Capital City Bank Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Capital City Bank Group Inc. has submitted its 2023 10-K filing, detailing financial performance and asset/liability structures.</b>

AI Summary

CAPITAL CITY BANK GROUP INC (CCBG) filed a Annual Report (10-K) with the SEC on March 13, 2024. Capital City Bank Group Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes financial data for the periods ending December 31, 2023, December 31, 2022, and December 31, 2021. Key financial metrics such as total assets, total debt, and net income are detailed within the report. The report provides specific figures for various loan categories, including commercial, construction, and consumer loans. Information on past-due financing receivables across different loan types is also presented for 2023 and 2022.

Why It Matters

For investors and stakeholders tracking CAPITAL CITY BANK GROUP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Capital City Bank Group Inc.'s financial health and operational performance for the fiscal year 2023, crucial for investors and stakeholders to assess the company's stability and growth prospects. The detailed breakdown of loan portfolios and past-due receivables offers insights into the bank's credit risk management and the overall quality of its loan assets, which are central to its profitability.

Risk Assessment

Risk Level: medium — CAPITAL CITY BANK GROUP INC shows moderate risk based on this filing. The company operates in the highly regulated banking sector, facing risks related to credit quality, interest rate fluctuations, and economic downturns, as evidenced by the detailed reporting of loan categories and past-due receivables.

Analyst Insight

Investors should analyze the trends in loan growth, net interest margin, and non-performing assets presented in the 10-K to evaluate Capital City Bank Group's financial performance and risk exposure.

Key Numbers

• 20231231 — Fiscal Year End (Report period)
• 20240313 — Filing Date (Date of filing)
• 150 — Public Document Count (Number of documents in the filing)
• 000-13358 — SEC File Number (SEC filing identifier)

Key Players & Entities

• CAPITAL CITY BANK GROUP INC (company) — Filer name
• 0000726601 (company) — Central Index Key
• 6022 (regulator) — Standard Industrial Classification (State Commercial Banks)
• FL (company) — State of Incorporation
• TALLAHASSEE (company) — Business Address City
• 8506710300 (dollar_amount) — Business Phone

FAQ

Risk Factors

• Credit Risk [high — financial]: The company is exposed to credit risk through its lending activities, which could adversely affect its financial condition and results of operations.
• Interest Rate Risk [high — financial]: Changes in interest rates can impact the company's net interest income and the fair value of its financial instruments.
• Economic Conditions [medium — market]: Deterioration in general economic conditions could negatively impact the company's business, financial condition, and results of operations.
• Regulatory Environment [medium — regulatory]: The banking industry is subject to extensive regulation, and changes in laws or regulations could increase compliance costs or restrict business activities.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-13: Filing Date — Date the 10-K report was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value CCBG The Nasdaq Stock Ma
• $4.3 billion — rtered in Florida and has approximately $4.3 billion in assets. We provide a full range of
• $4,304.5 — Equity Revenue (1) Net Income 2023 $4,304.5 $3,701.8 $440.6 $252.7 $52.3
• $3,701.8 — evenue (1) Net Income 2023 $4,304.5 $3,701.8 $440.6 $252.7 $52.3 2022 $4,51
• $440.6 — Net Income 2023 $4,304.5 $3,701.8 $440.6 $252.7 $52.3 2022 $4,519.2 $3,
• $252.7 — e 2023 $4,304.5 $3,701.8 $440.6 $252.7 $52.3 2022 $4,519.2 $3,939.3 $
• $52.3 — $4,304.5 $3,701.8 $440.6 $252.7 $52.3 2022 $4,519.2 $3,939.3 $387.3
• $4,519.2 — 701.8 $440.6 $252.7 $52.3 2022 $4,519.2 $3,939.3 $387.3 $207.1 $33.4
• $3,939.3 — 0.6 $252.7 $52.3 2022 $4,519.2 $3,939.3 $387.3 $207.1 $33.4 2021 $4,26
• $387.3 — 7 $52.3 2022 $4,519.2 $3,939.3 $387.3 $207.1 $33.4 2021 $4,263.8 $3,
• $207.1 — 2022 $4,519.2 $3,939.3 $387.3 $207.1 $33.4 2021 $4,263.8 $3,712.9 $
• $33.4 — $4,519.2 $3,939.3 $387.3 $207.1 $33.4 2021 $4,263.8 $3,712.9 $383.2
• $4,263.8 — 939.3 $387.3 $207.1 $33.4 2021 $4,263.8 $3,712.9 $383.2 $213.9 $33.4
• $3,712.9 — 7.3 $207.1 $33.4 2021 $4,263.8 $3,712.9 $383.2 $213.9 $33.4 (1) Revenue
• $383.2 — 1 $33.4 2021 $4,263.8 $3,712.9 $383.2 $213.9 $33.4 (1) Revenue represen

Filing Documents

• ccbg-20231231.htm (10-K) — 5003KB
• exhibit21.htm (EX-21) — 4KB
• exhibit231.htm (EX-23.1) — 9KB
• exhibit311.htm (EX-31.1) — 11KB
• exhibit312.htm (EX-31.2) — 11KB
• exhibit321.htm (EX-32) — 4KB
• exhibit322.htm (EX-32.2) — 4KB
• exhibit97.htm (EX-97) — 38KB
• ccbg-20231231p39i0.gif (GRAPHIC) — 19KB
• 0000726601-24-000007.txt (&nbsp;) — 23234KB
• ccbg-20231231.xsd (EX-101.SCH) — 113KB
• ccbg-20231231_cal.xml (EX-101.CAL) — 193KB
• ccbg-20231231_def.xml (EX-101.DEF) — 673KB
• ccbg-20231231_lab.xml (EX-101.LAB) — 1186KB
• ccbg-20231231_pre.xml (EX-101.PRE) — 1010KB
• ccbg-20231231_htm.xml (XML) — 5101KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 22 Item 1B. Unresolved Staff Comments 36 Item 1C. Cybersecurity 36 Item 2.

Properties

Properties 36 Item 3.

Legal Proceedings

Legal Proceedings 36 Item 4. Mine Safety Disclosure 36 PART II Item 5. Market for the Registrant's Common Equity, Related Shareowner Matters, and Issuer Purchases of Equity Securities 38 Item 6.

Selected Financial Data

Selected Financial Data 41 Item 7.

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

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.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 69 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 139 Item 9A.

Controls and Procedures

Controls and Procedures 139 Item 9B. Other Information 143 PART III Item 10. Directors, Executive Officers, and Corporate Governance 144 Item 11.

Executive Compensation

Executive Compensation 144 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareowner Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareowner Matters 144 Item 13. Certain Relationships and Related Transactions, and Director Independence 144 Item 14. Principal Accountant Fees and Services 144 PART IV Item 15. Exhibits and Financial Statement Schedules 145 Item 16. Form 10-K Summary 146

Signatures

Signatures 147 3 EXPLANATORY NOTE The Consolidated Statements of Cash Flows of Capital City Bank Group, Inc. (the "Company") for the years ended December 31, 2021 and December 31, 2022 and for the each of the three month periods ended March 31, 2022 and 2023, six month periods ended June 30, 2022 and 2023 and nine month periods ended September 30, 2022 and 2023 (collectively, the "Impacted for the year ended December 31, 2023 (this "Form 10- K") have been restated. For additional information, see "Part II – Item 8. Financial Statements and Supplementary – Note 1 – Restatement of Previously Issued Consolidated Financial Statements" in this Form 10-K. The Company has not filed and does not intend to file amendments to the Company's previously filed Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q containing any of the Impacted Statements of Cash Flow. Investors and others should rely on the financial information and other disclosures regarding the affected period contained in this Form 10-K and in future filings with the Securities and Exchange Commission (as applicable). 4 INTRODUCTORY NOTE This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, goals, expectations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. The words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "target," "vision," "goal," and similar expressions are intended to identify

forward-looking statements

forward-looking statements. All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ materially from those set forth in our forward-looking statements. In addition to those risks discussed in this Annual Report under Item 1A Risk Factors, factors that could cause our actual results to differ materially from those in the forward-looking our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; legislative or regulatory changes; adverse developments in the financial services industry generally, such as bank failures and any related impact on depositor behavior; the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding costs, net interest margin and ability to replace maturing deposits and advances, as necessary; inflation, interest rate, market and monetary fluctuations; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans and related interest rate risk or price risk resulting from retaining mortgage servicing rights and the potential effects of higher interest rates on our loan origination volumes; the effects of actions taken by governmental agencies to stabilize the recent volatility in the financial system and the effectiveness of such actions; changes in monetary and fiscal policies of the U.S. Government; the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products; the accuracy of our financial statement estimates and assumptions, including the estimates used for our allowance for credit losses, deferred tax asset valuation and pension plan; changes in our liquidity position; changes in accounting principles,

Risk Factors or discussed in this Annual Report also could adversely affect

Item 1A Risk Factors or discussed in this Annual Report also could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any

forward-looking statements made by us or on our behalf speak only as of the date they

forward-looking statements made by us or on our behalf speak only as of the date they are made. We do not undertake to update any forward-looking statement, except as required by applicable law. 6 PART I Item 1.

Business

Business About Us General Capital City Bank Group, Inc. ("CCBG") is a financial holding company headquartered in Tallahassee, Florida. CCBG was incorporated under Florida law on December 13, 1982, to acquire five national banks and one state bank that all subsequently became part of CCBG's bank subsidiary, Capital City Bank ("CCB" or the "Bank"). The Bank commenced operations in 1895. In this report, the terms "Company," "we," "us," or "our" mean CCBG and all subsidiaries included in our consolidated financial CCBG is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.3 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. The Bank has 63 banking offices and 103 ATMs/ITMs in Florida, Georgia, and Alabama. Through Capital City Home Loans, LLC ("CCHL"), we have 29 additional offices in the Southeast for our mortgage banking business. The majority of the revenue (excluding CCHL), approximately 85%, is derived from our Florida market areas while approximately 14% and 1% of the revenue is derived from our Georgia and other market areas, respectively. Approximately 48% of the revenue from CCHL is derived from our Georgia market areas while approximately 38% and 14% is derived from our Florida and other market areas, respectively. Below is a summary of our financial condition and results of operations for the past three fiscal years, which we believe is a sufficient period for understanding our general business development. Our financial condition and results of operations are more fully discussed in our Management's Discussion and Analysis on page 43 and our consolidated financial s

Financial Statements for a discussion of the

Financial Statements for a discussion of the restrictions.

contains other financial and statistical information about us

Item 6 contains other financial and statistical information about us. Subsidiaries of CCBG CCBG's principal asset is the capital stock of CCB, our wholly owned banking subsidiary, which accounted for nearly 100% of consolidated assets and net income attributable to CCBG at December 31, 2023. CCBG also maintains an insurance subsidiary, Capital City Strategic Wealth, LLC. CCB has two primary subsidiaries, which are wholly owned, Capital City Trust Company and Capital City Investments. CCB also maintains a 51% membership interest in a consolidated subsidiary, CCHL, which we acquired on March 1, 2020. The nature of these subsidiaries is provided below. Operating Segment We have one reportable segment with two principal services: Banking Services and Wealth Management Services. Banking Services are operated at CCB, and Wealth Management Services are operated under three separate subsidiaries (Capital City Trust Company, Capital City Investments, and Capital City Strategic Wealth, LLC). Revenues from these principal services for the year ended 2023 totaled approximately 93.5% and 6.5% of our total revenue, respectively. In 2022 and 2021, Banking Services (CCB) revenue was approximately 90.3% and 93.2% of our total revenue for each respective year. 7 Capital City Bank CCB is a Florida-chartered full-service bank engaged in the commercial and retail banking business. Significant services offered by CCB include: Business Banking – We provide banking services to corporations and other business clients. Credit products are available for a wide variety of general business purposes, including financing for commercial business properties, equipment, inventories and accounts receivable, as well as commercial leasing and letters of credit. We also provide treasury management services, and, through a marketing alliance with Elavon, Inc., merchant credit card transaction processing services. Commercial Real Estate Lending – We

Management's Discussion and Analysis of

Management's Discussion and Analysis of Financial Condition and Results of Operations under the section captioned "Business Overview" for discussion related to the expansion of our Business. Competition There is significant competition among commercial banks in our market areas. We compete against a wide range of banking and nonbanking institutions including banks, savings and loan associations, credit unions, money market funds, mutual fund advisory companies, mortgage banking companies, investment banking companies, insurance agencies and companies, securities firms, brokerage firms, finance companies and other types of financial institutions. Some of our competitors are larger financial institutions with greater resources and, as such, may have higher lending limits and may offer other services that are not provided by us. However, we believe that the larger financial institutions are less familiar with the markets in which we operate and typically target a different client base. We also believe clients who bank at community banks tend to prefer the relationship style service of community banks compared to larger banks. As a result, we expect to be able to effectively compete in our markets with larger financial institutions through providing superior client service and leveraging our knowledge and experience in providing banking products and services in our market areas. See Item 1A. Risk Factors under the section captioned "Our future success is dependent on our ability to compete effectively in the highly competitive banking industry" for further discussion related to the competitive environment in which we operate. Our primary market area consists of 21 counties in Florida, six counties in Georgia, and one county in Alabama. Most of Florida's major banking concerns have a presence in Leon County, where our main office is located. Our Leon County deposits totaled $1.272 billion, or 34.4% of our consolidated deposits at Decem

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View this 10-K filing on SEC EDGAR