the lesser of the useful life or the remaining lease term. Repairs and maintenance are charged to noninterest

expense as incurred.

Long-lived assets are evaluated for impairment if circumstances suggest that their carrying value may not be recoverable, by

comparing the carrying value to estimated undiscounted cash flows. If the asset is deemed impaired, an impairment charge is

recorded equal to the carrying value less the fair value. See Note 6 – Premises and Equipment for additional information.

Leases

Leases

The Company has entered into various operating leases, primarily for banking offices. Generally, these leases have initial lease

terms from one to ten years. Many of the leases have one or more lease renewal options. The exercise of lease renewal options is

at the Company’s sole discretion. The Company does not consider exercise of any lease renewal options reasonably certain. 

Certain leases contain early termination options. No renewal options or early termination options have been included in the

calculation of the operating right-of-use assets or operating lease liabilities. Certain lease agreements provide for periodic

adjustments to rental payments for inflation. At the commencement date of the lease, the Company recognizes a lease liability at

the present value of the lease payments not yet paid, discounted using the discount rate for the lease or the Company’s

incremental borrowing rate. As the majority of the Company’s leases do not provide an implicit rate, the Company uses its

incremental borrowing rate at the commencement date in determining the present value of lease payments. The incremental

borrowing rate is based on the term of the lease. At the commencement date, the Company also recognizes a right-of-use asset

measured at (i) the initial measurement of the lease liability; (ii) any lease payments made to the lessor at or before the

commencement date less any lease incentives received; and (iii) any initial direct costs incurred by the lessee. Leases with an

initial term of 12 months or less are not recorded on the Consolidated Statement of Financial Condition. For these short-term

leases, lease expense is recognized on a straight-line basis over the lease term. The Company has no leases classified as finance

leases. See Note 7 – Leases for additional information.

Bank Owned Life Insurance

Bank Owned Life Insurance

The Company, through its subsidiary bank, has purchased life insurance policies on certain key officers. Bank owned life

insurance is recorded at the amount that can be realized under the insurance contract at the statement of financial condition date,

which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangibles

Goodwill and Other Intangibles

Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. In accordance

with FASB ASC Topic 350, the Company determined it has one goodwill reporting unit. Goodwill is tested for impairment

annually during the fourth quarter or on an interim basis if an event occurs or circumstances change that would more likely than

not reduce the fair value of the reporting unit below its carrying value. Other intangible assets relate to customer intangibles

purchased as part of a business acquisition. Intangible assets are tested for impairment at least annually or whenever changes in

circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. See Note 8

– Goodwill and Other Intangibles for additional information

Other Real Estate Owned

Other Real Estate Owned

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of cost or fair value

less estimated selling costs, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by

management and the assets are carried at the lower of carrying amount or fair value less cost to sell. The valuation of foreclosed

assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. Revenue and

expenses from operations and changes in value are included in noninterest expense.

Loss Contingencies

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when

the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. See Note 21 – Commitments and

Contingencies for additional information.

Noncontrolling Interest

Noncontrolling Interest

To the extent the Company’s interest in a consolidated entity represents less than 100% of the entity’s equity, the Company

recognizes noncontrolling interests in subsidiaries. In the case of the CCHL acquisition, the noncontrolling interest represents

equity which is redeemable or convertible for cash at the option of the equity holder and is classified within temporary equity in

the mezzanine section of the Consolidated Statements of Financial Condition. The call/put option is redeemable at the option of

either CCBG (call) or the noncontrolling interest holder (put) on or after January 1, 2025, and therefore, not entirely within

CCBG’s control. The subsidiary’s net income or loss and related dividends are allocated to CCBG and the noncontrolling interest

holder based on their relative ownership percentages. The noncontrolling interest carrying value is adjusted on a quarterly basis

to the higher of the carrying value or current redemption value, at the Statement of Financial Condition date, through a

corresponding adjustment to retained earnings. The redemption value is calculated quarterly and is based on the higher of a

predetermined book value or pre-tax earnings multiple. To the extent the redemption value exceeds the fair value of the

noncontrolling interest, the Company’s earnings per share attributable to common shareowners is adjusted by that amount. The

Company uses an independent valuation expert to assist in estimating the fair value of the noncontrolling interest using: 1) the

discounted cash flow methodology under the income approach, and (2) the guideline public company methodology under the

market approach. The estimated fair value is derived from equally weighting the result of each of the two methodologies. The

estimation of the fair value includes significant assumptions concerning: (1) projected loan volumes; (2) projected pre-tax profit

margins; (3) tax rates and (4) discount rates.

Income Taxes

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and

liabilities (excluding deferred tax assets and liabilities related to business combinations or components of other comprehensive

income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying

amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces

deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the

generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. The income tax effects related

to settlements of share-based payment awards are reported in earnings as an increase or decrease in income tax expense. 

The Company files a consolidated federal income tax return and a separate federal tax return for CCHL. Each subsidiary files a

separate state income tax return.

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share is based on net income divided by the weighted -average number of common shares outstanding

during the period excluding non-vested stock. Diluted earnings per common share include the dilutive effect of stock options and

non-vested stock awards granted using the treasury stock method. A reconciliation of the weighted-average shares used in

calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per

common share for the reported periods is provided in Note 16 — Earnings Per Share.

Comprehensive Income

Comprehensive Income

Comprehensive income includes all changes in shareowners’ equity during a period, except those resulting from transactions with

shareowners. Besides net income, other components of the Company’s comprehensive income include the after tax effect of

changes in the net unrealized gain/loss on securities AFS, unrealized gain/loss on cash flow derivatives, and changes in the funded

status of defined benefit and supplemental executive retirement plans. Comprehensive income is reported in the accompanying

Consolidated Statements of Comprehensive Income and Changes in Shareowners’ Equity.

Stock Based Compensation

Stock Based Compensation

Compensation cost is recognized for share-based awards issued to employees, based on the fair value of these awards at the date

of grant. Compensation cost is recognized over the requisite service period, generally defined as the vesting period. The market

price of the Company’s common stock at the date of the grant is used for restricted stock awards. For stock purchase plan awards,

a Black-Scholes model is utilized to estimate the fair value of the award. The impact of forfeitures of share-based awards on

compensation expense is recognized as forfeitures occur.

Revenue Recognition

Revenue Recognition

FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information

about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or

services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to

customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or

services recognized as performance obligations are satisfied.

The majority of the Company’s revenue -generating transactions are not subject to ASC 606, including revenue generated from

financial instruments, such as our loans, letters of credit, and investment securities, and revenue related to the sale of residential

mortgages in the secondary market, as these activities are subject to other GAAP discussed elsewhere within our disclosures. The

Company recognizes revenue from these activities as it is earned based on contractual terms, as transactions occur, or as services

are provided and collectability is reasonably assured. Descriptions of the major revenue-generating activities that are within the

scope of ASC 606, which are presented in the accompanying Consolidated Statements of Income as components of non-interest

income are as follows:

Deposit Fees - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and

consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-

based revenue. Revenue is recognized when the Company’s performance obligation is completed which is generally monthly for

account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally

received at the time the performance obligations are satisfied.

Wealth Management - trust fees and retail brokerage fees – trust fees represent monthly fees due from wealth management clients

as consideration for managing the client’s assets. Trust services include custody of assets, investment management, fees for trust

services and similar fiduciary activities. Revenue is recognized when the Company’s performance obligation is completed each

month or quarter, which is the time that payment is received. Also, retail brokerage fees are received from a third-party broker-

dealer, for which the Company acts as an agent, as part of a revenue-sharing agreement for fees earned from customers that are

referred to the third party. These fees are for transactional and advisory services and are paid by the third party on a monthly

basis and recognized ratably throughout the quarter as the Company’s performance obligation is satisfied.

Bank Card Fees – bank card related fees primarily includes interchange income from client use of consumer and business debit

cards. Interchange income is a fee paid by a merchant bank to the card-issuing bank through the interchange network. 

Interchange fees are set by the credit card associations and are based on cardholder purchase volumes. The Company records

interchange income as transactions occur.

Gains and Losses from the Sale of Bank Owned Property – the performance obligation in the sale of other real estate owned

typically will be the delivery of control over the property to the buyer. If the Company is not providing the financing of the sale,

the transaction price is typically identified in the purchase and sale agreement. However, if the Company provides seller

financing, the Company must determine a transaction price, depending on if the sale contract is at market terms and taking into

account the credit risk inherent in the arrangement. 

Insurance Commissions – insurance commissions recorded by the Company are received from various insurance carriers based on

contractual agreements to sell policies to customers on behalf of the carriers. The performance obligation for the Company is to

sell life and health insurance policies to customers. This performance obligation is met when a new policy is sold (effective date)

or when an existing policy renews. New policies and renewals generally have a one-year term. In the agreements with the

insurance carriers, a commission rate is agreed upon. The commission is recognized at the time of the sale of the policy (effective

date) or when a policy renews. Insurance commissions are recorded within other noninterest income. 

Other non-interest income primarily includes items such as mortgage banking fees (gains from the sale of residential mortgage

loans held for sale), bank-owned life insurance, and safe deposit box fees, none of which are subject to the requirements of ASC

606.

The Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affects the

determination of the amount and timing of revenue from the above-described contracts with clients.

Recently Adopted Accounting Pronouncements and Issued but not yet Effective Accounting Standards

Recently Adopted Accounting Pronouncements

Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt

Restructurings and Vintage Disclosures”.

The amendments eliminate the accounting guidance for troubled debt restructurings by

creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings

made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross

write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The

amendments in this update are for fiscal years beginning after December 15, 2022, including interim periods within those fiscal

years. The Company adopted ASU 2022-02 using the prospective approach and the adoption of the standard did not have a

material impact on its consolidated financial statements. 

Issued But Not Yet Effective Accounting Standards

ASU No. 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. ASU 2023-01 will be

effective for the Company on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect that ASU

2023-02 will have 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. ASU 2023-02

will be effective for the Company on January 1, 2024, though early adoption is permitted. The Company is evaluating the effect

that ASU 2023-02 will have on its consolidated financial statements and related 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. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to

the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of

that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has

not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment

will be removed from the Codification and will not become effective for any entities. The Company is currently evaluating the

provisions of the amendments and the impact on its future consolidated statements . 

ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.”

ASU 2023-09 is intended to enhance

transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about

income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and income

taxes paid information. Retrospective application in all prior periods is permitted. ASU 2023-09 will be effective for the company

on January 1, 2025. The Company is currently evaluating the impact of the incremental income taxes information that will be

required to be disclosed as well as the impact to Note 13- Income Taxes.

XML

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies [Abstract]

Schedule of Restatement Impacts

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

52,258

$

-

$

52,258

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

9,714

-

9,714

 Depreciation

7,918

-

7,918

 Amortization of Premiums, Discounts, and Fees, net

4,221

-

4,221

 Amortization of Intangible Assets

160

-

160

Gain on Securities Transactions

3

-

3

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held-for-Sale

(306,714)

(100,089)

(406,803)

 Proceeds From Sales of Loans Held-for-Sale

315,812

88,520

404,332

 Mortgage Banking Revenues

(10,400)

-

(10,400)

 Net Additions for Capitalized Mortgage Servicing Rights

419

-

419

 Stock Compensation

1,237

-

1,237

 Net Tax Benefit From Stock-Based Compensation

(48)

-

(48)

 Deferred Income Taxes Benefit

(483)

-

(483)

 Net Change in Operating Leases

79

-

79

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

(2,053)

-

(2,053)

 Net Increase in Other Assets

(1,029)

-

(1,029)

 Net Decrease in Other Liabilities

(4,452)

-

(4,452)

Net Cash Provided By Operating Activities

66,351

(11,569)

54,782

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(1,483)

-

(1,483)

 Payments, Maturities, and Calls

36,600

-

36,600

Securities Available for Sale:

 Purchases

(8,379)

-

(8,379)

 Proceeds from Sale of Securities

30,420

-

30,420

 Payments, Maturities, and Calls

62,861

-

62,861

Equity Securities

 Purchases

(13,566)

-

(13,566)

 Net Decrease in Equity Securities

10,127

-

10,127

Purchase of loans held for investment

(2,488)

-

(2,488)

Net Increase in Loans Held for Investment

(191,151)

(35,745)

(226,896)

Proceeds from Sales of Loans

-

47,314

47,314

Proceeds From Sales of Other Real Estate Owned

3,995

-

3,995

Purchases of Premises and Equipment, net

(7,046)

-

(7,046)

Net Cash Used In Investing Activities

(80,110)

11,569

(68,541)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(237,495)

-

(237,495)

Net Decrease in Other Short-Term Borrowings

(21,452)

-

(21,452)

Repayment of Other Long-Term Borrowings

(199)

-

(199)

Dividends Paid

(12,905)

-

(12,905)

Payments to Repurchase Common Stock

(3,710)

-

(3,710)

Issuance of Common Stock Under Compensation Plans

937

-

937

Net Cash Provided By Financing Activities

(274,824)

-

(274,824)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(288,583)

-

(288,583)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

312,067

$

-

$

312,067

Supplemental Cash Flow Disclosures:

 Interest Paid

$

21,775

$

-

$

21,775

 Income Taxes Paid

$

9,118

$

-

$

9,118

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

35,745

$

35,745

 Loans and Premises Transferred to Other Real Estate Owned

$

1,512

$

-

$

1,512

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,412

$

-

$

33,412

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

7,494

-

7,494

 Depreciation

7,596

-

7,596

 Amortization of Premiums, Discounts, and Fees, net

7,772

-

7,772

 Amortization of Intangible Assets

160

-

160

 Pension Settlement Charge

2,321

-

2,321

 Originations of Loans Held-for-Sale

(437,827)

47,636

(390,191)

 Proceeds From Sales of Loans Held-for-Sale

475,359

(37,452)

437,907

 Mortgage Banking Revenues

(11,909)

-

(11,909)

 Net Additions for Capitalized Mortgage Servicing Rights

726

-

726

 Stock Compensation

1,630

-

1,630

 Net Tax Benefit From Stock-Based Compensation

(27)

-

(27)

 Deferred Income Taxes Benefit

(3,870)

-

(3,870)

 Net Change in Operating Leases

(108)

-

(108)

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

(422)

-

(422)

 Net Increase in Other Assets

(8,636)

-

(8,636)

 Net Decrease in Other Liabilities

8,837

-

8,837

Net Cash Provided By Operating Activities

82,508

10,184

92,692

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(219,865)

-

(219,865)

 Payments, Maturities, and Calls

55,314

-

55,314

Securities Available for Sale:

 Purchases

(52,238)

-

(52,238)

 Proceeds from Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

81,596

-

81,596

Purchase of loans held for investment

(16,753)

-

(16,753)

Net Increase in Loans Held for Investment

(606,011)

(114,659)

(720,670)

Proceeds From Sales of Loans

-

104,475

104,475

Proceeds From Sales of Other Real Estate Owned

2,406

-

2,406

Purchases of Premises and Equipment, net

(6,322)

-

(6,322)

Noncontrolling interest contributions received

2,867

-

2,867

Net Cash Used In Investing Activities

(755,641)

(10,184)

(765,825)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

226,455

-

226,455

Net Increase in Other Short-Term Borrowings

22,114

-

22,114

Repayment of Other Long-Term Borrowings

(249)

-

(249)

Dividends Paid

(11,191)

-

(11,191)

Issuance of Common Stock Under Compensation Plans

1,300

-

1,300

Net Cash Provided By Financing Activities

238,429

-

238,429

NET DECREASE IN CASH AND CASH EQUIVALENTS

(434,704)

-

(434,704)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

600,650

$

-

$

600,650

Supplemental Cash Flow Disclosures:

 Interest Paid

$

6,586

$

-

$

6,586

 Income Taxes Paid

$

7,466

$

-

$

7,466

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

108,798

$

108,798

 Loans and Premises Transferred to Other Real Estate Owned

$

2,398

$

-

$

2,398

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2021

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

33,396

$

-

$

33,396

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

(1,553)

-

(1,553)

 Depreciation

7,607

-

7,607

 Amortization of Premiums, Discounts, and Fees, net

14,072

-

14,072

 Amortization of Intangible Assets

107

-

107

 Pension Settlement Charge

3,072

-

3,072

 Originations of Loans Held-for-Sale

(1,262,746)

33,800

(1,228,946)

 Proceeds From Sales of Loans Held-for-Sale

1,376,678

(27,554)

1,349,124

 Mortgage Banking Revenues

(52,425)

-

(52,425)

 Net Additions for Capitalized Mortgage Servicing Rights

72

-

72

 Change in Valuation Provision for Mortgage Servicing Rights

(250)

-

(250)

 Stock Compensation

843

-

843

 Net Tax Benefit From Stock-Based Compensation

(4)

-

(4)

 Deferred Income Taxes Benefit

(4,157)

-

(4,157)

 Net Change in Operating Leases

(165)

-

(165)

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

(1,662)

-

(1,662)

 Net Decrease in Other Assets

10,885

-

10,885

 Net Decrease in Other Liabilities

(7,846)

-

(7,846)

Net Cash Provided By Operating Activities

115,924

6,246

122,170

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(251,525)

-

(251,525)

 Payments, Maturities, and Calls

78,544

-

78,544

Securities Available for Sale:

 Purchases

(523,961)

-

(523,961)

 Proceeds from Sale of Securities

495

-

495

 Payments, Maturities, and Calls

178,425

-

178,425

Purchase of loans held for investment

(20,209)

-

(20,209)

Net Decrease (Increase) in Loans Held for Investment

88,545

(98,606)

(10,061)

Proceeds from Sales of Loans

-

92,360

92,360

Net Cash Paid for Acquisitions

(4,482)

-

(4,482)

Proceeds From Sales of Other Real Estate Owned

4,502

-

4,502

Purchases of Premises and Equipment, net

(5,193)

-

(5,193)

Noncontrolling interest contributions received

7,139

-

7,139

Net Cash Used In Investing Activities

(447,720)

(6,246)

(453,966)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

495,302

-

495,302

Net Decrease in Other Short-Term Borrowings

(45,938)

-

(45,938)

Repayment of Other Long-Term Borrowings

(1,332)

-

(1,332)

Dividends Paid

(10,459)

-

(10,459)

Issuance of Common Stock Under Compensation Plans

1,028

-

1,028

Net Cash Provided By Financing Activities

438,601

-

438,601

NET DECREASE IN CASH AND CASH EQUIVALENTS

106,805

-

106,805

Cash and Cash Equivalents at Beginning of Period 

928,549

-

928,549

Cash and Cash Equivalents at End of Period 

$

1,035,354

$

-

$

1,035,354

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,547

$

-

$

3,547

 Income Taxes Paid

$

16,339

$

-

$

16,339

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

98,081

$

98,081

 Loans and Premises Transferred to Other Real Estate Owned

$

1,717

$

-

$

1,717

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

XML

INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2023

Investment Securities [Abstract]

Schedule of Amortized Cost and Related Market Value of Investment Securities Available-for-Sale

Available for Sale

Amortized

Unrealized

Unrealized

Allowance for

Carrying

(Dollars in Thousands)

Cost

Gains

Losses

Credit Losses

Value

December 31, 2023

U.S. Government Treasury

$

25,947

$

1

$

1,269

$

-

$

24,679

U.S. Government Agency

152,983

104

8,053

-

145,034

States and Political Subdivisions

43,951

1

4,861

(8)

39,083

Mortgage-Backed Securities

(1)

73,015

2

9,714

-

63,303

Corporate Debt Securities

63,600

-

6,031

(17)

57,552

Other Securities

(2)

8,251

-

-

-

8,251

Total 

$

367,747

$

108

$

29,928

$

(25)

$

337,902

December 31, 2022

U.S. Government Treasury

$

23,977

$

1

$

1,928

$

-

$

22,050

U.S. Government Agency

198,888

27

12,863

-

186,052

States and Political Subdivisions

47,197

-

6,855

(13)

40,329

Mortgage-Backed Securities

(1)

80,829

2

11,426

-

69,405

Corporate Debt Securities

97,119

19

8,874

(28)

88,236

Other Securities

(2)

7,222

-

-

-

7,222

Total 

$

455,232

$

49

$

41,946

$

(41)

$

413,294

Held to Maturity

Amortized

Unrealized

Unrealized

Fair

(Dollars in Thousands)

Cost

Gains

Losses

Value

December 31, 2023

U.S. Government Treasury

$

457,681

$

-

$

16,492

$

441,189

Mortgage-Backed Securities

167,341

13

16,792

150,562

Total 

$

625,022

$

13

$

33,284

$

591,751

December 31, 2022

U.S. Government Treasury

$

457,374

$

-

$

25,641

$

431,733

Mortgage-Backed Securities

203,370

8

22,410

180,968

Total 

$

660,744

$

8

$

48,051

$

612,701

(1)

Comprised of residential mortgage-backed securities.

(2)

Includes Federal Home Loan Bank and Federal Reserve Bank recorded at cost of $

3.2

 million and $

5.1

 million, respectively, at

December 31, 2023 and of $

2.1

 million and $

5.1

 million, respectively, at December 31, 2022.

Schedule of Investment Securities with Maturity Distribution Based on Contractual Maturities

Available for Sale

Held to Maturity

Amortized

Fair

Amortized

Fair

(Dollars in Thousands)

Cost

Value

Cost

Value

Due in one year or less

$

28,545

$

27,854

$

90,119

$

88,588

Due after one through five years

138,299

127,843

367,562

352,601

Due after five through ten years

39,090

33,420

-

-

Mortgage-Backed Securities

73,015

63,303

167,341

150,562

U.S. Government Agency

80,547

77,231

-

-

Other Securities

8,251

8,251

-

-

Total 

$

367,747

$

337,902

$

625,022

$

591,751

Schedule of Investment Securities with Continuous Unrealized Loss Position

Less Than 12 Months

Greater Than 12 Months

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in Thousands)

Value

Losses

Value

Losses

Value

Losses

December 31, 2023

Available for Sale

U.S. Government Treasury

$

-

$

-

$

19,751

$

1,269

$

19,751

$

1,269

U.S. Government Agency

12,890

74

121,220

7,979

134,110

8,053

States and Political Subdivisions

1,149

31

37,785

4,830

38,934

4,861

Mortgage-Backed Securities

23

-

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

14

148,282

16,778

149,068

16,792

Total 

$

154,666

$

3,192

$

435,592

$

30,092

$

590,258

$

33,284

December 31, 2022

Available for Sale 

U.S. Government Treasury

$

983

$

-

$

19,189

$

1,928

$

20,172

$

1,928

U.S. Government Agency

63,112

2,572

113,004

10,291

176,116

12,863

States and Political Subdivisions

1,425

2

38,760

6,853

40,185

6,855

Mortgage-Backed Securities

6,594

959

60,458

10,467

67,052

11,426

Equity Securities

26,959

878

58,601

7,996

85,560

8,874

Total 

99,073

4,411

290,012

37,535

389,085

41,946

Held to Maturity

U.S. Government Treasury

177,552

11,018

254,181

14,623

431,733

25,641

Mortgage-Backed Securities

88,723

6,814

91,462

15,596

180,185

22,410

Total 

$

266,275

$

17,832

$

345,643

$

30,219

$

611,918

$

48,051

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2023

Loans Held for Investment and Allowance for Credit Losses [Abstract]

Schedule of Composition of the Loan Portfolio

(Dollars in Thousands)

2023

2022

Commercial, Financial and Agricultural

$

225,190

$

247,362

Real Estate – Construction

196,091

234,519

Real Estate – Commercial Mortgage

825,456

782,557

Real Estate – Residential

(1)

1,004,219

749,513

Real Estate – Home Equity

210,920

208,217

Consumer

(2)

272,042

325,517

Loans Held for Investment, Net of Unearned Income

$

2,733,918

$

2,547,685

(1) 

Includes loans in process with outstanding balances of $

3.2

 million and $

6.1

 million for 2023 and 2022, respectively.

(2)

 Includes overdraft balances of $

1

.0 million and $

1.1

 million for December 31, 2023 and 2022, respectively.

Schedule of Activity in the Allowance for Loan Losses by Portfolio Class

Commercial,

Real Estate

Financial, 

Real Estate

Commercial 

Real Estate

Real Estate

(Dollars in Thousands)

Agricultural

Construction

Mortgage

Residential

Home Equity

Consumer

Total

2023

Beginning Balance

$

1,506

$

2,654

$

4,815

$

10,741

$

1,864

$

3,488

$

25,068

 Provision for Credit Losses

210

(154)

1,035

4,141

(233)

4,596

9,595

 Charge-Offs

(511)

-

(120)

(79)

(39)

(8,543)

(9,292)

 Recoveries 

277

2

52

253

226

3,760

4,570

 Net (Charge-Offs) Recoveries

(234)

2

(68)

174

187

(4,783)

(4,722)

Ending Balance

$

1,482

$

2,502

$

5,782

$

15,056

$

1,818

$

3,301

$

29,941

2022

Beginning Balance

$

2,191

$

3,302

$

5,810

$

4,129

$

2,296

$

3,878

$

21,606

 Provision for Credit Losses

316

(658)

(746)

6,328

(422)

2,579

7,397

 Charge-Offs

(1,308)

-

(355)

-

(193)

(6,050)

(7,906)

 Recoveries

307

10

106

284

183

3,081

3,971

 Net (Charge-Offs) Recoveries

(1,001)

10

(249)

284

(10)

(2,969)

(3,935)

Ending Balance

$

1,506

$

2,654

$

4,815

$

10,741

$

1,864

$

3,488

$

25,068

2021

Beginning Balance

$

2,204

$

2,479

$

7,029

$

5,440

$

3,111

$

3,553

$

23,816

 Provision for Credit Losses

(227)

813

(1,679)

(1,956)

(1,125)

1,332

(2,842)

 Charge-Offs

(239)

-

(405)

(108)

(103)

(3,972)

(4,827)

 Recoveries

453

10

865

753

413

2,965

5,459

 Net (Charge-Offs) Recoveries

214

10

460

645

310

(1,007)

632

Ending Balance

$

2,191

$

3,302

$

5,810

$

4,129

$

2,296

$

3,878

$

21,606

Schedule of Aging of the Recorded Investment in Accruing Past Due Loans by Class of Loans

30-59 

60-89 

90 + 

Total

Total

Nonaccrual

Total

(Dollars in Thousands)

DPD

DPD

DPD

Past Due

Current

Loans

Loans

2023

Commercial, Financial and Agricultural

$

311

$

105

$

-

$

416

$

224,463

$

311

$

225,190

Real Estate – Construction

206

-

-

206

195,563

322

196,091

Real Estate – Commercial Mortgage

794

-

-

794

823,753

909

825,456

Real Estate – Residential

670

34

-

704

1,000,525

2,990

1,004,219

Real Estate – Home Equity

268

-

-

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

2022

Commercial, Financial and Agricultural

$

109

$

126

$

-

$

235

$

247,086

$

41

$

247,362

Real Estate – Construction

359

-

-

359

234,143

17

234,519

Real Estate – Commercial Mortgage

158

149

-

307

781,605

645

782,557

Real Estate – Residential

845

530

-

1,375

747,899

239

749,513

Real Estate – Home Equity

-

35

-

35

207,411

771

208,217

Consumer

3,666

1,852

-

5,518

319,415

584

325,517

Total

$

5,137

$

2,692

$

-

$

7,829

$

2,537,559

$

2,297

$

2,547,685

Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Over 90 Days and Still on Accrual by Class of Loans

2023

2022

Nonaccrual

Nonaccrual

90 + Days

Nonaccrual

Nonaccrual

90 + Days

With No

With

Still

With No

With

Still

(Dollars in Thousands)

ACL

ACL

Accruing

ACL

ACL

Accruing

Commercial, Financial and Agricultural

$

-

$

311

$

-

$

-

$

41

$

-

Real Estate – Construction

-

322

-

-

17

-

Real Estate – Commercial Mortgage

781

128

-

389

256

-

Real Estate – Residential

1,705

1,285

-

-

239

-

Real Estate – Home Equity

-

999

-

-

771

-

Consumer

-

711

-

-

584

-

Total Nonaccrual Loans

$

2,486

$

3,756

$

-

$

389

$

1,908

$

-

Amortized Cost Basis of Collateral-Dependent Loans

2023

2022

Real Estate

Non Real Estate

Real Estate

Non Real Estate

(Dollars in Thousands)

Secured

Secured

Secured

Secured

Commercial, Financial and Agricultural

$

-

$

30

$

-

$

-

Real Estate – Construction

275

-

-

-

Real Estate – Commercial Mortgage

1,296

-

389

-

Real Estate – Residential

1,706

-

160

-

Real Estate – Home Equity

-

-

130

-

Consumer

-

-

21

-

Total

$

3,277

$

30

$

700

$

-

Summary of Gross Loans Held for Investment by Years of Origination

Term Loans by Origination Year

Revolving

(Dollars in Thousands)

2023

2022

2021

2020

2019

Prior

Loans

Total

Commercial, Financial,

Agricultural:

Pass

$

57,320

$

66,671

$

28,933

$

10,610

$

7,758

$

7,502

$

44,350

$

223,144

Special Mention

168

608

356

10

9

-

76

1,227

Substandard

164

177

98

77

20

122

161

819

Total

$

57,652

$

67,456

$

29,387

$

10,697

$

7,787

$

7,624

$

44,587

$

225,190

Current-Period Gross

Writeoffs

$

6

$

252

$

65

$

31

$

41

$

19

$

97

$

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

-

47

576

651

-

-

-

1,274

Total

$

102,315

$

68,812

$

19,296

$

863

$

188

$

-

$

4,617

$

196,091

Current-Period Gross

Writeoffs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

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

$

-

$

120

Real Estate - Residential:

Pass

$

372,394

$

400,437

$

83,108

$

35,879

$

24,848

$

68,685

$

8,252

$

993,603

Special Mention

268

89

83

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

$

-

$

-

$

79

$

-

$

-

$

-

$

-

$

79

Real Estate - Home

Equity:

Performing

$

890

$

48

$

127

$

11

$

386

$

950

$

207,509

$

209,921

Nonperforming

-

-

-

-

-

-

999

999

Total 

$

890

48

127

11

386

950

208,508

210,920

Current-Period Gross

Writeoffs

$

-

$

-

$

-

$

-

$

-

$

-

$

39

$

39

Consumer:

Performing

$

68,496

$

90,031

$

70,882

$

21,314

$

10,210

$

4,258

$

5,431

$

270,622

Nonperforming

293

355

58

4

-

-

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

$

99

$

162

$

8,543

XML

MORTGAGE BANKING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2023

Mortgage Banking Activities [Abstract]

Summary of Unpaid Principal Balance of Residential Mortgage Loans

December 31, 2023

December 31, 2022

Unpaid Principal

Unpaid Principal

(Dollars in Thousands)

Balance/Notional

Fair Value

Balance/Notional

Fair Value

Residential Mortgage Loans Held for Sale

$

27,944

$

28,211

$

26,274

$

26,909

Residential Mortgage Loan Commitments

(1)

23,545

523

36,535

819

Forward Sales Contracts

(2)

24,500

209

15,500

187

$

28,943

$

27,915

(1)

Recorded in other assets at fair value

(2)

Recorded in other assets and (other liabilities) at fair value

Mortgage Banking Revenue

(Dollars in Thousands)

2023

2022

2021

Net realized gain on sales of mortgage loans

$

5,297

$

5,565

$

49,355

Net change in unrealized gain on mortgage loans held for sale

(252)

(1,164)

(2,410)

Net change in the fair value of mortgage loan commitments

(296)

(439)

(3,567)

Net change in the fair value of forward sales contracts

(395)

192

900

Pair-Offs on net settlement of forward sales contracts

367

4,956

2,956

Mortgage servicing rights additions

651

565

1,416

Net origination fees

5,028

2,234

3,775

Total mortgage banking revenues

$

10,400

$

11,909

$

52,425

Summary of Mortgage Servicing Rights

(Dollars in Thousands)

2023

2022

Number of residential mortgage loans serviced for others

450

1,769

Outstanding principal balance of residential mortgage loans serviced for others

$

108,897

$

410,470

Weighted average interest rate

5.37%

3.62%

Remaining contractual term (in months)

309

298

Activity in the Capitalized Mortgage Servicing Rights

(Dollars in Thousands)

2023

2022

2021

Beginning balance

$

2,599

$

3,774

$

3,452

Additions due to loans sold with servicing retained

651

565

1,416

Deletions and amortization

(232)

(1,291)

(1,344)

Valuation Allowance reversal

-

-

250

Sale of Servicing Rights

(1)

(2,187)

(449)

-

Ending balance

$

831

$

2,599

$

3,774

(1)

In 2023, the Company sold an MSR portfolio with an unpaid principal balance of $

334

 million for a sales price of $

4.0

 million,

 recognizing a $

1.38

 million gain on sale, recorded in other noninterest income on the Consolidated Statement of Income.

In 2022, the Company sold an MSR portfolio with an unpaid principal balance of $

50

 million for a sales price of $

0.6

 million,

 recognizing a $

0.2

 million gain on sale, recorded in other noninterest income on the Consolidated Statement of Income.

Key Unobservable Inputs used in Determining the Fair Value of Mortgage Servicing Rights

2023

2022

Minimum

Maximum

Minimum

Maximum

Discount rates

9.50%

12.00%

9.50%

12.00%

Annual prepayment speeds

11.23%

17.79%

12.33%

20.23%

Cost of servicing (per loan)

$

85

95

$

85

95

Warehouse Line Borrowings

Amounts

(Dollars in Thousands)

Outstanding

$

25

 million master repurchase agreement without defined expiration. Interest is at the SOFR rate plus

2.00%

 to

plus

3.00%

, with a floor rate of

3.25%

 to

4.25%

. A cash pledge deposit of $

0.1

 million is required by the

lender.

$

192

$

60

 million warehouse line of credit agreement expiring in

December 2024

. Interest is at the SOFR plus

2.75%

to

3.25%

.

8,192

$

8,384

XML

DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2023

Derivatives [Abstract]

Cash Flow Hedges Included in the Consolidated Statement of Financial Condition

Statement of Financial

Notional

Fair 

Weighted Average

(Dollars in Thousands)

Condition Location

 Amount

Value

 Maturity (Years)

Interest rate swaps related to subordinated debt:

December 31, 2023

Other Assets

$

30,000

$

5,317

6.5

December 31, 2022

Other Assets

$

30,000

$

6,195

7.5

Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income

Amount of Gain

Amount of Gain

(Loss) Recognized

(Loss) Reclassified

(Dollars in Thousands)

Category

in AOCI

from AOCI to Income

December 31, 2023

Interest Expense

$

3,969

$

1,395

December 31, 2022

Interest Expense

$

4,625

$

337

December 31, 2021

Interest Expense

$

1,530

$

(151)

XML

PREMISES AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2023

Premises and equipment [Abstract]

Schedule of Composition of Premises and Equipment

(Dollars in Thousands)

2023

2022

Land

$

22,393

$

22,847

Buildings

110,472

109,849

Fixtures and Equipment

61,051

59,627

Total Premises and Equipment

193,916

192,323

Accumulated Depreciation

(112,650)

(110,185)

Premises and Equipment, Net

$

81,266

$

82,138

XML

LEASES (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease Expense and Other Information Related to the Company's Operating Leases

(Dollars in Thousands)

2023

2022

2021

Operating lease expense

$

2,919

$

1,719

$

1,445

Short-term lease expense

622

658

663

Total lease expense

$

3,541

$

2,377

$

2,108

Other information:

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

2,847

$

1,937

$

1,609

Right-of-use assets obtained in exchange for new operating lease liabilities

6,748

12,475

784

Weighted-average remaining lease term — operating leases (in years)

16.9

19.5

25.3

Weighted-average discount rate — operating leases

3.5

%

3.1

%

2.0

%

Maturity of Remaining Lease Liabilities

The table below summarizes the maturity of remaining lease liabilities:

(Dollars in Thousands)

December 31, 2023

2024

$

3,127

2025

3,105

2026

2,966

2027

2,888

2028

2,611

2028 and thereafter

20,670

Total

$

35,367

Less: Interest

(7,976)

Present Value of Lease Liability

$

27,391

XML

OTHER REAL ESTATE OWNED (Tables)

12 Months Ended

Dec. 31, 2023

Other Real Estate Owned [Abstract]

Schedule of Other Real Estate Owned Activity

(Dollars in Thousands)

2023

2022

2021

Beginning Balance

$

431

$

17

$

808

Additions

1,512

2,398

1,717

Valuation Write-Downs

(16)

(11)

(31)

Sales

(1,926)

(1,973)

(2,809)

Other

-

-

332

Ending Balance

$

1

$

431

$

17

Schedule of Net Expenses

Net expenses applicable to other real estate owned for the three years ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

Gains from the Sale of Properties

$

(2,072)

$

(480)

$

(1,711)

Losses from the Sale of Properties

3

47

18

Rental Income from Properties

-

(21)

-

Property Carrying Costs

84

106

174

Valuation Adjustments

16

11

31

Total

$

(1,969)

$

(337)

$

(1,488)

XML

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2023

Regulatory matters [Abstract]

Schedule of Interest Bearing Deposits

(Dollars in Thousands)

2023

2022

NOW Accounts

$

1,327,420

$

1,290,494

Money Market Accounts

319,319

267,383

Savings Deposits

547,634

637,374

Time Deposits

129,515

90,446

Total Interest Bearing Deposits

$

2,323,888

$

2,285,697

Schedule of Maturities of Time Deposits

(Dollars in Thousands)

2023

2024

$

112,448

2025

7,349

2026

3,554

2027

4,211

2028

1,953

Total

$

129,515

Schedule of Interest Expense on Deposits

Interest expense on deposits for the three years ended December 31, was as follows:

(Dollars in Thousands)

2023

2022

2021

NOW Accounts

$

12,375

$

2,800

$

294

Money Market Accounts

3,670

203

134

Savings Deposits

598

309

263

Time Deposits < $250,000

117

129

145

Time Deposits > $250,000

822

3

3

Total Interest Expense

$

17,582

$

3,444

$

839

XML

SHORT-TERM BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2023

Short Term Borrowings [Abstract]

Schedule of Short-Term Borrowings

(Dollars in Thousands)

Federal Funds

Purchased

Securities 

Sold Under

Repurchase

Agreements

(1)

Other 

Short-Term

Borrowings

(2)

2023

Balance at December 31

$

-

$

26,957

$

8,384

Maximum indebtedness at any month end

-

32,426

42,345

Daily average indebtedness outstanding

12

19,917

24,134

Average rate paid for the year

7.03

%

2.57

%

6.37

%

Average rate paid on period-end borrowings

-

%

2.81

%

9.51

%

2022

Balance at December 31

$

-

$

6,582

$

50,211

Maximum indebtedness at any month end

-

9,452

50,211

Daily average indebtedness outstanding

2

8,095

32,386

Average rate paid for the year

3.39

%

0.17

%

5.40

%

Average rate paid on period-end borrowings

-

%

0.40

%

7.61

%

2021

Balance at December 31

$

-

$

4,955

$

29,602

Maximum indebtedness at any month end

-

6,755

58,309

Daily average indebtedness outstanding

2

5,762

47,748

Average rate paid for the year

2.39

%

0.04

%

2.84

%

Average rate paid on period-end borrowings

-

%

0.04

%

2.36

%

(1)

Balances are fully collateralized by government treasury or agency securities held in the Company's investment portfolio.

(2)

Comprised of warehouse lines of credit totaling $

8.4

 million at December 31, 2023.

XML

LONG-TERM BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2023

Long-term Borrowings [Abstract]

Schedule of Minimum Future Principal Payments on FHLB Advances

(Dollars in Thousands)

2023

2024

$

198

2025

116

Total

$

314

XML

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax [Abstract]

Schedule of Provision for Income Taxes

(Dollars in Thousands)

2023

2022

2021

Current:

Federal

$

11,630

$

10,646

$

12,039

State

1,893

1,022

1,044

13,523

11,668

13,083

Deferred:

Federal

(391)

(2,994)

(3,246)

State

(351)

(899)

(10)

Change in Valuation Allowance

259

23

8

(483)

(3,870)

(3,248)

Total:

Federal

11,239

7,652

8,793

State

1,542

123

1,034

Change in Valuation Allowance

259

23

8

Total

$

13,040

$

7,798

$

9,835

Schedule of Effective Income Tax Rate Reconciliation

(Dollars in Thousands)

2023

2022

2021

Tax Expense at Federal Statutory Rate

$

13,411

$

8,625

$

10,385

Increases (Decreases) Resulting From:

Tax-Exempt Interest Income

(259)

(248)

(271)

State Taxes, Net of Federal Benefit

1,218

94

819

Other

(1,695)

(546)

375

Change in Valuation Allowance

259

23

8

Tax-Exempt Cash Surrender Value Life Insurance Benefit

(187)

(175)

(173)

Noncontrolling Interest

293

25

(1,308)

Actual Tax Expense

$

13,040

$

7,798

$

9,835

Schedule of Deferred Income Tax Liabilities and Assets

(Dollars in Thousands)

2023

2022

Deferred Tax Assets Attributable to:

Allowance for Credit Losses

$

7,236

$

6,042

Accrued Pension/SERP

144

1,530

State Net Operating Loss and Tax Credit Carry-Forwards

2,069

1,920

Other Real Estate Owned

887

917

Accrued SERP Liability

2,594

3,246

Lease Liability

5,911

4,547

Net Unrealized Losses on Investment Securities

8,601

12,499

Other

2,665

3,043

Investment in Partnership

3,241

1,544

Total Deferred Tax Assets

$

33,348

$

35,288

Deferred Tax Liabilities Attributable to:

Depreciation on Premises and Equipment

$

3,733

$

3,382

Deferred Loan Fees and Costs

2,614

2,372

Intangible Assets

3,344

3,310

Accrued Pension Liability

1,688

1,043

Right of Use Asset

5,829

4,474

Investments

469

469

Other

1,851

2,099

Total Deferred Tax Liabilities

19,528

17,149

Valuation Allowance

1,930

1,671

Net Deferred Tax Asset

$

11,890

$

16,468

Schedule of Beginning and Ending Unrecognized Tax Benefit

(Dollars in Thousands)

2023

2022

2021

Balance at January 1,

$

136

$

52

$

-

Additions Based on Tax Positions Related to Current Year

97

84

52

Balance at December 31

$

233

$

136

$

52

XML

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

Stock-Based Compensation [Abstract]

Schedule of Stock Purchase Right Estimated on the Date of Grant using Weighted Average Assumption

2023

2022

2021

Dividend yield

2.3

%

2.4

%

2.5

%

Expected volatility

22.5

%

17.6

%

21.8

%

Risk-free interest rate

5.1

%

1.4

%

0.1

%

Expected life (in years)

0.5

0.5

0.5

XML

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2023

Employee benefits plans [Abstract]

Schedule of Components of Pension Expense, the Funded Status of the Plan, Amounts Recognized in the Consolidated Statements of Financial Condition, and Major Assumptions

(Dollars in Thousands)

2023

2022

2021

Change in Projected Benefit Obligation:

Benefit Obligation at Beginning of Year

$

108,151

$

172,508

$

212,566

Service Cost

3,488

6,289

6,971

Interest Cost

5,831

4,665

4,885

Actuarial Loss (Gain)

6,936

(39,962)

(14,934)

Benefits Paid

(3,843)

(2,139)

(2,087)

Expenses Paid

(276)

(416)

(259)

Settlements

-

(32,794)

(34,634)

Projected Benefit Obligation at End of Year

$

120,287

$

108,151

$

172,508

Change in Plan Assets:

Fair Value of Plan Assets at Beginning of Year

$

104,276

$

165,274

$

171,775

Actual Return on Plan Assets

19,138

(25,649)

30,479

Employer Contributions

6,000

-

-

Benefits Paid

(3,843)

(2,139)

(2,087)

Expenses Paid

(276)

(416)

(259)

Settlements

-

(32,794)

(34,634)

Fair Value of Plan Assets at End of Year

$

125,295

$

104,276

$

165,274

Funded Status of Plan and Accrued Liability Recognized at End of Year:

Other (Assets) Liabilities

$

(5,008)

$

3,875

$

7,234

Accumulated Benefit Obligation at End of Year

$

102,642

$

91,770

$

149,569

Components of Net Periodic Benefit Costs:

Service Cost

$

3,488

$

6,289

$

6,971

Interest Cost

5,831

4,665

4,885

Expected Return on Plan Assets

(6,805)

(10,701)

(11,147)

Amortization of Prior Service Costs

5

15

15

Net Loss Amortization

934

1,713

6,764

Net Loss Settlements

-

2,321

3,072

Net Periodic Benefit Cost

$

3,453

$

4,302

$

10,560

Weighted-Average Assumptions Used to Determine Benefit Obligation:

Discount Rate

5.29%

5.63%

3.11%

Rate of Compensation Increase

(1)

5.10%

5.10%

4.40%

Measurement Date

12/31/23

12/31/22

12/31/21

Weighted-Average Assumptions Used to Determine Benefit Cost:

Discount Rate

5.63%

3.11%

2.88%

Expected Return on Plan Assets

6.75%

6.75%

6.75%

Rate of Compensation Increase

(1)

5.10%

4.40%

4.00%

Amortization Amounts from Accumulated Other Comprehensive Loss:

Net Actuarial Loss (Gain) 

$

(5,397)

$

(3,612)

$

(34,265)

Prior Service Cost

(5)

(15)

(15)

Net Loss

(934)

(4,034)

(9,836)

Deferred Tax Expense

1,606

1,942

11,183

Other Comprehensive Gain, net of tax

$

(4,730)

$

(5,719)

$

(32,933)

Amounts Recognized in Accumulated Other Comprehensive Loss:

Net Actuarial Losses

$

1,322

$

7,653

$

15,300

Prior Service Cost

-

5

20

Deferred Tax Benefit

(335)

(1,941)

(3,884)

Accumulated Other Comprehensive Loss, net of tax

$

987

$

5,717

$

11,436

(1)

 The Company utilized an age-graded approach that varies the rate based on the age of the participants.

Schedule of Pension Plan Asset Allocation and the Target Asset Allocation

Target

Percentage of Plan

Allocation

Assets at December 31

(1)

2024

2023

2022

Equity Securities

68

%

70

%

73

%

Debt Securities

27

%

18

%

23

%

Cash and Cash Equivalents

5

%

12

%

4

%

Total

100

%

100

%

100

%

(1)

Represents asset allocation at December 31 which may differ from the average target allocation for the year due to the year-

end cash contribution to the plan.

Schedule of Fair Value of Plan Assets by Level of the Valuation Inputs within the Fair Value Hierarchy

(Dollars in Thousands)

2023

2022

Level 1:

U.S. Treasury Securities

$

16,126

$

17,264

Mutual Funds

92,991

81,231

Cash and Cash Equivalents

15,717

5,327

Level 2:

Corporate Notes/Bonds

461

454

Total Fair Value of Plan Assets

$

125,295

$

104,276

Schedule of Expected Benefit Payments Related to the Defined Benefit Pension Plan

Expected Benefit Payments.

 At December 31, expected benefit payments related to the defined benefit pension plan were as

follows:

(Dollars in Thousands)

2023

2024

$

10,105

2025

11,119

2026

10,496

2027

10,042

2028

8,983

2029 through 2033

45,942

Total

$

96,687

Schedule of Amounts Contributed to the Pension Plan and the Expected Amount to be Contributed

Expected

Contribution

(Dollars in Thousands)

2022

2023

2024

(1)

Actual Contributions

$

-

$

6,000

$

5,000

(1)

 For 2023, the Company will have the option to make a cash contribution to the plan or utilize pre-funding balances.

Schedule of Components of SERP's Periodic Benefit Cost, the Funded Status of the Plan, Amounts Recognized in the Consolidated Statements of Financial Condition, and Major Assumptions

(Dollars in Thousands)

2023

2022

2021

Change in Projected Benefit Obligation:

Benefit Obligation at Beginning of Year

$

10,948

$

13,534

$

13,402

Service Cost

18

31

35

Interest Cost

501

315

243

Actuarial (Gain) Loss

201

(2,932)

(146)

Net Settlements

(2,464)

-

-

Projected Benefit Obligation at End of Year

$

9,204

$

10,948

$

13,534

Funded Status of Plan and Accrued Liability Recognized at End of Year:

Other Liabilities

$

9,204

$

10,948

$

13,534

Accumulated Benefit Obligation at End of Year

$

8,943

$

10,887

$

12,803

Components of Net Periodic Benefit Costs:

Service Cost

$

18

$

31

$

35

Interest Cost

501

315

243

Amortization of Prior Service Cost

151

277

277

Net Loss Amortization

(531)

718

970

Net Gain Settlements

(291)

-

-

Net Periodic Benefit Cost

$

(152)

$

1,341

$

1,525

Weighted-Average Assumptions Used to Determine Benefit Obligation:

Discount Rate

5.11%

5.45%

2.80%

Rate of Compensation Increase

(1)

5.10%

5.10%

4.40%

Measurement Date

12/31/23

12/31/22

12/31/21

Weighted-Average Assumptions Used to Determine Benefit Cost:

Discount Rate

5.45%

2.80%

2.38%

Rate of Compensation Increase

(1)

5.10%

4.40%

4.00%

Amortization Amounts from Accumulated Other Comprehensive Loss:

Net Actuarial Loss (Gain)

$

201

$

(2,932)

$

(146)

Prior Service (Benefit) Cost

(151)

(277)

(219)

Net Gain (Loss)

531

(718)

(970)

Settlement Gain 

291

-

-

Deferred Tax (Benefit) Expense

(222)

995

154

Other Comprehensive (Gain) Loss, net of tax

$

650

$

(2,932)

$

(1,181)

Amounts Recognized in Accumulated Other Comprehensive Loss:

Net Actuarial (Loss) Gain

$

(753)

$

(1,775)

$

1,875

Prior Service Cost

-

151

429

Deferred Tax Benefit (Expense)

191

412

(584)

Accumulated Other Comprehensive (Loss) Gain, net of tax

$

(562)

$

(1,212)

$

1,720

(1)

 The Company utilized an age-graded approach that varies the rate based on the age of the participants.

Schedule of Expected Benefit Payments Related to the SERP

(Dollars in Thousands)

2023

2024

$

8,800

2025

32

2026

38

2027

42

2028

64

2029 through 2033

748

Total

$

9,724

XML

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Share

(Dollars and Per Share Data in Thousands)

2023

2022

2021

Numerator:

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Denominator:

Denominator for Basic Earnings Per Share Weighted -Average Shares

16,987

16,951

16,863

Effects of Dilutive Securities Stock Compensation Plans

36

34

30

Denominator for Diluted Earnings Per Share Adjusted Weighted -Average 

 Shares and Assumed Conversions

17,023

16,985

16,893

Basic Earnings Per Share

$

3.08

$

1.97

$

1.98

Diluted Earnings Per Share

$

3.07

$

1.97

$

1.98

XML

REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2023

Regulatory matters [Abstract]

Schedule of Company and Bank's Actual Capital Amounts and Ratios

To Be Well -

Capitalized Under

Required

Prompt

For Capital

Corrective

Actual

Adequacy Purposes

Action Provisions

(Dollars in Thousands)

Amount

Ratio

Amount

Ratio

Amount

Ratio

2023

Common Equity Tier 1:

CCBG

$

373,206

13.52%

$

124,192

4.50%

*

*

CCB

383,211

13.89%

124,158

4.50%

$

179,340

6.50%

Tier 1 Capital:

CCBG

424,206

15.37%

165,589

6.00%

*

*

CCB

383,211

13.89%

165,545

6.00%

220,726

8.00%

Total Capital:

CCBG

457,339

16.57%

220,785

8.00%

*

*

CCB

416,343

15.09%

220,726

8.00%

275,908

10.00%

Tier 1 Leverage:

CCBG

424,206

10.30%

164,691

4.00%

*

*

CCB

383,211

9.31%

164,680

4.00%

205,850

5.00%

2022

Common Equity Tier 1:

CCBG

$

335,512

12.38%

$

121,918

4.50%

*

*

CCB

358,882

13.25%

121,913

4.50%

$

176,096

6.50%

Tier 1 Capital:

CCBG

386,512

14.27%

162,557

6.00%

*

*

CCB

358,882

13.25%

162,550

6.00%

216,733

8.00%

Total Capital:

CCBG

414,569

15.30%

216,743

8.00%

*

*

CCB

386,067

14.25%

216,733

8.00%

270,917

10.00%

Tier 1 Leverage:

CCBG

386,512

8.91%

173,546

4.00%

*

*

CCB

358,882

8.27%

173,505

4.00%

216,881

5.00%

* Not applicable to bank holding companies.

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

12 Months Ended

Dec. 31, 2023

Accumulated Other Comprehensive Loss [Abstract]

Activity in Accumulated Other Comprehensive Loss, Net of Tax

Accumulated

Securities

Other

Available

Interest Rate

Retirement

Comprehensive

 (Dollars in Thousands)

for Sale

Swap

Plans

Loss

Balance as of January 1, 2023

$

(37,349)

$

4,625

$

(4,505)

$

(37,229)

Other comprehensive income (loss) during the period

11,658

(655)

4,080

15,083

Balance as of December 31, 2023

$

(25,691)

$

3,970

$

(425)

$

(22,146)

Balance as of January 1, 2022

$

(4,588)

$

1,530

$

(13,156)

$

(16,214)

Other comprehensive (loss) income during the period

(32,761)

3,095

8,651

(21,015)

Balance as of December 31, 2022

$

(37,349)

$

4,625

$

(4,505)

$

(37,229)

Balance as of January 1, 2021

$

2,700

$

428

$

(47,270)

$

(44,142)

Other comprehensive (loss) income during the period

(7,288)

1,102

34,114

27,928

Balance as of December 31, 2021

$

(4,588)

$

1,530

$

(13,156)

$

(16,214)

XML

OTHER NONINTEREST EXPENSE (Tables)

12 Months Ended

Dec. 31, 2023

Other Noninterest Expense [Abstract]

Schedule of Components of Other Noninterest Expense

(Dollars in Thousands)

2023

2022

2021

Legal Fees

$

1,721

$

1,413

$

1,411

Professional Fees

6,245

5,437

5,633

Telephone

2,729

2,851

2,975

Advertising

3,349

3,208

2,683

Processing Services

6,984

6,534

6,569

Insurance – Other

3,120

2,409

2,096

Pension – Other

76

(3,043)

1,913

Pension – Settlement

(291)

2,321

3,072

Other

11,643

14,411

10,754

Total

$

35,576

35,541

37,106

XML

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies [Abstract]

Schedule of Amounts Associated with the Entities Off-Balance Sheet Obligations

2023

2022

(Dollars in Thousands)

Fixed

Variable

Total

Fixed

Variable

Total

Commitments to Extend Credit

(1)

$

207,605

$

534,745

$

742,350

$

243,614

$

531,873

$

775,487

Standby Letters of Credit

6,094

-

6,094

5,619

-

5,619

Total

$

213,699

$

534,745

$

748,444

$

249,233

$

531,873

$

781,106

(1)

 Commitments include unfunded loans, revolving lines of credit, and off-balance sheet residential loan commitments.

Allowance for Credit Losses for Off-Balance Sheet Credit Commitments

(Dollars in Thousands)

2023

2022

2021

Beginning Balance

$

2,989

$

2,897

$

1,644

Provision for Credit Losses

202

92

1,253

Ending Balance

$

3,191

$

2,989

$

2,897

XML

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Measurements [Abstract]

Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis

(Dollars in Thousands)

Level 1

Level 2

Level 3

Total Fair

Inputs

Inputs

Inputs

Value

2023

ASSETS:

Securities Available for Sale:

U.S. Government Treasury

$

24,679

$

-

$

-

$

24,679

U.S. Government Agency

-

145,034

-

145,034

States and Political Subdivisions

-

39,083

-

39,083

Mortgage-Backed Securities

-

63,303

-

63,303

Corporate Debt Securities

-

57,552

-

57,552

Equity Securities

-

-

3,450

3,450

Loans Held for Sale

-

28,211

-

28,211

Interest Rate Swap Derivative

-

5,317

-

5,317

Residential Mortgage Loan Commitments ("IRLC")

-

-

523

523

LIABILITIES:

Forward Sales Contracts ("Hedge Derivative")

-

209

-

209

2022

ASSETS:

Securities Available for Sale:

U.S. Government Treasury

$

22,050

$

-

$

-

$

22,050

U.S. Government Agency

-

186,052

-

186,052

State and Political Subdivisions

-

40,329

-

40,329

Mortgage-Backed Securities

-

69,405

-

69,405

Corporate Debt Securities

-

88,236

-

88,236

Equity Securities

-

-

10

10

Loans Held for Sale

-

26,909

-

26,909

Interest Rate Swap Derivative

-

6,195

-

6,195

Forward Sales Contracts ("Hedge Derivative")

-

187

-

187

Residential Mortgage Loan Commitments ("IRLC")

-

-

819

819

Schedule of Financial Instruments with Estimated Fair Values

2023

(Dollars in Thousands)

Carrying

Level 1

Level 2

Level 3

Value

Inputs

Inputs

Inputs

ASSETS:

Cash

$

83,118

$

83,118

$

-

$

-

Fed Funds Sold and Interest Bearing Deposits

228,949

228,949

-

-

Investment Securities, Held to Maturity

625,022

441,189

150,562

-

Other Equity Securities

(1)

2,848

-

2,848

-

Mortgage Servicing Rights

831

-

-

1,280

Loans, Net of Allowance for Credit Losses

2,703,977

-

-

2,510,529

LIABILITIES:

Deposits

$

3,701,822

$

-

$

3,243,896

$

-

Short-Term Borrowings

35,341

-

35,341

-

Subordinated Notes Payable

52,887

-

44,323

-

Long-Term Borrowings

315

-

315

-

2022

(Dollars in Thousands)

Carrying

Level 1

Level 2

Level 3

Value

Inputs

Inputs

Inputs

ASSETS:

Cash

$

72,114

$

72,114

$

-

$

-

Short-Term Investments

528,536

528,536

-

-

Investment Securities, Held to Maturity

660,774

431,733

180,968

-

Other Equity Securities

(1)

2,848

-

2,848

-

Mortgage Servicing Rights

2,599

-

-

4,491

Loans, Net of Allowance for Credit Losses

2,522,617

-

-

2,377,229

LIABILITIES:

Deposits

$

3,939,317

$

-

$

3,310,383

$

-

Short-Term Borrowings

56,793

-

56,793

-

Subordinated Notes Payable

52,887

-

45,763

-

Long-Term Borrowings

513

-

513

-

XML

PARENT COMPANY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

Parent Company Financial Information [Abstract]

Schedule of Condensed Statements of Financial Condition of the Parent Company

(Dollars in Thousands, Except Per Share Data)

2023

2022

ASSETS

Cash and Due From Subsidiary Bank

$

54,004

$

42,737

Equity Securities

569

199

Investment in Subsidiary Bank

445,441

404,892

Goodwill and Other Intangibles

3,838

3,998

Other Assets

10,758

11,297

Total Assets

$

514,610

$

463,123

LIABILITIES

Subordinated Notes Payable

$

52,887

$

52,887

Other Liabilities

21,098

22,955

Total Liabilities

73,985

75,842

SHAREOWNERS’ EQUITY

Common Stock, $

0.01

 par value;

90,000,000

 shares authorized;

16,950,222

 and

16,986,785

shares issued and outstanding at December 31, 2023 and 2022, respectively

170

170

Additional Paid-In Capital

36,326

37,331

Retained Earnings

426,275

387,009

Accumulated Other Comprehensive Loss, Net of Tax

(22,146)

(37,229)

Total Shareowners’ Equity

440,625

387,281

Total Liabilities and Shareowners’ Equity

$

514,610

$

463,123

Schedule of Operating Results of the Parent Company

(Dollars in Thousands)

2023

2022

2021

OPERATING INCOME

Income Received from Subsidiary Bank:

Administrative Fees

$

6,367

$

5,396

$

5,516

Dividends

30,000

23,000

10,000

Other Income

453

253

174

Total Operating Income

36,820

28,649

15,690

OPERATING EXPENSE

Salaries and Associate Benefits

4,257

5,034

3,558

Interest on Subordinated Notes Payable

2,427

1,652

1,233

Professional Fees

859

616

1,113

Advertising 

214

232

134

Legal Fees

683

370

589

Other

1,670

2,186

2,087

Total Operating Expense

10,110

10,090

8,714

Earnings Before Income Taxes and Equity in Undistributed

Earnings of Subsidiary Bank

26,710

18,559

6,976

Income Tax Benefit

(650)

(661)

(717)

Earnings Before Equity in Undistributed Earnings of Subsidiary Bank

27,360

19,220

7,693

Equity in Undistributed Earnings of Subsidiary Bank

24,898

14,192

25,703

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Schedule of Cash Flows for the Parent Company

(Dollars in Thousands)

2023

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income Attributable to Common Shareowners

$

52,258

$

33,412

$

33,396

Adjustments to Reconcile Net Income to Net Cash Provided By

 Operating Activities:

Equity in Undistributed Earnings of Subsidiary Bank

(24,898)

(14,192)

(25,703)

Stock Compensation

1,468

1,278

843

Amortization of Intangible Asset

160

160

107

Increase in Other Assets

(117)

(336)

(21)

Increase in Other Liabilities

(1,557)

5,847

3,131

Net Cash Provided By Operating Activities

$

27,314

$

26,169

$

11,753

CASH FROM INVESTING ACTIVITIES:

Purchase of Equity Securities

$

(369)

$

(79)

$

(120)

Net Cash Paid for Acquisition

-

-

(4,482)

Decrease (Increase) in Investment in Subsidiaries

-

770

(10,770)

Net Cash Provided by (Used in) Investing Activities

$

(369)

$

691

$

(15,372)

CASH FROM FINANCING ACTIVITIES:

Repayment of Long-Term Borrowings

-

-

(900)

Dividends Paid

(12,905)

(11,191)

(10,459)

Issuance of Common Stock Under Compensation Plans

937

1,300

1,028

Payments to Repurchase Common Stock

(3,710)

-

-

Net Cash Used In Financing Activities

$

(15,678)

$

(9,891)

$

(10,331)

Net Increase (Decrease) in Cash and Due from Subsidiary Bank

11,267

16,969

(13,950)

Cash and Due from Subsidiary Bank at Beginning of Year

42,737

25,768

39,718

Cash and Due from Subsidiary Bank at End of Year

$

54,004

$

42,737

$

25,768

XML

RESTATED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables)

12 Months Ended

Dec. 31, 2023

Restated Interim Consolidated Statements of Cash Flows [Abstract]

Schedule of Restated Interim Consolidated Statements of Cash Flows

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

As Restated

(Dollars in Thousands)

For Three

Months

Ended 

Mar 31, 2022

For Six

Months

Ended 

Jun 30, 2022

For Nine

Months

Ended 

Sept 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

6,938

$

14,198

$

23,803

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

32

1,724

3,878

 Depreciation

1,907

3,802

5,689

 Amortization of Premiums, Discounts, and Fees, net

2,610

5,053

6,618

 Amortization of Intangible Assets

40

80

120

 Pension Settlement Charge

209

378

480

 Originations of Loans Held-for-Sale

(162,448)

(268,058)

(343,899)

 Proceeds From Sales of Loans Held-for-Sale

174,153

307,349

390,756

 Mortgage Banking Revenues

(4,055)

(8,912)

(11,807)

 Net Additions for Capitalized Mortgage Servicing Rights

364

360

570

 Stock Compensation

245

489

904

 Net Tax Benefit From Stock-Based Compensation

(19)

(19)

(19)

 Deferred Income Taxes Benefit

(6,682)

(9,887)

(12,854)

 Net Change in Operating Leases

(27)

(72)

(83)

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

-

(26)

(136)

 Net Decrease in Other Assets

1,897

3,516

3,696

 Net Increase in Other Liabilities

7,036

22,040

12,839

Net Cash Provided By Operating Activities

22,200

72,015

80,555

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(194,448)

(218,548)

(219,865)

 Payments, Maturities, and Calls

14,441

28,111

40,096

Securities Available for Sale:

 Purchases

(25,139)

(37,044)

(41,880)

 Proceeds from Sale of Securities

3,365

3,365

3,365

 Payments, Maturities, and Calls

24,824

47,413

64,301

Purchase of loans held for investment

(381)

(15,985)

(16,324)

Net Increase in Loans Held for Investment

(96,732)

(359,417)

(520,473)

Proceeds from Sales of Loans

37,766

66,877

88,521

Proceeds From Sales of Other Real Estate Owned

-

30

1,683

Purchases of Premises and Equipment, net

(1,013)

(3,322)

(4,013)

Noncontrolling interest contributions received

1,838

2,573

2,867

Net Cash Used In Investing Activities

(235,479)

(485,947)

(601,722)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

52,645

73,396

46,516

Net (Decrease) Increase in Other Short-Term Borrowings

(3,692)

4,784

17,592

Repayment of Other Long-Term Borrowings

(78)

(150)

(200)

Dividends Paid

(2,712)

(5,424)

(8,307)

Issuance of Common Stock Under Compensation Plans

190

496

577

Net Cash Provided By Financing Activities

46,353

73,102

56,178

NET DECREASE IN CASH AND CASH EQUIVALENTS

(166,926)

(340,830)

(464,989)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

1,035,354

1,035,354

Cash and Cash Equivalents at End of Period 

$

868,428

$

694,524

$

570,365

Supplemental Cash Flow Disclosures:

 Interest Paid

$

715

$

1,617

$

3,588

 Income Taxes Paid

$

20

$

3,765

$

6,410

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

37,973

$

67,324

$

89,836

 Loans and Premises Transferred to Other Real Estate Owned

$

-

$

77

$

1,543

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)

As Restated

(Dollars in Thousands)

For Three

Months

Ended 

Mar 31, 2023

For Six

Months

Ended 

Jun 30, 2023

For Nine

Months

Ended 

Sept 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

13,709

$

27,883

$

40,539

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,099

5,296

7,689

 Depreciation

1,969

3,927

5,920

 Amortization of Premiums, Discounts, and Fees, net

1,067

2,117

3,216

 Amortization of Intangible Assets

40

80

120

 Pension Settlement Charge

-

(291)

(291)

 Originations of Loans Held-for-Sale

(75,626)

(203,266)

(308,263)

 Proceeds From Sales of Loans Held-for-Sale

73,706

191,180

303,731

 Mortgage Banking Revenues

(2,871)

(6,234)

(8,072)

 Net Additions for Capitalized Mortgage Servicing Rights

(91)

(253)

(392)

 Stock Compensation

536

764

1,110

 Deferred Income Taxes Benefit

(1,170)

(2,849)

(2,464)

 Net Change in Operating Leases

(3)

(3)

(12)

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

(1,858)

(1,900)

(1,915)

 Net (Increase) Decrease in Other Assets

(4,349)

4,593

8,207

 Net Increase in Other Liabilities

12,471

3,815

1,069

Net Cash Provided By Operating Activities

20,629

24,859

50,192

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

8,820

18,992

28,159

Securities Available for Sale:

 Purchases

(2,017)

(4,634)

(9,399)

 Proceeds from Sale of Securities

-

-

30,420

 Payments, Maturities, and Calls

16,559

32,490

53,045

Purchase of loans held for investment

(923)

(1,463)

(2,249)

Net Increase in Loans Held for Investment

(127,336)

(164,319)

(194,631)

Proceeds from Sales of Loans

20,084

26,645

39,125

Proceeds From Sales of Other Real Estate Owned

2,699

3,772

3,840

Purchases of Premises and Equipment, net

(1,886)

(3,851)

(5,459)

Net Cash Used In Investing Activities

(84,000)

(92,368)

(57,149)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(115,397)

(150,451)

(398,872)

Net Decrease in Other Short-Term Borrowings

(30,161)

(6,120)

(15,097)

Repayment of Other Long-Term Borrowings

(50)

(99)

(149)

Dividends Paid

(3,064)

(6,121)

(9,518)

Payments to Repurchase Common Stock

(819)

(2,022)

(3,121)

Issuance of Common Stock Under Compensation Plans

164

480

562

Net Cash Provided By Financing Activities

(149,327)

(164,333)

(426,195)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(212,698)

(231,842)

(433,152)

Cash and Cash Equivalents at Beginning of Period 

600,650

600,650

600,650

Cash and Cash Equivalents at End of Period 

$

387,952

$

368,808

$

167,498

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,723

$

8,720

$

15,026

 Income Taxes Paid

$

7,466

$

3,860

$

7,395

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

16,859

$

26,076

$

33,625

 Loans and Premises Transferred to Other Real Estate Owned

$

423

$

1,442

$

1,495

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Three Months Ended March 31, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income 

$

6,938

$

-

$

6,938

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

32

-

32

 Depreciation

1,907

-

1,907

 Amortization of Premiums, Discounts, and Fees, net

2,610

-

2,610

 Amortization of Intangible Assets

40

-

40

 Pension Settlement Charges

209

-

209

 Originations of Loans Held for Sale

(177,933)

15,485

(162,448)

 Proceeds From Sales of Loans Held for Sale

188,264

(14,111)

174,153

 Mortgage Banking Revenues

(4,055)

-

(4,055)

 Net Additions for Capitalized Mortgage Servicing Rights

364

-

364

 Stock Compensation

245

-

245

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(6,682)

-

(6,682)

 Net Change in Operating Leases

(27)

-

(27)

 Net Decrease in Other Assets

1,897

-

1,897

 Net Increase in Other Liabilities

7,036

-

7,036

Net Cash Provided By Operating Activities

20,826

1,374

22,200

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(194,448)

-

(194,448)

 Payments, Maturities, and Calls

14,441

-

14,441

Securities Available for Sale:

 Purchases

(25,139)

-

(25,139)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

24,824

-

24,824

Purchases of Loans Held for Investment

(381)

-

(381)

Net Increase in Loans Held for Investment

(57,592)

(39,140)

(96,732)

Proceeds from Sales of Loans

-

37,766

37,766

Purchases of Premises and Equipment, net

(1,013)

-

(1,013)

Noncontrolling Interest Contributions

1,838

-

1,838

Net Cash Used In Investing Activities

(234,105)

(1,374)

(235,479)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

52,645

-

52,645

Net Decrease in Other Short-Term Borrowings

(3,692)

-

(3,692)

Repayment of Other Long-Term Borrowings

(78)

-

(78)

Dividends Paid

(2,712)

-

(2,712)

Issuance of Common Stock Under Compensation Plans

190

-

190

Net Cash Provided By Financing Activities

46,353

-

46,353

NET DECREASE IN CASH AND CASH EQUIVALENTS

(166,926)

-

(166,926)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

868,428

$

-

$

868,428

Supplemental Cash Flow Disclosures:

 Interest Paid

$

715

$

-

$

715

 Income Taxes Paid

$

20

$

-

$

20

Supplemental Noncash Items

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

37,973

$

37,973

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

14,198

$

-

$

14,198

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

1,724

-

1,724

 Depreciation

3,802

-

3,802

 Amortization of Premiums, Discounts, and Fees, net

5,053

-

5,053

 Amortization of Intangible Assets

80

-

80

 Pension Settlement Charges

378

-

378

 Originations of Loans Held for Sale

(316,372)

48,314

(268,058)

 Proceeds From Sales of Loans Held for Sale

352,830

(45,481)

307,349

 Mortgage Banking Revenues

(8,912)

-

(8,912)

 Net Additions for Capitalized Mortgage Servicing Rights

360

-

360

 Stock Compensation

489

-

489

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(9,887)

-

(9,887)

 Net Change in Operating Leases

(72)

-

(72)

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

(26)

-

(26)

 Net Decrease in Other Assets

3,516

-

3,516

 Net Increase in Other Liabilities

22,040

-

22,040

Net Cash Provided By Operating Activities

69,182

2,833

72,015

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(218,548)

-

(218,548)

 Payments, Maturities, and Calls

28,111

-

28,111

Securities Available for Sale:

 Purchases

(37,044)

-

(37,044)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

47,413

-

47,413

Purchases of Loans Held for Investment

(15,985)

-

(15,985)

Net Increase in Loans Held for Investment

(289,707)

(69,710)

(359,417)

Proceeds from Sales of Loans

-

66,877

66,877

Proceeds From Sales of Other Real Estate Owned

30

-

30

Purchases of Premises and Equipment, net

(3,322)

-

(3,322)

Noncontrolling Interest Contributions

2,573

-

2,573

Net Cash Used In Investing Activities

(483,114)

(2,833)

(485,947)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

73,396

-

73,396

Net Increase in Other Short-Term Borrowings

4,784

-

4,784

Repayment of Other Long-Term Borrowings

(150)

-

(150)

Dividends Paid

(5,424)

-

(5,424)

Issuance of Common Stock Under Compensation Plans

496

-

496

Net Cash Provided By Financing Activities

73,102

-

73,102

NET DECREASE IN CASH AND CASH EQUIVALENTS

(340,830)

-

(340,830)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

694,524

$

-

$

694,524

Supplemental Cash Flow Disclosures:

 Interest Paid

$

1,617

$

-

$

1,617

 Income Taxes Paid

$

3,765

$

-

$

3,765

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

67,324

$

67,324

 Loans and Premises Transferred to Other Real Estate Owned

$

77

$

-

$

77

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Nine Months Ended September 30, 2022

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

23,803

$

-

$

23,803

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,878

-

3,878

 Depreciation

5,689

-

5,689

 Amortization of Premiums, Discounts, and Fees, net

6,618

-

6,618

 Amortization of Intangible Assets

120

-

120

 Pension Settlement Charge

480

-

480

 Originations of Loans Held for Sale

(399,041)

55,142

(343,899)

 Proceeds From Sales of Loans Held for Sale

440,219

(49,463)

390,756

 Mortgage Banking Revenues

(11,807)

-

(11,807)

 Net Additions for Capitalized Mortgage Servicing Rights

570

-

570

 Stock Compensation

904

-

904

 Net Tax Benefit from Stock Compensation

(19)

-

(19)

 Deferred Income Taxes Benefit

(12,854)

-

(12,854)

 Net Change in Operating Leases

(83)

-

(83)

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

(136)

-

(136)

 Net Decrease in Other Assets

3,696

-

3,696

 Net Increase in Other Liabilities

12,839

-

12,839

Net Cash Provided By Operating Activities

74,876

5,679

80,555

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Purchases

(219,865)

-

(219,865)

 Payments, Maturities, and Calls

40,096

-

40,096

Securities Available for Sale:

 Purchases

(41,880)

-

(41,880)

 Proceeds from the Sale of Securities

3,365

-

3,365

 Payments, Maturities, and Calls

64,301

-

64,301

Purchases of Loans Held for Investment

(16,324)

-

(16,324)

Net Increase in Loans Held for Investment

(426,273)

(94,200)

(520,473)

Proceeds from Sales of Loans

-

88,521

88,521

Proceeds From Sales of Other Real Estate Owned

1,683

-

1,683

Purchases of Premises and Equipment, net

(4,013)

-

(4,013)

Noncontrolling Interest Contributions

2,867

-

2,867

Net Cash Used In Investing Activities

(596,043)

(5,679)

(601,722)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase in Deposits

46,516

-

46,516

Net Increase in Other Short-Term Borrowings

17,592

-

17,592

Repayment of Other Long-Term Borrowings

(200)

-

(200)

Dividends Paid

(8,307)

-

(8,307)

Issuance of Common Stock Under Compensation Plans

577

-

577

Net Cash Provided By Financing Activities

56,178

-

56,178

NET DECREASE IN CASH AND CASH EQUIVALENTS

(464,989)

-

(464,989)

Cash and Cash Equivalents at Beginning of Period 

1,035,354

-

1,035,354

Cash and Cash Equivalents at End of Period 

$

570,365

$

-

$

570,365

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,588

$

-

$

3,588

 Income Taxes Paid

$

6,410

$

-

$

6,410

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

89,836

$

89,836

 Loans and Premises Transferred to Other Real Estate Owned

$

1,543

$

-

$

1,543

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Three Months Ended March 31, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income 

$

13,709

$

-

$

13,709

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

3,099

-

3,099

 Depreciation

1,969

-

1,969

 Amortization of Premiums, Discounts, and Fees, net

1,067

-

1,067

 Amortization of Intangible Assets

40

-

40

 Originations of Loans Held for Sale

(62,745)

(12,881)

(75,626)

 Proceeds From Sales of Loans Held for Sale

64,050

9,656

73,706

 Mortgage Banking Revenues

(2,871)

-

(2,871)

 Net Additions for Capitalized Mortgage Servicing Rights

(91)

-

(91)

 Stock Compensation

536

-

536

 Deferred Income Taxes Benefit

(1,170)

-

(1,170)

 Net Change in Operating Leases

(3)

-

(3)

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

(1,858)

-

(1,858)

 Net Increase in Other Assets

(4,349)

-

(4,349)

 Net Increase in Other Liabilities

12,471

-

12,471

Net Cash Provided By Operating Activities

23,854

(3,225)

20,629

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

8,820

-

8,820

Securities Available for Sale:

 Purchases

(2,017)

-

(2,017)

 Payments, Maturities, and Calls

16,559

-

16,559

Purchases of Loans Held for Investment

(923)

-

(923)

Net Increase in Loans Held for Investment

(110,477)

(16,859)

(127,336)

Proceeds from Sales of Loans

-

20,084

20,084

Proceeds From Sales of Other Real Estate Owned

2,699

-

2,699

Purchases of Premises and Equipment, net

(1,886)

-

(1,886)

Net Cash Used In Investing Activities

(87,225)

3,225

(84,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(115,397)

-

(115,397)

Net Decrease in Other Short-Term Borrowings

(30,161)

-

(30,161)

Repayment of Other Long-Term Borrowings

(50)

-

(50)

Dividends Paid

(3,064)

-

(3,064)

Payments to Repurchase Common Stock

(819)

-

(819)

Issuance of Common Stock Under Compensation Plans

164

-

164

Net Cash Provided By Financing Activities

(149,327)

-

(149,327)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(212,698)

-

(212,698)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

387,952

$

-

$

387,952

Supplemental Cash Flow Disclosures:

 Interest Paid

$

3,723

$

-

$

3,723

 Income Taxes Paid

$

7,466

$

-

$

7,466

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

16,859

$

16,859

 Loans and Premises Transferred to Other Real Estate Owned

$

423

$

-

$

423

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

27,883

$

-

$

27,883

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

5,296

-

5,296

 Depreciation

3,927

-

3,927

 Amortization of Premiums, Discounts, and Fees, net

2,117

-

2,117

 Amortization of Intangible Assets

80

-

80

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held for Sale

(164,173)

(39,093)

(203,266)

 Proceeds From Sales of Loans Held for Sale

152,657

38,523

191,180

 Mortgage Banking Revenues

(6,234)

-

(6,234)

 Net Additions for Capitalized Mortgage Servicing Rights

(253)

-

(253)

 Stock Compensation

764

-

764

 Deferred Income Taxes Benefit

(2,849)

-

(2,849)

 Net Change in Operating Leases

(3)

-

(3)

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

(1,900)

-

(1,900)

 Net Decrease in Other Assets

4,593

-

4,593

 Net Increase in Other Liabilities

3,815

-

3,815

Net Cash Provided By Operating Activities

25,429

(570)

24,859

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

18,992

-

18,992

Securities Available for Sale:

 Purchases

(4,634)

-

(4,634)

 Payments, Maturities, and Calls

32,490

-

32,490

Purchases of Loans Held for Investment

(1,463)

-

(1,463)

Net Increase in Loans Held for Investment

(138,244)

(26,075)

(164,319)

Proceeds from Sales of Loans

-

26,645

26,645

Proceeds From Sales of Other Real Estate Owned

3,772

-

3,772

Purchases of Premises and Equipment, net

(3,851)

-

(3,851)

Net Cash Used In Investing Activities

(92,938)

570

(92,368)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(150,451)

-

(150,451)

Net Decrease in Other Short-Term Borrowings

(6,120)

-

(6,120)

Repayment of Other Long-Term Borrowings

(99)

-

(99)

Dividends Paid

(6,121)

-

(6,121)

Payments to Repurchase Common Stock

(2,022)

-

(2,022)

Issuance of Common Stock Under Compensation Plans

480

-

480

Net Cash Provided By Financing Activities

(164,333)

-

(164,333)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(231,842)

-

(231,842)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

368,808

$

-

$

368,808

Supplemental Cash Flow Disclosures:

 Interest Paid

$

8,720

$

-

$

8,720

 Income Taxes Paid

$

3,860

$

-

$

3,860

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

26,076

$

26,076

 Loans and Premises Transferred to Other Real Estate Owned

$

1,442

$

-

$

1,442

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

For the Nine Months Ended September 30, 2023

(Dollars in Thousands)

As Previously

Reported

Restatement

Impact

As Restated

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income Attributable to Common Shareowners

$

40,539

$

-

$

40,539

Adjustments to Reconcile Net Income to

 Provision for Credit Losses

7,689

-

7,689

 Depreciation

5,920

-

5,920

 Amortization of Premiums, Discounts, and Fees, net

3,216

-

3,216

 Amortization of Intangible Assets

120

-

120

 Pension Settlement Gain

(291)

-

(291)

 Originations of Loans Held for Sale

(246,198)

(62,065)

(308,263)

 Proceeds From Sales of Loans Held for Sale

247,166

56,565

303,731

 Mortgage Banking Revenues

(8,072)

-

(8,072)

 Net Additions for Capitalized Mortgage Servicing Rights

(392)

-

(392)

 Stock Compensation

1,110

-

1,110

 Deferred Income Taxes Benefit

(2,464)

-

(2,464)

 Net Change in Operating Leases

(12)

-

(12)

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

(1,915)

-

(1,915)

 Net Decrease in Other Assets

8,207

-

8,207

 Net Increase in Other Liabilities

1,069

-

1,069

Net Cash Provided By Operating Activities

55,692

(5,500)

50,192

CASH FLOWS FROM INVESTING ACTIVITIES

Securities Held to Maturity:

 Payments, Maturities, and Calls

28,159

-

28,159

Securities Available for Sale:

 Purchases

(9,399)

-

(9,399)

 Proceeds from the Sale of Securities

30,420

-

30,420

 Payments, Maturities, and Calls

53,045

-

53,045

Purchases of Loans Held for Investment

(2,249)

-

(2,249)

Net Increase in Loans Held for Investment

(161,006)

(33,625)

(194,631)

Proceeds from Sales of Loans

-

39,125

39,125

Proceeds From Sales of Other Real Estate Owned

3,840

-

3,840

Purchases of Premises and Equipment, net

(5,459)

-

(5,459)

Net Cash Used In Investing Activities

(62,649)

5,500

(57,149)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Decrease in Deposits

(398,872)

-

(398,872)

Net Decrease in Other Short-Term Borrowings

(15,097)

-

(15,097)

Repayment of Other Long-Term Borrowings

(149)

-

(149)

Dividends Paid

(9,518)

-

(9,518)

Payments to Repurchase Common Stock

(3,121)

-

(3,121)

Issuance of Common Stock Under Compensation Plans

562

-

562

Net Cash Provided By Financing Activities

(426,195)

-

(426,195)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(433,152)

-

(433,152)

Cash and Cash Equivalents at Beginning of Period 

600,650

-

600,650

Cash and Cash Equivalents at End of Period 

$

167,498

$

-

$

167,498

Supplemental Cash Flow Disclosures:

 Interest Paid

$

15,026

$

-

$

15,026

 Income Taxes Paid

$

7,395

$

-

$

7,395

Supplemental Noncash Items:

 Loans Transferred from Held for Investment to Held for Sale, net

$

-

$

33,625

$

33,625

 Loans and Premises Transferred to Other Real Estate Owned

$

1,495

$

-

$

1,495

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

XML

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Mar. 01, 2020
Significant Accounting Policies [Line Items]
Average federal reserves							$ 0
Restricted cash balance							100,000
Originations of Loans Held for Sale	$ 75,626,000	$ 162,448,000	$ 203,266,000	$ 268,058,000	$ 308,263,000	$ 343,899,000	406,803,000	$ 390,191,000	$ 1,228,946,000
Proceeds From Sales of Loans Held for Sale	73,706,000	174,153,000	191,180,000	307,349,000	303,731,000	390,756,000	404,332,000	437,907,000	1,349,124,000
Net Cash Provided in Operating Activities	20,629,000	22,200,000	24,859,000	72,015,000	50,192,000	80,555,000	54,782,000	92,692,000	122,170,000
Net (Increase) Decrease in Loans	127,336,000	96,732,000	164,319,000	359,417,000	194,631,000	520,473,000	226,896,000	720,670,000	10,061,000
Proceeds from Sales of Loans	20,084,000	37,766,000	26,645,000	66,877,000	39,125,000	88,521,000	47,314,000	104,475,000	92,360,000
Net Cash Provided by Investing Activities	(84,000,000)	(235,479,000)	(92,368,000)	(485,947,000)	(57,149,000)	(601,722,000)	(68,541,000)	(765,825,000)	(453,966,000)
Purchases of Loans Held for Investment	923,000	381,000	1,463,000	15,985,000	2,249,000	16,324,000	2,488,000	16,753,000	20,209,000
Loans Transferred from Held for Investment to Held-for-Sale, net	$ 16,859,000	$ 37,973,000	$ 26,076,000	$ 67,324,000	$ 33,625,000	$ 89,836,000	35,745,000	108,798,000	98,081,000
Overstated [Member]
Significant Accounting Policies [Line Items]
Originations of Loans Held for Sale								47,600,000	33,800,000
Proceeds From Sales of Loans Held for Sale								37,500,000	27,600,000
Net Cash Provided in Operating Activities							11,600,000
Net (Increase) Decrease in Loans									98,600,000
Net Cash Provided by Investing Activities							11,600,000
Understated [Member]
Significant Accounting Policies [Line Items]
Originations of Loans Held for Sale							100,100,000
Proceeds From Sales of Loans Held for Sale							88,500,000
Net Cash Provided in Operating Activities								10,200,000	6,200,000
Net (Increase) Decrease in Loans							35,700,000	114,700,000
Proceeds from Sales of Loans							$ 47,300,000	104,500,000	92,400,000
Net Cash Provided by Investing Activities								$ 10,200,000	$ 6,200,000
Premises [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful life (in years)							10 years
Premises [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful life (in years)							40 years
Equipment [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful life (in years)							3 years
Equipment [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful life (in years)							10 years
Capital City Home Loans [Member]
Significant Accounting Policies [Line Items]
Equity interest acquired										51.00%
Noncontrolling interest in subsidiary										49.00%

XML

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Restatement Impact) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income Attributable to Common Shareowners	$ 13,709	$ 6,938	$ 27,883	$ 14,198	$ 40,539	$ 23,803	$ 52,258	$ 33,412	$ 33,396
Adjustments to Reconcile Net Income to Cash From Operating Activities:
Provision for Credit Losses	3,099	32	5,296	1,724	7,689	3,878	9,714	7,494	(1,553)
Depreciation	1,969	1,907	3,927	3,802	5,920	5,689	7,918	7,596	7,607
Amortization of Premiums, Discounts, and Fees, net	1,067	2,610	2,117	5,053	3,216	6,618	4,221	7,772	14,072
Amortization of Intangible Assets	40	40	80	80	120	120	160	160	107
Gain on Securities Transactions							3	0	0
Pension Settlement (Gain) Charges	0	209	(291)	378	(291)	480	(291)	2,321	3,072
Originations of Loans Held for Sale	(75,626)	(162,448)	(203,266)	(268,058)	(308,263)	(343,899)	(406,803)	(390,191)	(1,228,946)
Proceeds From Sales of Loans Held for Sale	73,706	174,153	191,180	307,349	303,731	390,756	404,332	437,907	1,349,124
Mortgage Banking Revenues	(2,871)	(4,055)	(6,234)	(8,912)	(8,072)	(11,807)	(10,400)	(11,909)	(52,425)
Net Additions for Capitalized Mortgage Servicing Rights	(91)	364	(253)	360	(392)	570	419	726	72
Change in Valuation Provision for Mortgage Servicing Rights							0	0	(250)
Stock Compensation	536	245	764	489	1,110	904	1,237	1,630	843
Net Tax Benefit from Stock Compensation		(19)		(19)		(19)	(48)	(27)	(4)
Deferred Income Taxes	(1,170)	(6,682)	(2,849)	(9,887)	(2,464)	(12,854)	(483)	(3,870)	(4,157)
Net Change in Operating Leases	(3)	(27)	(3)	(72)	(12)	(83)	79	(108)	(165)
Net Gain on Sales and Write-Downs of Other Real Estate Owned	(1,858)	0	(1,900)	(26)	(1,915)	(136)	(2,053)	(422)	(1,662)
Net (Increase) Decrease in Other Assets	(4,349)	1,897	4,593	3,516	8,207	3,696	(1,029)	(8,636)	10,885
Net (Decrease) Increase in Other Liabilities	12,471	7,036	3,815	22,040	1,069	12,839	(4,452)	8,837	(7,846)
Net Cash Provided By Operating Activities	20,629	22,200	24,859	72,015	50,192	80,555	54,782	92,692	122,170
Securities Held to Maturity:
Purchases		(194,448)		(218,548)		(219,865)	(1,483)	(219,865)	(251,525)
Payments, Maturities, and Calls	8,820	14,441	18,992	28,111	28,159	40,096	36,600	55,314	78,544
Securities Available for Sale:
Purchases	(2,017)	(25,139)	(4,634)	(37,044)	(9,399)	(41,880)	(8,379)	(52,238)	(523,961)
Proceeds from the Sale of Securities	0	3,365	0	3,365	30,420	3,365	30,420	3,365	495
Payments, Maturities, and Calls	16,559	24,824	32,490	47,413	53,045	64,301	62,861	81,596	178,425
Equity Securities:
Purchases							(13,566)	0	0
Net Decrease in Equity Securities							10,127	0	0
Purchases of Loans Held for Investment	(923)	(381)	(1,463)	(15,985)	(2,249)	(16,324)	(2,488)	(16,753)	(20,209)
Net Increase in Loans Held for Investment	(127,336)	(96,732)	(164,319)	(359,417)	(194,631)	(520,473)	(226,896)	(720,670)	(10,061)
Proceeds from Sales of Loans	20,084	37,766	26,645	66,877	39,125	88,521	47,314	104,475	92,360
Net Cash Paid for Acquisitions							0	0	(4,482)
Proceeds From Sales of Other Real Estate Owned	2,699	0	3,772	30	3,840	1,683	3,995	2,406	4,502
Purchases of Premises and Equipment, net	(1,886)	(1,013)	(3,851)	(3,322)	(5,459)	(4,013)	(7,046)	(6,322)	(5,193)
Noncontrolling Interest Contributions		1,838		2,573		2,867	0	2,867	7,139
Net Cash Used In Investing Activities	(84,000)	(235,479)	(92,368)	(485,947)	(57,149)	(601,722)	(68,541)	(765,825)	(453,966)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(115,397)	52,645	(150,451)	73,396	(398,872)	46,516	(237,495)	226,455	495,302
Net (Decrease) Increase in Short-Term Borrowings	(30,161)	(3,692)	(6,120)	4,784	(15,097)	17,592	(21,452)	22,114	(45,938)
Repayment of Other Long-Term Borrowings	(50)	(78)	(99)	(150)	(149)	(200)	(199)	(249)	(1,332)
Dividends Paid	(3,064)	(2,712)	(6,121)	(5,424)	(9,518)	(8,307)	(12,905)	(11,191)	(10,459)
Payments to Repurchase Common Stock	(819)		(2,022)		(3,121)		(3,710)	0	0
Issuance of Common Stock Under Compensation Plans	164	190	480	496	562	577	937	1,300	1,028
Net Cash (Used in) Provided By Financing Activities	(149,327)	46,353	(164,333)	73,102	(426,195)	56,178	(274,824)	238,429	438,601
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(212,698)	(166,926)	(231,842)	(340,830)	(433,152)	(464,989)	(288,583)	(434,704)	106,805
Cash and Cash Equivalents at Beginning of Year	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	928,549
Cash and Cash Equivalents at End of Year	387,952	868,428	368,808	694,524	167,498	570,365	312,067	600,650	1,035,354
Supplemental Cash Flow Disclosures:
Interest Paid	3,723	715	8,720	1,617	15,026	3,588	21,775	6,586	3,547
Income Taxes Paid	7,466	20	3,860	3,765	7,395	6,410	9,118	7,466	16,339
Supplemental Noncash Items:
Loans Transferred from Held for Investment to Held-for-Sale, net	16,859	37,973	26,076	67,324	33,625	89,836	35,745	108,798	98,081
Loans and Premises Transferred to Other Real Estate Owned	423	0	1,442	77	1,495	1,543	1,512	2,398	1,717
As Previously Reported [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income Attributable to Common Shareowners	13,709	6,938	27,883	14,198	40,539	23,803	52,258	33,412	33,396
Adjustments to Reconcile Net Income to Cash From Operating Activities:
Provision for Credit Losses	3,099	32	5,296	1,724	7,689	3,878	9,714	7,494	(1,553)
Depreciation	1,969	1,907	3,927	3,802	5,920	5,689	7,918	7,596	7,607
Amortization of Premiums, Discounts, and Fees, net	1,067	2,610	2,117	5,053	3,216	6,618	4,221	7,772	14,072
Amortization of Intangible Assets	40	40	80	80	120	120	160	160	107
Gain on Securities Transactions							3
Pension Settlement (Gain) Charges		209	(291)	378	(291)	480	(291)	2,321	3,072
Originations of Loans Held for Sale	(62,745)	(177,933)	(164,173)	(316,372)	(246,198)	(399,041)	(306,714)	(437,827)	(1,262,746)
Proceeds From Sales of Loans Held for Sale	64,050	188,264	152,657	352,830	247,166	440,219	315,812	475,359	1,376,678
Mortgage Banking Revenues	(2,871)	(4,055)	(6,234)	(8,912)	(8,072)	(11,807)	(10,400)	(11,909)	(52,425)
Net Additions for Capitalized Mortgage Servicing Rights	(91)	364	(253)	360	(392)	570	419	726	72
Change in Valuation Provision for Mortgage Servicing Rights									(250)
Stock Compensation	536	245	764	489	1,110	904	1,237	1,630	843
Net Tax Benefit from Stock Compensation		(19)		(19)		(19)	(48)	(27)	(4)
Deferred Income Taxes	(1,170)	(6,682)	(2,849)	(9,887)	(2,464)	(12,854)	(483)	(3,870)	(4,157)
Net Change in Operating Leases	(3)	(27)	(3)	(72)	(12)	(83)	79	(108)	(165)
Net Gain on Sales and Write-Downs of Other Real Estate Owned	(1,858)		(1,900)	(26)	(1,915)	(136)	(2,053)	(422)	(1,662)
Net (Increase) Decrease in Other Assets	(4,349)	1,897	4,593	3,516	8,207	3,696	(1,029)	(8,636)	10,885
Net (Decrease) Increase in Other Liabilities	12,471	7,036	3,815	22,040	1,069	12,839	(4,452)	8,837	(7,846)
Net Cash Provided By Operating Activities	23,854	20,826	25,429	69,182	55,692	74,876	66,351	82,508	115,924
Securities Held to Maturity:
Purchases		(194,448)		(218,548)		(219,865)	(1,483)	(219,865)	(251,525)
Payments, Maturities, and Calls	8,820	14,441	18,992	28,111	28,159	40,096	36,600	55,314	78,544
Securities Available for Sale:
Purchases	(2,017)	(25,139)	(4,634)	(37,044)	(9,399)	(41,880)	(8,379)	(52,238)	(523,961)
Proceeds from the Sale of Securities		3,365		3,365	30,420	3,365	30,420	3,365	495
Payments, Maturities, and Calls	16,559	24,824	32,490	47,413	53,045	64,301	62,861	81,596	178,425
Equity Securities:
Purchases							(13,566)
Net Decrease in Equity Securities							10,127
Purchases of Loans Held for Investment	(923)	(381)	(1,463)	(15,985)	(2,249)	(16,324)	(2,488)	(16,753)	(20,209)
Net Increase in Loans Held for Investment	(110,477)	(57,592)	(138,244)	(289,707)	(161,006)	(426,273)	(191,151)	(606,011)	88,545
Proceeds from Sales of Loans	0	0	0	0	0	0	0	0	0
Net Cash Paid for Acquisitions									(4,482)
Proceeds From Sales of Other Real Estate Owned	2,699		3,772	30	3,840	1,683	3,995	2,406	4,502
Purchases of Premises and Equipment, net	(1,886)	(1,013)	(3,851)	(3,322)	(5,459)	(4,013)	(7,046)	(6,322)	(5,193)
Noncontrolling Interest Contributions		1,838		2,573		2,867		2,867	7,139
Net Cash Used In Investing Activities	(87,225)	(234,105)	(92,938)	(483,114)	(62,649)	(596,043)	(80,110)	(755,641)	(447,720)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(115,397)	52,645	(150,451)	73,396	(398,872)	46,516	(237,495)	226,455	495,302
Net (Decrease) Increase in Short-Term Borrowings	(30,161)	(3,692)	(6,120)	4,784	(15,097)	17,592	(21,452)	22,114	(45,938)
Repayment of Other Long-Term Borrowings	(50)	(78)	(99)	(150)	(149)	(200)	(199)	(249)	(1,332)
Dividends Paid	(3,064)	(2,712)	(6,121)	(5,424)	(9,518)	(8,307)	(12,905)	(11,191)	(10,459)
Payments to Repurchase Common Stock	(819)		(2,022)		(3,121)		(3,710)
Issuance of Common Stock Under Compensation Plans	164	190	480	496	562	577	937	1,300	1,028
Net Cash (Used in) Provided By Financing Activities	(149,327)	46,353	(164,333)	73,102	(426,195)	56,178	(274,824)	238,429	438,601
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(212,698)	(166,926)	(231,842)	(340,830)	(433,152)	(464,989)	(288,583)	(434,704)	106,805
Cash and Cash Equivalents at Beginning of Year	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	928,549
Cash and Cash Equivalents at End of Year	387,952	868,428	368,808	694,524	167,498	570,365	312,067	600,650	1,035,354
Supplemental Cash Flow Disclosures:
Interest Paid	3,723	715	8,720	1,617	15,026	3,588	21,775	6,586	3,547
Income Taxes Paid	7,466	20	3,860	3,765	7,395	6,410	9,118	7,466	16,339
Supplemental Noncash Items:
Loans Transferred from Held for Investment to Held-for-Sale, net	0	0	0	0	0	0	0	0	0
Loans and Premises Transferred to Other Real Estate Owned	423		1,442	77	1,495	1,543	1,512	2,398	1,717
Restatement Impact [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income Attributable to Common Shareowners	0	0	0	0	0	0	0	0	0
Adjustments to Reconcile Net Income to Cash From Operating Activities:
Provision for Credit Losses	0	0	0	0	0	0	0	0	0
Depreciation	0	0	0	0	0	0	0	0	0
Amortization of Premiums, Discounts, and Fees, net	0	0	0	0	0	0	0	0	0
Amortization of Intangible Assets	0	0	0	0	0	0	0	0	0
Gain on Securities Transactions							0
Pension Settlement (Gain) Charges		0	0	0	0	0	0	0	0
Originations of Loans Held for Sale	(12,881)	15,485	(39,093)	48,314	(62,065)	55,142	(100,089)	47,636	33,800
Proceeds From Sales of Loans Held for Sale	9,656	(14,111)	38,523	(45,481)	56,565	(49,463)	88,520	(37,452)	(27,554)
Mortgage Banking Revenues	0	0	0	0	0	0	0	0	0
Net Additions for Capitalized Mortgage Servicing Rights	0	0	0	0	0	0	0	0	0
Change in Valuation Provision for Mortgage Servicing Rights									0
Stock Compensation	0	0	0	0	0	0	0	0	0
Net Tax Benefit from Stock Compensation		0		0		0	0	0	0
Deferred Income Taxes	0	0	0	0	0	0	0	0	0
Net Change in Operating Leases	0	0	0	0	0	0	0	0	0
Net Gain on Sales and Write-Downs of Other Real Estate Owned	0		0	0	0	0	0	0	0
Net (Increase) Decrease in Other Assets	0	0	0	0	0	0	0	0	0
Net (Decrease) Increase in Other Liabilities	0	0	0	0	0	0	0	0	0
Net Cash Provided By Operating Activities	(3,225)	1,374	(570)	2,833	(5,500)	5,679	(11,569)	10,184	6,246
Securities Held to Maturity:
Purchases		0		0		0	0	0	0
Payments, Maturities, and Calls	0	0	0	0	0	0	0	0	0
Securities Available for Sale:
Purchases	0	0	0	0	0	0	0	0	0
Proceeds from the Sale of Securities		0		0	0	0	0	0	0
Payments, Maturities, and Calls	0	0	0	0	0	0	0	0	0
Equity Securities:
Purchases							0
Net Decrease in Equity Securities							0
Purchases of Loans Held for Investment	0	0	0	0	0	0	0	0	0
Net Increase in Loans Held for Investment	(16,859)	(39,140)	(26,075)	(69,710)	(33,625)	(94,200)	(35,745)	(114,659)	(98,606)
Proceeds from Sales of Loans	20,084	37,766	26,645	66,877	39,125	88,521	47,314	104,475	92,360
Net Cash Paid for Acquisitions									0
Proceeds From Sales of Other Real Estate Owned	0		0	0	0	0	0	0	0
Purchases of Premises and Equipment, net	0	0	0	0	0	0	0	0	0
Noncontrolling Interest Contributions		0		0		0		0	0
Net Cash Used In Investing Activities	3,225	(1,374)	570	(2,833)	5,500	(5,679)	11,569	(10,184)	(6,246)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	0	0	0	0	0	0	0	0	0
Net (Decrease) Increase in Short-Term Borrowings	0	0	0	0	0	0	0	0	0
Repayment of Other Long-Term Borrowings	0	0	0	0	0	0	0	0	0
Dividends Paid	0	0	0	0	0	0	0	0	0
Payments to Repurchase Common Stock	0		0		0		0
Issuance of Common Stock Under Compensation Plans	0	0	0	0	0	0	0	0	0
Net Cash (Used in) Provided By Financing Activities	0	0	0	0	0	0	0	0	0
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	0	0	0	0	0	0	0	0	0
Cash and Cash Equivalents at Beginning of Year	0	0	0	0	0	0	0	0	0
Cash and Cash Equivalents at End of Year	0	0	0	0	0	0	0	0	0
Supplemental Cash Flow Disclosures:
Interest Paid	0	0	0	0	0	0	0	0	0
Income Taxes Paid	0	0	0	0	0	0	0	0	0
Supplemental Noncash Items:
Loans Transferred from Held for Investment to Held-for-Sale, net	16,859	$ 37,973	26,076	67,324	33,625	89,836	35,745	108,798	98,081
Loans and Premises Transferred to Other Real Estate Owned	$ 0		$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

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INVESTMENT SECURITIES (Narrative) (Details)	3 Months Ended			6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($) Securities	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2023 USD ($) Securities Item	Dec. 31, 2022 USD ($) Securities Item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Investment Securities [Abstract]
Securities pledged to secure public deposits								$ 578,500,000	$ 656,100,000
Schedule of Available-for-sale Securities [Line Items]
Number of holdings securities in an amount greater than 10% of shareowner's equity | Securities								0	0
Amortized Cost								$ 367,747,000	$ 455,232,000
Fair Value								337,902,000	413,294,000
Unrealized Losses								29,928,000	41,946,000
Allowance for Credit Losses								29,941,000	25,068,000	$ 21,606,000	$ 23,816,000
Equity Securities								3,450,000	10,000
Securities held nonaccrual status								0
Proceeds from the Sale of Securities	$ 0		$ 3,365,000	$ 0	$ 3,365,000	$ 30,420,000	$ 3,365,000	30,420,000	3,365,000	$ 495,000
Municipal Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Allowance for Credit Losses								$ 8,000
Number of positions in AFS and HTM investments with unrealized losses | Item								101
U.S. Government and Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of positions in AFS and HTM investments with unrealized losses | Item								691
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities and Held-To-Maturity, Continuous Unrealized Loss Position, Accumulated Loss								$ 63,200,000	$ 90,000,000.0
Number of positions in AFS and HTM investments with unrealized losses | Item								878	928
U.S. Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost								$ 25,947,000	$ 23,977,000
Fair Value								24,679,000	22,050,000
Unrealized Losses								$ 1,269,000	1,928,000
Number of positions in AFS and HTM investments with unrealized losses | Item								86
U.S. Government Agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost								$ 152,983,000	198,888,000
Fair Value								145,034,000	186,052,000
Unrealized Losses								8,053,000	12,863,000
Allowance for Credit Losses								0
Estimated write off of loans and leases receivable								0
Available-for-sale Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available for sale securities transferred | Securities		33
Amortized Cost		$ 168,400,000					168,400,000
Fair Value		$ 159,000,000.0					$ 159,000,000.0
Unrealized Losses								4,500,000	7,900,000
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost								63,600,000	97,119,000
Fair Value								57,552,000	88,236,000
Unrealized Losses								6,031,000	$ 8,874,000
Allowance for Credit Losses								$ 17,000

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INVESTMENT SECURITIES (Schedule of Amortized Cost and Related Market Value of Investment Securities Available-for-Sale) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Available-for-sale
Amortized Cost	$ 367,747	$ 455,232
Unrealized Gains	108	49
Unrealized Losses	29,928	41,946
Allowance for Credit Loss	(25)	(41)
Fair Value	337,902	413,294
Federal Home Loan Bank	3,200	2,100
Federal Reserve Bank stock	5,100	5,100
Held to Maturity
Amortized Cost	625,022	660,744
Unrealized Gains	13	8
Unrealized Losses	33,284	48,051
Fair value	591,751	612,701
U.S. Government Treasury [Member]
Available-for-sale
Amortized Cost	25,947	23,977
Unrealized Gains	1	1
Unrealized Losses	1,269	1,928
Allowance for Credit Loss	0	0
Fair Value	24,679	22,050
Held to Maturity
Amortized Cost	457,681	457,374
Unrealized Gains	0	0
Unrealized Losses	16,492	25,641
Fair value	441,189	431,733
U.S. Government Agency [Member]
Available-for-sale
Amortized Cost	152,983	198,888
Unrealized Gains	104	27
Unrealized Losses	8,053	12,863
Allowance for Credit Loss	0	0
Fair Value	145,034	186,052
States and Political Subdivisions [Member]
Available-for-sale
Amortized Cost	43,951	47,197
Unrealized Gains	1	0
Unrealized Losses	4,861	6,855
Allowance for Credit Loss	(8)	(13)
Fair Value	39,083	40,329
Mortgage-Backed Securities [Member]
Available-for-sale
Amortized Cost	73,015	80,829
Unrealized Gains	2	2
Unrealized Losses	9,714	11,426
Allowance for Credit Loss	0	0
Fair Value	63,303	69,405
Held to Maturity
Amortized Cost	167,341	203,370
Unrealized Gains	13	8
Unrealized Losses	16,792	22,410
Fair value	150,562	180,968
Corporate Debt Securities [Member]
Available-for-sale
Amortized Cost	63,600	97,119
Unrealized Gains	0	19
Unrealized Losses	6,031	8,874
Allowance for Credit Loss	(17)	(28)
Fair Value	57,552	88,236
Other Securities [Member]
Available-for-sale
Amortized Cost	8,251	7,222
Unrealized Gains	0	0
Unrealized Losses	0	0
Allowance for Credit Loss	0	0
Fair Value	$ 8,251	$ 7,222

XML

INVESTMENT SECURITIES (Schedule of Investment Securities with Maturity Distribution Based on Contractual Maturities) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Amortized Cost
Due in one year or less	$ 28,545
Due after one through five years	138,299
Due after five through ten years	39,090
Total Investment Securities	367,747	$ 455,232
Fair Value
Due in one year or less	27,854
Due after one through five years	127,843
Due after five through ten years	33,420
Total Investment Securities	337,902	413,294
Amortized Cost
Due in one year or less	90,119
Due after one through five years	367,562
Total Investment Securities	625,022	660,744
Fair Value
Due in one year or less	88,588
Due after one through five years	352,601
Total Investment Securities	591,751	612,701
Mortgage-Backed Securities [Member]
Amortized Cost
Due without single maturity date	73,015
Total Investment Securities	73,015	80,829
Fair Value
Due without single maturity date	63,303
Total Investment Securities	63,303	69,405
Amortized Cost
Due without single maturity date	167,341
Total Investment Securities	167,341	203,370
Fair Value
Due without single maturity date	150,562
Total Investment Securities	150,562	180,968
U.S. Government Agency [Member]
Amortized Cost
Due without single maturity date	80,547
Total Investment Securities	152,983	198,888
Fair Value
Due without single maturity date	77,231
Total Investment Securities	145,034	186,052
Other Securities [Member]
Amortized Cost
Due without single maturity date	8,251
Total Investment Securities	8,251	7,222
Fair Value
Due without single maturity date	8,251
Total Investment Securities	$ 8,251	$ 7,222

XML

INVESTMENT SECURITIES (Schedule of Investment Securities with Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Available-for-sale securities
Less Than 12 Months, Fair Value	$ 14,062	$ 99,073
Less Than 12 Months, Unrealized Losses	105	4,411
Greater Than 12 Months, Fair Value	299,519	290,012
Greater Than 12 Months, Unrealized Losses	29,823	37,535
Total Fair Value	313,581	389,085
Total Unrealized Losses	29,928	41,946
Held-to-maturity debt securities
Less Than 12 Months, Fair Value	154,666	266,275
Less Than 12 Months, Unrealized Losses	3,192	17,832
Greater Than 12 Months, Fair Value	435,592	345,643
Greater Than 12 Months Or Longer, Unrealized Losses	30,092	30,219
Total Fair Value	590,258	611,918
Total Unrealized Losses	33,284	48,051
U.S. Government Treasury [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value	0	983
Less Than 12 Months, Unrealized Losses	0	0
Greater Than 12 Months, Fair Value	19,751	19,189
Greater Than 12 Months, Unrealized Losses	1,269	1,928
Total Fair Value	19,751	20,172
Total Unrealized Losses	1,269	1,928
Held-to-maturity debt securities
Less Than 12 Months, Fair Value	153,880	177,552
Less Than 12 Months, Unrealized Losses	3,178	11,018
Greater Than 12 Months, Fair Value	287,310	254,181
Greater Than 12 Months Or Longer, Unrealized Losses	13,314	14,623
Total Fair Value	441,190	431,733
Total Unrealized Losses	16,492	25,641
U.S. Government Agency [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value	12,890	63,112
Less Than 12 Months, Unrealized Losses	74	2,572
Greater Than 12 Months, Fair Value	121,220	113,004
Greater Than 12 Months, Unrealized Losses	7,979	10,291
Total Fair Value	134,110	176,116
Total Unrealized Losses	8,053	12,863
States and Political Subdivisions [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value	1,149	1,425
Less Than 12 Months, Unrealized Losses	31	2
Greater Than 12 Months, Fair Value	37,785	38,760
Greater Than 12 Months, Unrealized Losses	4,830	6,853
Total Fair Value	38,934	40,185
Total Unrealized Losses	4,861	6,855
Mortgage-Backed Securities [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value	23	6,594
Less Than 12 Months, Unrealized Losses	0	959
Greater Than 12 Months, Fair Value	63,195	60,458
Greater Than 12 Months, Unrealized Losses	9,714	10,467
Total Fair Value	63,218	67,052
Total Unrealized Losses	9,714	11,426
Held-to-maturity debt securities
Less Than 12 Months, Fair Value	786	88,723
Less Than 12 Months, Unrealized Losses	14	6,814
Greater Than 12 Months, Fair Value	148,282	91,462
Greater Than 12 Months Or Longer, Unrealized Losses	16,778	15,596
Total Fair Value	149,068	180,185
Total Unrealized Losses	16,792	22,410
Corporate Debt Securities [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value	0
Less Than 12 Months, Unrealized Losses	0
Greater Than 12 Months, Fair Value	57,568
Greater Than 12 Months, Unrealized Losses	6,031
Total Fair Value	57,568
Total Unrealized Losses	$ 6,031
Equity Securities [Member]
Available-for-sale securities
Less Than 12 Months, Fair Value		26,959
Less Than 12 Months, Unrealized Losses		878
Greater Than 12 Months, Fair Value		58,601
Greater Than 12 Months, Unrealized Losses		7,996
Total Fair Value		85,560
Total Unrealized Losses		$ 8,874

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Narratives) (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Loans Held for Investment and Allowance for Credit Losses [Abstract]
Accrued interest receivable							$ 10,100,000	$ 8,000,000.0
Real estate loans for which formal foreclosure proceedings were in process							500,000	600,000
TDRs							0
Financing Receivable, Allowance for Credit Loss							29,941,000	25,068,000	$ 21,606,000	$ 23,816,000
Increase (decrease) in allowance							4,900,000	3,500,000
Provision For Loan Losses Expensed							9,595,000	7,397,000	(2,842,000)
Net loan charge-offs or (recoveries)							4,722,000	3,935,000	(632,000)
Net deferred costs							7,800,000	5,100,000
Transfers from HFI to HFS	$ 16,859,000	$ 37,973,000	$ 26,076,000	$ 67,324,000	$ 33,625,000	$ 89,836,000	35,745,000	108,798,000	$ 98,081,000
Capital City Home Loans [Member]
Payments to purchase mortgage loans held for sale							$ 364,800,000	421,700,000
Third Party [Member]
Purchase of real estate secured adjustable rate loans								$ 15,000,000.0

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Composition of the Loan Portfolio) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	$ 2,733,918	$ 2,547,685
Commercial, Financial, Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	225,190	247,362
Real Estate - Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	196,091	234,519
Real Estate - Commercial Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	825,456	782,557
Real Estate - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	1,004,219	749,513
Loans in process with outstanding balances	3,200	6,100
Real Estate - Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	210,920	208,217
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	272,042	325,517
Consumer [Member] | Overdraft deposits [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, Held for Investment	$ 1,000	$ 1,100

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Activity in the Allowance for Loan Losses by Portfolio Class) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 25,068	$ 21,606	$ 23,816
Provision for credit losses	9,595	7,397	(2,842)
Charge-Offs	(9,292)	(7,906)	(4,827)
Recoveries	4,570	3,971	5,459
Net (Charge-Offs) Recoveries	(4,722)	(3,935)	632
Ending Balance	29,941	25,068	21,606
Commercial, Financial, Agricultural [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,506	2,191	2,204
Provision for credit losses	210	316	(227)
Charge-Offs	(511)	(1,308)	(239)
Recoveries	277	307	453
Net (Charge-Offs) Recoveries	(234)	(1,001)	214
Ending Balance	1,482	1,506	2,191
Real Estate - Construction [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,654	3,302	2,479
Provision for credit losses	(154)	(658)	813
Charge-Offs	0	0	0
Recoveries	2	10	10
Net (Charge-Offs) Recoveries	2	10	10
Ending Balance	2,502	2,654	3,302
Real Estate - Commercial Mortgage [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	4,815	5,810	7,029
Provision for credit losses	1,035	(746)	(1,679)
Charge-Offs	(120)	(355)	(405)
Recoveries	52	106	865
Net (Charge-Offs) Recoveries	(68)	(249)	460
Ending Balance	5,782	4,815	5,810
Real Estate - Residential [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	10,741	4,129	5,440
Provision for credit losses	4,141	6,328	(1,956)
Charge-Offs	(79)	0	(108)
Recoveries	253	284	753
Net (Charge-Offs) Recoveries	174	284	645
Ending Balance	15,056	10,741	4,129
Real Estate - Home Equity [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,864	2,296	3,111
Provision for credit losses	(233)	(422)	(1,125)
Charge-Offs	(39)	(193)	(103)
Recoveries	226	183	413
Net (Charge-Offs) Recoveries	187	(10)	310
Ending Balance	1,818	1,864	2,296
Consumer [Member]
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	3,488	3,878	3,553
Provision for credit losses	4,596	2,579	1,332
Charge-Offs	(8,543)	(6,050)	(3,972)
Recoveries	3,760	3,081	2,965
Net (Charge-Offs) Recoveries	(4,783)	(2,969)	(1,007)
Ending Balance	$ 3,301	$ 3,488	$ 3,878

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Aging of the Recorded Investment in Accruing Past Due Loans by Class of Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	$ 6,242	$ 2,297
Total Loans	2,733,918	2,547,685
Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	225,190
Nonaccrual Loans	311	41
Total Loans	225,190	247,362
Real Estate - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	196,091
Nonaccrual Loans	322	17
Total Loans	196,091	234,519
Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	825,456
Nonaccrual Loans	909	645
Total Loans	825,456	782,557
Real Estate - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,004,219
Nonaccrual Loans	2,990	239
Total Loans	1,004,219	749,513
Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	210,920
Nonaccrual Loans	999	771
Total Loans	210,920	208,217
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	272,042
Nonaccrual Loans	711	584
Total Loans	272,042	325,517
Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,720,821	2,537,559
Current [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	224,463	247,086
Current [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	195,563	234,143
Current [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	823,753	781,605
Current [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,000,525	747,899
Current [Member] | Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	209,653	207,411
Current [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	266,864	319,415
Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	6,855	7,829
Past Due [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	416	235
Past Due [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	206	359
Past Due [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	794	307
Past Due [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	704	1,375
Past Due [Member] | Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	268	35
Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	4,467	5,518
30-59 DPD [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	5,942	5,137
30-59 DPD [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	311	109
30-59 DPD [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	206	359
30-59 DPD [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	794	158
30-59 DPD [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	670	845
30-59 DPD [Member] | Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	268	0
30-59 DPD [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	3,693	3,666
60-89 DPD [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	913	2,692
60-89 DPD [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	105	126
60-89 DPD [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
60-89 DPD [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	149
60-89 DPD [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	34	530
60-89 DPD [Member] | Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	35
60-89 DPD [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	774	1,852
90 +DPD [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
90 +DPD [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
90 +DPD [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
90 +DPD [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
90 +DPD [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
90 +DPD [Member] | Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
90 +DPD [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 0	$ 0

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due Over 90 Days and Still on Accrual by Class of Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual With No ACL	$ 2,486	$ 389
Total Nonaccrual With ACL	3,756	1,908
90 + Days Still Accruing	0	0
Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual With No ACL	0	0
Total Nonaccrual With ACL	311	41
90 + Days Still Accruing	0	0
Real Estate - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual With No ACL	0	0
Total Nonaccrual With ACL	322	17
90 + Days Still Accruing	0	0
Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual With No ACL	781	389
Total Nonaccrual With ACL	128	256
90 + Days Still Accruing	0	0
Real Estate - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual With No ACL	1,705	0
Total Nonaccrual With ACL	1,285	239
90 + Days Still Accruing	0	0
Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual With No ACL	0	0
Total Nonaccrual With ACL	999	771
90 + Days Still Accruing	0	0
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual With No ACL	0	0
Total Nonaccrual With ACL	711	584
90 + Days Still Accruing	$ 0	$ 0

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Amortized Cost Basis of Collateral-Dependent Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	$ 3,277	$ 700
Non real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	30	0
Commercial, Financial, Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	225,190
Commercial, Financial, Agricultural [Member] | Real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	0	0
Commercial, Financial, Agricultural [Member] | Non real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	30	0
Real Estate - Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	196,091
Real Estate - Construction [Member] | Real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	275	0
Real Estate - Construction [Member] | Non real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	0	0
Real Estate - Commercial Mortgage [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	825,456
Real Estate - Commercial Mortgage [Member] | Real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	1,296	389
Real Estate - Commercial Mortgage [Member] | Non real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	0	0
Real Estate - Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	1,004,219
Real Estate - Residential [Member] | Real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	1,706	160
Real Estate - Residential [Member] | Non real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	0	0
Real Estate - Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	210,920
Real Estate - Home Equity [Member] | Real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	0	130
Real Estate - Home Equity [Member] | Non real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	0	0
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	272,042
Consumer [Member] | Real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	0	21
Consumer [Member] | Non real estate secured [Member] | Asset Pledged As Collateral [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Notes Receivable Gross	$ 0	$ 0

XML

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Summary of Gross Loans Held for Investment by Years of Origination) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Current Period Gross Writeoffs, Total	$ 9,292	$ 7,906	$ 4,827
Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	57,652
2022	67,456
2021	29,387
2020	10,697
2019	7,787
Prior	7,624
Revolving	44,587
Total	225,190
Current Period Gross Writeoffs, 2023	6
Current Period Gross Writeoffs, 2022	252
Current Period Gross Writeoffs, 2021	65
Current Period Gross Writeoffs, 2020	31
Current Period Gross Writeoffs, 2019	41
Current Period Gross Writeoffs, Prior	19
Current Period Gross Writeoffs, Revolving	97
Current Period Gross Writeoffs, Total	511	1,308	239
Real Estate - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	102,315
2022	68,812
2021	19,296
2020	863
2019	188
Prior	0
Revolving	4,617
Total	196,091
Current Period Gross Writeoffs, 2023	0
Current Period Gross Writeoffs, 2022	0
Current Period Gross Writeoffs, 2021	0
Current Period Gross Writeoffs, 2020	0
Current Period Gross Writeoffs, 2019	0
Current Period Gross Writeoffs, Prior	0
Current Period Gross Writeoffs, Revolving	0
Current Period Gross Writeoffs, Total	0	0	0
Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	121,106
2022	281,989
2021	142,358
2020	103,076
2019	45,841
Prior	112,025
Revolving	19,061
Total	825,456
Current Period Gross Writeoffs, 2023	0
Current Period Gross Writeoffs, 2022	0
Current Period Gross Writeoffs, 2021	0
Current Period Gross Writeoffs, 2020	0
Current Period Gross Writeoffs, 2019	0
Current Period Gross Writeoffs, Prior	120
Current Period Gross Writeoffs, Revolving	0
Current Period Gross Writeoffs, Total	120	355	405
Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	373,232
2022	401,636
2021	85,097
2020	38,007
2019	25,855
Prior	72,140
Revolving	8,252
Total	1,004,219
Current Period Gross Writeoffs, 2023	0
Current Period Gross Writeoffs, 2022	0
Current Period Gross Writeoffs, 2021	79
Current Period Gross Writeoffs, 2020	0
Current Period Gross Writeoffs, 2019	0
Current Period Gross Writeoffs, Prior	0
Current Period Gross Writeoffs, Revolving	0
Current Period Gross Writeoffs, Total	79	0	108
Real Estate - Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	890
2022	48
2021	127
2020	11
2019	386
Prior	950
Revolving	208,508
Total	210,920
Current Period Gross Writeoffs, 2023	0
Current Period Gross Writeoffs, 2022	0
Current Period Gross Writeoffs, 2021	0
Current Period Gross Writeoffs, 2020	0
Current Period Gross Writeoffs, 2019	0
Current Period Gross Writeoffs, Prior	0
Current Period Gross Writeoffs, Revolving	39
Current Period Gross Writeoffs, Total	39	193	103
Real Estate - Home Equity [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	890
2022	48
2021	127
2020	11
2019	386
Prior	950
Revolving	207,509
Total	209,921
Real Estate - Home Equity [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving	999
Total	999
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	68,789
2022	90,386
2021	70,940
2020	21,318
2019	10,210
Prior	4,258
Revolving	6,141
Total	272,042
Current Period Gross Writeoffs, 2023	3,137
Current Period Gross Writeoffs, 2022	3,224
Current Period Gross Writeoffs, 2021	1,362
Current Period Gross Writeoffs, 2020	329
Current Period Gross Writeoffs, 2019	230
Current Period Gross Writeoffs, Prior	99
Current Period Gross Writeoffs, Revolving	162
Current Period Gross Writeoffs, Total	8,543	$ 6,050	$ 3,972
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	68,496
2022	90,031
2021	70,882
2020	21,314
2019	10,210
Prior	4,258
Revolving	5,431
Total	270,622
Consumer [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	293
2022	355
2021	58
2020	4
2019	0
Prior	0
Revolving	710
Total	1,420
Pass [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	57,320
2022	66,671
2021	28,933
2020	10,610
2019	7,758
Prior	7,502
Revolving	44,350
Total	223,144
Pass [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	101,684
2022	68,265
2021	18,181
2020	0
2019	188
Prior	0
Revolving	4,617
Total	192,935
Pass [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	117,840
2022	275,079
2021	135,663
2020	101,210
2019	43,878
Prior	109,878
Revolving	18,367
Total	801,915
Pass [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	372,394
2022	400,437
2021	83,108
2020	35,879
2019	24,848
Prior	68,685
Revolving	8,252
Total	993,603
Special Mention [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	168
2022	608
2021	356
2020	10
2019	9
Prior	0
Revolving	76
Total	1,227
Special Mention [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	631
2022	500
2021	539
2020	212
2019	0
Prior	0
Revolving	0
Total	1,882
Special Mention [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	3,266
2022	5,684
2021	0
2020	229
2019	1,358
Prior	573
Revolving	0
Total	11,110
Special Mention [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	268
2022	89
2021	83
2020	502
2019	0
Prior	313
Revolving	0
Total	1,255
Substandard [Member] | Commercial, Financial, Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	164
2022	177
2021	98
2020	77
2019	20
Prior	122
Revolving	161
Total	819
Substandard [Member] | Real Estate - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	0
2022	47
2021	576
2020	651
2019	0
Prior	0
Revolving	0
Total	1,274
Substandard [Member] | Real Estate - Commercial Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	0
2022	1,226
2021	6,695
2020	1,637
2019	605
Prior	1,574
Revolving	694
Total	12,431
Substandard [Member] | Real Estate - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
2023	570
2022	1,110
2021	1,906
2020	1,626
2019	1,007
Prior	3,142
Revolving	0
Total	$ 9,361

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MORTGAGE BANKING ACTIVITIES (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Mortgage Banking Activities [Abstract]
Percentage of FNMA loan type of total loans serviced	53.30%
Percentage of GNMA loan type of total loans serviced	4.70%
Percentage of Private Investor loan type of total loans serviced	42.00%
Repurchase of GNMA delinquent or defaulted mortgage loans to be modified	$ 300,000	$ 1,700,000
Weighted average prepayment speed	14.22%	13.42%
Warehouse lines of credit extended to CCHL	$ 50,000,000
Balance of lines of credit receivable from CCHL	31,400,000	$ 22,900,000
Mortgage Servicing Rights (MSR) Impairment (Recovery)	0	0
Delinquent residential mortgage loans currently in GNMA pools	0	300,000
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	6,242,000	2,297,000
Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held-for-sale	27,944,000	26,274,000
Mortgage Servicing Rights [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held-for-sale	334,000,000	50,000,000
Sale price of loans held for sale	4,000,000.0	600,000
Net Realized Gains on Sales of Mortgage Loans	1,380,000	200,000
Warehouse Line Borrowings [Member]
Short-term Debt [Line Items]
Line of credit outstanding	8,384,000	50,200,000
Financial Asset, 30 to 89 Days Past Due [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	700,000	100,000
Loans held-for-sale	$ 0	$ 600,000

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MORTGAGE BANKING ACTIVITIES (Summary of Unpaid Principal Balance of Residential Mortgage Loans) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other Assets	$ 119,648	$ 119,337
Other Liabilities	66,080	73,675
Loans Held For Sale, at fair value	28,211	26,909
Forward Sales Contracts [Member]
Other Assets	24,500	15,500
Other assets fair value	209	187
Residential Mortgage [Member]
Loans held-for-sale	27,944	26,274
Loans Held For Sale, at fair value	28,211	26,909
Fair value	28,943	27,915
Residential Mortgage [Member] | Loan Commitments (IRLCs) [Member]
Other Assets	23,545	36,535
Other assets fair value	$ 523	$ 819

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MORTGAGE BANKING ACTIVITIES (Mortgage Banking Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Net realized gain on sales of mortgage loans	$ 2,871	$ 4,055	$ 6,234	$ 8,912	$ 8,072	$ 11,807	$ 10,400	$ 11,909	$ 52,425
Mortgage servicing rights additions								726	72
Mortgage Banking Revenues [Member]
Net realized gain on sales of mortgage loans							5,297	5,565	49,355
Net change in unrealized gain on mortgage loans held for sale							(252)	(1,164)	(2,410)
Net change in the fair value of mortgage loan commitments (IRLCs)							(296)	(439)	(3,567)
Net change in the fair value of forward sales contracts							(395)	192	900
Pair-Offs on net settlement of forward sales contracts							367	4,956	2,956
Mortgage servicing rights additions							651	565	1,416
Net origination fees							5,028	2,234	3,775
Total mortgage banking revenues							$ 10,400	$ 11,909	$ 52,425

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MORTGAGE BANKING ACTIVITIES (Summary of Mortgage Servicing Rights) (Details) - Residential Mortgage [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) LoanContracts	Dec. 31, 2022 USD ($) LoanContracts
Servicing Assets at Fair Value [Line Items]
Number of Residential Mortgage Loans Serviced for Others | LoanContracts	450	1,769
Outstanding Principal Balance of Residential Mortgage Loans Serviced for Others | $	$ 108,897	$ 410,470
Weighted Average Interest Rate	5.37%	3.62%
Remaining contractual term (in months)	309 months	298 months

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MORTGAGE BANKING ACTIVITIES (Activity in the Capitalized Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Servicing Asset at Fair Value, Amount [Roll Forward
Beginning Balance	$ 2,599	$ 3,774	$ 3,452
Additions due to loans sold with servicing retained	651	565	1,416
Deletions and amortization	(232)	(1,291)	(1,344)
Valuation Allowance reversal	0	0	250
Sale of Servicing Rights	(2,187)	(449)	0
Ending Balance	831	2,599	$ 3,774
Mortgage Servicing Rights [Member]
Servicing Asset at Fair Value, Amount [Roll Forward
Loans held-for-sale	334,000	50,000
Sale price of loans held for sale	4,000	600
Net Realized Gains on Sales of Mortgage Loans	$ 1,380	$ 200

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MORTGAGE BANKING ACTIVITIES (Key Unobservable Inputs used in Determining the Fair Value of Mortgage Servicing Rights) (Details) - $ / LoanContracts	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Maximum [Member]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rates	12.00%	12.00%
Annual prepayment speeds	17.79%	20.23%
Cost of servicing (per loan)	95	95
Minimum [Member]
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Discount Rates	9.50%	9.50%
Annual prepayment speeds	11.23%	12.33%
Cost of servicing (per loan)	85	85

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MORTGAGE BANKING ACTIVITIES (Warehouse Line Borrowings) (Details) - Warehouse Line Borrowings [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Line of credit outstanding	$ 8,384	$ 50,200
Master Repurchase Agreement [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	25,000
Line of credit outstanding	192
Cash pledge deposit	$ 100
Master Repurchase Agreement [Member] | Minimum [Member]
Short-term Debt [Line Items]
Interest rate, basis spread (in percent)	2.00%
Floor rate	3.25%
Master Repurchase Agreement [Member] | Maximum [Member]
Short-term Debt [Line Items]
Interest rate, basis spread (in percent)	3.00%
Floor rate	4.25%
Line of credit expiring December 2022 [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 60,000
Line of credit outstanding	$ 8,192
Line of Credit Facility, Expiration Date	Dec. 31, 2024
Line of credit expiring December 2022 [Member] | Minimum [Member]
Short-term Debt [Line Items]
Interest rate, basis spread (in percent)	2.75%
Line of credit expiring December 2022 [Member] | Maximum [Member]
Short-term Debt [Line Items]
Interest rate, basis spread (in percent)	3.25%

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DERIVATIVES (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liability Notional Amount	$ 30,000	$ 30,000
Weighted average rate paid (Fixed)	2.50%
Collateral liabilities	$ 5,500	$ 5,800
Interest Rate Product [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ 1,300

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DERIVATIVES (Cash Flow Hedges Included in the Consolidated Statement of Financial Condition) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Notional Amount	$ 30,000	$ 30,000
Fair Value	$ 5,317	$ 6,195
Weighted average maturity years	6 years 6 months	7 years 6 months

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DERIVATIVES (Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income) (Details) - Interest Rate Product [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain (Loss) Recognized in AOCI	$ 3,969	$ 4,625	$ 1,530
Amount of Gain (Loss) Reclassified from AOCI to Income	$ 1,395	$ 337	$ (151)

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PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total Premises and Equipment							$ 193,916	$ 192,323
Accumulated Depreciation							(112,650)	(110,185)
Premises and Equipment, Net							81,266	82,138
Depreciation expense	$ 1,969	$ 1,907	$ 3,927	$ 3,802	$ 5,920	$ 5,689	7,918	7,596	$ 7,607
Land [Member]
Property, Plant and Equipment [Line Items]
Total Premises and Equipment							22,393	22,847
Buildings [Member]
Property, Plant and Equipment [Line Items]
Total Premises and Equipment							110,472	109,849
Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total Premises and Equipment							$ 61,051	$ 59,627

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LEASES (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Lessee Lease Description [Line Items]
Right-of-use (ROU) assets	$ 27,000	$ 22,300
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List	Other Assets	Other Assets
Operating lease liability	$ 27,391	$ 22,700
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities	Other Liabilities
Minimum [Member]
Lessee Lease Description [Line Items]
Remaining lease term of operating lease	1 year
Maximum [Member]
Lessee Lease Description [Line Items]
Remaining lease term of operating lease	42 years

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LEASES (Lease Expense and Other Information Related to the Company's Operating Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lease expenses:
Operating lease expense	$ 2,919	$ 1,719	$ 1,445
Short-term lease expense	622	658	663
Total lease expense	3,541	2,377	2,108
Other information:
Operating cash flows from operating leases	2,847	1,937	1,609
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 6,748	$ 12,475	$ 784
Weighted-average remaining lease term - operating leases (in years )	16 years 10 months 24 days	19 years 6 months	25 years 3 months 18 days
Weighted-average discount rate - operating leases	3.50%	3.10%	2.00%

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LEASES (Maturity of Remaining Lease Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2024	$ 3,127
2025	3,105
2026	2,966
2027	2,888
2028	2,611
2028 and thereafter	20,670
Total	35,367
Less: Interest	(7,976)
Present Value of Lease Liability	$ 27,391	$ 22,700
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities	Other Liabilities

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GOODWILL AND OTHER INTANGIBLES (Narrative) (Details)		3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Apr. 30, 2021 USD ($) Item	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Goodwill And Other Intangibles [Abstract]
Goodwill								$ 91,800,000	$ 91,800,000
Goodwill impairment								0	0
Intangible Assets, Current								1,200,000	1,300,000
Business combination abstract
Payments to Acquire Businesses, Gross	$ 4,500,000
Additional goodwill	2,800,000
Intangible assets acquired	$ 1,600,000
Amortization of Intangible Assets		$ 40,000	$ 40,000	$ 80,000	$ 80,000	$ 120,000	$ 120,000	$ 160,000	$ 160,000	$ 107,000
Intangible assets useful life	10 years
Estimated amortization expense for each of the succeeding fiscal years	$ 200,000
Number of offices principles will continue to operate after acquisition | Item	5

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OTHER REAL ESTATE OWNED (Schedule of Other Real Estate Owned Activity) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other Real Estate [Roll Forward]
Beginning Balance	$ 431	$ 17	$ 808
Additions	1,512	2,398	1,717
Valuation Write-Downs	(16)	(11)	(31)
Sales	(1,926)	(1,973)	(2,809)
Other	0	0	332
Ending Balance	$ 1	$ 431	$ 17

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OTHER REAL ESTATE OWNED (Schedule of Net Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other Real Estate Owned [Abstract]
Gains from the Sale of Properties	$ (2,072)	$ (480)	$ (1,711)
Losses from the Sale of Properties	3	47	18
Rental Income from Properties	0	(21)	0
Property Carrying Costs	84	106	174
Valuation Adjustments	16	11	31
Total	$ (1,969)	$ (337)	$ (1,488)

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DEPOSITS (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
Overdrawn deposit accounts of loan	$ 1.0	$ 1.1
Time deposits that meet or exceed the FDIC insurance limit of $250,000	$ 14.7	$ 11.1

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DEPOSITS (Schedule of Interest Bearing Deposits) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
NOW Accounts	$ 1,327,420	$ 1,290,494
Money Market Accounts	319,319	267,383
Savings Deposits	547,634	637,374
Time Deposits	129,515	90,446
Total Interest Bearing Deposits	$ 2,323,888	$ 2,285,697

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DEPOSITS (Schedule of Maturities of Time Deposits) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
2024	$ 112,448
2025	7,349
2026	3,554
2027	4,211
2028	1,953
Total	$ 129,515	$ 90,446

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DEPOSITS (Schedule of Interest Expense on Deposits) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
NOW Accounts	$ 12,375	$ 2,800	$ 294
Money Market Accounts	3,670	203	134
Savings Deposits	598	309	263
Time Deposits less than $250,000	117	129	145
Time Deposits more than $250,000	822	3	3
Total Interest Expense	$ 17,582	$ 3,444	$ 839

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SHORT-TERM BORROWINGS (Schedule of Short-Term Borrowings) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Balance at December 31	$ 35,341	$ 56,793
Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Balance at December 31	0	0	$ 0
Maximum indebtedness at any month end	0	0	0
Daily average indebtedness outstanding	$ 12	$ 2	$ 2
Average rate paid for the year (in percent)	7.03%	3.39%	2.39%
Average rate paid on period-end borrowings (in percent)	0.00%	0.00%	0.00%
Securities Sold Under Repurchase Agreements [Member]
Short-term Debt [Line Items]
Balance at December 31	$ 26,957	$ 6,582	$ 4,955
Maximum indebtedness at any month end	32,426	9,452	6,755
Daily average indebtedness outstanding	$ 19,917	$ 8,095	$ 5,762
Average rate paid for the year (in percent)	2.57%	0.17%	0.04%
Average rate paid on period-end borrowings (in percent)	2.81%	0.40%	0.04%
Other Short-Term Borrowings [Member]
Short-term Debt [Line Items]
Balance at December 31	$ 8,384	$ 50,211	$ 29,602
Maximum indebtedness at any month end	42,345	50,211	58,309
Daily average indebtedness outstanding	$ 24,134	$ 32,386	$ 47,748
Average rate paid for the year (in percent)	6.37%	5.40%	2.84%
Average rate paid on period-end borrowings (in percent)	9.51%	7.61%	2.36%
Warehouse Line Borrowings [Member]
Short-term Debt [Line Items]
Balance at December 31	$ 8,400

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LONG-TERM BORROWINGS (Narrative) (Details) - Federal Home Loan Bank Advances [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
FHLB advances	$ 0.3	$ 0.5
Weighted-average rate (in percent)	4.80%	4.80%
FHLB Debt instrument payment terms	The advance matures in 2025 and has a rate of 4.80%. The Company had one FHLB long-term advance totaling $0.5 million at December 31, 2022 with a weighted-average rate of 4.80%.

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LONG-TERM BORROWINGS (Narrative 2) (Details) $ in Millions		1 Months Ended		12 Months Ended
	Apr. 12, 2016 USD ($)	May 31, 2005 USD ($)	Nov. 30, 2004 USD ($)	Dec. 31, 2023 USD ($) LoanContracts
CCBG Capital Trust II [Member]
Debt Instrument [Line Items]
Description of interest rate basis				3-month CME Term SOFR
CCBG Capital Trust I [Member]
Debt Instrument [Line Items]
Description of interest rate basis				3-month CME Term SOFR
Junior Subordinated Deferrable Interest Notes [Member]
Debt Instrument [Line Items]
Number of notes issued to trust | LoanContracts				2
Junior Subordinated Deferrable Interest Notes [Member] | CCBG Capital Trust II [Member]
Debt Instrument [Line Items]
Notes Issued				$ 32.0
Debt Instrument Issued		$ 31.0
Note Payable Maturity Date		Jun. 15, 2035
Interest rate, basis spread (in percent)		1.80%
Proceeds received from the Trust		$ 32.0
Tier One Risk Based Capital				31.0
Junior Subordinated Deferrable Interest Notes [Member] | CCBG Capital Trust II [Member] | Common Stock [Member]
Debt Instrument [Line Items]
Notes Issued		$ 0.9
Junior Subordinated Deferrable Interest Notes [Member] | CCBG Capital Trust I [Member]
Debt Instrument [Line Items]
Notes Issued				30.9
Debt Instrument Issued			$ 30.0
Note Payable Maturity Date			Dec. 31, 2034
Interest rate, basis spread (in percent)			1.90%
Proceeds received from the Trust			$ 30.9
Tier One Risk Based Capital				$ 20.0
Junior Subordinated Deferrable Interest Notes [Member] | CCBG Capital Trust I [Member] | Common Stock [Member]
Debt Instrument [Line Items]
Notes Issued			$ 0.9
Subordinated Debt [Member]
Extinguishment Of Debt [Line Items]
Extinguishment Of Debt Amount	$ 10.0

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LONG-TERM BORROWINGS (Schedule of Minimum Future Principal Payments on FHLB Advances) (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Long-term Borrowings [Abstract]
2024	$ 198
2025	116
Total	$ 314

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INCOME TAXES (Narrative 1) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	$ 233	$ 136	$ 52	$ 0
Statutory federal income tax rate to pre-tax income (in percent)	21.00%	21.00%	21.00%
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Tax credit carry forwards, expiration dates	Dec. 31, 2024
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Tax credit carry forwards, expiration dates	Dec. 31, 2037
State [Member] | 2022 through 2041 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss and Tax credit carryforward, valuation allowance	$ 2,100
Inactive Subsidiary [Member] | State [Member] | 2022 through 2041 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, valuation allowance	$ 1,900	$ 1,700

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INCOME TAXES (Narrative 2) (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax [Abstract]
Interest and penalties	$ 0	$ 0	$ 0
Amounts accrued for interest and penalties	0	$ 0
Amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate	$ 200,000

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INCOME TAXES (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ 11,630	$ 10,646	$ 12,039
State	1,893	1,022	1,044
Total	13,523	11,668	13,083
Deferred:
Federal	(391)	(2,994)	(3,246)
State	(351)	(899)	(10)
Change in Valuation Allowance	259	23	8
Total	(483)	(3,870)	(3,248)
Total
Federal	11,239	7,652	8,793
State	1,542	123	1,034
Change in Valuation Allowance	259	23	8
Total	$ 13,040	$ 7,798	$ 9,835

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INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax [Abstract]
Tax Expense at Federal Statutory Rate	$ 13,411	$ 8,625	$ 10,385
Increases (Decreases) Resulting From:
Tax-Exempt Interest Income	(259)	(248)	(271)
State Taxes, Net of Federal Benefit	1,218	94	819
Other	(1,695)	(546)	375
Change in Valuation Allowance	259	23	8
Tax-Exempt Cash Surrender Value Life Insurance Benefit	(187)	(175)	(173)
Noncontrolling Interest	293	25	(1,308)
Actual Tax Expense	$ 13,040	$ 7,798	$ 9,835

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INCOME TAXES (Schedule of Deferred Income Tax Liabilities and Assets) (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Deferred Tax Assets attributable to:
Allowance for Credit Losses	$ 7,236,000	$ 6,042,000
Accrued Pension/SERP	144,000	1,530,000
State Net Operating Loss and Tax Credit Carry-Forwards	2,069,000	1,920,000
Other Real Estate Owned	887,000	917,000
Accrued SERP Liability	2,594,000	3,246,000
Lease Liability	5,911,000	4,547,000
Net Unrealized Losses on Investment Securities	8,601,000	12,499,000
Other	2,665,000	3,043,000
Investment in Partnership	3,241,000	1,544,000
Total Deferred Tax Assets	33,348,000	35,288,000
Deferred Tax Liabilities attributable to:
Depreciation on Premises and Equipment	3,733,000	3,382,000
Deferred Loan Fees and Costs	2,614,000	2,372,000
Intangible Assets	3,344,000	3,310,000
Accrued Pension Liability	1,688,000	1,043,000
Right of Use Asset	5,829,000	4,474,000
Investments	469,000	469,000
Other	1,851,000	2,099,000
Total Deferred Tax Liabilities	19,528,000	17,149,000
Valuation Allowance	1,930,000	1,671,000
Net Deferred Tax Assets	$ 11,890,000	$ 16,468,000

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INCOME TAXES (Schedule of Beginning and Ending Unrecognized Tax Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax [Abstract]
Balance at January, 1	$ 136	$ 52	$ 0
Additions Based on Tax Positions Related to Current Year	97	84	52
Balance at December 31	$ 233	$ 136	$ 52

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STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation Expense	$ 2,100,000	$ 2,300,000	$ 1,600,000
2021 Director Stock Purchase Plan (DSPP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of common stock purchase (in percent)	90.00%
Shares reserved for issuance (in shares)	300,000
Shares eligible for issuance (in shares)	252,571
Shares issued (in shares)	13,090	14,977	19,362
Compensation Expense	$ 100,000	$ 100,000	$ 100,000
2021 Associate Stock Purchase Plan (ASPP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of common stock purchase (in percent)	90.00%
Shares reserved for issuance (in shares)	400,000
Shares eligible for issuance (in shares)	329,122
Shares issued (in shares)	17,651	31,101	22,126
Compensation Expense	$ 100,000	$ 100,000
Percentage of outstanding stock purchase (in percent)	10.00%
Maximum Stock purchases under the plan	$ 25,000
Weighted average estimated fair value (in dollars per shares)	$ 5.32	$ 4.03	$ 3.96
2021 Associate Incentive Plan (AIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance (in shares)	700,000
Shares eligible for issuance (in shares)	27,577
Shares remain eligible for issuance	492,247
Shares were earned but not issued	26,614
Compensation Expense	$ 1,100,000	$ 1,900,000	$ 1,200,000
Grant-date fair value of the shares eligible to be awarded	$ 1,100,000
2021 Associate Incentive Plan (AIP) [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	8,840	11,847
Executive Long-Term Incentive Plan President[Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares were earned but not issued	17,334
Executive Long-Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	4,909	6,849	27,915
Compensation Expense	$ 900,000	$ 200,000	$ 200,000

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STOCK-BASED COMPENSATION (Schedule of Stock Purchase Right Estimated on the Date of Grant using Weighted Average Assumption) (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Stock-Based Compensation [Abstract]
Dividend yield	2.30%	2.40%	2.50%
Expected volatility	22.50%	17.60%	21.80%
Risk-free interest rate	5.10%	1.40%	0.10%
Expected life (in months)	6 months	6 months	6 months

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EMPLOYEE BENEFIT PLANS (Narrative 1) (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Net actuarial gain (loss)							$ (300,000)
Settlement loss	$ 0	$ (209,000)	$ 291,000	$ (378,000)	$ 291,000	$ (480,000)	291,000	$ (2,321,000)	$ (3,072,000)
Supplemental Executive Retirement Plan ("SERP") [Member]
Defined Benefit Plan Disclosure [Line Items]
Settlement loss							291,000	0	0
Settlement Gain							291,000	0	0
Defined benefit pension plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net actuarial gain (loss)							(200,000)
Settlement loss							$ 0	$ (2,321,000)	$ (3,072,000)
Required minimum distribution age							72 years
Year of highest compensation							5 years
Year immediately preceding departure term							10 years

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EMPLOYEE BENEFIT PLANS (Narrative 2) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Minimum [Member] | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	55.00%
Minimum [Member] | Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	17.00%
Minimum [Member] | Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	0.00%
Maximum [Member] | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	81.00%
Maximum [Member] | Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	37.00%
Maximum [Member] | Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	10.00%
Employee Benefit 401 K Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Matching contributions (in percent)	50.00%
Participant's compensation for eligible associates (in percent)	6.00%
Matching contributions	$ 1.7	$ 1.4	$ 1.0
Shares reserved for issuance (in shares)	50,000
Additional employers contribution for associates hired after year 2019 as a percentage of compensation	3.00%
Employee Benefit 401 K Plan [Member] | CCHL associates [Member]
Defined Benefit Plan Disclosure [Line Items]
Matching contributions	$ 0.4	$ 0.4	$ 0.7
Employee Benefit 401 K Plan [Member] | Maximum [Member] | CCHL associates [Member]
Defined Benefit Plan Disclosure [Line Items]
Matching contributions (in percent)	3.00%
Dividend Reinvestment and Optional Stock Purchase Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Shares reserved for issuance (in shares)	250,000
Shares issued under plan	0	0	0

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EMPLOYEE BENEFIT PLANS (Schedule of Components of Pension Expense, the Funded Status of the Plan, Amounts Recognized in the Consolidated Statements of Financial Condition, and Major Assumptions) (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Change in Projected Benefit Obligation:
Actuarial Loss (Gain)							$ (4,905,000)	$ (4,223,000)	$ (31,339,000)
Components of Net Periodic Benefit Costs:
Net Loss Settlements	$ 0	$ 209,000	$ (291,000)	$ 378,000	$ (291,000)	$ 480,000	(291,000)	2,321,000	3,072,000
Defined benefit pension plan [Member]
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year	108,151,000	172,508,000	108,151,000	172,508,000	108,151,000	172,508,000	108,151,000	172,508,000	212,566,000
Service Cost							3,488,000	6,289,000	6,971,000
Interest Cost							5,831,000	4,665,000	4,885,000
Actuarial Loss (Gain)							6,936,000	(39,962,000)	(14,934,000)
Benefits Paid							(3,843,000)	(2,139,000)	(2,087,000)
Expenses Paid							(276,000)	(416,000)	(259,000)
Settlements							0	(32,794,000)	(34,634,000)
Projected Benefit Obligation at End of Year							120,287,000	108,151,000	172,508,000
Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$ 104,276,000	$ 165,274,000	$ 104,276,000	$ 165,274,000	$ 104,276,000	$ 165,274,000	104,276,000	165,274,000	171,775,000
Actual Return (Loss) on Plan Assets							19,138,000	(25,649,000)	30,479,000
Employer Contributions							6,000,000	0	0
Benefits Paid							(3,843,000)	(2,139,000)	(2,087,000)
Expenses Paid							(276,000)	(416,000)	(259,000)
Settlements							0	(32,794,000)	(34,634,000)
Fair Value of Plan Assets at End of Year							125,295,000	104,276,000	165,274,000
Funded Status of Plan and Accrued Liability Recognized at End of Year:
Other (Assets)							(5,008,000)
Other Liabilities								3,875,000	7,234,000
Accumulated Benefit Obligation at End of Year							102,642,000	91,770,000	149,569,000
Components of Net Periodic Benefit Costs:
Service Cost							3,488,000	6,289,000	6,971,000
Interest Cost							5,831,000	4,665,000	4,885,000
Expected Return on Plan Assets							(6,805,000)	(10,701,000)	(11,147,000)
Amortization of Prior Service Costs							5,000	15,000	15,000
Net Loss Amortization							934,000	1,713,000	6,764,000
Net Loss Settlements							0	2,321,000	3,072,000
Net Periodic Benefit Cost							$ 3,453,000	$ 4,302,000	$ 10,560,000
Weighted-average assumptions used to determine benefit obligations:
Discount Rate (in percent)							5.29%	5.63%	3.11%
Rate of Compensation Increase (in percent)							5.10%	5.10%	4.40%
Measurement Date							Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Weighted-Average Assumptions Used to Determine Benefit Cost:
Discount Rate (in percent)							5.63%	3.11%	2.88%
Expected Return on Plan Assets (in percent)							6.75%	6.75%	6.75%
Rate of Compensation Increase (in percent)							5.10%	4.40%	4.00%
Amortization Amounts from Accumulated Other Comprehensive Loss:
Net Actuarial Loss (Gain)							$ (5,397,000)	$ (3,612,000)	$ (34,265,000)
Prior Service Cost							(5,000)	(15,000)	(15,000)
Net Loss							(934,000)	(4,034,000)	(9,836,000)
Deferred Tax (Benefit) Expense							1,606,000	1,942,000	11,183,000
Other Comprehensive Gain, net of tax							(4,730,000)	(5,719,000)	(32,933,000)
Amounts Recognized in Accumulated Other Comprehensive Loss:
Net Actuarial Losses							1,322,000	7,653,000	15,300,000
Prior Service Cost							0	5,000	20,000
Deferred Tax Benefit (Expense)							(335,000)	(1,941,000)	(3,884,000)
Accumulated Other Comprehensive Loss, net of tax							$ 987,000	$ 5,717,000	$ 11,436,000

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EMPLOYEE BENEFIT PLANS (Schedule of Pension Plan Asset Allocation and the Target Asset Allocation) (Details) - Defined benefit pension plan [Member]	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	100.00%
Percentage of Plan Assets at Year-End (in percent)	100.00%	100.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	68.00%
Percentage of Plan Assets at Year-End (in percent)	70.00%	73.00%
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	27.00%
Percentage of Plan Assets at Year-End (in percent)	18.00%	23.00%
Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation (in percent)	5.00%
Percentage of Plan Assets at Year-End (in percent)	12.00%	4.00%

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EMPLOYEE BENEFIT PLANS (Schedule of Fair Value of Plan Assets by Level of the Valuation Inputs within the Fair Value Hierarchy) (Details) - Defined benefit pension plan [Member] - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	$ 125,295	$ 104,276	$ 165,274	$ 171,775
U.S. Treasury Securities [Member] | Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	16,126	17,264
Mutual Funds [Member] | Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	92,991	81,231
Cash and Cash Equivalents [Member] | Level 1 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	15,717	5,327
Corporate Notes/Bonds [Member] | Level 2 Inputs [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	$ 461	$ 454

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EMPLOYEE BENEFIT PLANS (Schedule of Expected Benefit Payments Related to the Defined Benefit Pension Plan) (Details) - Defined benefit pension plan [Member] $ in Thousands	Dec. 31, 2023 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2024	$ 10,105
2025	11,119
2026	10,496
2027	10,042
2028	8,983
2029 through 2033	45,942
Total	$ 96,687

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EMPLOYEE BENEFIT PLANS (Schedule of Amounts Contributed to the Pension Plan and the Expected Amount to be Contributed) (Details) - Defined benefit pension plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Actual Contributions	$ 6,000	$ 0
Expected contribution for 2024	$ 5,000

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EMPLOYEE BENEFIT PLANS (Schedule of Components of SERP's Periodic Benefit Cost, the Funded Status of the Plan, Amounts Recognized in the Consolidated Statements of Financial Condition, and Major Assumptions) (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Change in Projected Benefit Obligation:
Actuarial Loss (Gain)							$ (4,905,000)	$ (4,223,000)	$ (31,339,000)
Components of Net Periodic Benefit Costs:
Defined benefit plan settlement	$ 0	$ (209,000)	$ 291,000	$ (378,000)	$ 291,000	$ (480,000)	291,000	(2,321,000)	(3,072,000)
Supplemental Executive Retirement Plan ("SERP") [Member]
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year	$ 10,948,000	$ 13,534,000	$ 10,948,000	$ 13,534,000	$ 10,948,000	$ 13,534,000	10,948,000	13,534,000	13,402,000
Service Cost							18,000	31,000	35,000
Interest Cost							501,000	315,000	243,000
Actuarial Loss (Gain)							201,000	(2,932,000)	(146,000)
Net Settlements							(2,464,000)	0	0
Projected Benefit Obligation at End of Year							9,204,000	10,948,000	13,534,000
Funded Status of Plan and Accrued Liability Recognized at End of Year:
Other Liabilities							9,204,000	10,948,000	13,534,000
Accumulated Benefit Obligation at End of Year							8,943,000	10,887,000	12,803,000
Components of Net Periodic Benefit Costs:
Service Cost							18,000	31,000	35,000
Interest Cost							501,000	315,000	243,000
Amortization of Prior Service Cost							151,000	277,000	277,000
Net Loss Amortization							(531,000)	718,000	970,000
Defined benefit plan settlement							291,000	0	0
Net Periodic Benefit Cost							$ (152,000)	$ 1,341,000	$ 1,525,000
Weighted-Average Assumptions Used to Determine Benefit Obligation:
Discount Rate (in percent)							5.11%	5.45%	2.80%
Rate of Compensation Increase (in percent)							5.10%	5.10%	4.40%
Measurement Date							Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Weighted-Average Assumptions Used to Determine Benefit Cost:
Discount Rate (in percent)							5.45%	2.80%	2.38%
Rate of Compensation Increase (in percent)							5.10%	4.40%	4.00%
Amortization Amounts from Accumulated Other Comprehensive Loss:
Net Actuarial Loss (Gain)							$ 201,000	$ (2,932,000)	$ (146,000)
Prior Service (Benefit) Cost							(151,000)	(277,000)	(219,000)
Net Gain (Loss)							531,000	(718,000)	(970,000)
Settlement Gain							291,000	0	0
Deferred Tax (Benefit) Expense							(222,000)	995,000	154,000
Other Comprehensive Gain, net of tax							650,000	(2,932,000)	(1,181,000)
Amounts Recognized in Accumulated Other Comprehensive Loss:
Net Actuarial (Loss) Gain							(753,000)	(1,775,000)	1,875,000
Prior Service Cost							0	151,000	429,000
Deferred Tax Benefit (Expense)							191,000	412,000	(584,000)
Accumulated Other Comprehensive (Loss) Gain, net of tax							$ (562,000)	$ (1,212,000)	$ 1,720,000

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EMPLOYEE BENEFIT PLANS (Schedule of Expected Benefit Payments Related to the SERP) (Details) - Supplemental Executive Retirement Plan ("SERP") [Member] $ in Thousands	Dec. 31, 2023 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2024	$ 8,800
2025	32
2026	38
2027	42
2028	64
2029 through 2033	748
Total	$ 9,724

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EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$ 13,709	$ 6,938	$ 27,883	$ 14,198	$ 40,539	$ 23,803	$ 52,258	$ 33,412	$ 33,396
Denominator:
Denominator for Basic Earnings Per Share Weighted-Average Shares							16,987	16,951	16,863
Effects of Dilutive Securities Stock Compensation Plans							36	34	30
Denominator for Diluted Earnings Per Share Adjusted Weighted-Average Shares and Assumed Conversions							17,023	16,985	16,893
Basic Earnings Per Share (in dollars per shares)							$ 3.08	$ 1.97	$ 1.98
Diluted Earnings Per Share (in dollars per shares)							$ 3.07	$ 1.97	$ 1.98

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REGULATORY MATTERS (Schedule of Company and Bank's Actual Capital Amounts and Ratios) (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Capital City Bank Group [Member]
Actual [Abstract]
Common Equity Tier 1	$ 373,206	$ 335,512
Tier 1 Capital	424,206	386,512
Total Capital	457,339	414,569
Tier 1 leverage	$ 424,206	$ 386,512
Common Equity Tier 1, percent	0.1352	0.1238
Tier 1 Capital, percent	0.1537	0.1427
Total Capital, percent	0.1657	0.1530
Tier 1 Leverage, percent	0.1030	0.0891
Required for Capital Adequacy Purposes [Abstract]
Common Equity Tier 1, Required for Capital	$ 124,192	$ 121,918
Tier I Capital, Required for Capital	165,589	162,557
Total Capital, Required for Capital	220,785	216,743
Tier 1 Leverage, Required for Capital	$ 164,691	$ 173,546
Common Equity Tier 1, Required for Capital, percent	0.0450	0.0450
Tier 1 Capital, Required for Capital, percent	0.0600	0.0600
Total Capital, Required for Capital, percent	0.0800	0.0800
Tier I Leverage, Required for Capital, percent	0.0400	0.0400
Capital City Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Statutory Amount Available for Dividend Payments without Regulatory Approval	$ 44,400
Actual [Abstract]
Common Equity Tier 1	383,211	$ 358,882
Tier 1 Capital	383,211	358,882
Total Capital	416,343	386,067
Tier 1 leverage	$ 383,211	$ 358,882
Common Equity Tier 1, percent	0.1389	0.1325
Tier 1 Capital, percent	0.1389	0.1325
Total Capital, percent	0.1509	0.1425
Tier 1 Leverage, percent	0.0931	0.0827
Required for Capital Adequacy Purposes [Abstract]
Common Equity Tier 1, Required for Capital	$ 124,158	$ 121,913
Tier I Capital, Required for Capital	165,545	162,550
Total Capital, Required for Capital	220,726	216,733
Tier 1 Leverage, Required for Capital	$ 164,680	$ 173,505
Common Equity Tier 1, Required for Capital, percent	0.0450	0.0450
Tier 1 Capital, Required for Capital, percent	0.0600	0.0600
Total Capital, Required for Capital, percent	0.0800	0.0800
Tier I Leverage, Required for Capital, percent	0.0400	0.0400
To Be Well Capitalized Under Prompt Corrective Action Provisions [Abstract]
Common Equity Tier 1, Well-Capitalized	$ 179,340	$ 176,096
Tier 1 Capital, Well-Capitalized	220,726	216,733
Total Capital, Well-Capitalized	275,908	270,917
Tier 1 Leverage, Well-Capitalized	$ 205,850	$ 216,881
Common Equity Tier 1, Well-Capitalized, percent	0.0650	0.0650
Tier 1 Capital, Well-Capitalized, percent	0.0800	0.0800
Total Capital, Well-Capitalized, percent	0.1000	0.1000
Tier 1 Leverage, Well-Capitalized, percent	0.0500	0.0500

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS (Activity in Accumulated Other Comprehensive Loss, Net of Tax) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Activity in accumulated other comprehensive loss, net of tax
Balance, Beginning	$ (37,229)
Other comprehensive (loss) income during the period	15,083	$ (21,015)	$ 27,928
Balance, Ending	(22,146)	(37,229)
Interest Rate Swaps [Member]
Activity in accumulated other comprehensive loss, net of tax
Balance, Beginning	4,625	1,530	428
Other comprehensive (loss) income during the period	(655)	3,095	1,102
Balance, Ending	3,970	4,625	1,530
Securities Available For Sale [Member]
Activity in accumulated other comprehensive loss, net of tax
Balance, Beginning	(37,349)	(4,588)	2,700
Other comprehensive (loss) income during the period	11,658	(32,761)	(7,288)
Balance, Ending	(25,691)	(37,349)	(4,588)
Retirement Plan [member]
Activity in accumulated other comprehensive loss, net of tax
Balance, Beginning	(4,505)	(13,156)	(47,270)
Other comprehensive (loss) income during the period	4,080	8,651	34,114
Balance, Ending	(425)	(4,505)	(13,156)
Accumulated Other Comprehensive (Loss) Income [Member]
Activity in accumulated other comprehensive loss, net of tax
Balance, Beginning	(37,229)	(16,214)	(44,142)
Other comprehensive (loss) income during the period	15,083	(21,015)	27,928
Balance, Ending	$ (22,146)	$ (37,229)	$ (16,214)

XML

RELATED PARTY TRANSACTIONS (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) Item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Lease payments	$ 2,847	$ 1,937	$ 1,609
Management [Member]
Related Party Transaction [Line Items]
Officers and directors indebted aggregate amount	6,300	7,300
Loan taken	1,700	8,500
Loan payment made	2,700	5,000
Deposits from certain directors, executive officers, and their related interests	36,900	$ 66,300
Smith Interest General Partnership L.L.P. [Member]
Related Party Transaction [Line Items]
Lease payments	200
Annual lease payments of approximately	$ 100
Annual lease payments percent increase	5.00%
Annual lease payments, term of increases	10 years
Number of lease option to extend | Item	4
Lease extend term	5 years

XML

OTHER NONINTEREST EXPENSE (Narrative) (Details)	12 Months Ended
	Dec. 31, 2023
Other Noninterest Expense [Abstract]
Expense not disclosed separately of percentage of total interest and non interest expense	1.00%

XML

OTHER NONINTEREST EXPENSE (Schedule of Components of Other Noninterest Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other Noninterest Expense:
Legal Fees							$ 1,721	$ 1,413	$ 1,411
Professional Fees							6,245	5,437	5,633
Telephone							2,729	2,851	2,975
Advertising							3,349	3,208	2,683
Processing Services							6,984	6,534	6,569
Insurance - Other							3,120	2,409	2,096
Pension - Other							76	(3,043)	1,913
Pension - Settlement	$ 0	$ 209	$ (291)	$ 378	$ (291)	$ 480	(291)	2,321	3,072
Other							11,643	14,411	10,754
Total							$ 35,576	$ 35,541	$ 37,106

XML

COMMITMENTS AND CONTINGENCIES (Narrative) (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Loss Contingencies [Line Items]
Loss Contingency Pending Claims Number	0
Banktech Ventures [Member]
Other Commitments [Line Items]
Outstanding commitment	$ 500,000
Contributions	400,000	$ 100,000
Banktech Ventures [Member] | Maximum [Member]
Other Commitments [Line Items]
Outstanding commitment	1,000,000.0
Solar Tax Credit Equity Fund [Member]
Other Commitments [Line Items]
Outstanding commitment	400,000	7,200,000
Contributions	6,200,000	1,000,000.0
Second Solar Tax Equity [Member]
Other Commitments [Line Items]
Outstanding commitment	1,700,000
Contributions	7,000,000.0
Commitments during period	7,000,000.0
Visa U.S.A. network [Member] | Indemnification Obligation [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual, Payments	800,000	900,000	$ 800,000
Loss Contingency Accrual	$ 0	$ 100,000	$ 100,000

XML

COMMITMENTS AND CONTINGENCIES (Schedule of Amounts Associated with the Entities Off-Balance Sheet Obligations) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Fixed	$ 213,699	$ 249,233
Variable	534,745	531,873
Total	748,444	781,106
Commitments to Extend Credit [Member]
Loss Contingencies [Line Items]
Fixed	207,605	243,614
Variable	534,745	531,873
Total	742,350	775,487
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Fixed	6,094	5,619
Variable	0	0
Total	$ 6,094	$ 5,619

XML

COMMITMENTS AND CONTINGENCIES (Allowance for Credit Losses for Off-Balance Sheet Credit Commitments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Beginning Balance	$ 2,989	$ 2,897	$ 1,644
Provision for Credit Losses	202	92	1,253
Ending Balance	$ 3,191	$ 2,989	$ 2,897

XML

FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability notional amount	$ 30,000,000	$ 30,000,000
Issuances	13,200,000	15,400,000
Transfers	11,600,000	28,500,000
Valuation allowance for mortgage servicing rights	0	0
Fair value swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability notional amount	0	100,000
Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, Carrying value	3,300,000	700,000
Impaired loans valuation allowance	$ 100,000	$ 100,000

XML

FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASSETS:
Loans Held for Sale	$ 28,211	$ 26,909
Other Assets	119,648	119,337
LIABILITIES:
Other Liabilities	66,080	73,675
Fair Value, Measurements, Recurring [Member]
ASSETS:
Loans Held for Sale	28,211	26,909
Interest Rate Swap Derivative	5,317	6,195
Fair Value, Measurements, Recurring [Member] | U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	24,679	22,050
Fair Value, Measurements, Recurring [Member] | U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	145,034	186,052
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	39,083	40,329
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	63,303	69,405
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	3,450	10
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	57,552	88,236
Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts ("Hedge Derivative") [Member]
ASSETS:
Other Assets		187
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Loan Commitments ("IRLC") [Member]
ASSETS:
Other Assets	523	819
Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member]
LIABILITIES:
Other Liabilities	209
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member]
ASSETS:
Loans Held for Sale	0	0
Interest Rate Swap Derivative	0	0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	24,679	22,050
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts ("Hedge Derivative") [Member]
ASSETS:
Other Assets		0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Residential Mortgage Loan Commitments ("IRLC") [Member]
ASSETS:
Other Assets	0	0
Level 1 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member]
LIABILITIES:
Other Liabilities	0
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member]
ASSETS:
Loans Held for Sale	28,211	26,909
Interest Rate Swap Derivative	5,317	6,195
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	145,034	186,052
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	39,083	40,329
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	63,303	69,405
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	57,552	88,236
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts ("Hedge Derivative") [Member]
ASSETS:
Other Assets		187
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Residential Mortgage Loan Commitments ("IRLC") [Member]
ASSETS:
Other Assets	0	0
Level 2 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member]
LIABILITIES:
Other Liabilities	209
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member]
ASSETS:
Loans Held for Sale	0	0
Interest Rate Swap Derivative	0	0
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Treasury [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Agency [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	3,450	10
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]
ASSETS:
Assets, Fair Value Disclosure	0	0
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts ("Hedge Derivative") [Member]
ASSETS:
Other Assets		0
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Residential Mortgage Loan Commitments ("IRLC") [Member]
ASSETS:
Other Assets	523	$ 819
Level 3 Inputs [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member]
LIABILITIES:
Other Liabilities	$ 0

XML

FAIR VALUE MEASUREMENTS (Schedule of Financial Instruments with Estimated Fair Values) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosure Item Amounts [Domain] | Level 1 Inputs [Member]
ASSETS:
Investment Securities, Held to Maturity (fair value of $591,751 and $612,701)	$ 441,189	$ 431,733
Other Equity Securities		0
Mortgage Servicing Rights		0
Loans, Net of Allowance for Credit Losses		0
Fair Value Disclosure Item Amounts [Domain] | Level 2 Inputs [Member]
ASSETS:
Investment Securities, Held to Maturity (fair value of $591,751 and $612,701)	150,562	180,968
Other Equity Securities		2,848
Mortgage Servicing Rights		0
Loans, Net of Allowance for Credit Losses		0
Fair Value Disclosure Item Amounts [Domain] | Level 3 Inputs [Member]
ASSETS:
Investment Securities, Held to Maturity (fair value of $591,751 and $612,701)	0	0
Other Equity Securities		0
Mortgage Servicing Rights		4,491
Loans, Net of Allowance for Credit Losses		2,377,229
Investment Securities Available for Sale	337,902	413,294
Investment Securities, Held to Maturity (fair value of $591,751 and $612,701)	625,022	660,744
Equity Securities	3,450	10
Loans Held for Sale	28,211	26,909
Mortgage Servicing Rights	831	2,599	$ 3,774	$ 3,452
LIABILITIES:
Derivative Liabilities	66,080	73,675
Level 1 Inputs [Member]
ASSETS:
Cash	83,118	72,114
Short-Term Investments	228,949	528,536
Other Equity Securities	0
Mortgage Servicing Rights	0
Loans, Net of Allowance for Credit Losses	0	0
LIABILITIES:
Deposits	0	0
Short-Term Borrowings	0	0
Subordinated Notes Payable	0	0
Long-Term Borrowings	0	0
Level 2 Inputs [Member]
ASSETS:
Cash	0	0
Short-Term Investments	0	0
Other Equity Securities	2,848
Mortgage Servicing Rights	0
Loans, Net of Allowance for Credit Losses	0	0
LIABILITIES:
Deposits	3,243,896	3,310,383
Short-Term Borrowings	35,341	56,793
Subordinated Notes Payable	44,323	45,763
Long-Term Borrowings	315	513
Level 3 Inputs [Member]
ASSETS:
Cash	0	0
Short-Term Investments	0	0
Other Equity Securities	0
Mortgage Servicing Rights	1,280
Loans, Net of Allowance for Credit Losses	2,510,529	2,377,229
LIABILITIES:
Deposits	0	0
Short-Term Borrowings	0	0
Subordinated Notes Payable	0	0
Long-Term Borrowings	0	0
Carrying Value [Member]
ASSETS:
Cash	83,118	72,114
Short-Term Investments	228,949	528,536
Investment Securities, Held to Maturity (fair value of $591,751 and $612,701)	625,022	660,774
Other Equity Securities	2,848	2,848
Mortgage Servicing Rights	831	2,599
Loans, Net of Allowance for Credit Losses	2,703,977	2,522,617
LIABILITIES:
Deposits	3,701,822	3,939,317
Short-Term Borrowings	35,341	56,793
Subordinated Notes Payable	52,887	52,887
Long-Term Borrowings	$ 315	$ 513

XML

PARENT COMPANY FINANCIAL INFORMATION (Schedule of Condensed Statements of Financial Condition of the Parent Company) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2020
ASSETS
Cash and Due From Subsidiary Bank	$ 83,118	$ 72,114
Equity Securities	3,450	10
Goodwill and Other Intangibles	92,933	93,093
Other Assets	119,648	119,337
Total Assets	4,304,477	4,519,223
LIABILITIES
Short-Term Borrowings	35,341	56,793
Other Long-Term Borrowings	315	513
Subordinated Notes Payable	52,887	52,887
Other Liabilities	66,080	73,675
Total Liabilities	3,856,445	4,123,185
SHAREOWNERS' EQUITY
Common Stock, $.01 par value; 90,000,000 shares authorized;16,950,222 and 16,986,785 shares issued and outstanding at December 31, 2023 and 2022, respectively	170	170
Additional Paid-In Capital	36,326	37,331
Retained Earnings	426,275	387,009
Accumulated Other Comprehensive Loss, Net of Tax	(22,146)	(37,229)
Total Shareowners' Equity	440,625	387,281	$ 320,837
Total Liabilities and Shareowners' Equity	4,304,477	4,519,223
CCBG [Member]
ASSETS
Cash and Due From Subsidiary Bank	54,004	42,737
Equity Securities	569	199
Investment in Subsidiary Bank	445,441	404,892
Goodwill and Other Intangibles	3,838	3,998
Other Assets	10,758	11,297
Total Assets	514,610	463,123
LIABILITIES
Subordinated Notes Payable	52,887	52,887
Other Liabilities	21,098	22,955
Total Liabilities	73,985	75,842
SHAREOWNERS' EQUITY
Common Stock, $.01 par value; 90,000,000 shares authorized;16,950,222 and 16,986,785 shares issued and outstanding at December 31, 2023 and 2022, respectively	170	170
Additional Paid-In Capital	36,326	37,331
Retained Earnings	426,275	387,009
Accumulated Other Comprehensive Loss, Net of Tax	(22,146)	(37,229)
Total Shareowners' Equity	440,625	387,281
Total Liabilities and Shareowners' Equity	$ 514,610	$ 463,123

XML

PARENT COMPANY FINANCIAL INFORMATION (Schedule of Condensed Statements of Financial Condition of the Parent Company) (Parenthetical)) (Details) - $ / shares	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Financial Statements, Captions [Line Items]
Common stock, par value (in dollar per share)	$ 0.01	$ 0.01
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	16,950,222	16,986,785
Common stock, shares outstanding	16,950,222	16,986,785	16,892,060	16,790,573
CCBG [Member]
Condensed Financial Statements, Captions [Line Items]
Common stock, par value (in dollar per share)	$ 0.01	$ 0.01
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	16,950,222	16,986,785
Common stock, shares outstanding	16,950,222	16,985,785

XML

PARENT COMPANY FINANCIAL INFORMATION (Schedule of Operating Results of the Parent Company) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
OPERATING EXPENSE
Salaries and Associate Benefits							$ 93,787	$ 91,519	$ 101,470
Interest on Subordinated Notes Payable							2,427	1,652	1,228
Professional Fees							6,245	5,437	5,633
Advertising							3,349	3,208	2,683
Legal Fees							1,721	1,413	1,411
Earnings Before Income Taxes and Equity in Undistributed Earnings of Subsidiary Bank							63,861	41,075	49,451
Income Tax Expense							13,040	7,798	9,835
Net Income Attributable to Common Shareowners	$ 13,709	$ 6,938	$ 27,883	$ 14,198	$ 40,539	$ 23,803	52,258	33,412	33,396
CCBG [Member]
OPERATING INCOME
Administrative Fees							6,367	5,396	5,516
Dividends							30,000	23,000	10,000
Other Income							453	253	174
Total Operating Income							36,820	28,649	15,690
OPERATING EXPENSE
Salaries and Associate Benefits							4,257	5,034	3,558
Interest on Subordinated Notes Payable							2,427	1,652	1,233
Professional Fees							859	616	1,113
Advertising							214	232	134
Legal Fees							683	370	589
Other							1,670	2,186	2,087
Total Operating Expense							10,110	10,090	8,714
Earnings Before Income Taxes and Equity in Undistributed Earnings of Subsidiary Bank							26,710	18,559	6,976
Income Tax Expense							(650)	(661)	(717)
Earnings Before Equity in Undistributed Earnings of Subsidiary Bank							27,360	19,220	7,693
Equity in Undistributed Earnings of Subsidiary Bank							24,898	14,192	25,703
Net Income Attributable to Common Shareowners							$ 52,258	$ 33,412	$ 33,396

XML

PARENT COMPANY FINANCIAL INFORMATION (Schedule of Cash Flows for the Parent Company) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income Attributable to Common Shareowners	$ 13,709	$ 6,938	$ 27,883	$ 14,198	$ 40,539	$ 23,803	$ 52,258	$ 33,412	$ 33,396
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Stock Compensation	536	245	764	489	1,110	904	1,237	1,630	843
Amortization of Intangible Assets	40	40	80	80	120	120	160	160	107
Increase in Other Assets	(4,349)	1,897	4,593	3,516	8,207	3,696	(1,029)	(8,636)	10,885
Increase in Other Liabilities	12,471	7,036	3,815	22,040	1,069	12,839	(4,452)	8,837	(7,846)
Net Cash Provided By Operating Activities	20,629	22,200	24,859	72,015	50,192	80,555	54,782	92,692	122,170
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equity Securities							(13,566)	0	0
Net Cash Paid for Acquisitions							0	0	(4,482)
Net Cash Provided by (Used in) Investing Activities	(84,000)	(235,479)	(92,368)	(485,947)	(57,149)	(601,722)	(68,541)	(765,825)	(453,966)
CASH FROM FINANCING ACTIVITIES:
Repayment of Other Long-Term Borrowings	(50)	(78)	(99)	(150)	(149)	(200)	(199)	(249)	(1,332)
Dividends Paid	(3,064)	(2,712)	(6,121)	(5,424)	(9,518)	(8,307)	(12,905)	(11,191)	(10,459)
Issuance of Common Stock Under Compensation Plans	164	190	480	496	562	577	937	1,300	1,028
Payments to Repurchase Common Stock	819		2,022		3,121		3,710	0	0
Net Cash Used In Financing Activities	(149,327)	46,353	(164,333)	73,102	(426,195)	56,178	(274,824)	238,429	438,601
Net Increase (Decrease) in Cash	(212,698)	(166,926)	(231,842)	(340,830)	(433,152)	(464,989)	(288,583)	(434,704)	106,805
Cash and Cash Equivalents at Beginning of Year	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	928,549
Cash and Cash Equivalents at End of Year	387,952	868,428	368,808	694,524	167,498	570,365	312,067	600,650	1,035,354
CCBG [Member]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income Attributable to Common Shareowners							52,258	33,412	33,396
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Equity in Undistributed Earnings of Subsidiary Bank							(24,898)	(14,192)	(25,703)
Stock Compensation							1,468	1,278	843
Amortization of Intangible Assets							160	160	107
Increase in Other Assets							(117)	(336)	(21)
Increase in Other Liabilities							(1,557)	5,847	3,131
Net Cash Provided By Operating Activities							27,314	26,169	11,753
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equity Securities							(369)	(79)	(120)
Net Cash Paid for Acquisitions							0	0	(4,482)
Decrease (Increase) in Investment in Subsidiaries							0	770	(10,770)
Net Cash Provided by (Used in) Investing Activities							(369)	691	(15,372)
CASH FROM FINANCING ACTIVITIES:
Repayment of Other Long-Term Borrowings							0	0	(900)
Dividends Paid							(12,905)	(11,191)	(10,459)
Issuance of Common Stock Under Compensation Plans							937	1,300	1,028
Payments to Repurchase Common Stock							(3,710)	0	0
Net Cash Used In Financing Activities							(15,678)	(9,891)	(10,331)
Net Increase (Decrease) in Cash							11,267	16,969	(13,950)
Cash and Cash Equivalents at Beginning of Year	$ 42,737	$ 25,768	$ 42,737	$ 25,768	$ 42,737	$ 25,768	42,737	25,768	39,718
Cash and Cash Equivalents at End of Year							$ 54,004	$ 42,737	$ 25,768

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RESTATED QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS (Schedule of Restated Quarterly Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income Attributable to Common Shareowners	$ 13,709	$ 6,938	$ 27,883	$ 14,198	$ 40,539	$ 23,803	$ 52,258	$ 33,412	$ 33,396
Adjustments to Reconcile Net Income to Cash From Operating Activities:
Provision for Credit Losses	3,099	32	5,296	1,724	7,689	3,878	9,714	7,494	(1,553)
Depreciation	1,969	1,907	3,927	3,802	5,920	5,689	7,918	7,596	7,607
Amortization of Premiums, Discounts, and Fees, net	1,067	2,610	2,117	5,053	3,216	6,618	4,221	7,772	14,072
Amortization of Intangible Assets	40	40	80	80	120	120	160	160	107
Pension Settlement (Gain) Charges	0	209	(291)	378	(291)	480	(291)	2,321	3,072
Originations of Loans Held for Sale	(75,626)	(162,448)	(203,266)	(268,058)	(308,263)	(343,899)	(406,803)	(390,191)	(1,228,946)
Proceeds From Sales of Loans Held for Sale	73,706	174,153	191,180	307,349	303,731	390,756	404,332	437,907	1,349,124
Mortgage Banking Revenues	(2,871)	(4,055)	(6,234)	(8,912)	(8,072)	(11,807)	(10,400)	(11,909)	(52,425)
Net Additions for Capitalized Mortgage Servicing Rights	(91)	364	(253)	360	(392)	570	419	726	72
Stock Compensation	536	245	764	489	1,110	904	1,237	1,630	843
Net Tax Benefit from Stock Compensation		(19)		(19)		(19)	(48)	(27)	(4)
Deferred Income Taxes	(1,170)	(6,682)	(2,849)	(9,887)	(2,464)	(12,854)	(483)	(3,870)	(4,157)
Net Change in Operating Leases	(3)	(27)	(3)	(72)	(12)	(83)	79	(108)	(165)
Net Gain on Sales and Write-Downs of Other Real Estate Owned	(1,858)	0	(1,900)	(26)	(1,915)	(136)	(2,053)	(422)	(1,662)
Net (Increase) Decrease in Other Assets	(4,349)	1,897	4,593	3,516	8,207	3,696	(1,029)	(8,636)	10,885
Net (Decrease) Increase in Other Liabilities	12,471	7,036	3,815	22,040	1,069	12,839	(4,452)	8,837	(7,846)
Net Cash Provided By Operating Activities	20,629	22,200	24,859	72,015	50,192	80,555	54,782	92,692	122,170
Securities Held to Maturity:
Purchases		(194,448)		(218,548)		(219,865)	(1,483)	(219,865)	(251,525)
Payments, Maturities, and Calls	8,820	14,441	18,992	28,111	28,159	40,096	36,600	55,314	78,544
Securities Available for Sale:
Purchases	(2,017)	(25,139)	(4,634)	(37,044)	(9,399)	(41,880)	(8,379)	(52,238)	(523,961)
Proceeds from the Sale of Securities	0	3,365	0	3,365	30,420	3,365	30,420	3,365	495
Payments, Maturities, and Calls	16,559	24,824	32,490	47,413	53,045	64,301	62,861	81,596	178,425
Purchases of Loans Held for Investment	(923)	(381)	(1,463)	(15,985)	(2,249)	(16,324)	(2,488)	(16,753)	(20,209)
Net Increase in Loans Held for Investment	(127,336)	(96,732)	(164,319)	(359,417)	(194,631)	(520,473)	(226,896)	(720,670)	(10,061)
Proceeds from Sales of Loans	20,084	37,766	26,645	66,877	39,125	88,521	47,314	104,475	92,360
Net Cash Paid for Acquisitions							0	0	(4,482)
Proceeds From Sales of Other Real Estate Owned	2,699	0	3,772	30	3,840	1,683	3,995	2,406	4,502
Purchases of Premises and Equipment, net	(1,886)	(1,013)	(3,851)	(3,322)	(5,459)	(4,013)	(7,046)	(6,322)	(5,193)
Noncontrolling Interest Contributions		1,838		2,573		2,867	0	2,867	7,139
Net Cash Used In Investing Activities	(84,000)	(235,479)	(92,368)	(485,947)	(57,149)	(601,722)	(68,541)	(765,825)	(453,966)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(115,397)	52,645	(150,451)	73,396	(398,872)	46,516	(237,495)	226,455	495,302
Net (Decrease) Increase in Short-Term Borrowings	(30,161)	(3,692)	(6,120)	4,784	(15,097)	17,592	(21,452)	22,114	(45,938)
Repayment of Other Long-Term Borrowings	(50)	(78)	(99)	(150)	(149)	(200)	(199)	(249)	(1,332)
Dividends Paid	(3,064)	(2,712)	(6,121)	(5,424)	(9,518)	(8,307)	(12,905)	(11,191)	(10,459)
Payments to Repurchase Common Stock	(819)		(2,022)		(3,121)		(3,710)	0	0
Issuance of Common Stock Under Compensation Plans	164	190	480	496	562	577	937	1,300	1,028
Net Cash (Used in) Provided By Financing Activities	(149,327)	46,353	(164,333)	73,102	(426,195)	56,178	(274,824)	238,429	438,601
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(212,698)	(166,926)	(231,842)	(340,830)	(433,152)	(464,989)	(288,583)	(434,704)	106,805
Cash and Cash Equivalents at Beginning of Year	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	928,549
Cash and Cash Equivalents at End of Year	387,952	868,428	368,808	694,524	167,498	570,365	312,067	600,650	1,035,354
Supplemental Cash Flow Disclosures:
Interest Paid	3,723	715	8,720	1,617	15,026	3,588	21,775	6,586	3,547
Income Taxes Paid	7,466	20	3,860	3,765	7,395	6,410	9,118	7,466	16,339
Supplemental Noncash Items:
Loans Transferred from Held for Investment to Held-for-Sale, net	16,859	37,973	26,076	67,324	33,625	89,836	35,745	108,798	98,081
Loans and Premises Transferred to Other Real Estate Owned	423	0	1,442	77	1,495	1,543	1,512	2,398	1,717
As Previously Reported [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income Attributable to Common Shareowners	13,709	6,938	27,883	14,198	40,539	23,803	52,258	33,412	33,396
Adjustments to Reconcile Net Income to Cash From Operating Activities:
Provision for Credit Losses	3,099	32	5,296	1,724	7,689	3,878	9,714	7,494	(1,553)
Depreciation	1,969	1,907	3,927	3,802	5,920	5,689	7,918	7,596	7,607
Amortization of Premiums, Discounts, and Fees, net	1,067	2,610	2,117	5,053	3,216	6,618	4,221	7,772	14,072
Amortization of Intangible Assets	40	40	80	80	120	120	160	160	107
Pension Settlement (Gain) Charges		209	(291)	378	(291)	480	(291)	2,321	3,072
Originations of Loans Held for Sale	(62,745)	(177,933)	(164,173)	(316,372)	(246,198)	(399,041)	(306,714)	(437,827)	(1,262,746)
Proceeds From Sales of Loans Held for Sale	64,050	188,264	152,657	352,830	247,166	440,219	315,812	475,359	1,376,678
Mortgage Banking Revenues	(2,871)	(4,055)	(6,234)	(8,912)	(8,072)	(11,807)	(10,400)	(11,909)	(52,425)
Net Additions for Capitalized Mortgage Servicing Rights	(91)	364	(253)	360	(392)	570	419	726	72
Stock Compensation	536	245	764	489	1,110	904	1,237	1,630	843
Net Tax Benefit from Stock Compensation		(19)		(19)		(19)	(48)	(27)	(4)
Deferred Income Taxes	(1,170)	(6,682)	(2,849)	(9,887)	(2,464)	(12,854)	(483)	(3,870)	(4,157)
Net Change in Operating Leases	(3)	(27)	(3)	(72)	(12)	(83)	79	(108)	(165)
Net Gain on Sales and Write-Downs of Other Real Estate Owned	(1,858)		(1,900)	(26)	(1,915)	(136)	(2,053)	(422)	(1,662)
Net (Increase) Decrease in Other Assets	(4,349)	1,897	4,593	3,516	8,207	3,696	(1,029)	(8,636)	10,885
Net (Decrease) Increase in Other Liabilities	12,471	7,036	3,815	22,040	1,069	12,839	(4,452)	8,837	(7,846)
Net Cash Provided By Operating Activities	23,854	20,826	25,429	69,182	55,692	74,876	66,351	82,508	115,924
Securities Held to Maturity:
Purchases		(194,448)		(218,548)		(219,865)	(1,483)	(219,865)	(251,525)
Payments, Maturities, and Calls	8,820	14,441	18,992	28,111	28,159	40,096	36,600	55,314	78,544
Securities Available for Sale:
Purchases	(2,017)	(25,139)	(4,634)	(37,044)	(9,399)	(41,880)	(8,379)	(52,238)	(523,961)
Proceeds from the Sale of Securities		3,365		3,365	30,420	3,365	30,420	3,365	495
Payments, Maturities, and Calls	16,559	24,824	32,490	47,413	53,045	64,301	62,861	81,596	178,425
Purchases of Loans Held for Investment	(923)	(381)	(1,463)	(15,985)	(2,249)	(16,324)	(2,488)	(16,753)	(20,209)
Net Increase in Loans Held for Investment	(110,477)	(57,592)	(138,244)	(289,707)	(161,006)	(426,273)	(191,151)	(606,011)	88,545
Proceeds from Sales of Loans	0	0	0	0	0	0	0	0	0
Net Cash Paid for Acquisitions									(4,482)
Proceeds From Sales of Other Real Estate Owned	2,699		3,772	30	3,840	1,683	3,995	2,406	4,502
Purchases of Premises and Equipment, net	(1,886)	(1,013)	(3,851)	(3,322)	(5,459)	(4,013)	(7,046)	(6,322)	(5,193)
Noncontrolling Interest Contributions		1,838		2,573		2,867		2,867	7,139
Net Cash Used In Investing Activities	(87,225)	(234,105)	(92,938)	(483,114)	(62,649)	(596,043)	(80,110)	(755,641)	(447,720)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(115,397)	52,645	(150,451)	73,396	(398,872)	46,516	(237,495)	226,455	495,302
Net (Decrease) Increase in Short-Term Borrowings	(30,161)	(3,692)	(6,120)	4,784	(15,097)	17,592	(21,452)	22,114	(45,938)
Repayment of Other Long-Term Borrowings	(50)	(78)	(99)	(150)	(149)	(200)	(199)	(249)	(1,332)
Dividends Paid	(3,064)	(2,712)	(6,121)	(5,424)	(9,518)	(8,307)	(12,905)	(11,191)	(10,459)
Payments to Repurchase Common Stock	(819)		(2,022)		(3,121)		(3,710)
Issuance of Common Stock Under Compensation Plans	164	190	480	496	562	577	937	1,300	1,028
Net Cash (Used in) Provided By Financing Activities	(149,327)	46,353	(164,333)	73,102	(426,195)	56,178	(274,824)	238,429	438,601
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(212,698)	(166,926)	(231,842)	(340,830)	(433,152)	(464,989)	(288,583)	(434,704)	106,805
Cash and Cash Equivalents at Beginning of Year	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	600,650	1,035,354	928,549
Cash and Cash Equivalents at End of Year	387,952	868,428	368,808	694,524	167,498	570,365	312,067	600,650	1,035,354
Supplemental Cash Flow Disclosures:
Interest Paid	3,723	715	8,720	1,617	15,026	3,588	21,775	6,586	3,547
Income Taxes Paid	7,466	20	3,860	3,765	7,395	6,410	9,118	7,466	16,339
Supplemental Noncash Items:
Loans Transferred from Held for Investment to Held-for-Sale, net	0	0	0	0	0	0	0	0	0
Loans and Premises Transferred to Other Real Estate Owned	423		1,442	77	1,495	1,543	1,512	2,398	1,717
Restatement Impact [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income Attributable to Common Shareowners	0	0	0	0	0	0	0	0	0
Adjustments to Reconcile Net Income to Cash From Operating Activities:
Provision for Credit Losses	0	0	0	0	0	0	0	0	0
Depreciation	0	0	0	0	0	0	0	0	0
Amortization of Premiums, Discounts, and Fees, net	0	0	0	0	0	0	0	0	0
Amortization of Intangible Assets	0	0	0	0	0	0	0	0	0
Pension Settlement (Gain) Charges		0	0	0	0	0	0	0	0
Originations of Loans Held for Sale	(12,881)	15,485	(39,093)	48,314	(62,065)	55,142	(100,089)	47,636	33,800
Proceeds From Sales of Loans Held for Sale	9,656	(14,111)	38,523	(45,481)	56,565	(49,463)	88,520	(37,452)	(27,554)
Mortgage Banking Revenues	0	0	0	0	0	0	0	0	0
Net Additions for Capitalized Mortgage Servicing Rights	0	0	0	0	0	0	0	0	0
Stock Compensation	0	0	0	0	0	0	0	0	0
Net Tax Benefit from Stock Compensation		0		0		0	0	0	0
Deferred Income Taxes	0	0	0	0	0	0	0	0	0
Net Change in Operating Leases	0	0	0	0	0	0	0	0	0
Net Gain on Sales and Write-Downs of Other Real Estate Owned	0		0	0	0	0	0	0	0
Net (Increase) Decrease in Other Assets	0	0	0	0	0	0	0	0	0
Net (Decrease) Increase in Other Liabilities	0	0	0	0	0	0	0	0	0
Net Cash Provided By Operating Activities	(3,225)	1,374	(570)	2,833	(5,500)	5,679	(11,569)	10,184	6,246
Securities Held to Maturity:
Purchases		0		0		0	0	0	0
Payments, Maturities, and Calls	0	0	0	0	0	0	0	0	0
Securities Available for Sale:
Purchases	0	0	0	0	0	0	0	0	0
Proceeds from the Sale of Securities		0		0	0	0	0	0	0
Payments, Maturities, and Calls	0	0	0	0	0	0	0	0	0
Purchases of Loans Held for Investment	0	0	0	0	0	0	0	0	0
Net Increase in Loans Held for Investment	(16,859)	(39,140)	(26,075)	(69,710)	(33,625)	(94,200)	(35,745)	(114,659)	(98,606)
Proceeds from Sales of Loans	20,084	37,766	26,645	66,877	39,125	88,521	47,314	104,475	92,360
Net Cash Paid for Acquisitions									0
Proceeds From Sales of Other Real Estate Owned	0		0	0	0	0	0	0	0
Purchases of Premises and Equipment, net	0	0	0	0	0	0	0	0	0
Noncontrolling Interest Contributions		0		0		0		0	0
Net Cash Used In Investing Activities	3,225	(1,374)	570	(2,833)	5,500	(5,679)	11,569	(10,184)	(6,246)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	0	0	0	0	0	0	0	0	0
Net (Decrease) Increase in Short-Term Borrowings	0	0	0	0	0	0	0	0	0
Repayment of Other Long-Term Borrowings	0	0	0	0	0	0	0	0	0
Dividends Paid	0	0	0	0	0	0	0	0	0
Payments to Repurchase Common Stock	0		0		0		0
Issuance of Common Stock Under Compensation Plans	0	0	0	0	0	0	0	0	0
Net Cash (Used in) Provided By Financing Activities	0	0	0	0	0	0	0	0	0
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	0	0	0	0	0	0	0	0	0
Cash and Cash Equivalents at Beginning of Year	0	0	0	0	0	0	0	0	0
Cash and Cash Equivalents at End of Year	0	0	0	0	0	0	0	0	0
Supplemental Cash Flow Disclosures:
Interest Paid	0	0	0	0	0	0	0	0	0
Income Taxes Paid	0	0	0	0	0	0	0	0	0
Supplemental Noncash Items:
Loans Transferred from Held for Investment to Held-for-Sale, net	16,859	$ 37,973	26,076	67,324	33,625	89,836	35,745	108,798	98,081
Loans and Premises Transferred to Other Real Estate Owned	$ 0		$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0