Capital City Bank Restates Financials Due to Loan Loss Reserve Errors
Ticker: CCBG · Form: 8-K · Filed: Mar 13, 2024 · CIK: 726601
Sentiment: neutral
Topics: accounting-error, restatement, financial-reporting
Related Tickers: CCBG
TL;DR
CCBG won't rely on old financials due to loan loss reserve accounting errors; restatement coming.
AI Summary
Capital City Bank Group, Inc. announced on March 12, 2024, that it will not rely on previously issued financial statements or related audit reports. This decision stems from an internal review that identified certain errors in the accounting for a specific loan loss reserve. The company is working to restate its financial results for the affected periods.
Why It Matters
This restatement could impact investor confidence and requires a thorough review of the company's internal controls and financial reporting accuracy.
Risk Assessment
Risk Level: medium — The need to restate financial statements indicates potential weaknesses in internal controls and can lead to uncertainty for investors.
Key Players & Entities
- Capital City Bank Group, Inc. (company) — Registrant
- March 12, 2024 (date) — Date of earliest event reported
- Florida (location) — State of Incorporation
- 217 North Monroe Street, Tallahassee, Florida 32301 (address) — Principal executive offices
- (850) 671-0300 (phone_number) — Registrant's telephone number
FAQ
What specific financial periods are affected by the non-reliance on previously issued financial statements?
The filing does not specify the exact financial periods affected, but indicates that the errors relate to the accounting for a specific loan loss reserve and that the company is working to restate its financial results for the affected periods.
What was the nature of the accounting error identified?
The company identified certain errors in the accounting for a specific loan loss reserve.
When did Capital City Bank Group, Inc. become aware of these accounting errors?
The filing states the date of the earliest event reported is March 12, 2024, implying this is when the decision regarding non-reliance was made or became effective.
What is the company's plan to address these accounting errors?
The company is undertaking a review and will restate its financial results for the affected periods.
Has an independent auditor been involved in the review of these errors?
The filing mentions 'a related audit report or completed interim review' in the Item Information, suggesting prior involvement of auditors, but does not explicitly state their current role in addressing these specific errors.
Filing Stats: 1,696 words · 7 min read · ~6 pages · Grade level 20 · Accepted 2024-03-13 16:31:26
Key Financial Figures
- $0.01 — ch registered Common Stock, Par value $0.01 CCBG Nasdaq Stock Market, LLC Indic
- $558 million — Originations of Loans Held for Sale of $558 million and $279 million for the years ended De
- $279 million — Loans Held for Sale of $558 million and $279 million for the years ended December 31, 2022 a
- $422 million — rchases of Loans Held for Investment of $422 million and $95 million for the years ended Dec
- $95 million — Held for Investment of $422 million and $95 million for the years ended December 31, 2022 a
Filing Documents
- i24108_ccbg-8k.htm (8-K) — 32KB
- logo.jpg (GRAPHIC) — 3KB
- 0001171200-24-000040.txt ( ) — 210KB
- ccbg-20240312.xsd (EX-101.SCH) — 3KB
- ccbg-20240312_lab.xml (EX-101.LAB) — 33KB
- ccbg-20240312_pre.xml (EX-101.PRE) — 22KB
- i24108_ccbg-8k_htm.xml (XML) — 3KB
02. Non-Reliance on Previously Issued Financial Statements or a Related Audit
Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. In connection with the preparation of Capital City Bank Group, Inc.'s (the "Company") Annual Report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"), management of the Company determined that it had not appropriately eliminated intercompany loan sale and participation activity from the Consolidated of Financial Condition, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements in Changes in Shareowners' Equity or the Notes to the Consolidated Financial Statements. As a result, as further discussed below, the Company's Consolidated Statements of Cash Flows for the following periods (collectively, the "Impacted Statements of Cash Flows") should no longer be relied upon: (1) years ended December 31, 2021 and 2022, (2) the three month periods ended March 31, 2022 and 2023, (3) the six month periods ended June 30, 2022 and 2023, and (4) the nine month periods ended September 30, 2022 and 2023. Detail of the restated amounts for the years ended December 31, 2022 and 2021 is provided below. Within the Cash Flows From Operating Activities section: An overstatement of Originations of Loans Held for Sale of $558 million and $279 million for the years ended December 31, 2022 and 2021, respectively. An overstatement of Proceeds From Sales of Loans Held for Sale of $558 million and $279 million for the years ended December 31, 2022 and 2021, respectively. As these misstatements offset one another within the Cash Flows from Operating Activities section of the Consolidated Statement of Cash Flows, there was no impact to the Net Cash Provided By Operating Activities line item. Within the Cash Flows Used In Investing Activities section: An over
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CAPITAL CITY BANK GROUP, INC. Date: March 13, 2024 By: /s/ Jeptha E. Larkin Jeptha E. Larkin, Executive Vice President and Chief Financial Officer