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What changed in CAPITAL CITY BANK GROUP INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CAPITAL CITY BANK GROUP INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+546 added−504 removedSource: 10-K (2026-02-27) vs 10-K (2025-03-11)

Top changes in CAPITAL CITY BANK GROUP INC's 2025 10-K

546 paragraphs added · 504 removed · 321 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

68 edited+125 added−113 removed60 unchanged
Biggest changeUnder 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.
Biggest changeOn November 18, 2021, the federal banking agencies issued a new rule effective in 2022 that requires banks to notify their primary federal regulator within 36 hours of a “computer-security incident” that rises to the level of a “notification incident.” In addition, effective in December 2023, the SEC issued a new rule that generally requires SEC registrants to disclose on Form 8-K certain 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.
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.
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. 4 billion in assets.
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. Inclusion.
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.
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.
Future changes in monetary policy and the effect of such changes on our business and earnings in the future cannot be predicted. 22 Website Access to Company’s Reports Our Internet website is www.ccbg.com.
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.
Residential Real Estate Loans We originate 1-4 family, owner-occupied residential real estate loans 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.
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 62 banking offices and 104 ATMs/ITMs in Florida, Georgia, and Alabama.
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 62 banking offices and 108 ATMs/ITMs in Florida, Georgia, and Alabama.
As of December 31, 2024, approximately 48% 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.
As of December 31, 2025, approximately 47% 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.
CCB has three primary subsidiaries, Capital City Trust Company and Capital City Banc Investments, Inc. which are wholly owned, and CCHL which became wholly owned effective January 1, 2025. Operating Segment We have one reportable segment with two principal services: Banking Services and Wealth Management Services.
CCB has three primary subsidiaries, Capital City Trust Company and Capital City Banc Investments, Inc. (or “Capital City Investments”) which are wholly owned, and CCHL which became wholly owned effective January 1, 2025. Operating Segment We have one reportable segment with two principal services: Banking Services and Wealth Management Services.
In 2023 and 2022, Banking Services (CCB) revenue was approximately 93.5% and 90.3% of our total revenue for each respective year. 6 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.
In 2024 and 2023, Banking Services (CCB) revenue was approximately 92.6% and 93.5% of our total revenue for each respective year. 6 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.
Johns 0.7% 0.8% 0.7% Suwannee 6.4% 6.6% 7.0% Taylor 73.7% 75.0% 73.8% Wakulla 8.4% 8.4% 10.0% Walton 0.6% 0.3% - Washington 7.8% 9.2% 11.2% Georgia Bibb 3.1% 2.9% 3.2% Cobb 0.1% 0.1% 0.0% Gwinnett (2) 0.0% 0.0% - Grady 14.0% 13.8% 16.3% Laurens 6.0% 6.7% 7.8% Troup 5.4% 5.6% 6.4% Alabama Chambers 9.0% 8.6% 9.3% (1) Obtained from the FDIC Summary of Deposits Report for the year indicated.
Johns 0.7% 0.7% 0.8% Suwannee 6.0% 6.4% 6.6% Taylor 69.4% 73.7% 75.0% Wakulla 14.7% 8.4% 8.4% Walton 0.7% 0.6% 0.3% Washington 7.0% 7.8% 9.2% Georgia Bibb 3.2% 3.1% 2.9% Cobb 0.1% 0.1% 0.1% Gwinnett (2) 0.1% 0.0% 0.0% Grady 15.0% 14.0% 13.8% Laurens 6.3% 6.0% 6.7% Troup 5.2% 5.4% 5.6% Alabama Chambers 8.2% 9.0% 8.6% (1) Obtained from the FDIC Summary of Deposits Report for the year indicated.
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 $1.234 billion at December 31, 2024, with total assets under administration exceeding $1.244 billion. Capital City Investments We offer our customers retail investment products through LPL Financial.
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 $1.326 billion at December 31, 2025, with total assets under administration exceeding $1.375 billion. Capital City Investments We offer our customers retail investment products through LPL Financial.
Market Share as of June 30, (1) County 2024 2023 2022 Florida Alachua 4.9% 5.1% 4.9% Bay 0.2% 0.3% 0.3% Bradford 34.3% 37.1% 34.9% Citrus 4.3% 4.4% 4.7% Clay 2.2% 2.4% 2.3% Dixie 21.5% 17.5% 19.8% Gadsden 81.8% 81.9% 82.1% Gilchrist 41.6% 42.2% 41.2% Gulf 11.2% 12.4% 14.8% Hernando 5.2% 4.9% 5.0% Jefferson 24.6% 28.3% 24.8% Leon 15.5% 16.9% 15.4% Levy 26.4% 26.4% 25.4% Madison 13.5% 13.5% 14.0% Putnam 28.3% 34.4% 26.4% St.
Market Share as of June 30, (1) County 2025 2024 2023 Florida Alachua 4.8% 4.9% 5.1% Bay 0.4% 0.2% 0.3% Bradford 37.0% 34.3% 37.1% Citrus 3.7% 4.3% 4.4% Clay 2.8% 2.2% 2.4% Dixie 22.6% 21.5% 17.5% Gadsden 82.3% 81.8% 81.9% Gilchrist 41.1% 41.6% 42.2% Gulf 11.2% 11.2% 12.4% Hernando 5.2% 5.2% 4.9% Jefferson 27.2% 24.6% 28.3% Leon 16.8% 15.5% 16.9% Levy 24.3% 26.4% 26.4% Madison 13.3% 13.5% 13.5% Putnam 22.7% 28.3% 34.4% St.
Most of Florida’s major banking concerns have a presence in Leon County, where our main office is located. Our Leon County deposits totaled $1.200 billion, or 32.7% of our consolidated deposits at December 31, 2024. 9 The table below depicts our market share percentage within each county, based on commercial bank deposits within the county.
Most of Florida’s major banking concerns have a presence in Leon County, where our main office is located. Our Leon County deposits totaled $1.195 billion, or 32.6% of our consolidated deposits at December 31, 2025. 9 The table below depicts our market share percentage within each county, based on commercial bank deposits within the county.
The information on our website is not incorporated by reference into this report. 22
The information on our website is not incorporated by reference into this report. 23
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”).
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 DIF.
The average tenure of our associates is approximately 9.4 years, and the average tenure of our management team is 23.9 years. Tenure statistics support these accolades and further demonstrate that associates enjoy working for CCBG. Compensation and Benefits Program .
The average tenure of our associates is approximately 9.8 years, and the average tenure of our management team is 24.3 years. Tenure statistics support these accolades and further demonstrate that associates enjoy working for CCBG. Compensation and Benefits Program .
Dollars in millions Year Ended December 31, Assets Deposits Shareowners’ Equity Revenue (1) Net Income 2024 $4,324.9 $3,672.0 $495.3 $270.6 $52.9 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 (1) Revenue represents interest income plus noninterest income Dividends and management fees received from the Bank are CCBG’s primary source of income.
Dollars in millions Year Ended December 31, Assets Deposits Shareowners’ Equity Revenue (1) Net Income 2025 $4,385.8 $3,662.3 $552.9 $286.7 $61.6 2024 $4,324.9 $3,672.0 $495.3 $270.6 $52.9 2023 $4,304.5 $3,701.8 $440.6 $252.7 $52.3 (1) Revenue represents interest income plus noninterest income Dividends and management fees received from the Bank are CCBG’s primary source of income.
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.
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, FDICIA prohibits insured state-chartered institutions from conducting activities as principal that are not permitted for national banks.
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, 2024. CCBG also maintains an insurance subsidiary, Capital City Strategic Wealth, LLC.
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, 2025. CCBG previously maintained an insurance subsidiary, Capital City Strategic Wealth, LLC, which was sold in August 2025.
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.
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.
Through Capital City Home Loans, LLC (“CCHL”), we have 27 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.
Through Capital City Home Loans, LLC (“CCHL”), we have 28 additional offices in the Southeast for our mortgage banking business. The majority of the revenue, approximately 81%, is derived from our Florida market areas while approximately 17% and 2% of the revenue is derived from our Georgia and other market areas, respectively.
Banking Services are operated at CCB, and Wealth Management Services are operated under three divisions (Capital City Trust Company, Capital City Investments, and Capital City Strategic Wealth, LLC). Revenues from these principal services for the year ended 2024 totaled approximately 92.6% and 7.4% of our total revenue, respectively.
Banking Services are operated at CCB, and Wealth Management Services are operated under two divisions (Capital City Trust Company and Capital City Investments). Revenues from these principal services for the year ended 2025 totaled approximately 92.8% and 7.2% of our total revenue, respectively.
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.
Note 4 – Mortgage Banking Activities in the Notes to Our Consolidated Financial Statements provides additional information on our servicing portfolio. We also maintain a portfolio of residential loans held for investment and will periodically originate new 1-4 family secured adjustable-rate loans for that portfolio.
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 13 consecutive years, a “Best Bank to Work For” by American Bankers for 12 consecutive years and being named by Forbes in 2023 and 2024 as one of “America’s Best-in-State Banks, a selection made from direct consumer feedback and online reviews.
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 14 consecutive years, a “Best Bank to Work For” by American Banker for 13 consecutive years and being named World’s Best Banks, America’s Best Banks (ranked #13) and America’s Best- in-State Banks (Ranked #5 in Florida and Ranked #4 in Georgia) by Forbes in 2025, a selection made from direct consumer feedback and online reviews.
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.
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. 17 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.
Competition We face significant competition 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, financial technology firms, finance companies and other types of financial institutions.
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, financial technology firms, personal and commercial finance companies , peer-to-peer lending businesses and other types of financial institutions.
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.
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. 19 At December 31, 2025, CCB’s ratio of construction, land development and other land loans to total tier 1 risk-based capital was 49%, its ratio of commercial real estate loans to total tier 1 risk-based capital was 119% and, therefore, CCB was under the 100% and 300% thresholds, respectively, set forth in clauses (iii) and (iv) above.
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 Inclusion Officer who make it a priority to ensure our culture is maintained and associates exemplify our values. At December 31, 2024, we had approximately 940 full-time associates and approximately 29 part-time associates.
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 Inclusion Officer who make it a priority to ensure our culture is maintained and associates exemplify our values.
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.
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. The market value of total asset under administration exceeded $1.541 billion at December 31, 2025. 7 Capital City Strategic Wealth, LLC.
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.
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. Regulatory Considerations We must comply with state and federal banking laws and regulations that control virtually all aspects of our operations.
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.
In addition, the Federal Reserve has the power to order a bank holding company or its subsidiaries to terminate any nonbanking activity or terminate its ownership or control of any nonbank subsidiary when it has reasonable cause to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial safety, soundness, or stability of any bank subsidiary of that bank holding company.
These guidelines describe the criteria regulatory agencies will use as indicators to identify institutions potentially exposed to commercial real estate concentration risk.
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.
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.
Integral to our culture and values is a commitment to an equal-opportunity 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, produce more creative solutions, offer better client service and are vital to attracting and retaining talent.
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.
These requirements will affect us because the Bank is chartered under Florida law and changes in control of the Company are indirect changes in control of the Bank.
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.
We expect this trend of state-level activity in those areas to continue and are continually monitoring developments in the states in which our clients are located. See Item 1A. Risk Factors for a further discussion of risks related to cybersecurity and Item 1C.
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.
Recently, several states have adopted regulations requiring certain financial institutions to implement cybersecurity programs and providing detailed requirements with respect to these programs, including data encryption requirements. Many states have also recently implemented or modified their data breach notification and data privacy requirements.
We encourage our associates to volunteer their hours with service organizations and philanthropic groups in the communities we serve. We recorded 9,542 community service hours in 2024, and 10,526, and 9,508 hours in 2023 and 2022, respectively.
We encourage our associates to volunteer their hours with service organizations and philanthropic groups in the communities we serve. We recorded 7,914 community service hours in 2025, and 9,542, and 10,526 hours in 202 4 and 2023, respectively. Additionally, the CCBG Foundation donated approximately $0.3 million in 2025, 2024 and 2023 to various non-profit organizations in the communities we serve.
At December 31, 2024, approximately 68% of our workforce was female, 32% was male, and approximately 21% was ethnic minorities. None of our associates are represented by a labor union or covered by a collective bargaining agreement.
At December 31, 2025, approximately 68% of our workforce was female, 32% 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. All of our associates are hired on the basis of their individual skills, qualifications, merit, and in accordance with applicable law.
We are registered with the Board of Governors of the Federal Reserve System (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.
We are registered as a bank holding company with the Federal Reserve under the Bank Holding Company Act (“BHC Act”) and have elected to be treated as a financial holding company. As such, we are subject to comprehensive supervision and regulation by the Federal Reserve and are subject to its regulatory reporting requirements.
In addition, Florida law and Federal regulation place restrictions on the declaration of dividends from state-chartered banks to their holding companies.
The Federal Reserve may restrict the ability of the Bank to pay dividends if such payments would constitute an unsafe or unsound banking practice. In addition, Florida law and Federal regulation place restrictions on the declaration of dividends from state-chartered banks to their holding companies.
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.
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.
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.
The BHC Act requires that a bank holding company obtain the prior approval of the Federal Reserve before (i) acquiring direct or indirect ownership or control of more than 5% of the voting shares of any additional bank or bank holding company, (ii) taking any action that causes an additional bank or bank holding company to become a subsidiary of the bank holding company, or (iii) merging or consolidating with any other bank holding company.
Insurance sales within this division include life, health, disability, long-term care, and annuity solutions. 7 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.
Revenues were not material to the Company’s ongoing operations or future financial results. 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.
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 2024, the CCBG Foundation made grants totaling $167,000 to Community Reinvestment Act of 1977 (“CRA”) eligible organizations in our market area.
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.
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. 11 Social Matters Community Involvement.
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. We remain committed to providing tools, support and flexibility that enable associates to perform their roles effectively while managing personal commitments. Social Matters Community Involvement.
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.
As a result, we are not deemed to have a concentration in commercial real estate lending under applicable regulatory guidelines. 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.
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 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.
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 Federal Deposit Insurance Corporation (the ”FDIC”) up to the maximum extent permitted by law, and the FDIC has certain supervisory enforcement powers over us.
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.
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. 12 Capital City Bank Group, Inc.
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. Capital City Bank Group, Inc. We are extensively regulated under federal and state law.
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.
Capital City Strategic Wealth, LLC provides 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. This subsidiary was sold in August 2025.
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. 20 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.
Cybersecurity for a further discussion of risk management strategies and governance processes related to cybersecurity. 21 Consumer Laws and Regulations Activities of the Bank are subject to a variety of statutes and regulations designed to protect consumers.
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.
In 2025, the CCBG Foundation made grants totaling $173,000 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.
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. 14 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 OFR.
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 OFR.
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. 21 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.
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.
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 final rule does not apply to any banking organization with less than $5 billion in total consolidated assets and therefore the special assessment did not directly impact the Bank. 18 Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order, or condition imposed by a bank’s federal regulatory agency.
Approximately 55% of the revenue from CCHL is derived from our Georgia market areas while approximately 33% and 12% 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.
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 45 and our consolidated financial statements on page 70.
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.
Safety and Soundness Standards / Risk Management The Federal Deposit Insurance Act requires the federal bank regulatory agencies to prescribe, by regulation or guideline, operational and managerial standards for all insured depository institutions relating to: (i) internal controls; (ii) information systems and audit systems; (iii) loan documentation; (iv) credit underwriting; (v) interest rate risk exposure; and (vi) asset quality.
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.
Bank holding companies are generally restricted to engaging in the business of banking, managing, or controlling banks and certain other activities determined by the Federal Reserve to be closely related to banking.
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.
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. Industry consolidation also intensifies competition in our markets. Mergers among financial institutions have created larger, better-capitalized, and more geographically diverse competitors with expanded digital capabilities and broader product sets.
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 Inclusion Officer and the Inclusion 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.
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. 11 Health and Safety . Our business success is fundamentally connected to our associates’ well-being.
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.
Insurance of Accounts and Other Assessments The Bank’s deposits are insured by the FDIC’s DIF up to the limits under applicable law, which currently are set at $250,000 per depositor, per insured bank, for each account ownership category. The Bank is subject to FDIC assessments for its deposit insurance.
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.
In November 2023, the FDIC approved a final rule to implement a special assessment to recover the loss to the DIF associated with several bank failures that occurred during the first half of 2023.
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.
Under the regulations, if a regulator determines that a bank fails to meet any standards prescribed by the guidelines, the regulator may require the bank to submit an acceptable plan to achieve compliance, consistent with deadlines for the submission and review of such safety and soundness compliance plans.
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. 15 Dividends CCB is subject to legal limitations on the frequency and amount of dividends that can be paid to CCBG.
The primary sources of funds for our payment of dividends to our shareholders are cash on hand and dividends from the Bank and our non-bank subsidiaries. The Bank is subject to legal limitations on the frequency and amount of dividends that can be paid to the Company.
The priorities include corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking and proliferation financing. 19 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.
The priorities include corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking and proliferation financing. Economic Sanctions OFAC is responsible for helping to ensure that U.S. entities do not engage in transactions with certain prohibited parties, as defined by various executive orders and acts of Congress.
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 Change in Bank Control Act and the regulations thereunder, a person or group must give advance notice to the Federal Reserve before acquiring control of any bank holding company, such as the Company, or before acquiring control of any FDIC-insured bank, such as the Bank.
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.
Capital Requirements We and the Bank are required under federal law to maintain certain minimum capital levels based on ratios of capital to total assets and capital to risk-weighted assets.
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.
On October 18, 2022, the FDIC adopted an amended restoration plan to increase the likelihood that the reserve ratio would be restored to at least 1.35% by September 30, 2028. The FDIC's amended restoration plan increased the initial base deposit insurance assessment rate schedules uniformly by 2 bps, beginning with the first quarterly assessment period of 2023.
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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.
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Capital City Home Loans, LLC Capital City Home Loans, LLC, or CCHL, originates, sells and services residential mortgage loans through its retail origination channel. CCHL provides an array of the aforementioned loan products to meet the needs of our consumers within the areas that we operate.
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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 inclusion initiatives for internal promotions and hiring practices. Health and Safety . Our business success is fundamentally connected to our associates’ well-being.
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CCHL is an approved Title II, non -supervised direct endorsement mortgagee with the United States Department of Housing and Urban Development (HUD). In addition, CCHL is an approved issuer with the Government Federal National Mortgage Association (GNMA), as well as an approved seller and servicer with the Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC).
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Additionally, the CCBG Foundation donated approximately $0.3 million in 2024 and 2023 and approximately $0.2 million in 2022 to various non-profit organizations in the communities we serve. Since 2015, we have annually supported the United Way of the Big Bend in analyzing financial information for its annual grant review process.
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Competition We face significant competition in our market areas.
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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 58 offices.
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In addition to traditional competitors, we also face increasing competition from a rapidly expanding group of nontraditional financial service providers. These include established and emerging wealth technology companies (“wealthtechs”), financial technology companies (“fintechs”), technology -enabled lenders, digital-only banks, crowdfunding platforms, and mobile-based payment applications.
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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.
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These firms often leverage advanced technologies, agile product development cycles, and streamlined digital interfaces that allow them to deliver certain financial products and services—such as unsecured consumer loans, small business working-capital loans, digital wallets, and peer-to-peer payments—more quickly or conveniently than traditional banking institutions.
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In 2022 through 2024, we made commitments for a $7 million investment in SOLCAP 2022 -1, LLC, a $7 million investment in SOLCAP 2023-1, LLC, and an $9.1 million investment in SOLCAP 2024-1, LLC.
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Some fintech competitors operate with lower overhead and, in some cases, are subject to fewer regulatory requirements than banks and bank holding companies. This can allow them to offer competitive pricing, faster decision making or funding, and simplified user experiences.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe may seek to acquire other banks, businesses, or branches, which involves various risks, including, among other things, (i) potential exposure to unknown or contingent liabilities of the target company; (ii) exposure to potential asset quality issues of the target company; (iii) potential disruption to our business; (iv) potential diversion of our management’s time and attention; (v) the possible loss of key employees and customers of the target company; (vi) difficulty in estimating the value of the target company; and (vii) potential changes in banking or tax laws or regulations that may affect the target company. 36 Acquisitions by financial institutions, including us, are subject to approval by a variety of regulatory agencies and, therefore, dependent on the regulators' views at the time as to, among other things, our capital levels, quality of management, compliance with laws, and overall condition, in addition to their assessment of a variety of other factors.
Biggest changeWe may seek to strategically dispose of assets or acquire other banks, businesses, or branches, which involves various risks, including, among other things, (i) potential exposure to unknown or contingent liabilities of the target company; (ii) exposure to potential asset quality issues of the target company; (iii) potential disruption to our business; (iv) potential diversion of our management’s time and attention; (v) the possible loss of key employees and customers of the target company; (vi) difficulty in estimating the value of the target company or assets to be sold; and (vii) potential changes in banking or tax laws or regulations that may affect the target company.
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; 26 ● current and future economic conditions; and ● geographic and industry loan concentrations.
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.
The challenges made by tax authorities may result in adjustments to the timing or amount of taxable income or deductions or the allocation of income among tax jurisdictions. If any such challenges are made and are not resolved in our favor, they could have a material adverse effect on our business, financial condition and results of operations. 37
The challenges made by tax authorities may result in adjustments to the timing or amount of taxable income or deductions or the allocation of income among tax jurisdictions. If any such challenges are made and are not resolved in our favor, they could have a material adverse effect on our business, financial condition and results of operations.
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.
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. 27 An inadequate allowance for credit losses would reduce our earnings.
Nonetheless, if we fail to provide the appropriate environment that sensitizes all of our associates to managing risk, our business could be impacted adversely. We are subject to certain operational risks, including, but not limited to risk arising from failure or circumvention of our controls and procedures.
Nonetheless, if we fail to provide the appropriate environment that sensitizes all of our associates to managing risk, our business could be impacted adversely. 32 We are subject to certain operational risks, including, but not limited to risk arising from failure or circumvention of our controls and procedures.
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. 29 We are subject to extensive regulation, supervision and examination by our regulators, including the Florida OFR, the Federal Reserve, and the FDIC.
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 OFR, the Federal Reserve, and the FDIC.
Any failure to maintain or implement required new or improved controls (as we had recently discussed in Item 9A), or difficulties encountered in implementation could cause us to fail to meet our reporting obligations, 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. 34 Strategic Risks Our future success is dependent on our ability to compete effectively in the highly competitive banking and financial services industry.
Any failure to maintain or implement required new or improved controls (as we had recently discussed in Item 9A), or difficulties encountered in implementation could cause us to fail to meet our reporting obligations, 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. 36 Strategic Risks Our future success is dependent on our ability to compete effectively in the highly competitive banking and financial services industry.
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.
If we are unable to meet these regulatory requirements, our financial condition, liquidity and results of operations would be materially and adversely affected. 30 Our activities are also regulated under consumer protection laws applicable to our lending, deposit, and other activities.
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.
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.
Tax Risks Changes in the Federal, State or Local Tax Laws May Negatively Impact Our Financial Performance and We are Subject to Examinations and Challenges by Tax Authorities We are subject to federal and applicable state tax laws and regulations.
Tax Risks Changes in the Federal, State or Local Tax Laws May Negatively Impact Our Financial Performance and We are Subject to Examinations and Challenges by Tax Authorities 39 We are subject to federal and applicable state tax laws and regulations.
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. 27 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.
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. 28 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.
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. 28 Unrealized losses in our securities portfolio could materially and adversely affect our liquidity.
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. 29 Unrealized losses in our securities portfolio could materially and adversely affect our liquidity.
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, 2024, a significant number of our loans secured by real estate are secured by commercial and residential properties located in Florida and Georgia.
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, 2025, a significant number of our loans secured by real estate are secured by commercial and residential properties located in Florida and Georgia.
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 2024 were checking accounts and other liquid deposits, which are generally payable on demand or upon short notice.
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 2025 were checking accounts and other liquid deposits, which are generally payable on demand or upon short notice.
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 2024, our Board of Directors declared four quarterly cash dividends.
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 2025, our Board of Directors declared four quarterly cash dividends.
We may be prohibited from taking capital actions such as paying or increasing dividends or repurchasing securities. 30 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.
We may be prohibited from taking capital actions such as paying or increasing dividends or repurchasing securities. 31 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.
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.
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, or the information systems and devices of our third-party (or fourth-party) service providers and our customers that are beyond our security control systems.
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.
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 cybersecurity-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.
Similarly, significant sales of our common stock, or the expectation of these sales, could cause our stock prices to fall. 24 Securities analysts may not initiate coverage or continue to cover our common stock, and this may have a negative impact on its market price.
Similarly, significant sales of our common stock, or the expectation of these sales, could cause our stock prices to fall. 25 Securities analysts may not initiate coverage or continue to cover our common stock, and this may have a negative impact on its market price.
Individual, economic, political, industry -specific conditions and other factors outside of our control, such as fuel prices, energy costs, real estate values, inflation, taxes or other factors that affect customer income levels, could alter anticipated customer behavior, including borrowing, repayment, investment and deposit practices.
Individual, economic, political, industry -specific conditions and other factors outside of our control, such as fuel prices, energy costs, real estate values, inflation, tariffs and trade wars, taxes or other factors that affect customer income levels, could alter anticipated customer behavior, including borrowing, repayment, investment and deposit practices.
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.
While we maintain cybersecurity insurance coverage, which may apply in the event of certain cybersecurity-related incidents, the amount of coverage may not be adequate depending on the magnitude of the incident. Furthermore, because cybersecurity -related incidents are inherently difficult to predict and can take many forms, some incidents may not be covered under our cyber insurance coverage.
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.
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 personal information of our clients and associates. The secure processing, maintenance, and transmission of this information is critical to our operations.
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 31 ● external events that are wholly or partially beyond our control, such as pandemics, geopolitical events, political unrest, natural disasters or acts of terrorism.
Factors that can impact operations and expose us to risks varying in size, scale and scope include: (1) failures of technological systems or breaches of security measures, including, but not limited to, those resulting from computer viruses or cyber-attacks; (2) unsuccessful or difficult implementation of computer systems upgrades; (3) human errors or omissions, including failures to comply with applicable laws or corporate policies and procedures; (4) theft, fraud or misappropriation of assets, whether arising from the intentional actions of internal personnel or external third parties; (5) breakdowns in processes, breakdowns in internal controls or failures of the systems and facilities that support our operations; (6) deficiencies in services or service delivery; (7) negative developments in relationships with key counterparties, third-party vendors, or associates in our day-to-day operations; and (8) external events that are wholly or partially beyond our control, such as pandemics, geopolitical events, political unrest, natural disasters or acts of terrorism.
At December 31, 2024, approximately 85.3% 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.
At December 31, 2025, approximately 85.7% 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.
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 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 by criminal organizations directed at us.
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, 2024 was approximately 31,390 shares.
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, 2025 was approximately 37,371 shares.
These loans are susceptible to adverse conditions in the real estate market and local economy. At December 31, 2024, vacant land loans comprised approximately 3.7% of our total loan portfolio. ● HELOCs .
These loans are susceptible to adverse conditions in the real estate market and local economy. At December 31, 2025, vacant land loans comprised approximately 3.8% of our total loan portfolio. ● HELOCs .
At December 31, 2024, commercial mortgage loans comprised approximately 29.4% 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, 2025, 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.
The fair value of our investments could decline which would cause a reduction in shareowners’ equity. A portion of our investment securities portfolio (41.5%) at December 31, 2024 has been designated as available-for-sale pursuant to U.S. generally accepted accounting principles relating to accounting for investments.
The fair value of our investments could decline, which would cause a reduction in shareowners’ equity. A portion of our investment securities portfolio (62.9%) at December 31, 2025 has been designated as available-for-sale pursuant to U.S. generally accepted accounting principles relating to accounting for investments.
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.
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, as well as the advancement of artificial intelligence.
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. 23 Our profitability depends significantly on economic conditions in the States of Florida and Georgia.
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.
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. Inflationary pressures and rising prices may affect our results of operations and financial condition.
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.
At December 31, 2024, HELOCs comprised approximately 8.3% of our total loan portfolio. 25 ● 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, 2025, HELOCs comprised approximately 9.5% of our total loan portfolio. 26 ● 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.
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.
We are unable to predict changes in market interest rates, which are affected by many factors beyond our control, including inflation, changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs, recession, unemployment, federal funds target rate, money supply, domestic and international events and changes in the United States and other financial markets.
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.
A cybersecurity-related incident or other significant disruption of our information systems or those of our customers or third-party service providers and 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, 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, sanctions, or penalties (which may not be covered by our insurance policies), and possible financial liability; (iv) require significant management attention and resources to remedy the damages that result; (v) cause increased expenses and lost revenue; or (vi) cause negative publicity, 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.
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.
Smith, Jr. is the Chairman and Chief Executive Officer of CCBG, he has substantial control over all matters on a day-to-day basis, including the nomination and election of directors.
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.
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.
At December 31, 2024, consumer loans comprised approximately 7.6% of our total loan portfolio, with indirect auto loans making up a majority of this portfolio at approximately 87.9% of the total balance.
At December 31, 2025, consumer loans comprised approximately 7.2% of our total loan portfolio, with indirect auto loans making up a majority of this portfolio at approximately 85.9% of the total balance.
At December 31, 2024, construction loans comprised approximately 8.3% of our total loan portfolio. ● Vacant Land Loans .
At December 31, 2025, construction loans comprised approximately 5.8% of our total loan portfolio. ● Vacant Land Loans .
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. Further, these types of threats may be exacerbated by recent developments in artificial intelligence and its increased use to produce sophisticated malware, phishing schemes, and other fraudulent activities.
These types of threats may result from human error, fraud, or criminal activity on the part of external or internal parties, or may result from the failure of technology or information systems. Further, these types of threats may be exacerbated by recent developments in artificial intelligence and their increased use to produce sophisticated malware, phishing schemes, and other fraudulent activities.
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.
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. 38 Potential acquisitions and other strategic transactions by us, or our inability to complete acquisitions or strategic transactions, may have a material adverse effect on our business, financial condition, and results of operations.
Any failure, interruption, or breach in security of these systems could result in significant disruption to our operations. 32 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.
Financial institutions and companies engaged in data processing have increasingly reported compromises 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.
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.
Negative public opinion could result from our actual or alleged conduct and can arise from various sources, including (1) officer, director or associate fraud, misconduct, and unethical behavior; (2) security breaches; (3) litigation or regulatory outcomes; (4) compensation practices; (5) lending practices; (6) branching strategy; (7) the suitability or reasonableness of recommending particular trading or investment strategies, including the reliability of our research and models; (8) prohibiting clients from engaging in certain transactions or actions taken to debank certain clients; (h) associate sales practices; (9) failure to deliver products and services; (10) subpar standards of service and quality expected by our customers, clients, and the community; (11 ) compliance failures; (12) mergers and acquisitions; (13) the inability to manage technology change or maintain effective data management; (14) cyber incidents; (15) internal and external fraud (including check fraud and debit card and credit card fraud); (16) inadequacy of responsiveness to internal controls; (17) unintended disclosure of personal, proprietary or confidential information; (18) failure (or perceived failure) to identify and manage actual and potential conflicts of interest; (19) breach of fiduciary obligations; (20) the handling of health emergencies or pandemics, (21) the activities of our clients, customers, counterparties, and third parties, including vendors; (22) our environmental, social, and governance practices and disclosures, including practices and disclosures related to climate change; (23) our response (or lack of response) to social and sustainability concerns; and (24) actions by the financial services industry generally or by certain members or individuals in the industry.
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, cybersecurity and informational security risk to us, including risks associated with operational errors, coding errors, information system failures, interruptions or breaches, and unauthorized disclosures of sensitive or confidential client or customer information.
These third-party vendors are sources of operational, cybersecurity and informational security risk to us, including risks associated with operational errors, coding errors, information system failures, interruptions or breaches, and unauthorized disclosures of sensitive or confidential client or customer information.
At December 31, 2024, approximately 29.4% and 47.6% of our $2.652 billion loan portfolio was secured by commercial real estate and residential real estate, respectively. As of this same date, approximately 8.3% was secured by property under construction.
At December 31, 2025, approximately 31.5% and 54.2% of our $2.546 billion loan portfolio was secured by commercial real estate and residential real estate, respectively. As of this same date, approximately 5.8% was secured by property under construction.
The emergence, adoption and evolution of new technologies that do not require intermediation, including distributed ledgers such as digital assets and blockchain, as well as advances in robotic process automation, could significantly affect the competition for financial services.
In particular, the activity of financial technology companies has grown significantly over recent years and is expected to continue to grow. The emergence, adoption and evolution of new technologies that do not require intermediation, including distributed ledgers such as digital assets and blockchain, as well as advances in robotic process automation, could significantly affect the competition for financial services.
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.
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.
In addition, we face increased regulatory scrutiny, in the course of routine examinations and otherwise, and new regulations in response to negative developments in the banking industry, which may increase our cost of doing business and reduce our profitability.
Any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations. In addition, we face increased regulatory scrutiny, in the course of routine examinations and otherwise, and new regulations in response to negative developments in the banking industry, which may increase our cost of doing business and reduce our profitability.
Severe weather, natural disasters, global climate change, widespread health emergencies (including pandemics), acts of terrorism and global conflicts may have a negative impact on our business and operations.
Replacing these external vendors could also entail significant delay and expense. 35 Severe weather, natural disasters, global climate change, widespread health emergencies (including pandemics), acts of terrorism and global conflicts may have a negative impact on our business and operations.
Our increased use of cloud and other technologies, such as remote work technologies, and the increased connectivity of third parties and electronic devices to our systems also increases our risk of being subject to a cyber-related incident.
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, and the increased connectivity of third parties and electronic devices to our systems also increases our risk of being subject to a cybersecurity-related incident.
The widespread adoption and rapid evolution of emerging technologies in the financial services industry, including artificial intelligence, analytic capabilities, cloud technologies, self-service digital trading platforms and automated trading markets, internet services, and digital assets, such as central bank digital currencies, cryptocurrencies (including stablecoins and memecoins), tokens, and other cryptoassets that utilize blockchain and 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 to keep pace with such new technologies.
The widespread adoption and rapid evolution of emerging technologies in the financial services industry, including artificial intelligence, analytic capabilities, cloud technologies, self-service digital trading platforms and automated trading markets, internet services, and digital assets, such as central bank digital currencies, cryptocurrencies (including stablecoins and memecoins), tokens, and other cryptoassets that utilize blockchain and 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 to keep pace with such new technologies. 37 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.
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.
Our systems, including those we maintain with our service providers, vendors, or our clients, could be vulnerable to cybersecurity- related incidents, which include compromises of information systems, attempts to access information, including customer and company information, malicious code, computer viruses or other malware, denial of service attacks, phishing attempts, brute force attacks, exploiting software vulnerabilities (including “zero-day attacks”), ransomware, supply chain attacks, and other events 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.
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.
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.
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. Shares of our common stock are not an insured deposit and may lose value.
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. 24 Inflationary pressures and rising prices may affect our results of operations and financial condition.
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 adversely affect our ability to attract and retain customers, clients, investors and associates and expose us to adverse legal and regulatory consequences.
Furthermore, failure to realize the expected revenue increases, cost savings, increases in geographic or product presence, and/or other projected benefits from an acquisition could have a material adverse effect on our business, financial condition and results of operations. Reputational Risks Damage to our reputation could harm our businesses, including our competitive position and business prospects.
Furthermore, failure to realize the expected revenue increases, cost savings, increases in geographic or product presence, and/or other projected benefits from an acquisition, as well as the difficulties associated with potential acquisitions or dispositions discussed herein could have a material adverse effect on our business, financial condition and results of operations.
Smith, Jr., our Chairman, President and Chief Executive Officer beneficially owned 17.3% 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.
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.
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.
If our estimate is inaccurate or if actual construction costs exceed estimates, which could be impacted by factors outside of our control, including tariff, trade, and immigration policies, 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.
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.
Despite our efforts to assess and monitor operational risk, our risk management framework may not be effective in all cases.
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.
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.
Furthermore, our implementation of new products, services, or technology could have unintended negative consequences, including a significant impact on the effectiveness of our system of internal controls.
Furthermore, our implementation of new products, services, or technology could have unintended negative consequences, including 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.
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.
Government authorities, including the bank regulatory agencies, are pursuing aggressive enforcement actions with respect to compliance and other legal matters involving financial activities (including new prohibitions on politicized debanking), which heightens the risks associated with actual and perceived compliance failures.
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. 33 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.
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.
Many of our competitors also have higher lending limits, more expansive branch networks, and offer a wider array of financial products and services. We also compete with other non-bank providers of financial services, such as money market mutual funds, brokerage firms, consumer finance companies, insurance companies, governmental organizations, and non-bank financial technology providers, including digital asset service providers.
We also compete with other non-bank providers of financial services, such as money market mutual funds, brokerage firms, consumer finance companies, insurance companies, governmental organizations, and non-bank financial technology and wealth technology providers, including digital asset service providers. Many of our non-bank competitors are not subject to the same extensive regulations that govern our 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.
Conversely, in a constant or increasing rate environment, we would expect fewer loans to be refinanced and a decline in payoffs.
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 19.5% of the outstanding shares of our common stock at December 31, 2024. William G.
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.
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. Litigation may adversely affect our results. We are subject to litigation in the ordinary course of business.
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. Specifically, our market areas in Florida are susceptible to hurricanes, tropical storms and related flooding and wind damage and other similar weather events.
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, including the ability to offer financial products and services on more favorable terms than we are able to offer.
As a result, these non-bank competitors have advantages over us in providing certain services, including the ability to offer financial products and services on more favorable terms than we are able to offer. Technology and other changes have lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks.
At December 31, 2024, commercial loans comprised approximately 7.1% 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.
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.
In 2024, the Federal Reserve began lowering the federal funds rate and lowered it three times during the year for a cumulative decrease of 1.00%.
In 2024, the Federal Reserve began lowering the federal funds rate and lowered it three times during the year for a cumulative decrease of 1.00%. We are currently operating in an environment in which the Federal Reserve has shifted toward reducing interest rates, although modestly, with cuts implemented in September, October and December 2025.
At December 31, 2024, our allowance for credit losses for loans held for investment was $29.3 million, which represented approximately 1.10% of our total loans held for investment. We had $6.3 million in nonaccruing loans at December 31, 2024. The allowance is based on management’s reasonable estimate and may not prove sufficient to cover future loan losses.
At December 31, 2025, our allowance for credit losses for loans held for investment was $31.0 million, which represented approximately 1.22% of our total loans held for investment. We had $8.6 million in nonaccruing loans at December 31, 2025.
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 continue to be subject to increased supervisory scrutiny.
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. Operational Risks Many types of operational risks can affect our earnings negatively. We regularly assess and monitor operational risk in our businesses.
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. 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.
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. Shares of our common stock are not an insured deposit and may lose value.
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.
Although we try to mitigate these threats through product improvements, use of encryption and authentication technology, and customer and employee education, among other things, cybersecurity- attacks against us, our third-party (or fourth-party) service providers , and our customers are a risk to our business. 33 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.
Litigation challenging actions or regulations by federal or state authorities could, depending on the outcome, significantly affect the regulatory and supervisory framework affecting our operations. Any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations.
Directives issued to enforce such actions may be confidential and thus, in some instances, we are not permitted to publicly disclose these actions. Litigation challenging actions or regulations by federal or state authorities could, depending on the outcome, significantly affect the regulatory and supervisory framework affecting our 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.
Any of these risks could expose us to liability or adverse legal or regulatory consequences and harm our reputation and the public perception of our business or the effectiveness of our security measures. We may not be able to attract and retain skilled people, which may have a negative impact on our business and operations.
Removed
In December 2024, the Federal Reserve released its economic projections suggesting that it will reduce the federal funds rate twice in 2025 for a cumulative decrease of 0.50% for the year, but there is no guarantee that the Federal Reserve will further reduce the federal funds rate in the near-term and could maintain the rate at the current level or even increase it.
Added
However, the inflationary outlook remains uncertain and if the Federal Reserve were to further decrease interest rates, this may constrain our interest rate spread due to our asset sensitivity and may adversely affect our business forecasts.
Removed
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 and 2024.
Added
On the other hand, rapid increases in the target federal funds rate may result in a change in the mix of noninterest and interest-bearing accounts and effect our interest rate spread.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe 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.
Biggest changeThe CISO provides reports to the Board of Directors annually on the status of the information security program and risks, notable threats and incidents, and other developments related to cybersecurity of the information security program .
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. ◾ Incident response program: We have an incident response program and dedicated teams to respond to cybersecurity, physical and administrative incidents.
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. ◾ Incident response program: We have an incident response program and dedicated teams to respond to cybersecurity 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.
When a cybersecurity incident occurs, we have cross-functional teams that are responsible for leading the initial assessment of priority and severity and communicating potentially 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 education and training for associates, preparedness simulations and tabletop exercises, and recovery and resilience tests.
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.” 38 Governance Our CISO is responsible for managing our Corporate Security Department and overseeing our information security program, including cybersecurity risks.
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 Management’s Role Our CISO is responsible for managing our Corporate Security Department and overseeing our information security program, including cybersecurity risks.
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.
Our information security program, including our cyber risk management policies and procedures and our incident response program, are periodically reviewed by the CISO with the goal of addressing changing threats and conditions.
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 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. 40 Notwithstanding our defensive measures and processes, threats posed by cyberattacks are severe.
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”).
On a quarterly basis, and as needed, the CISO reports the status of the information security program, notable threats or incidents, and other developments related to information security and cybersecurity risks to our ROC.
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 cybersecurity risk management program is designed around the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, regulatory guidance, and other industry standards, although we cannot guarantee that we meet all technical specifications, or requirements under NIST.
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.
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 is a critical risk area given the increasing reliance on technology and potential of cyber risk threats.
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.
We also monitor our email gateways for malicious phishing email campaigns and monitor remote connections. ◾ Internal and external risk assessments: We engage in ongoing assessments of our infrastructure, software systems, and network architecture using internal experts and third-party specialists, including to identify material risks from cybersecurity threats.
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 CISO and Information Security Officers (“ISOs”) along with key members of the information security team collaborate with peer banks, industry groups, and policymakers to discuss cybersecurity trends and issues and identify best practices.
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.
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, and are not reasonably likely to materially affect, the Company, including its business strategy, results of operations or financial condition.
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 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.
Removed
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.
Added
Our Chief Information Security Officer (“CISO”) reports to the CCB President who provides oversight of the information security program and its activities, along with our management-level Enterprise Risk Oversight Committee (“ROC”) and our Board of Directors.
Removed
The CISO reports the day-to-day status of the program to the COO who in turn reports to our Bank President.
Added
Despite the Company’s efforts, there can be no assurance that its cybersecurity risk management processes and measures described will be fully implemented, complied with, or effective in protecting its systems and information. The company faces risks from certain cybersecurity threats that, if realized, are reasonably likely to materially affect its business strategy, results of operations or financial condition.
Added
For further discussion of risks from cybersecurity threats, see Item 1A.
Added
The responsibilities of this department include cybersecurity risk assessment, defense operations, incident response, vulnerability assessment, threat intelligence, third-party risk management, information governance risk and compliance and business resilience. The foregoing responsibilities are covered on a day-to-day basis with oversight and guidance provided by our CISO, the ISOs and key members of the information security team.
Added
The department, as a whole, consists of information security professionals with varying degrees of education and experience. Associates within the department are generally subject to professional education and certification requirements.
Added
In particular, our CISO has over 15 years of substantial relevant expertise and formal training in the areas of information security and cybersecurity risk management and also serves on several advisory boards and committees within the financial sector. Our CISO regularly reports on the status of the information security program to the CCB President.
Added
Board Oversight of Cybersecurity The Board of Directors oversee cybersecurity risk and the information security program which includes overseeing management’s actions to identify, assess, mitigate and remediate or prevent material cybersecurity risks.
Added
An appropriate committee of the Board of Directors may also receive from the CISO periodic reports on these activities, as well as the status of any incident response and remediation efforts the Company may undertake.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeOf these locations, we lease the land, buildings, or both at 11 locations and own the land and buildings at the remaining 51. CCHL had 27 loan production offices, 26 of which were leased. Capital City Strategic Wealth, LLC maintained five offices, all of which were leased.
Biggest changeOf these locations, we lease the land, buildings, or both at 18 locations and own the land and buildings at the remaining 44. CCHL had 28 loan production offices, 27 of which were leased.
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, 2024, Capital City Bank had 62 banking offices.
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, 2025, Capital City Bank had 62 banking offices.
Added
Capital City Strategic Wealth, LLC (“CCSW”) maintained five offices, all of which were leased and subsequently sold with the divestiture of CCSW in the third quarter of 2025.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeMine Safety Disclosure Not applicable. 39 PART II
Biggest changeMine Safety Disclosure Not applicable. 41 PART II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosure 37 PART II Item 5. Market for the Registrant’s Common Equity, Related Shareowner Matters, and Issuer Purchases of Equity Securities 39 Item 6. Selected Financial Data 41 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 68 Item 8.
Biggest changeItem 4. Mine Safety Disclosure 40 PART II Item 5. Market for the Registrant’s Common Equity, Related Shareowner Matters, and Issuer Purchases of Equity Securities 41 Item 6. Selected Financial Data 43 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 69 Item 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest change“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. 40 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.
Biggest change“Liquidity and Capital Resources – Dividends” – in Management’s Discussion and Analysis of Financial Condition and Operating Results on page 67 and Note 17 in the Notes to Consolidated Financial Statements.
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 1,027 shareowners of record at January 31, 2025.
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 951 shareowners of record at January 31, 2025.
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.
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 23, Item 7.
Small Cap Banks Index for the past five years. The graph assumes that $100 was invested on December 31, 2019 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.
The graph assumes that $100 was invested on December 31, 2020 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.
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. 2024 2023 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Common stock price: High $ 40.86 $ 36.67 $ 28.58 $ 31.34 $ 32.56 $ 33.44 $ 34.16 $ 36.86 Low 33.00 26.72 25.45 26.59 26.12 28.64 28.03 28.18 Close 36.65 35.29 28.44 27.7 29.43 29.83 30.64 29.31 Cash dividends per share 0.23 0.23 0.21 0.21 0.20 0.20 0.18 0.18 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.
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. 2025 2024 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Common stock price: High $ 45.63 $ 44.69 $ 39.82 $ 38.27 $ 40.86 $ 36.67 $ 28.58 $ 31.34 Low 38.27 38.00 32.38 33.00 33.00 26.72 25.45 26.59 Close 42.57 41.79 39.35 35.96 36.65 35.29 28.44 27.7 Cash dividends per share 0.26 0.26 0.24 0.24 0.23 0.23 0.21 0.21 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.
Removed
Period Ending Index 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Capital City Bank Group, Inc. $ 100.00 $ 82.66 $ 90.84 $ 114.42 $ 106.25 $ 136.06 Nasdaq Composite 100.00 144.92 177.06 119.45 172.77 223.87 SNL $1B-$5B Bank Index 100.00 90.82 126.43 111.47 112.03 132.44 41
Added
Securities Authorized for Issuance Under Equity Compensation Plans See the information included under Part III, Item 12, which is incorporated in response to this item by reference, for information with respect to shares of common stock that are authorized for issuance under the Company's equity compensation plans as of December 31, 2025.
Added
Issuer Purchase of Equity Securities In January 2024, our Board of Directors authorized the Capital City Bank Group, Inc. Share Repurchase Program (“the Program”), effective February 1, 2024, which authorizes the repurchase of up to 750,000 shares of our outstanding common stock over a five-year period.
Added
Repurchases under Program may be made from time to time through open market purchases, privately negotiated transactions or such other manners as will comply with applicable laws and regulations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities.
Added
The Program does not obligate the Company to purchase any particular number of shares and there is no guarantee as to the exact number of shares that will be repurchased by the Company.
Added
We repurchased (i) 73,349 shares under the Program in 2024 at an average price of $28.03 per share and (ii) 9,101 shares in January 2024 at an average price of $29.47 per share under a substantially similar repurchase plan that was authorized in 2019 and expired in 2024. There are 676,561 shares remaining for purchase under the Program.
Added
We did not repurchase any shares under the Program in the year ending December 31, 2025. 42 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.
Added
Period Ending Index 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 Capital City Bank Group, Inc. $ 100.00 $ 110.03 $ 138.43 $ 128.54 $ 164.61 $ 196.09 Nasdaq Composite Index 100.00 122.18 82.43 119.22 154.48 187.14 S&P U.S. SmallCap Banks Index 100.00 139.21 122.74 123.35 145.82 160.37 43

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeSelected Financial Data (Dollars in Thousands, Except Per Share Data) 2024 2023 2022 Interest Income $ 194,657 $ 181,068 $ 131,910 Net Interest Income 158,938 158,988 125,022 Provision for Credit Losses 4,031 9,714 7,494 Noninterest Income 75,976 71,610 75,181 Noninterest Expense (1) 165,315 157,023 151,634 Pre-Tax Loss Attributable to Noncontrolling Interests (2) 1,271 1,437 135 Net Income Attributable to Common Shareowners 52,915 52,258 33,412 Per Common Share: Basic Net Income $ 3.12 $ 3.08 $ 1.97 Diluted Net Income 3.12 3.07 1.97 Cash Dividends Declared 0.88 0.76 0.66 Diluted Book Value 29.11 25.92 22.73 Diluted Tangible Book Value (3) 23.65 20.45 17.27 Performance Ratios: Return on Average Assets 1.25 % 1.22 % 0.77 % Return on Average Equity 11.18 12.40 8.81 Net Interest Margin (FTE) 4.08 4.05 3.14 Noninterest Income as % of Operating Revenues 32.34 31.05 37.55 Efficiency Ratio 70.30 67.99 75.62 Asset Quality: Allowance for Credit Losses ("ACL") $ 29,251 $ 29,941 $ 25,068 ACL to Loans Held for Investment ("HFI") 1.10 % 1.10 % 0.98 % Nonperforming Assets ("NPAs") 6,669 6,243 2,728 NPAs to Total Assets 0.15 0.15 0.06 NPAs to Loans HFI plus OREO 0.25 0.23 0.11 ACL to Non-Performing Loans 464.14 479.70 1091.33 Net Charge-Offs to Average Loans HFI 0.21 0.18 0.18 Capital Ratios: Tier 1 Capital 17.46 % 15.37 % 14.27 % Total Capital 18.64 16.57 15.30 Common Equity Tier 1 Capital 15.54 13.52 12.38 Tangible Common Equity (3) 9.51 8.26 6.65 Leverage 11.05 10.30 8.91 Equity to Assets 11.45 10.24 8.57 Dividend Pay-Out 28.21 24.76 33.50 Averages for the Year: Loans Held for Investment $ 2,706,461 $ 2,656,394 $ 2,189,440 Earning Assets 3,897,580 3,933,800 3,989,248 Total Assets 4,234,603 4,278,686 4,332,302 Deposits 3,597,438 3,669,612 3,763,336 Shareowners’ Equity 473,216 421,482 379,290 Year -End Balances: Loans Held for Investment $ 2,651,550 $ 2,733,918 $ 2,547,685 Earning Assets 3,974,431 3,957,452 4,177,177 Total Assets 4,324,932 4,304,477 4,519,223 Deposits 3,671,977 3,701,822 3,939,317 Shareowners’ Equity 495,317 440,625 387,281 Other Data: Basic Average Shares Outstanding 16,942,788 16,987,167 16,950,810 Diluted Average Shares Outstanding 16,968,623 17,022,922 16,984,740 Shareowners of Record (4) 1,027 1,080 1,124 Banking Locations (4) 63 63 59 Full-Time Equivalent Associates (5) 940 970 992 (1) For 2023 and 2022, includes pension settlement gain of $0.3 million and charge of $2.3 million, respectively.
Biggest changeSelected Financial Data (Dollars in Thousands, Except Per Share Data) 2025 2024 2023 Interest Income $ 204,387 $ 194,657 $ 181,068 Net Interest Income 171,648 158,938 158,988 Provision for Credit Losses 5,264 4,031 9,714 Noninterest Income 82,355 75,976 71,610 Noninterest Expense (1) 167,022 165,315 157,023 Pre-Tax Loss Attributable to Noncontrolling Interests (2) - 1,271 1,437 Net Income Attributable to Common Shareowners 61,557 52,915 52,258 Per Common Share: Basic Net Income $ 3.61 $ 3.12 $ 3.08 Diluted Net Income 3.60 3.12 3.07 Cash Dividends Declared 1.00 0.88 0.76 Diluted Book Value 32.23 29.11 25.92 Diluted Tangible Book Value (3) 27.03 23.65 20.45 Performance Ratios: Return on Average Assets 1.42 % 1.25 % 1.22 % Return on Average Equity 11.51 11.18 12.40 Net Interest Margin (FTE) 4.28 4.08 4.05 Noninterest Income as % of Operating Revenues 32.42 32.34 31.05 Efficiency Ratio 65.71 70.30 67.99 Asset Quality: Allowance for Credit Losses ("ACL") $ 31,001 $ 29,251 $ 29,941 ACL to Loans Held for Investment ("HFI") 1.22 % 1.10 % 1.10 % Nonperforming Assets ("NPAs") 10,531 6,669 6,243 NPAs to Total Assets 0.24 0.15 0.15 NPAs to Loans HFI plus OREO 0.41 0.25 0.23 ACL to Non-Performing Loans 360.69 464.14 479.70 Net Charge-Offs to Average Loans HFI 0.14 0.21 0.18 Capital Ratios: Tier 1 Capital 20.20 % 17.46 % 15.37 % Total Capital 21.45 18.64 16.57 Common Equity Tier 1 Capital 18.56 15.54 13.52 Tangible Common Equity (3) 10.79 9.51 8.26 Leverage 11.77 11.05 10.30 Equity to Assets 12.61 11.45 10.24 Dividend Pay-Out 27.70 28.21 24.76 Averages for the Year: Loans Held for Investment $ 2,622,877 $ 2,706,461 $ 2,656,394 Earning Assets 4,010,875 3,897,580 3,933,800 Total Assets 4,347,577 4,234,603 4,278,686 Deposits 3,651,351 3,597,438 3,669,612 Shareowners’ Equity 534,962 473,216 421,482 Year -End Balances: Loans Held for Investment $ 2,546,118 $ 2,651,550 $ 2,733,918 Earning Assets 4,059,032 3,974,431 3,957,452 Total Assets 4,385,765 4,324,932 4,304,477 Deposits 3,662,312 3,671,977 3,701,822 Shareowners’ Equity 552,851 495,317 440,625 Other Data: Basic Average Shares Outstanding 17,055,328 16,942,788 16,987,167 Diluted Average Shares Outstanding 17,102,269 16,968,623 17,022,922 Shareowners of Record (4) 951 1,027 1,080 Banking Locations (4) 62 63 63 Headcount (5) 927 940 970 (1) For 2025 and 2023, includes pension settlement gains of $1.5 million and $0.3 million, respectively.
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.
We believe these measures are useful to investors because they allow 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.
(5) As of December 31, 2024. 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.
(4) As of January 31st of the following year. (5) As of December 31, 2025. 44 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.
Non-GAAP Reconciliation - Selected Financial Data (Dollars in Thousands, except per share data) 2024 2023 2022 Shareowners' Equity (GAAP) $ 495,317 $ 440,625 $ 387,281 Less: Goodwill and Other Intangibles (GAAP) 92,773 92,933 93,093 Tangible Shareowners' Equity (non-GAAP) A 402,544 347,692 294,188 Total Assets (GAAP) 4,324,932 4,304,477 4,519,223 Less: Goodwill and Other Intangibles (GAAP) 92,773 92,933 93,093 Tangible Assets (non-GAAP) B $ 4,232,159 $ 4,211,544 $ 4,426,130 Tangible Common Equity Ratio (non-GAAP) A/B 9.51% 8.26% 6.65% Actual Diluted Shares Outstanding (GAAP) C 17,018,122 17,000,758 17,039,401 Tangible Book Value per Diluted Share (non-GAAP) A/C 23.65 20.45 17.27 43
Non-GAAP Reconciliation - Selected Financial Data (Dollars in Thousands, except per share data) 2025 2024 2023 Shareowners' Equity (GAAP) $ 552,851 $ 495,317 $ 440,625 Less: Goodwill and Other Intangibles (GAAP) 89,095 92,773 92,933 Tangible Shareowners' Equity (non-GAAP) A 463,756 402,544 347,692 Total Assets (GAAP) 4,385,765 4,324,932 4,304,477 Less: Goodwill and Other Intangibles (GAAP) 89,095 92,773 92,933 Tangible Assets (non-GAAP) B $ 4,296,670 $ 4,232,159 $ 4,211,544 Tangible Common Equity Ratio (non-GAAP) A/B 10.79% 9.51% 8.26% Actual Diluted Shares Outstanding (GAAP) C 17,154,586 17,018,122 17,000,758 Tangible Book Value per Diluted Share (non-GAAP) A/C 27.03 23.65 20.45 45
(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.
(2) In 2023 and 2024, we owned 51% of Capital City Home Loans, LLC, a consolidated entity. We acquired the remaining 49% interest on January 1, 2025. (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 44.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeBelow are Summary Highlights of our 2024 financial performance: Income Statement ◾ Tax-equivalent net interest income totaled $159.2 million for 2024 compared to $159.4 million for 2023 driven by higher yields across our earning assets, partially offset by higher deposit cost which was well controlled at 89 basis points for the year – net interest margin was 4.08% for 2024 compared to 4.05% for 2023 ◾ Credit quality metrics remained strong throughout the year – allowance coverage ratio remained stable at 1.10% - net loan charge-offs were 21 basis points of average loans for 2024 versus 18 basis points for 2023 ◾ Noninterest income increased $4.4 million, or 6.1%, driven by higher mortgage banking revenues and wealth management fees 45 ◾ Noninterest expense increased $8.3 million, or 5.3%, primarily due to higher compensation expense reflective of higher incentive compensation, merit raises, and higher health insurance costs Balance Sheet ◾ Loan balances increased $50.1 million, or 1.9% (average), and decreased $82.4 million, or 3.0% (end of period) ◾ Deposit balances decreased $72.2 million, or 2.0% (average), and decreased $29.8 million, or 0.8% (end of period) ◾ Tangible book value per share increased $3.20, or 15.6%, 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) 2024 2023 2022 Interest Income $ 194,657 $ 181,068 $ 131,910 Taxable Equivalent Adjustments 241 367 325 Total Interest Income (FTE) 194,898 181,435 132,235 Interest Expense 35,719 22,080 6,888 Net Interest Income (FTE) 159,179 159,355 125,347 Provision for Credit Losses 4,031 9,714 7,494 Taxable Equivalent Adjustments 241 367 325 Net Interest Income After Provision for Credit Losses 154,907 149,274 117,528 Noninterest Income 75,976 71,610 75,181 Noninterest Expense 165,315 157,023 151,634 Income Before Income Taxes 65,568 63,861 41,075 Income Tax Expense 13,924 13,040 7,798 Pre-Tax Loss Attributable to Noncontrolling Interests 1,271 1,437 135 Net Income Attributable to Common Shareowners $ 52,915 $ 52,258 $ 33,412 Basic Net Income Per Share $ 3.12 $ 3.08 $ 1.97 Diluted Net Income Per Share $ 3.12 $ 3.07 $ 1.97 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.
Biggest changeNet income attributable to common shareowners included a $0.2 million decrease in the deduction to record the non-controlling interest in the earnings of CCHL. 47 Below are Summary Highlights of our 2025 financial performance: Income Statement ● Tax-equivalent net interest income totaled $171.8 million compared to $159.2 million for 2024 - Net interest margin increased by 20 basis points to 4.28% (increase in earning asset yield of 10 basis points and decrease in cost of funds of 10 basis points) ● Credit quality metrics remained strong throughout the year – allowance coverage ratio increased to 1.22% in 2025 compared to 1.10% in 2024 - net loan charge-offs were 14 basis points of average loans for 2025 compared to 21 basis points for 2024 ● Noninterest income increased by $6.4 million, or 8.4%, due to higher mortgage banking revenues of $2.6 million, wealth management fees of $1.6 million, other income of $1.5 million, and deposit fees of $0.7 million ● Noninterest expense increased $1.7 million, or 1.0%, primarily due to higher compensation expense (primarily performance- based pay and health care cost) partially offset by lower pension expense and higher gains from the sale of banking facilities Balance Sheet ● Loan balances decreased by $83.6 million, or 3.1% (average), and decreased by $105.4 million, or 4.0% (end of period) ● Average deposit balances increased by $53.9 million, or 1.5% driven by strong core deposit growth ● Tangible book value per diluted share (non-GAAP financial measure) increased by $3.38, or 14.3% For more detailed information, refer to the following additional sections of the MD&A “Results of Operations” and “Financial Condition”. 48 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) 2025 2024 2023 Interest Income $ 204,387 $ 194,657 $ 181,068 Taxable Equivalent Adjustments 177 241 367 Total Interest Income (FTE) 204,564 194,898 181,435 Interest Expense 32,739 35,719 22,080 Net Interest Income (FTE) 171,825 159,179 159,355 Provision for Credit Losses 5,264 4,031 9,714 Taxable Equivalent Adjustments 177 241 367 Net Interest Income After Provision for Credit Losses 166,384 154,907 149,274 Noninterest Income 82,355 75,976 71,610 Noninterest Expense 167,022 165,315 157,023 Income Before Income Taxes 81,717 65,568 63,861 Income Tax Expense 20,160 13,924 13,040 Pre-Tax Loss Attributable to Noncontrolling Interests - 1,271 1,437 Net Income Attributable to Common Shareowners $ 61,557 $ 52,915 $ 52,258 Basic Net Income Per Share $ 3.61 $ 3.12 $ 3.08 Diluted Net Income Per Share $ 3.60 $ 3.12 $ 3.07 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.
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. (3) Reflects one extra calendar day in 2024.
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 and securities to a taxable equivalent basis. (3) Reflects one extra calendar day in 2024.
Noninterest Income For 2024, noninterest income totaled $76.0 million, a $4.4 million, or 6.1% , increase over 2023, primarily attributable to a $3.9 million increase in mortgage banking revenues and a $2.8 million increase in wealth management fees, partially offset by a $2.2 million decrease in other income.
For 2024, noninterest income totaled $76.0 million, a $4.4 million, or 6.1% , increase over 2023, primarily attributable to a $3.9 million increase in mortgage banking revenues and a $2.8 million increase in wealth management fees, partially offset by a $2.2 million decrease in other income.
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.
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 income (loss) component of shareowners’ equity.
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.
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 for each of the last three fiscal years.
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.
Our liquidity strategy is guided by policies that are formulated and monitored by our ALCO and senior management, and 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.
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 .
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. 46 Strategic Review Operating Philosophy .
The decrease in 2024 was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights realized in 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.
The decrease in 2024 was attributable to lower miscellaneous income, primarily a $1.4 million gain from the sale of mortgage servicing rights realized in 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.
The unfavorable variance in other associate benefit expense was due to a $0.9 million increase in associate insurance cost due to higher health insurance cost and a $0.6 million increase in stock compensation expense attributable to a higher incentive pay-out.
The unfavorable variance in other associate benefit expense was due to a $0.9 million increase in associate insurance cost due to higher health insurance cost and a $0.6 million increase in stock compensation expense attributable to a higher incentive pay-out. Occupancy .
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 2024 compares with prior years.
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 2025 compares with prior years.
We purchased (i) 73,349 shares under the Program in 2024 at an average price of $28.03 per share and (ii) 9,101 shares in January 2024 at an average price of $29.47 per share under a substantially similar repurchase plan that was authorized in 2019 and expired in 2024. There are 676,561 shares remaining for purchase under the Program.
We repurchased (i) 73,349 shares under the Program in 2024 at an average price of $28.03 per share and (ii) 9,101 shares in January 2024 at an average price of $29.47 per share under a substantially similar repurchase plan that was authorized in 2019 and expired in 2024. There are 676,561 shares remaining for purchase under the Program.
The increase in the net interest margin for 2024 and 2023 reflected a combination of earning assets repricing at higher interest rates and an improved earning asset mix driven by loan growth, partially offset by a higher, but well controlled cost of deposits. The Federal Open Market Committee decreased the Federal Funds Rate during 2024.
The increase in the net interest margin for 2024 reflected a combination of earning assets repricing at higher interest rates and an improved earning asset mix driven by loan growth, partially offset by a higher, but well controlled cost of deposits. The Federal Open Market Committee decreased the Federal Funds Rate during 2025.
This increase in yield reflected a favorable reinvestment rate on securities purchased in 2024. 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, 2024.
This increase in yield reflected a favorable reinvestment rate on securities purchased in 2025. 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, 2025.
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).
In the second quarter of 2020, we entered into a ten-year 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).
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 2024, 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 .
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 2025, 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. 69 Pension Assumptions .
For 2024 and 2023, 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.
For 2025 and 2024, 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.
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.
Table 14 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.
The increase in 2024 was attributable to a $2.1 million increase in retail brokerage fees and a $0.9 million increase in trust fees, that were partially offset by a $0.3 million decrease in insurance commission revenue.
The increase in 2024 was attributable to a $2.1 million increase in retail brokerage fees and a $0.9 million increase in trust fees, which were partially offset by a $0.3 million decrease in insurance commission revenue.
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, 2024, by maturity period.
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, 2025, by maturity period.
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.
Table 14 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.
Specifically, due to the nature of our markets, a significant portion of our HFI loan portfolio has historically been secured with real estate, approximately 85% at December 31, 2024 and 82% at December 31, 2023, with the increase driven by lower loan volume in 2024 for commercial and consumer (indirect auto) loans and a higher volume of 1-4 family residential real estate loans originated in 2023 in comparison to other loan types.
Specifically, due to the nature of our markets, a significant portion of our HFI loan portfolio has historically been secured with real estate, approximately 86% at December 31, 2025 and 85% at December 31, 2024, with the increase driven by lower loan volume in 2025 for commercial and consumer (indirect auto) loans and a higher volume of 1-4 family residential real estate loans originated in 2025 in comparison to other loan types.
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 2024 was 5.29%.
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 2025 was 5.82%.
At December 31, 2024, we had $2.8 million in loans of this type which were not included in either of the nonaccrual or 90 days past due loan categories compared to $3.4 million at December 31, 2023. Management monitors these loans closely and reviews their performance on a regular basis. Loan Concentrations .
At December 31, 2025, we had $4.7 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, 2024. Management monitors these loans closely and reviews their performance on a regular basis. Loan Concentrations .
Provision for Credit Losses For 2024, we recorded a provision for credit loss expense of $4.0 million ($5.0 million expense for loans held for investment (“HFI”) and $1.0 million benefit for unfunded loan commitments) compared to a provision expense of $9.7 million for 2023 ($9.5 million expense for loans HFI and $0.2 million expense for unfunded loan commitments), and a provision expense of $7.5 million for 2022 ($7.4 million expense for loans HFI and $0.1 million expense for unfunded loan commitments).
Provision for Credit Losses For 2025, we recorded a provision for credit loss expense of $5.3 million ($5.3 million expense for loans held for investment (“HFI”)) compared to provision expense of $4.0 million for 2024 ($5.0 million expense for loans HFI and $1.0 million benefit for unfunded loan commitments) and provision expense of $9.7 million for 2023 ($9.5 million expense for loans HFI and $0.2 million expense for unfunded loan commitments).
Under the Program, shares may be repurchased by the Company from time to time in the open market or in privately negotiated transactions, as market conditions warrant; however, the Program does not obligate the Company to repurchase any specified number of shares.
Under the Program, shares may be repurchased by the Company from time to time in the open market or in privately negotiated transactions, as market conditions warrant; however, the Program does not obligate the Company to repurchase any specified number of shares. We did not repurchase any shares in 2025.
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 $6.5 million in 2024 compared to $8.6 million in 2023 and $7.7 million in 2022.
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 $8.0 million in 2025 compared to $6.5 million in 2024 and $8.6 million in 2023.
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, 2024, the net pension asset reflected in accumulated other comprehensive loss was $9.7 million compared to a net pension liability of $0.4 million at December 31, 2023.
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, 2025, the net pension asset reflected in accumulated other comprehensive loss was $9.4 million compared to $9.7 million at December 31, 2024.
As part of our overall strategy, we will originate 1-4 family real estate secured adjustable-rate loans through CCHL, which provides us a larger pool of loan origination opportunities, and in large part drove the aforementioned growth in residential real estate loans.
As part of our overall strategy, we will originate 1-4 family real estate secured adjustable-rate loans and home equity loans through CCHL, which provides us a larger pool of loan origination opportunities, and in large part drove the aforementioned growth in average residential real estate and home equity loans in 2025.
As a percentage of the HFI loan portfolio, loans with fixed interest rates represented 25.3% at December 31, 2024 compared to 29.1% at December 31, 2023. Higher residential real estate adjustable-rate loan balances and lower commercial real estate mortgage adjustable-rate loan balances at December 31, 2024 drove the decrease in the percentage.
As a percentage of the HFI loan portfolio, loans with fixed interest rates represented 24.1% at December 31, 2025 compared to 25.3% at December 31, 2024. Higher residential real estate adjustable-rate loan balances and lower commercial real estate mortgage adjustable-rate loan balances at December 31, 2025 drove the decrease in the percentage.
The assumed rate of annual compensation increases of 4.75% for 2024 was based on an experience study performed for the plan in 2022. It is anticipated that this compensation increase assumption may change based on updates to the actual plan participants remaining in the plan at the end of each plan year.
The assumed rate of annual compensation increases of 4.67% for 2025 was based on an experience study performed for the plan in 2022. It is anticipated that this compensation increase assumption may change based on updates to the actual plan participants remaining in the plan at the end of each plan year.
If interest on our loans classified as nonaccrual during 2024 had been recognized on a fully accruing basis, we would have recorded an additional $0.3 million of interest income for the year ended December 31, 2024. Other Real Estate Owned .
If interest on our loans classified as nonaccrual during 2025 had been recognized on a fully accruing basis, we would have recorded an additional $0.4 million of interest income for the year ended December 31, 2025. Other Real Estate Owned .
Table 11 further segments the allocation of allowance for credit losses at December 31 for each of the last three fiscal years.
Table 12 further segments the allocation of allowance for credit losses at December 31 for each of the last three fiscal years.
Based on the balances at the December 31, 2024 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 $3.1 million (after-tax).
Based on the balances at the December 31, 2025 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).
As a result in 2024, we continued to see a shift in mix out of noninterest bearing accounts into interest bearing accounts, primarily money market accounts and certificates of deposit.
As a result in 2025, we continued to see a shift in mix out of noninterest bearing accounts into interest bearing accounts, primarily NOW, money market, and certificates of deposit accounts.
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 . Our five-year strategic plan “2025 In Focus” guides us in the areas of client experience, channel optimization, market expansion, and culture.
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. Strategic Initiatives . Our strategic plan guides us in the areas of client experience, channel optimization, market expansion, and culture.
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.
Net income attributable to common shareowners included a $1.3 million decrease in the deduction to record the non-controlling interest in the earnings of CCHL.
At December 31, 2024, we maintained one loan for $0.3 million that we 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.
At December 31, 2025, we maintained four loans for $3.8 million that we 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.
At December 31, 2024, municipal securities (taxable and non-taxable) comprised 4.0% of the portfolio. 60 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”).
At December 31, 2025, municipal securities (taxable and non-taxable) comprised 3% of the portfolio. 61 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”).
The estimated impact to 2024 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 5.82% discount rate in 2025.
The estimated impact to 2025 pension expense of a 25 basis point increase or decrease in the discount rate would have been an approximate $0.5 million decrease or increase, respectively. We anticipate using a 5.67% discount rate in 2026.
The Federal Funds Rate is currently in a target range of 4.25% to 4.50%, with the Effective Federal Funds Rate at 4.33% at December 31, 2024, and 5.33% at December 31, 2023. Management actively manages its balance sheet mix and volume and will make loan and deposit product pricing changes to help mitigate interest rate risk.
The Federal Funds Rate is currently in a target range of 3.50% to 3.75%, with the Effective Federal Funds Rate at 3.64% at December 31, 2025, and 4.33% at December 31, 2024. Management actively manages its balance sheet mix and volume and will make loan and deposit product pricing changes to help mitigate interest rate risk.
Interest income includes net loan cost of $0.7 million for 2024, and net loan fees of $0.05 million for 2023 and $0.5 million for 2022. (2) Interest income includes the effects of taxable equivalent adjustments using a 21% tax rate.
Interest income includes net loan cost of $1.4 million for 2025 and $0.7 million for 2024 and net loan fees of $0.05 million for 2023. (2) Interest income includes the effects of taxable equivalent adjustments using a 21% tax rate.
OREO totaled $0.4 million at December 31, 2024 versus $1,000 at December 31, 2023. During 2024, we added properties totaling $1.0 million and sold properties totaling $0.6 million. For 2023, we added properties totaling $1.5 million and sold properties totaling $1.9 million. Modifications to Borrowers Experiencing Financial Difficulty .
OREO totaled $1.9 million at December 31, 2025, versus $0.4 million at December 31, 2024. During 2025, we added properties totaling $4.4 million and sold properties totaling $2.9 million. For 2024, we added properties totaling $1.0 million and sold properties totaling $0.6 million. Modifications to Borrowers Experiencing Financial Difficulty .
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 For 2024, average loans HFI increased $50.1 million, or 1.9%, compared to an increase of $467.0 million, or 21.3%, in 2023.
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 For 2025, average loans HFI decreased $83.6 million or 3.1% compared to an increase of $50.1 million, or 1.9% in 2024.
At December 31, 2024, there were 856 positions (combined AFS and HTM) with pre-tax unrealized losses totaling $48.4 million. The Government National Mortgage Association 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.
At December 31, 2025, there were 736 positions (combined AFS and HTM) with pre-tax unrealized losses totaling $23.7 million. The Government National Mortgage Association 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.
Furthermore, in the counties in which we operate, we maintain an 8.3% deposit market share in the Florida counties and 5.2% 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 .
Furthermore, in the counties in which we operate, we maintain an 8.0% deposit market share in the Florida counties and 5.0% 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.
Mortgage banking revenues totaled $14.3 million in 2024 compared to $10.4 million in 2023 and $11.9 million in 2022. The increase in 2024 was attributable to a higher gain on sale margin which reflected a higher percentage of secondary market/mandatory delivery loan sales.
Mortgage banking revenues totaled $17.0 million in 2025 compared to $14.3 million in 2024 and $10.4 million in 2023. The increase in both 2025 and 2024 was attributable to a higher gain on sale margin which reflected a higher percentage of secondary market/mandatory delivery loan sales.
Although the overnight funds rate was lowered in the second half of 2024 by 100 basis points to a target range of 4.25%-4.50%, the overall rate environment remains higher than early 2022 when the overnight funds rate was 0.00%-0.25%.
Although the overnight funds rate was lowered in the second half of 2025 by 75 basis points to a target range of 3.50%-3.75%, the overall rate environment remains higher than early 2022 when the overnight funds rate was 0.00%-0.25%.
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, 2024. For 2024, noninterest bearing deposits represented 37.2% of total average deposits. This compares to 41.1% in 2023 and 44.9% in 2022.
Table 15 reflects the shift in our deposit mix over the last year and Table 16 provides a maturity distribution of time deposits in denominations of greater than $250,000 at December 31, 2025. For 2025, noninterest bearing deposits represented 36.1% of total average deposits. This compares to 37.2% in 2024 and 41.1% in 2023.
Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At December 31, 2024, the weighted-average maturity and duration of our portfolio were 2.54 years and 2.19, respectively, and the AFS portfolio had a net unrealized tax-effected loss of $19.2 million.
Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At December 31, 2025, the weighted-average maturity and duration of our portfolio were 2.57 years and 2.12, respectively, and the AFS portfolio had a net unrealized tax-effected loss of $9.5 million.
For 2024, we realized net loan charge-offs of $5.7 million, or 0.21%, of average HFI loans, compared to net loan charge -offs of $4.7 million, or 0.18%, for 2023, and net loan recoveries of $3.9 million, or 0.18%, for 2022.
For 2025, we realized net loan charge-offs of $3.6 million, or 0.14%, of average HFI loans, compared to net loan charge -offs of $5.7 million, or 0.21%, for 2024, and net loan charge-offs of $4.7 million, or 0.18%, for 2023.
At December 31, 2024, our common stock had a book value of $29.11 per diluted share compared to $25.92 at December 31, 2023. Book value is impacted by the net unrealized gains and losses on investment securities. At December 31, 2024, the net unrealized loss was $20.2 million compared to an unrealized loss of $25.7 million at December 31, 2023.
At December 31, 2025, our common stock had a book value of $32.23 per diluted share compared to $29.11 at December 31, 2024. Book value is impacted by the net unrealized gains and losses on investment securities. At December 31, 2025, the net unrealized loss was $9.5 million compared to an unrealized loss of $20.2 million at December 31, 2024.
Compensation . Compensation expense totaled $100.7 million in 2024 compared to $93.8 million in 2023, and $91.5 million in 2022. For 2024, the $6.9 million, or 7.4%, net increase reflected a $5.3 million increase in salary expense and a $1.6 million increase in associate benefit expense.
Compensation . Compensation expense totaled $107.2 million in 2025 compared to $100.7 million in 2024, and $93.8 million in 2023. For 2025, the $6.5 million, or 6.4%, net increase reflected a $4.1 million increase in salary expense and a $2.4 million increase in associate benefit expense.
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.
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.
Past due loans at December 31, 2024 totaled $4.3 million compared to $6.9 million at December 31, 2023. Indirect auto loans represented a large portion of the past due balances representing 56% and 76%, respectively, of the total dollars past due at December 31, 2024 and December 31, 2023, respectively. Potential Problem Loans .
Past due loans at December 31, 2025 totaled $7.0 million compared to $4.3 million at December 31, 2024. Indirect auto loans represented a large portion of the past due balances representing 26% and 56%, respectively, of the total dollars past due at December 31, 2025 and December 31, 2024, respectively. Potential Problem Loans .
The owner occupied category was approximately 62% of total real estate loans at December 31, 2024 and 60% of total real estate loans at December 31, 2023. Further, investor real estate totaled 38% and 41% of total real estate loans at December 31, 2024 and December 31, 2023, respectively.
The owner occupied category was approximately 65% of total real estate loans at December 31, 2025 and 62% of total real estate loans at December 31, 2024. Further, investor real estate totaled 35% and 38% of total real estate loans at December 31, 2025 and December 31, 2024, respectively.
At December 31, 2024, the allowance for credit losses represented 1.10% of HFI loans and provided coverage of 464% of nonperforming loans compared to 1.10% and 480%, respectively, at December 31, 2023 and 0.98% and 1,091%, respectively, at December 31, 2022.
At December 31, 2025, the allowance for credit losses represented 1.22% of HFI loans and provided coverage of 361% of nonperforming loans compared to 1.10% and 464%, respectively, at December 31, 2024 and 1.10% and 480%, respectively, at December 31, 2023.
Table 11 ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES 2024 2023 2022 (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 $ 1,514 7.1 % $ 1,482 8.2 % $ 1,506 9.7 % Real Estate: Construction 2,384 8.3 2,502 7.2 2,654 9.2 Commercial 5,867 29.4 5,782 30.2 4,815 30.7 Residential 14,568 39.3 15,056 36.7 10,741 29.4 Home Equity 1,952 8.3 1,818 7.7 1,864 8.2 Consumer 2,966 7.6 3,301 10.0 3,488 12.8 Total $ 29,251 100 % $ 29,941 100 % $ 25,068 100 % Investment Securities Our average investment portfolio balance was $924 million in 2024, $1.019 billion in 2023, and $1.102 billion in 2022.
Table 12 ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES 2025 2024 2023 (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 $ 1,751 7.1 % $ 1,514 7.1 % $ 1,482 8.2 % Real Estate: Construction 1,681 5.8 2,384 8.3 2,502 7.2 Commercial 6,859 30.2 5,867 29.4 5,782 30.2 Residential 15,317 40.2 14,568 39.3 15,056 36.7 Home Equity 2,368 9.5 1,952 8.3 1,818 7.7 Consumer 3,025 7.2 2,966 7.6 3,301 10.0 Total $ 31,001 100 % $ 29,251 100 % $ 29,941 100 % Investment Securities Our average investment portfolio balance was $998 million in 2025, $924 million in 2024, and $1.019 billion in 2023.
The estimated impact to 2024 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 2025.
The weighted-average expected long-term rate of return on plan assets utilized for 2025 was 6.75%. The estimated impact to 2024 pension expense of a 25 basis point increase or decrease in the rate of return would have been an approximate $0.2 million decrease or increase, respectively. We anticipate using a rate of return on plan assets of 6.50% for 2026.
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.
See Note 21 in the Notes to Consolidated Financial Statements. 68 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.
Nonaccrual loans totaled $6.3 million at December 31, 2024, a $0.1 million increase over December 31, 2023. 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.
Nonaccrual loans totaled $8.6 million at December 31, 2025, a $2.3 million increase over December 31, 2024 with the increase primarily attributable to two home equity loans totaling $1.8 million. 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.
For 2024, shareowners’ equity was positively impacted by net income attributable to common shareowners of $52.9 million, a net $15.7 million decrease in the accumulated other comprehensive loss, the issuance of stock of $3.1 million, and stock compensation accretion of $1.9 million.
For 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $61.6 million, a net $9.1 million decrease in the accumulated other comprehensive loss, the issuance of common stock of $3.5 million, and stock compensation accretion of $2.4 million.
Given that our average nonmaturity deposit rate is less than 1.00%, a shock down 300 bps or down 400 bps scenario is more impactful to asset yields than deposit rates.
Given that our average nonmaturity deposit rate is less than 1.00%, this down 200 bps scenario is more impactful to asset yields than deposit rates.
The $13.6 million, or 61.5% increase in 2024 was primarily attributable to increased deposit interest expense, including a $6.3 million increase attributable to money market accounts, a $4.5 million increase attributable to NOW accounts, and a $3.7 million increase attributable to certificates of deposit, all reflective of a shift in balances from noninterest bearing to interest bearing products driven by the higher interest rate environment and clients seeking higher yield deposit products.
The $13.6 million increase in 2024 compared to 2023 was primarily attributable to increased deposit interest expense, including a $6.3 million increase attributable to money market accounts, a $4.5 million increase attributable to NOW accounts, and a $3.7 million increase attributable to certificates of deposit, all reflective of a shift in balances from noninterest bearing to interest bearing products driven by the higher interest rate environment and clients seeking higher yield deposit products. 49 Our cost of interest bearing deposits was 127 basis points for 2025, 142 basis points for 2024, and 81 basis points for 2023.
Consumer (indirect auto) net loan charge-offs represented 62%, 76%, and 43% of total net loan charge-offs for the same respective years. Further, indirect auto net loan charge-offs represented approximately 1.68% of average indirect auto loans in 2024, 1.31% in 2023, and 0.53% in 2022 . Beginning in 2022 we began reducing our exposure to this loan segment.
Consumer (indirect auto) net loan charge-offs represented 66%, 62%, and 76% of total net loan charge-offs for the same respective years. Further, indirect auto net loan charge-offs represented approximately 1.38% of average indirect auto loans in 2025, 1.68% in 2024, and 1.31% in 2023. Since 2022, we have reduced our exposure to this loan segment.
Government Treasury 368,005 37.8 457,681 47.4 457,374 42.6 Mortgage-Backed Securities 199,150 20.5 167,341 17.3 203,370 18.9 Total 567,155 58.3 625,022 64.7 660,744 61.5 Other Equity Securities 2,399 0.2 3,450 0.2 10 - Total Investment Securities $ 972,899 100 % $ 966,374 100 % $ 1,074,048 100 % 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.
Government Treasury 129,782 12.7 368,005 37.8 457,681 47.4 Mortgage-Backed Securities 247,664 24.2 199,150 20.5 167,341 17.3 Total 377,446 36.9 567,155 58.3 625,022 64.7 Other Equity Securities 2,069 0.2 2,399 0.2 3,450 0.2 Total Investment Securities $ 1,023,437 100 % $ 972,899 100 % $ 966,374 100 % 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.
For 2024, interest expense totaled $35.7 million compared to $22.1 million for 2023 and $6.9 million for 2022.
For 2025, interest expense totaled $32.7 million compared to $35.7 million for 2024 and $22.1 million for 2023.
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.
Our leverage ratio was 11.77% and 11.05%, respectively, on these dates. For a detailed discussion of our regulatory capital requirements, refer to the “Regulatory Considerations – Capital Regulations” section on page 14. See Note 17 in the Notes to Consolidated Financial Statements for additional information as to our capital adequacy.
Share Repurchase Program (“the Program”), effective February 1, 2024, which authorizes the repurchase of up to 750,000 shares of our outstanding common stock over a five-year period.
In January 2024, our Board of Directors authorized the Capital City Bank Group, Inc. Share Repurchase Program (“the Program”), effective February 1, 2024, which authorizes the repurchase of up to 750,000 shares of our outstanding common stock over a five-year period.
Table 4 NONINTEREST INCOME (Dollars in Thousands) 2024 2023 2022 Deposit Fees $ 21,346 $ 21,325 $ 22,121 Bank Card Fees 14,707 14,918 15,401 Wealth Management Fees 19,113 16,337 18,059 Mortgage Banking Revenues 14,343 10,400 11,909 Other 6,467 8,630 7,691 Total Noninterest Income $ 75,976 $ 71,610 $ 75,181 Significant components of noninterest income are discussed in more detail below.
Table 4 NONINTEREST INCOME (Dollars in Thousands) 2025 2024 2023 Deposit Fees $ 22,069 $ 21,346 $ 21,325 Bank Card Fees 14,705 14,707 14,918 Wealth Management Fees 20,667 19,113 16,337 Mortgage Banking Revenues 16,959 14,343 10,400 Other 7,955 6,467 8,630 Total Noninterest Income $ 82,355 $ 75,976 $ 71,610 Significant components of noninterest income are discussed in more detail below.
See section titled “Financial Condition - Market Risk and Interest Rate Sensitivity” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information regarding this risk. 48 Table 2 AVERAGE BALANCES AND INTEREST RATES 2024 2023 2022 (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 $ 27,306 $ 2,776 6.72 % $ 55,510 $ 3,232 5.82 % $ 48,502 $ 2,175 4.49 % Loans Held for Investment (1)(2) 2,706,461 162,385 6.03 2,656,394 149,366 5.62 2,189,440 104,578 4.78 Investment Securities Taxable Investment Securities 923,253 17,073 1.85 1,016,550 18,652 1.83 1,098,876 15,917 1.45 Tax-Exempt Investment Securities (2) 848 37 4.34 2,199 59 2.68 2,668 54 2.03 Total Investment Securities 924,101 17,110 1.85 1,018,749 18,711 1.83 1,101,544 15,971 1.45 Fed Funds Sold & Int Bearing Dep 239,712 12,627 5.27 203,147 10,126 4.98 649,762 9,511 1.46 Total Earning Assets 3,897,580 194,898 5.00 % 3,933,800 181,435 4.61 % 3,989,248 132,235 3.32 % Cash & Due From Banks 73,881 75,786 76,929 Allowance for Credit Losses (29,902) (28,190) (21,688) Other Assets 293,044 297,290 287,813 TOTAL ASSETS $ 4,234,603 $ 4,278,686 $ 4,332,302 LIABILITIES Noninterest Bearing Deposits $ 1,336,601 $ 1,507,657 $ 1,691,132 NOW Accounts 1,183,962 16,835 1.42 % 1,172,861 12,375 1.06 % 1,065,838 2,799 0.26 % Money Market Accounts 400,664 9,957 2.49 299,581 3,670 1.22 283,407 203 0.07 Savings Accounts 518,869 723 0.14 592,033 598 0.10 628,313 309 0.05 Time Deposits 157,342 4,647 2.95 97,480 939 0.96 94,646 133 0.14 Total Interest Bearing Deposits 2,260,837 32,162 1.42 % 2,161,955 17,582 0.81 % 2,072,204 3,444 0.17 % Total Deposits 3,597,438 32,162 0.89 3,669,612 17,582 0.48 3,763,336 3,444 0.09 Repurchase Agreements 26,970 838 3.11 19,917 513 2.57 8,095 14 0.17 Short-Term Borrowings 4,882 242 4.94 24,146 1,538 6.37 32,388 1,747 5.40 Subordinated Notes Payable 52,887 2,449 4.56 52,887 2,427 4.53 52,887 1,652 3.08 Other Long-Term Borrowings 534 28 5.31 408 20 4.77 665 31 4.62 Total Interest Bearing Liabilities 2,346,110 35,719 1.52 % 2,259,313 22,080 0.98 % 2,166,239 6,888 0.32 % Other Liabilities 71,964 81,842 85,684 TOTAL LIABILITIES 3,754,675 3,848,812 3,943,055 Temporary Equity 6,712 8,392 9,957 TOTAL SHAREOWNERS’ EQUITY 473,216 421,482 379,290 TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREOWNERS’ EQUITY $ 4,234,603 $ 4,278,686 $ 4,332,302 Interest Rate Spread 3.47 % 3.63 % 3.00 % Net Interest Income $ 159,179 $ 159,355 $ 125,347 Net Interest Margin (3) 4.08 % 4.05 % 3.14 % (1) Average balances include net loan fees, discounts and premiums, and nonaccrual loans.
See section titled “Financial Condition - Market Risk and Interest Rate Sensitivity” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information regarding this risk. 50 Table 2 AVERAGE BALANCES AND INTEREST RATES 2025 2024 2023 (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 $ 24,234 $ 1,764 7.28 % $ 27,306 $ 2,776 6.72 % $ 55,510 $ 3,232 5.82 % Loans Held for Investment (1)(2) 2,622,877 159,589 6.08 2,706,461 162,385 6.03 2,656,394 149,366 5.62 Investment Securities Taxable Investment Securities 996,222 27,399 2.75 923,253 17,073 1.85 1,016,550 18,652 1.83 Tax-Exempt Investment Securities (2) 1,391 61 4.39 848 37 4.34 2,199 59 2.68 Total Investment Securities 997,613 27,460 2.75 924,101 17,110 1.85 1,018,749 18,711 1.83 Fed Funds Sold & Int Bearing Dep 366,151 15,751 4.30 239,712 12,627 5.27 203,147 10,126 4.98 Total Earning Assets 4,010,875 204,564 5.10 % 3,897,580 194,898 5.00 % 3,933,800 181,435 4.61 % Cash & Due From Banks 67,876 73,881 75,786 Allowance for Credit Losses (30,443) (29,902) (28,190) Other Assets 299,269 293,044 297,290 TOTAL ASSETS $ 4,347,577 $ 4,234,603 $ 4,278,686 LIABILITIES Noninterest Bearing Deposits $ 1,319,336 $ 1,336,601 $ 1,507,657 NOW Accounts 1,227,316 15,441 1.26 % 1,183,962 16,835 1.42 % 1,172,861 12,375 1.06 % Money Market Accounts 420,992 8,594 2.04 400,664 9,957 2.49 299,581 3,670 1.22 Savings Accounts 504,951 666 0.13 518,869 723 0.14 592,033 598 0.10 Time Deposits 178,756 4,896 2.74 157,342 4,647 2.95 97,480 939 0.96 Total Interest Bearing Deposits 2,332,015 29,597 1.27 % 2,260,837 32,162 1.42 % 2,161,955 17,582 0.81 % Total Deposits 3,651,351 29,597 0.81 3,597,438 32,162 0.89 3,669,612 17,582 0.48 Repurchase Agreements 23,728 612 2.58 26,970 838 3.11 19,917 513 2.57 Short-Term Borrowings 12,949 571 4.40 4,882 242 4.94 24,146 1,538 6.37 Subordinated Notes Payable 47,466 1,924 4.00 52,887 2,449 4.56 52,887 2,427 4.53 Other Long-Term Borrowings 736 35 4.74 534 28 5.31 408 20 4.77 Total Interest Bearing Liabilities 2,416,894 32,739 1.35 % 2,346,110 35,719 1.52 % 2,259,313 22,080 0.98 % Other Liabilities 76,385 71,964 81,842 TOTAL LIABILITIES 3,812,615 3,754,675 3,848,812 Temporary Equity - 6,712 8,392 TOTAL SHAREOWNERS’ EQUITY 534,962 473,216 421,482 TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREOWNERS’ EQUITY $ 4,347,577 $ 4,234,603 $ 4,278,686 Interest Rate Spread 3.74 % 3.47 % 3.63 % Net Interest Income $ 171,825 $ 159,179 $ 159,355 Net Interest Margin (3) 4.28 % 4.08 % 4.05 % (1) Average balances include net loan fees, discounts and premiums, and nonaccrual loans.
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 $0.9 million (after-tax) decrease/increase, respectively. 68 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 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 $1.0 million (after-tax) decrease/increase, respectively.
Other noninterest expense totaled $36.6 million in 2024 compared to $35.6 million in 2023 and $35.5 million in 2022. 53 For 2024, the $1.0 million variance in other expense was driven by a $1.1 million increase in other real estate expense and a $1.4 million increase in processing expense that were partially offset by a $1.4 million decrease in miscellaneous expense.
For 2024, the $1.0 million variance in other expense was driven by a $1.1 million increase in other real estate expense and a $1.4 million increase in processing expense that were partially offset by a $1.4 million decrease in miscellaneous expense.
The estimation process is designed to include amounts based on actual losses experienced from actual activity. 67 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).
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).
Table 11 REAL ESTATE LOANS IMPROVED PROPERTY DISTRIBUTION (Dollars in Thousands) 2024 2023 Hotel/Motel $ 74,400 13.7 % $ 83,108 13.7 % Gas Station/C-Store 7,628 1.4 9,640 1.6 Industrial/Warehouse 30,427 5.6 31,710 5.3 Multi-Family 49,295 9.1 72,677 12.0 Office 45,541 8.4 49,245 8.1 Retail & Shopping Centers 116,402 21.4 119,873 19.8 Commercial Condos 867 0.2 2,204 0.4 Other 32,022 5.9 35,766 5.9 Total Improved Property 356,582 65.7 404,223 66.8 Non-Owner Occupied 1-4 Residential $ 186,276 34.3 % $ 200,770 33.2 % Total Investor Real Estate Improved Property $ 542,858 100 % $ 604,993 100 % 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.
Table 11 REAL ESTATE LOANS IMPROVED PROPERTY DISTRIBUTION (Dollars in Thousands) 2025 2024 Hotel/Motel $ 77,527 14.9 % $ 74,400 13.7 % Gas Station/C-Store 7,716 1.5 7,628 1.4 Industrial/Warehouse 32,292 6.2 30,427 5.6 Multi-Family 49,649 9.5 49,295 9.1 Office 35,127 6.7 45,541 8.4 Retail & Shopping Centers 107,095 20.6 116,402 21.4 Commercial Condos 2,127 0.4 867 0.2 Other 44,663 8.6 32,022 5.9 Total Improved Property 356,196 68.4 356,582 65.7 Non-Owner Occupied 1-4 Residential $ 164,535 31.6 % $ 186,276 34.3 % Total Investor Real Estate Improved Property $ 520,731 100 % $ 542,858 100 % 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.
For 2023, the increase in net income attributable to common shareowners reflected a $34 million increase in net interest income that was partially offset by a $5.4 million increase in noninterest expense , a $5.2 million increase in income taxes, a $3.6 million decrease in noninterest income of $3.6 million, and a $2.2 million increase in the provision for credit losses.
For 2025, the increase in net income attributable to common shareowners reflected a $12.7 million increase in net interest income and a $6.4 million increase in noninterest income, that were partially offset by a $6.2 million increase in income taxes, a $1.7 million increase in noninterest expense, and a $1.2 million increase in provision for credit losses.
Through Capital City Home Loans, LLC (“CCHL”), we have 27 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.
The Bank has 62 banking offices and 108 ATMs/ITMs in Florida, Georgia and Alabama. Through Capital City Home Loans, LLC (“CCHL”), we have 28 additional offices in the Southeast for our mortgage banking business. Please see the section captioned “About Us” beginning on page 5 for more detailed information about our business.
For 2024, the $0.3 million, or 1.2%, increase was attributable to an increase in maintenance agreement expense, primarily for security upgrades and addition of interactive teller machines.
For 2024, the $0.3 million, or 1.2%, increase was attributable to an increase in maintenance agreement expense, primarily for security upgrades and addition of interactive teller machines. 55 Other . Other noninterest expense totaled $31.9 million in 2025 compared to $36.6 million in 2024 and $35.6 million in 2023.
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.
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 and an additional $5.1 million of principal payments were made in 2025.
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.
Although such claims can vary with market condition, they have historically been limited. 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.
Table 9 CREDIT QUALITY (Dollars in Thousands) 2024 2023 2022 Nonaccruing Loans: Commercial, Financial and Agricultural $ 37 $ 311 $ 41 Real Estate – Construction - 322 17 Real Estate – Commercial Mortgage 566 909 645 Real Estate – Residential 3,127 2,990 239 Real Estate – Home Equity 1,782 999 771 Consumer 790 711 584 Total Nonaccruing Loans 6,302 6,242 2,297 Other Real Estate Owned 367 1 431 Total Nonperforming Assets $ 6,669 $ 6,243 $ 2,728 Past Due Loans 30 – 89 Days $ 4,311 $ 6,855 $ 7,829 Classified Loans $ 19,896 $ 22,203 $ 19,342 Nonaccruing Loans/Loans 0.24 % 0.23 % 0.09 % Nonperforming Assets/Total Assets 0.15 0.15 0.06 Nonperforming Assets/Loans Plus OREO 0.25 0.23 0.11 Allowance/Nonaccruing Loans 464.14 % 479.70 % 1091.33 % 57 Nonaccrual Loans .
Table 9 CREDIT QUALITY (Dollars in Thousands) 2025 2024 2023 Nonaccruing Loans: Commercial, Financial and Agricultural $ 1,278 $ 37 $ 311 Real Estate – Construction - - 322 Real Estate – Commercial Mortgage 2,560 566 909 Real Estate – Residential 2,143 3,127 2,990 Real Estate – Home Equity 1,769 1,782 999 Consumer 845 790 711 Total Nonaccruing Loans 8,595 6,302 6,242 Other Real Estate Owned 1,936 367 1 Total Nonperforming Assets $ 10,531 $ 6,669 $ 6,243 Past Due Loans 30 – 89 Days $ 7,017 $ 4,311 $ 6,855 Classified Loans $ 14,334 $ 19,896 $ 22,203 Nonaccruing Loans/Loans 0.34 % 0.24 % 0.23 % Nonperforming Assets/Total Assets 0.24 0.15 0.15 Nonperforming Assets/Loans Plus OREO 0.41 0.25 0.23 Allowance/Nonaccruing Loans 360.69 % 464.14 % 479.70 % 58 Nonaccrual Loans .

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