CAPITAL CITY BANK GROUP INC
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 2. results of operations,
financial position,
or cash flows of the
Indemnification
Obligation
.
is a member of
the Visa U.S.A. network.
Visa U.S.A member banks
are required to
indemnify the
Visa U.S.A. network
for potential future settlement
of certain litigation (the “Covered
Litigation”) that relates
to several
antitrust lawsuits challenging
the practices of
Visa and
MasterCard
International.
In 2008, the
Company,
as a member
of the Visa
U.S.A. network, obtained
Class B shares of
Visa, Inc. upon
its initial public offering.
Since its initial
public offering, Visa,
Inc. has
funded a
litigation reserve for the Covered
Litigation resulting in a reduction
in the Class B shares held
by the Company.
In 2011,
the
Company
sold its remaining Class B shares
.
Associated with this sale,
entered into a
swap contract
with the purchaser
of the shares
that requires a
payment
to the counterparty
in the event that
Visa, Inc. makes
subsequent
revisions to the conversion
ratio.
Conversion ratio
and ongoing fixed
quarterly charges
are reflected in earnings in the
period incurred.
Fixed charges
included in the swap
liability are payable
quarterly until the litigation reserve is
fully liquidated
and at
which time the aforementioned
swap contract
will be terminated.
Quarterly fixed payments
are approximately
$
0.1
There was a $
0.1
million counterparty
payment
accrued and
payable
due to a revision to
the share conversion
rate related to
funding by
VISA of the merchant
litigation reserve.
NOTE 9 – FAIR
VALUE
MEASUREMENTS
of an asset
or liability is the price that would be
received to sell that
asset or paid
to transfer
that liability in an
orderly
occurring in the principal market
(or most advantageous
market in the
absence of
a principal market)
for such asset
or
liability.
In estimating fair value, the
Company
utilizes valuation techniques
that are consistent
with the market
approach,
the income
approach
and/or the
cost approach.
Such valuation
techniques are
consistently applied.
Inputs to
techniques include the
that market
participants
would use in pricing an asset or liability.
Topic 820
establishes a fair
value hierarchy
for valuation
inputs that
gives the highest priority to quoted
prices in active markets
for identical
assets or liabilities
and the
lowest priority to unobservable
inputs.
hierarchy is as follows:
Level 1 Inputs -
Unadjusted
quoted prices in active
markets for
identical assets or liabilities that
the reporting entity has
the
ability to access
at the measurement
date
.
Level 2 Inputs -
Inputs other than
quoted prices included
in Level 1 that are
observable for
the asset or liability, either directly
or indirectly. These
might include quoted
prices for similar assets
or liabilities in active markets,
quoted prices for
identical
or similar assets or
liabilities in markets that
are not active, inputs other
than quoted
prices that are observable
for the asset
or
liability (such as
interest rates, volatilities,
speeds, credit risks, etc.) or inputs that
are derived principally
from, or
corroborated,
by market
data
by correlation or other
means
.
Level 3 Inputs -
Unobservable inputs
for determining the fair
values of
assets or liabilities that
reflect an entity’s
own
about
the assumptions
that market
participants
would use in pricing the assets or liabilities.
Assets and Liabilities
Measured at Fair Value
on a Recurring
Basis
Securities Available for Sale.
U.S. Treasury securities are reported
utilizing Level 1 inputs.
Other securities
classified as
available for sale are
reported at fair value
utilizing Level 2 inputs.
For these securities,
obtains fair value measurements
from an
independent
pricing service.
measurements
consider observable
data
that may
include dealer quotes,
market
spreads, cash
flows, the U.S. Treasury
yield curve, live trading levels,
trade execution
data,
credit information
and the
bond’s terms
and conditions,
among other
things.
In general, the Company
does not purchase
securities that have
a complicated
structure.
entire portfolio consists
of
traditional investments,
nearly all of which are
U.S. Treasury obligations,
federal agency
bullet or mortgage pass
-through securities, or
general obligation or revenue
-based municipal bonds.
Pricing for such
instruments is easily obtained.
At least annually,
will validate prices
supplied by the independent
pricing service by compari
ng them to prices obtained
from an independent
third-party
source.
Loans Held for Sale
.
loans held for sale
Level 2 inputs is determined,
when possible,
using either quoted
-market prices or investor
If no such
quoted price exists, the
fair value is determined
using quoted
prices for a similar asset
or assets, adjusted
for the specific attributes
of that
loan, which would be used
by other market
participants.
has elected the
fair value option
for its held for sale loans.
Derivative Instruments.
The fair values
of interest rate
lock commitments
(“IRLCs”) are derived by
models incorporating
market pricing for
instruments with similar characteristics,
commonly
referred to as best
execution pricing, or
investor commitment
prices for best effort
IRLCs which have
unobservable
inputs, such as an
estimate of
the fair value
of the
servicing rights expected
to be recorded upon
sale of the loans,
net estimated
costs to originate the
loans, and
the pull-through rate,
and are
therefore classified as
Level 3 within the fair value
hierarchy.
of forward sale
is based on
observable market
pricing for similar instruments and
are therefore
classified
as
hierarchy.
Interest Rate Swap.
derivative positions
are classified
as
hierarchy and
using
models generally
accepted
in the financial
services industry and
that use
actively quoted
or observable market
input values from
external market
data
providers.
derivatives are
determined using discounted
cash flow models.
Swap
.
entered into a
stand-alone
derivative contract
with the purchaser
of its Visa Class B shares.
The
represents the amount
due and
payable
to the counterparty
the revised share conversion
rate, if any,
during the
period. The Company’s
derivative positions
are classified
as
hierarchy and
use actively quoted
or
observable market
input values from external
market data
providers.
There was a $
0.1
0.2
million counterparty
payment
accrued and
payable
at
December 31, 202
5, respectively.
A summary
of fair values
for assets and
liabilities recorded at fair value
on a recurring basis consisted
of the following:
Level 1
Level 2
Level 3
Total Fair
Inputs
Inputs
Inputs
Value
ASSETS:
$
594,343
$
$
$
594,343
Agency
160,311
160,311
32,575
32,575
44,329
44,329
30,539
30,539
Sale
23,455
23,455
ASSETS:
$
333,264
$
$
$
333,264
Agency
172,114
172,114
34,911
34,911
52,004
52,004
43,532
43,532
2,069
2,069
Sale
21,695
21,695
Mortgage Banking Activities
.
had Level 3 issuances and
transfers related to
activities of $
5.9
million
and $
12.1
million, respectively, for the
30, 2026, and
$
6.1
13.0
million, respectively, for
the nine months
30, 2025.
Issuances
the change
in fair value of
the underlying mortgage
loan
from inception
of the IRLC
to the Consolidated
date,
for pull-through rates
and costs
to
originate.
IRLCs transferred
out of Level 3 represent
IRLCs that
were funded and
moved to
held for sale, at fair
value.
Assets Measured at
Fair Value on
a Non-Recurring
Basis
Certain assets
are measured
on a non
-recurring basis (i.e., the assets are not measured
on an ongoing basis
but are subject
to fair value
in certain circumstances).
An example would
be assets exhibiting evidence
of impairment.
The following is
a description of
methodologies used
for assets measured
on a non
-recurring basis.
Collateral Dependent Loans
.
Impairment
for collateral dependent
loans is measured
using the fair value
of the collateral
less selling
costs.
of collateral is determined
by an independent
or professional appraisal
in conformance
with banking
regulations.
are estimated
using Level 3 inputs due to the
volatility in the real estate
market, and
the judgment
and
estimation involved
in the real estate
appraisal
process.
Collateral dependent
loans are reviewed and
evaluated
on at least
a quarterly
basis for additional
impairment
and adjusted
accordingly.
Valuation
techniques are
consistent with those
techniques applied
in prior
periods.
Collateral-dependent
loans had
a carrying value
of $
14.7
million with valuation allowance
of $
1.0
30,
a carrying value
of $
6.4
million and a $
0.1
million valuation allowance
Other Real Estate Owned
.
During the first nine
months of 2026, certain
foreclosed assets, upon
initial recognition, were measured
and
reported at
fair value through
a charge-off
to the allowance
for credit losses based
on the fair value
of the foreclosed
asset less
cost to sell.
of the foreclosed
asset is determined
by an independent
or professional appraisal
in
conformance
with banking regulations.
On an ongoing basis, we obtain
updated
on foreclosed assets
and realize valuation
as necessary.
of foreclosed assets
is estimated using Level 3 inputs
due to the judgment
and estimation
involved in the
real estate valuation
process.
Mortgage Servicing Rights
.
loan servicing rights are evaluated
for impairment
at each
reporting period based
upon the fair
value of the
rights as compared
to the carrying amount.
Fair value is determined
by a third party
model using
speeds of the
underlying mortgage loans
serviced and stratifications
the risk characteristics of
the
underlying loans
(predominantly
loan type
and note
interest rate).
is estimated using Level 3 inputs,
including
a
discount rate,
weighted average prepayment
speed, and
the cost of loan
servicing.
Further detail on the
key inputs utilized are
provided in Note 4
– Mortgage Banking
Activities.
At each
of September
there was
no
allowance for loan
Assets and Liabilities
Disclosed at Fair Value
is required to disclose the estimated
financial instruments,
both assets
and liabilities, for which it is
practical to estimate
fair value and
the following is a description of valuation
methodologies used
for those assets
and liabilities.
Cash and Short-Term
Investments.
The carrying amount
of cash and
short-term investments
is used to approximate
fair value, given
the short time frame
to maturity
and as
such assets do
not present unanticipated
credit concerns.
Securities Held to Maturity
.
Securities held to maturity
in accordance
with the methodology
previously noted
in the
caption “Assets and
Liabilities Measured at
Fair Value on
a Recurring Basis – Securities Available
for Sale.”
Loans.
The loan portfolio
is segregated into categories
and the
each loan
category is calculated
using present value
techniques based
upon projected
cash flows and
discount rates.
The values reported
reflect the incorporation
of a liquidity
discount to meet
the objective
of “exit price” valuation.
Deposits.
of Noninterest Bearing Deposits,
NOW Accounts, Money
Market Accounts
and Savings Accounts
are the
amounts
payable
on demand
at the reporting date.
of fixed maturity
certificates of deposit
is estimated using present
value techniques
and rates
currently offered
for deposits of similar remaining
maturities.
Subordinated Notes Payable.
of each
note is calculated
using present value techniques,
projected cash
flows and
discount rates
as well as rates being offered
for similar obligations.
Short-Term
and Long-Term
Borrowings.
of each
note is calculated
using present value techniques,
projected cash
flows and estimated
discount rates
as well as rates being offered
for similar debt.
A summary
of estimated
fair values of
significant financial
instruments not
recorded at fair
value consisted
of the following:
Carrying
Level 1
Level 2
Level 3
Value
Inputs
Inputs
Inputs
ASSETS:
Cash
$
71,617
$
71,617
$
$
Fed Funds Sold and
340,015
340,015
Securities, Held to Maturity
315,142
293,832
Mortgage Servicing
Rights
1,534
Loans, Net of Allowance
for Credit Losses
2,459,355
2,321,370
$
3,666,568
$
$
3,665,513
$
38,881
38,881
33,303
31,339
Long-Term
Carrying
Level 1
Level 2
Level 3
Value
Inputs
Inputs
Inputs
ASSETS:
Cash
$
62,189
$
62,189
$
$
Fed Funds Sold and
467,782
467,782
Securities, Held to Maturity
377,446
129,268
240,052
Other Equity Securities
2,848
2,848
Mortgage Servicing
Rights
1,359
Loans, Net of Allowance
for Credit Losses
2,515,117
2,416,937
$
3,662,312
$
$
3,662,466
$
50,092
50,092
42,582
40,116
Long-Term
All non-financial
instruments are
excluded from
the above
table.
The disclosures also do not
include goodwill.
Accordingly, the
aggregate fair value
amounts
presented do
not represent the
underlying value of
the Company.
NOTE 10 – ACCUMULATED
OTHER COMPREHENSIVE
INCOME (LOSS)
The amounts
allocated
to accumulated
income (loss) are presented
in the table below.
Other
Interest Rate
Retirement
Swap
Plans
Income (Loss)
January 1, 2026
$
(9,530)
$
2,676
$
9,441
$
2,587
loss during the period
(13,575)
(448)
$
(23,105)
$
2,228
$
9,441
$
January 1, 2025
$
(20,179)
$
3,971
$
9,722
$
(6,486)
income (loss) during the
period
8,783
(1,076)
7,707
$
(11,396)
$
2,895
$
9,722
$
1,221
NOTE 11 -
SEGMENT REPORTING
operates a
single reportable business segment
that is comprised
of commercial
banking within the states
of Florida,
Georgia, and
Alabama.
chief executive
officer is deemed
the Chief Operating Decision Maker
(“CODM”). The
CODM evaluates
the financial performance
of the Company
by evaluating revenue streams,
significant expenses, and
budget to actual
results in assessing
single reporting segment and
in the determination
of allocating resources.
The CODM uses
net income to
benchmark
against peers and
to evaluate
performance
and allocate
resources.
Significant
revenue and expense
categories evaluated
by the CODM are consistent with the
presentation of the
Consolidated Statement
of Income
and components
of other noninterest
expense.
MANAGEMENT'S
DISCUSSION AND
ANALYSIS
OF FINANCIAL
CONDITION AND
RESULTS
OF
OPERATIONS
discussion and analysis
(“MD&A”) provides supplemental
which sets forth the major
factors that
have
affected
condition and
results of operations
and should
be read in conjunction
with the Consolidated
Financial
and related
notes.
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 the third quarter
of 2026
compares
with
prior periods.
Throughout this section,
Group, Inc., and
subsidiaries, collectively, is referred
to as “CCBG,”
“Company,”
“we,” “us,” or “our.”
CAUTION CONCERNING
FORWARD-LOOKING
This Quarterly Report
on Form 10-Q, including
this MD&A section,
contains “forward
-looking statements
”
within the meaning of
the
Private Securities Litigation
Reform Act of
These forward-looking statements
include, among others,
about
our
beliefs, plans, objectives,
goals, expectations,
intentions that
to significant risks and
uncertainties
and are
subject to change
various factors,
many
of which are beyond
our control.
The words “may,”
“could,” “should,” “would,”
“believe,” “anticipate,”
“contemplate,”
“estimate,” “expect,”
“intend,” “plan,”
“point to,” “project,”
“target,” “vision,” “goal,”
“continue,” “further,”
and similar expressions
are intended
to identify forward
All forward-looking statements,
by their nature,
to risks and uncertainties.
Our actual future
results may differ
materially
from those
set forth in our forward
Please see the Introductory
Note of this quarterly
report on Form 10-Q as well
as the Introductory
Note and
of our 2025
Form 10-K, as updated
in our subsequent
quarterly reports filed on
Form 10-Q, and
in our other filings made
from time to
time with the SEC after
the date
of this report.
However, other
factors besides
those listed in our Quarterly
Report or in our 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
made by us or on our behalf
speak only as of the
date they
are made.
We do not undertake
to update
any forward
-looking
statement,
except as
required by applicable
law.
BUSINESS OVERVIEW
We are a
financial holding company
headquartered
in Tallahassee,
Florida, and we are the
parent of
our wholly owned subsidiary,
(the “Bank
”
or “CCB”).
We offer a
broad array
of products
and services through
a total
of 62 full-service offices
and 107
ATMs/ITMs
located in Florida, Georgia,
and Alabama.
Through Capital
City Home Loans,
LLC (“CCHL”), we have 27
offices in the Southeast
for our mortgage
banking business.
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 life insurance
products,
risk management
and asset
protection services.
Our profitability,
like most
financial institutions,
is dependent to
a large extent
upon net interest
income, which is the difference
between the interest
and fees
received on interest earning
assets, such as
securities, and the interest
paid on interest-bearing
liabilities, principally deposits
and borrowings.
Results of operations
are also affected
by the provision for
credit losses, operating
expenses such
as salaries and
employee benefits,
occupancy
operating expenses
including income taxes,
and noninterest
income such as
revenues,
wealth management
fees, deposit fees, and
bank card
fees.
We have
included a detailed
discussion
of
our long-term strategic objectives
as part of
the MD&A section of our 2025
NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
We present
a tangible common
equity ratio and
a tangible book
value per diluted share
that, in each
case, removes
the effect
of
goodwill and
other intangibles that
resulted from merger and
acquisition activity.
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.
Non-GAAP financial
measures should
not be considered
alternatives
to generally accepted
principles (“GAAP”)-basis financial statements
and
other bank
holding companies
may define
or calculate these
non-GAAP measures or similar measures
differently.
The GAAP to non
-GAAP reconciliation for each
quarter presented
is provided below.
(Dollars in Thousands, except per share data)
Third
Second
First
Fourth
Third
Shareowners' Equity (GAAP)
$
573,862
$
570,095
$
559,912
$
552,851
$
540,635
Less: Goodwill and Other Intangibles (GAAP)
89,095
89,095
89,095
89,095
89,095
Tangible Shareowners' Equity (non-GAAP)
A
484,767
481,000
470,817
463,756
451,540
Total Assets (GAAP)
4,450,483
4,453,734
4,323,774
Less: Goodwill and Other Intangibles (GAAP)
89,095
89,095
89,095
89,095
89,095
Tangible Assets (non-GAAP)
B
$
4,307,657
$
4,361,388
$
4,364,639
$
4,296,670
$
4,234,679
Tangible Common Equity Ratio (non-GAAP)
A/B
11.25%
11.03%
10.79%
10.79%
10.66%
Actual Diluted Shares Outstanding (GAAP)
C
17,152,603
17,135,824
17,114,954
17,154,586
17,115,336
Tangible Book Value per Diluted Share (non-GAAP)
A/C
28.26
28.07
27.51
27.03
26.38
SELECTED QUARTERLY
FINANCIAL DATA
(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
Third
Second
First
Fourth
Third
Summary of Operations
:
Interest Income
$
52,486
$
51,838
$
51,020
$
51,715
$
51,431
Interest Expense
7,476
7,640
8,203
8,355
7,874
45,010
44,198
42,817
43,360
43,557
(80)
1,995
1,881
Net Interest Income After
45,090
43,279
42,105
41,365
41,676
19,384
20,599
19,933
20,103
22,331
42,295
42,640
41,373
42,867
42,916
Income Before Income Taxes
22,179
21,238
20,665
18,601
21,091
Income Tax Expense
5,239
4,961
4,848
4,896
5,141
16,940
16,277
15,817
13,705
15,950
Net Interest Income (FTE)
(1)
45,059
44,241
42,857
43,404
43,602
Per Common Share
:
Net Income Basic
$
0.99
$
0.95
$
0.92
$
0.80
$
0.93
Net Income Diluted
0.99
0.95
0.92
0.80
0.93
Cash Dividends Declared
0.27
0.27
0.27
0.26
0.26
Diluted Book Value
33.46
33.27
32.71
32.23
31.59
Diluted Tangible Book Value
(2)
28.26
28.07
27.51
27.03
26.38
Market Price:
High
53.60
51.04
46.83
45.63
44.69
Low
47.63
42.79
39.26
38.27
38.00
Close
48.33
49.42
43.46
42.57
41.79
Selected Average Balances
:
Investment Securities
$
1,177,883
$
1,167,321
$
1,119,125
$
1,006,040
$
993,880
Loans Held for Investment
2,495,535
2,505,875
2,538,318
2,568,073
2,606,213
Earning Assets
4,038,273
4,068,827
4,089,838
4,035,910
3,981,530
Total Assets
4,407,371
4,418,904
4,367,036
3,647,526
3,678,776
3,691,016
3,647,510
3,612,331
Shareowners’ Equity
575,766
573,839
567,663
556,100
542,216
Common Equivalent Average Shares:
Basic
17,113
17,101
17,129
17,070
17,068
Diluted
17,152
17,126
17,146
17,140
17,114
Performance Ratios:
Return on Average Assets (annualized)
1.53
%
1.48
%
1.45
%
1.25
%
1.47
%
Return on Average Equity (annualized)
11.67
11.38
11.30
9.78
11.67
Net Interest Margin (FTE)
4.42
4.35
4.24
4.26
4.34
Noninterest Income as % of Operating Revenue
30.10
31.79
31.77
31.68
33.89
Efficiency Ratio
65.63
65.76
65.89
67.50
65.09
Asset Quality:
Allowance for Credit Losses (“ACL”)
$
30,369
$
31,007
$
30,999
$
31,001
$
30,202
Nonperforming Assets (“NPAs”)
9,708
13,435
12,965
10,531
10,026
ACL to Loans HFI
1.22
%
1.24
%
1.23
%
1.22
%
1.17
%
NPAs to Total Assets
0.22
0.30
0.29
0.24
0.23
NPAs to Loans HFI plus OREO
0.39
0.54
0.51
0.41
0.39
ACL to Non-Performing Loans
412.92
309.72
278.19
360.69
368.54
Net Charge-Offs to Average Loans HFI
0.08
0.14
0.10
0.18
0.18
Capital Ratios:
Tier 1 Capital
21.74
%
21.10
%
20.37
%
20.20
%
19.33
%
Total Capital
22.99
22.35
21.62
21.45
20.59
Common Equity Tier 1
20.43
19.80
19.08
18.56
17.73
Leverage
12.31
11.96
11.65
11.77
11.64
Tangible Common Equity
(2)
11.25
11.03
10.79
10.79
10.66
(1)
Fully Tax
Equivalent.
(2)
Non-GAAP financial measure.
See non-GAAP reconciliation on page 37.
FINANCIAL OVERVIEW
Results of Operations
Performance Summary.
Net income of
$16.9
million, or $0.99
per diluted share, for the
2026 compared
to $16.3
million, or $0.
95 per diluted share, for the
$16.0 million, or $0.93 per diluted share,
of
- For the first
of 2026, net
$49.0 million, or $2.86 per diluted
share, compared
to net income
of $47.9
million, or $2.80
per diluted share, for the
Net Interest Income.
Tax
interest income for
of 2026
totaled $45.1
million, compared to
$44.2 million
$43.6 million for the third quarter
2026, the increase
to higher income from
securities and loan
interest, in addition to
lower deposit interest expense,
by lower overnight funds
income due to
lower average balances.
2025 was also
driven by the same
aforementioned
factors. One additional
calendar
day also
the increase over
of
of 2026, tax
interest income totaled
$132.2
to $128.4 million for the
2025,
securities income and
lower deposit interest expense, partially
offset
by lower loan interest
income and
overnight funds
income.
Provision and Allowance for Credit Losses.
We recorded a
provision benefit for
credit losses of $0.1 million for the
2026, compared
to a provision expense
of $0.9 million for the second
$1.9 million for the third quarter
2026, we recorded a
provision expense for
credit losses of $1.6 million compared
to $3.3 million for the
losses for loans HFI totaled
$30.4 million (1.22% of
loans HFI)
to $31.0 million (1.24% of
loans HFI) at
and $31.0
million at December 31, 202
(1.22% of loans
HFI).
We
discuss the various factors
that impacted
our provision expense
in further detail below under
the heading
Allowance for Credit Losses.
Noninterest
Income
. Noninterest income for
of 2026
totaled $19.4
million, a $1.2 million, or 5.9%, decrease from
the
second quarter of 2026
and a $2.9 million,
or 13.2%, decrease
from the third quarter of 2025.
of
2026 was primarily attributable
to decreases in mortgage
of $1.0 million, deposit fees
of $0.5 million and
other
income of $0.2
million partially offset
by a $0.5
million increase in wealth management
from the third quarter
of
2025 was driven
by decreases
revenues of $1.1
million, deposit fees of $0.7
million, other income of $0.7
million
and wealth management
fees of $0.5 million, partially offset
in bank card
fees of $0.1
million. For the first nine months
of 2026, noninterest
$59.9 million, a $2.3 million, or 3.8%, decrease
from the same
period of 2025,
primarily
to decreases in wealth
fees of $3.3
by increases in other income
of $0.7 million and
bank card
fees of $0.3
Noninterest Expense.
Noninterest expense
of 2026
totaled $42.3
million, a $0.3 million, or 0.8%, decrease from
the second quarter of
2026 and a
$0.6 million, or 1.4%, decrease from
of 2025. The
the second
quarter
of 2026
to decreases in compensation
$0.2 million and other
$0.1 million. The
decrease from the third
quarter of 2025 reflected
decreases in compensation
$0.4 million and other
$0.4 million
a $0.3
million increase in occupancy
expense. For the first nine months
of 2026, noninterest
$126.3 million,
a $2.2 million, or
1.7%, increase over the
same period of 2025
and reflected
increases in other expense
of $3.0 million and
occupancy
$0.8 million partially offset
by a decrease
in compensation
$1.6 million. The increase in other
expense was
primarily due to
a $3.9 million increase in
ORE expense,
reflecting lower gains on
property sales compared
to the prior year period,
which included a
significant gain from
the sale of our
operations center
building in the first quarter
Earning Assets.
Average
earning assets totaled
$4.038 billion for the third quarter
$30.6 million, or 0.8%, from
$2.4 million, or 0.1% over the fourth
quarter
of 2026, the
change in earning asset
mix reflected a
$27.2 million decrease
in overnight funds
,
a $
10.3 million decrease in loans
held
for investment
,
and a
$3.5 million decrease in loans
held for sale (“HFS”),
by a $10.5
securities. Compared
2025, the change
reflected a $171.8
securities and a $2.7
million increase in
loans HFS, partially offset
by a $99.7
million decrease in overnight funds
and a
$72.5 million decrease
in loans
held for investment.
Loans.
Average
loans HFI decreased
by $10.3 million, or 0.4%, from
decreased by
$72.5 million, or
2.8%, from the
fourth quarter
of 2025. Loans
HFI at September
30, 2026, decreased
by $10.1 million, or 0.4%, from
and decreased
by $56.4 million, or 2.2%, from
. Nonperforming assets
(nonaccrual loans
and other real estate) totaled
$9.7 million at September
30, 2026 compared
to
$13.4 million at June
and $10.5 million
at December 31, 2025.
nonperforming assets
as a percentage
of total assets
was 0.22%, compared
to 0.30% at
and 0.24%
31, 2025. Nonaccrual
loans totaled
$7.4
$2.7 million decrease from
and a
$1.2 million decrease from
Other real estate
totaled $2.4
a $1.1
million decrease from
and a
$0.4 million increase
over December 31, 2025.
Further, classified loans
totaled $20.8
$9.0 million decrease from
a $6.5 million increase over
. Average total
deposits were $3.648 billion for the
2026, a decrease
of $31.2 million, or 0.9%, from
the
comparable
30, 2026, total
deposits were $3.667
billion, a
$54.4 million, or 1.5%, from
June 30, 2026, and
an increase
of $4.3 million, or 0.1%, over December
31, 2025. Total
public funds
were $503.2 million at September
30, 2026, $561.5
million at June 30, 202
6, and $654.7
Capital
. At September 30, 2026,
we were “well-capitalized”
with a total
risk-based capital
ratio of 22.99%
and a
tangible common
equity ratio (a non-GAAP
financial measure) of
11.25% compared
to 22.35%
and 11.03%,
respectively,
at
and 21.45
%
and 10.79
%, respectively,
at
all of our regulatory capital
ratios exceeded
the threshold to
be “well-capitalized”
under the Basel
III capital
standards.
RESULTS
OF OPERATIONS
provides a condensed
summary of our results
of operations -
a discussion of the various
are discussed
in further detail
below.
except per share
data)
Interest Income
$
52,486
$
51,838
$
51,431
$
155,344
$
152,672
Taxable
Equivalent Adjustments
Income
(FTE)
52,535
51,881
51,476
155,476
152,805
Interest Expense
7,476
7,640
7,874
23,319
24,384
(FTE)
45,059
44,241
43,602
132,157
128,421
(80)
1,881
1,551
3,269
Taxable
Equivalent Adjustments
After Provision for Credit Losses
45,090
43,279
41,676
130,474
125,019
19,384
20,599
22,331
59,916
62,252
42,295
42,640
42,916
126,308
124,155
Income
Before Income
Taxes
22,179
21,238
21,091
64,082
63,116
Income
Tax Expense
5,239
4,961
5,141
15,048
15,264
Attributable to Common
Shareowners
$
16,940
$
16,277
$
15,950
$
49,034
$
47,852
Basic Net Income
Per Share
$
0.99
$
0.95
$
0.93
$
2.87
$
2.81
Diluted Net Income Per Share
$
0.99
$
0.95
$
0.93
$
2.86
$
2.80
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
This information
is provided on a “taxable
equivalent”
basis to reflect the
tax-
exempt status
of income earned
on certain loans
and state
and local government
debt obligations.
We provide an
analysis of
our net
interest income
including average
yields and rates
in Table I, “Average
& Interest Rates,”
on page 51.
Tax
-equivalent net interest income
for the third quarter of
2026 totaled $45.1
million, compared to
$44.2 million for the second
quarter
$43.6 million for the third quarter
2026, the increase
was primarily
to higher income from
securities and loan
interest income, in addition
to lower deposit interest expense,
by lower overnight funds
income due to
lower average balances.
The increase in investment
securities income reflected
new investment
purchases at
higher rates and
higher balances as
we deploy additional
liquidity into the investment
security portfolio.
The decrease in deposit
interest expense was
primarily driven by lower
average balances
on seasonal
public funds accounts
and
lower
rates on time deposits.
One additional calendar
day also
the increase over
of 2026. The
increase over
of 2025
was also driven by the
same aforementioned
2026, tax
interest income totaled
$132.2 million compared
to $128.4 million for the
same
The increase was primarily attributable
securities income and
lower deposit interest expense,
by lower loan interest income
and overnight
funds income.
New investment purchases
at higher yields and higher
drove the increase
in investment securities income.
The decrease in deposit
interest expense was
to
lower rates across
several product
lines. Lower average loan
in loan interest income,
while the
decrease in overnight funds
income reflected
the deployment
of more liquidity into the
portfolio as well as a lower average
overnight funds
rate.
Our net interest margin
of 2026
was 4.42%, an
increase of seven
basis points over the
of 2026
and
eight basis points over the
of 2026, our
net interest margin
increased by
six basis points to
4.34% compared
to the same
The increase in net interest
margin over all prior periods was
largely
security yield driven by new purchases
at higher rates and
lower deposit costs. For the
2026, our cost
of funds
was 73 basis points,
of two basis points
five basis points
from
of 2025. Our cost
of deposits (including noninterest
bearing accounts)
was 74 basis points,
76 basis points,
and 80
basis points, respectively,
periods.
Provision for
We recorded
a provision benefit for
credit losses of $0.1
million for the third
quarter of 2026, compared
to a provision expense
of $0.9
million for the second
$1.9 million for the third quarter
of 2025. For the
first nine months of
2026, we recorded
a
provision expense
for credit losses of $1.
to $3.3 million for the same
of
2026, the provision
reflected a $1.4
million expense for loans
HFI and
a $0.1
million expense for unfunded
to a $3.4
million expense for loans
HFI and
a
$0.1 million benefit for unfunded
period
of
- We discuss
the various factors
that impacted
our provision expense
in further detail below under
the heading Allowance
for
Credit Losses.
Noninterest income
of 2026
totaled $19.4
million, a $1.2 million, or 5.9%, decrease from
of
a $2.9 million, or 13.2%, decrease
from the third quarter
of 2025. The
of 2026
was
to decreases in mortgage
of $1.0 million, deposit fees
of $0.5 million and
other income of
$0.2 million
by a $0.5
million increase in wealth management
revenues was primarily
due
to lower production
in deposit fees reflected
lower overdraft fees
to processing changes
that
better align with industry
practices. The increase
in wealth management
fees was primarily due
to higher retail brokerage fee
s.
of 2025
was driven by decreases
revenues of $1.1
million, deposit fees of
$0.7 million, other
income of $0.7
million and wealth management
fees of $0.5
in bank
card
fees of $0.1
million. The decrease in mortgage
was due to lower production
gain on sale margin. The
decrease in deposit
fees reflected lower overdraft
in other income reflected
a $0.7 million gain from
the sale of
our
insurance subsidiary
in the third quarter of
2025 – the
advisors at
this subsidiary also serviced retail brokerage
clients which drove the
decline in wealth
fees.
2026, noninterest
$59.9 million, a $2.3 million, or 3.8%, decrease
from the same
2025, attributable
to decreases in wealth
fees of $3.3
million partially offset
by increases in other income
of $0.7
million
and bank card
fees of $0.3 million. The decrease
in wealth management
fees was attributable
to decreases in retail brokerage
fees (due
to lower assets under
management)
and lower insurance
commissions (attributable
to the aforementioned
sale of our insurance
subsidiary). The increase
in other income
to increases in other fees/commissions
of $0.3 million and
bank
owned life insurance
income of $0.2
million. The increase in bank
card fees reflected
higher card volume.
Noninterest income
represented 30.1%
of operating revenues
(net interest income plus
noninterest income)
of
2026 compared
to 31.8% for the
of 2026
and 33.9%
of 2025. For the
of 2026,
noninterest income
represented 31.2%
of operating revenues
to 32.7%
The table below reflects
the major
income.
Three Months
Ended
$
5,168
$
5,656
$
5,877
$
16,422
$
16,258
Bank Card
Fees
3,830
3,858
3,733
11,318
11,021
Wealth Management
Fees
4,640
4,185
5,173
12,876
16,142
3,673
4,660
4,794
12,585
12,804
Other
2,073
2,240
2,754
6,715
6,027
Income
$
19,384
$
20,599
$
22,331
$
59,916
$
62,252
Significant components
income are discussed
in more detail below.
. Deposit fees for
of 2026
totaled $5.
million, a decrease of
$0.5 million, or 8.6%, from the second
of $0.7 million,
or 12.1%, from the
of 2026, deposit
fees totaled $16.4
million, a $0.2 million,
or 1.0%, increase over
the same period of 202
- Compared to the second
quarter of 2026 and
third quarter
decreases reflected
lower overdraft fees
to processing changes
that better
align with industry
practices. Compared
to the first nine months
increase was primarily due
to higher service charge fees and
commercial
account
analysis fees.
Bank Card Fees
. Bank card fees for the third
quarter of 202
totaled $3.8
a
$0.1 million,
or 0.7%, from the
second
$0.1 million, or 2.6%, over the third quarter
of 2025. For the first nine
2026, bank
card
fees totaled
$11.3 million, a $0.
million, or 2.7% increase
over the same
period of 2025. The
first nine months of
2025 reflected
higher card volume.
Wealth
Fees
. Wealth management
fees include trust fees
through Capital
City Trust (i.e., managed
and
trusts/estates),
and retail brokerage
fees through Capital
City Investments
(i.e., investment, insurance
products, and
retirement
accounts)
.
Wealth management
fees for the third
totaled $4.6
million, an increase of $0.
million, or 10.9%, over the
second quarter of 202
and a $0.5 million,
or 10.3%, decrease from
the third quarter of 2025.
of 2026, wealth
fees totaled $12.9 million, a
decrease of $3.3 million,
or 20.2%, from the
same period of 2025. The
increase compared
to
of 2026
was driven by higher retail brokerage
to the prior year periods
was primarily
to a decrease
in retail brokerage assets
under management.
Further, to a lesser extent,
lower insurance commissions
s
and reflected
the sale of our
insurance subsidiary
in the third quarter of
total assets
under management
were approximately
$2.892 billion compared
to $2.839
billion at June 30, 2026
and $3.
244 billion at
- The increase
over June 30, 2026
reflected higher account
valuations
.
to September
30, 2025, the
decline was due
to lower retail brokerage
assets partially
to the sale of
our insurance subsidiary
in the third quarter
of
Mortgage Banking Revenues.
Mortgage banking revenues
totaled $3.7 million
of
$1.0 million,
or 21.2%, from
of 2026
and a
of
$1.1 million, or 23.4%, from the
- For the first nine
months of 2026,
revenues totaled
$12.6 million,
of $0.2 million, or 1.7%, from the
was attributable
to lower production volume.
The decrease compared
to the
prior year periods was
due to lower production
gain on sale margin.
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
Other
. Other income totaled
$2.1 million for the third quarter
of
$0.2 million, or 7.5%, from the second
2026, and a decrease
of $0.7 million, or 24.7%, from
the third quarter of
of 2026, other
$6.7 million,
an increase of $0.7
million, or 11.4
%, over the same period
to the third quarter
of 2025,
was due to the
aforementioned
$0.7 million gain from the
sale of our insurance
subsidiary in the third quarter
The increase
over the first nine
2025 was primarily
to increases in other fees/commissions
of $0.3 million and
bank owned
life insurance income
of $0.2 million.
Noninterest expense
of 2026
totaled $42.3
million, a $0.3 million, or 0.8%, decrease from
of
2026 and a $0.6
million, or 1.4%, decrease
from the third quarter of
- The decrease
from the second quarter
of 2026 was primarily
to decreases in compensation
$0.2 million (commission expense)
$0.1 million. A $0.5
million decrease
in other real estate
expense that
was partially offset
by a $0.3
million increase in telephone expense
drove the
variance
in other expense. The
of 2025
was also driven by the
same aforementioned
months of 2026, noninterest
$126.3 million, a $2.2
million, or 1.7%, increase over
the same
2025 and
reflected increases in other
$3.0 million and occupancy
$0.8 million partially offset
by a $1.6
million
decrease in compensation
expense. The increase
in other expense
was primarily due to a
$3.9 million increase in ORE expense,
reflecting lower gains
on property sales
to the prior year period, which included
a significant gain from
the sale of
our
operations center
building in the first quarter
of 2025. Lower charitable
contribution expense
of $0.6 million and
professional
fee
$0.6 million partially offset
the increase. The increase
in occupancy
expense reflected
higher expense for FF&E
maintenance
agreements and
software licenses. The decrease
in compensation
expense reflected
lower salary expense
of $1.1 million
and associate
of $0.5 million. Lower commission expense
drove the decline in salary
expense and
in
associate
to lower stock based
compensation.
The table below reflects
the major
expense.
Three Months
Ended
Salaries
$
21,502
$
21,668
$
21,740
$
64,542
$
65,636
Associate Benefits
4,118
4,168
4,316
12,617
13,158
Total Compensation
25,620
25,836
26,056
77,159
78,794
Premises
3,132
3,096
3,176
9,407
9,620
Equipment
4,162
4,223
3,861
12,289
11,281
Total Occupancy
7,294
7,319
7,037
21,696
20,901
Legal Fees
1,529
1,474
Professional Fees
1,460
1,400
1,621
4,165
4,761
Processing Services
2,513
2,440
2,475
7,386
7,434
Advertising
2,511
2,350
Telephone
1,148
2,813
2,195
Insurance
– Other
2,205
2,239
Owned, net
(352)
(556)
(4,431)
Pension - Other
(747)
(744)
(871)
(2,236)
(2,616)
Miscellaneous
3,345
3,298
3,866
9,636
11,054
Total Other
9,381
9,485
9,823
27,453
24,460
Expense
$
42,295
$
42,640
$
42,916
$
126,308
$
124,155
Significant components
expense are
discussed in more detail below.
Compensation.
$25.6
million for the third quarter
$0.2 million, or 0.8%, from
the second quarter of
2026 and a decrease
of $0.4
million, or 1.7%, from the third quarter
reflected a $0.2
million decrease in salary expense
(primarily commission expense
). Compared
to the third quarter
decrease reflected
lower salary
$0.2 million (primarily commission expense)
and lower associate
benefits of
$0.2 million (primarily
lower health
insurance costs).
months of 2026, compensation
$77.2 million compared
to $78.8 million for the
with the $1.6 million
decrease reflective
of lower salary
$1.1 million and associate
of $0.5 million. Lower
commission expense
drove the decline in salary
expense and
in associate benefit
expense was primarily
to
lower health
care insurance
costs.
Occupancy
. Occupancy
$7.3 million for the third quarter
of 2026, comparable
a
$0.3 million, or 3.7%,
of 2026, occupancy
$21.7
a $0.8 million,
or 3.8%, increase
over the same
period of 2025. The
increase compared
to all prior periods was primarily
to higher FF&E maintenance
agreements and
software license expense.
Other
. Other expense totaled
$9.4 million for the third quarter
$0.1 million, or 1.1% decrease
a $0.4 million, or 4.5%, decrease
from the third
of 2026, other
$27.5 million,
a $3.0 million, or 12.2%,
and the
third
2025,
to
a
decrease in other
real estate expense
(ORE) that was partially
higher telephone
expense. The increase
over the first nine months
of 2025
was primarily due to a
$3.9 million increase in ORE
expense, which reflected
a lower level of gains
from the sale of properties,
namely a large gain
realized from the
sale of our operations
center building in the
first quarter
of 2025. Lower expense
for charitable
contributions of
$0.6 million and professional
fees of $0.6
million were partially
offsetting.
Our operating efficiency
ratio (expressed as
noninterest expense
as a percentage
of the sum
of taxable
interest income
plus noninterest income)
was 65.63% for
the third quarter of 2026 compared
to 65.76% for the second quarter
of 2026
and 65.09
%
for
of
of 2026, this ratio
was 65.76% compared
to 65.11%
Income Taxes
We realized income
tax expense
of $5.2 million (effective
rate of 23.6%)
of 2026, compared
to $5.0 million
(effective rate of 23.4%)
for the second quarter
of 2026 and $5.1 million
(effective rate of 24.4%)
For the
of 2026, we realized income
tax expense
of $15.0 million (effective
rate of 23.5%)
to $15.3 million
(effective rate
of 24.2%) for the
- Tax
benefits accrued
from a solar
tax credit investment
in 2026 drove
the
decrease in our effective
tax rate
to the prior year periods. Absent
discrete items or new tax
credit investments, we
expect
our annual
effective tax
rate to approximate
23-24% for 2026.
FINANCIAL CONDITION
Average
earning assets totaled
$4.038 billion for the third quarter
$30.6 million, or 0.8%,
quarter of 2026, and
an increase of $2.4 million,
or 0.1% over the fourth
quarter of 2025. Compared
to the second quarter
of 2026,
the
change in earning asset
mix reflected a
$27.2 million decrease
in overnight funds, a
$10.3 million decrease
in loans held for
investment, and
a $3.5 million decrease
in loans held for sale (“HFS”), partially
a $10.5
securities. Compared
2025, the change
reflected a $171.8
securities and a
$2.7
million increase in
loans HFS, partially offset
by a $99.7
million decrease in overnight funds
and a
$72.5 million decrease
in loans
held for investment.
Investment Securities
Average
investments
totaled $1.178
billion for the third quarter of
2026, a $10.6
million, or 0.9%,
of
a
$171.8 million,
or 17.1%, increase over
the fourth quarter of
- Average
investments
represented 29.2%
of our average
earning assets for
of 2026
to 28.7%
and 24.9%
for the fourth
- For the remainder
of 2026, we will continue
to monitor our
overall liquidity position and
market conditions
to determine if cash
flow from the
portfolio should be
reinvested or utilized to support
loan growth.
The 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 September 30,
2026, $862.1
million, or 73.0%, of the investment
portfolio was classified as
AFS
and $315.1
million, or 26.7%, was classified as
HTM.
The average
of our total
portfolio
at
was 2.98 years
to 2.95 years
at
and 2.57
years
at
The duration
of our total
portfolio
at
2026 was 2.63
years compared
to 2.60 years
at
and 2.12
years
at
Additional information
on unrealized gains/
losses in the AFS and HTM
portfolios is provided in Note 2 –
Securities.
We determine
the classification of a
security
at
the time of acquisition
based on how the purchase
will affect our asset/liability
strategy
and future
business plans and
opportunities. We
consider multiple factors
in determining classification,
including 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
loss component
of shareowners’ equity.
HTM securities are acquired
or owned with the intent
of holding them
to
maturity.
HTM investments
are measured
at
cost. We do not
trade, nor do
we presently intend to
begin trading investment
securities for the
purpose of recognizing
gains and therefore
we do not maintain
a trading portfolio.
30, 2026, there
were 848 positions (combined
AFS and HTM) with unrealized
pre-tax losses totaling $52.3
million. 91
of these positions
are U.S. Treasury
bonds and carry
the full faith and
credit of the U.S. Government.
688 are U.S. government
agency
securities issued by
U.S. government
sponsored entities. We
believe the long history
of no credit losses on
government securities
the expectation
cost basis is effectively
zero. At September
30, 2026, all collateralized
mortgage obligation
securities, mortgage
-backed
securities, Small Business Administration
securities, U.S. Agency,
and U.S. Treasury
bonds held were rated
AA+ or higher. The remaining
69 positions (municipal
securities and
bonds) have
a credit
component.
municipal securities and
debt securities had
an
immaterial allowance
for credit losses.
None of these securities
were past due
or in nonaccrual
status
at
Loans HFI
Average
loans HFI decreased
by $10.3 million, or 0.4%,
decreased by
$72.5 million, or 2.8%,
from the fourth
2026, the decline was
to decreases
in
loans of $8.4
million, residential real estate loans
of $4.5 million, and
construction loans
of $3.7 million,
by increases in consumer
loans (primarily indirect auto)
of $2.2 million, home
$2.0 million, and
commercial loans
of $1.5 million. Compared
2025, the decline was
to decreases
in
residential real estate
loans of $35.2
million, commercial real estate
loans of $33.0
million, construction loans
of $7.8 million,
commercial loans
of $5.1 million, and
consumer loans
(primarily indirect auto) of
$0.7 million, partially offset
by increases in home
$7.9 million.
Loans HFI
30, 2026, decreased
$10.1 million, or 0.4%,
decreased $56.4
million, or 2.2%,
from
December 31, 2025. Compared
to June 30, 2026, the
decline was primarily attributable
to decreases in commercial
real estate loans
of
$14.3 million, commercial
loans of $4.4
million, and other loans
of $2.3 million, partially offset
by increases in residential
real estate
loans of $5.9
million, consumer loans
(primarily indirect auto)
of $3.2 million, home
$1.7 million, and construction
loans of $0.2
million. Compared
to December 31, 2025,
the decline was primarily attributable
to decreases in commercial
real estate
loans of $32.4
million, residential real estate
loans of $16.9
million, commercial loans of
$12.2 million, and other
loans of
$4.4
by increases in home
$5.2 million, construction loans
of $2.4 million, and
consumer
loans
(primarily indirect auto)
of $1.7 million.
Without compromising
our credit standards
,
changing our underwriting standards,
or taking on inordinate
interest rate risk,
we
continue to closely monitor
our markets
and make
minor adjustments
as necessary.
Nonperforming assets
(nonaccrual
other real estate)
totaled $9.7
30, 2026, compared
to $13.4 million
at June 30, 2026 and
$10.5 million at December
31, 2025. At September
30, 2026, nonperforming
assets as a percentage
of total assets
was 0.22%, compared
to 0.30% at
and 0.24%
31, 2025. Nonaccrual
loans totaled
$7.4 million at
a $2.7 million decrease
a $1.2 million decrease
from December
31, 2025. Other real
estate totaled
$2.4 million at September
$1.1 million decrease from
and a
$0.4 million increase over
Further, classified loans
totaled $20.8
$9.0 million decrease from
and a
$6.5 million increase over December
Allowance for
for credit losses is a valuation
account
that is deducted
from the loans’
cost basis to present
the net amount
expected to
be collected on the
loans.
for credit losses is adjusted
by a credit loss provision which is reported
in
earnings and
reduced by the
charge-off
of loan amounts
(net of recoveries).
Loans are
charged off
against the
allowance when
believes the uncollectability of
a loan balance is confirmed.
Expected recoveries
do not exceed the aggregate
of amounts
previously charged
-off and
expected to
be charged-
off.
Expected credit loss inherent
in non-cancellable
off-balance
sheet credit
exposures is provided
through the credit loss
provision but
as
a separate
liability included in other liabilities.
estimates the allowance balance
using relevant available
from internal and
external sources
relating to past
events, current conditions,
and reasonable
and supportable
forecasts. Historical
loan default
and loss experience
provides the basis
for
the estimation
of expected
credit losses. Adjustments
to historical loss information
incorporate management’s
view of current
conditions and
forecasts.
the allowance for credit
losses for loans
HFI totaled $30.4
to $31.0 million
at
and $31.0
million
at
Activity within the allowance
is provided in Note 3 – Loans
Held for Investment
and
Allowance for Credit
Losses in the Notes to
to June 30, 2026,
the decline in the
allowance reflected
improved credit quality
metrics and a
lower level of net loan charge-
offs
of 8 basis points
of average
loans for the
third quarter
of 2026
versus 14 basis points
18 basis points for
of 2025. Net loan
charge-
offs
for the nine months
30, 2026 were 11
basis points compared
to 12 basis points
to December 31, 2025,
the decline in the allowance
to a decline in loan
balances.
At
the allowance represented
1.22% of loans HFI compared
to 1.24%
at
and 1.22%
at
credit losses for unfunded
totaled $2.2
million compared to
$2.2 million and
$2.1 million
at
31, 2025, respectively.
The slight change in the allowance
for unfunded
from December 31, 2025
reflected a variance
in the level of unfunded
loan commitments.
for unfunded
is recorded in other
Average
total deposits
were $3.648 billion for the
2026, a decrease
of $31.2 million, or 0.9%, from
comparable
was primarily due to
lower public funds
of $63.8 million (primarily NOW accounts)
due to the seasonal
reduction in those balances,
partially
higher core deposit balances
of $32.6 million (primarily MMA
and noninterest
bearing checking).
30, 2026, total
deposits were $3.667 billion, a decrease
of $54.4 million, or 1.5%,
an increase
of $4.3 million, or
0.1%,
over December 31, 2025.
was driven by lower public funds
of
$58.3 million (primarily
NOW accounts),
in core deposit balances
of $3.9 million (primarily NOW
accounts).
The increase over December
31, 2025, was primarily
due to core deposit
growth of $155.8
by lower
public funds
of $151.5
million. Total public funds
were $503.2 million at September
30, 2026, $561.5
and $654.7
million at December 31, 2025,
Business deposit
classified as repurchase
agreements averaged
$14.2 million for the
2026, an
increase of $3.2 million
over the second quarter
of 2026
and a decrease
of $6.5 million from
the fourth
30, 2026, repurchase
agreement balances
were $7.2 million compared
to $7.4 million at June
and $22.0
We continue
to closely monitor our cost
of deposits and
deposit mix as we manage
through the current
rate environment.
MARKET RISK AND
INTEREST RATE
SENSITIVITY
Market Risk and Interest
Rate Sensitivity
Overview.
Market risk arises from
changes in interest rates,
exchange
rates, commodity
prices, and equity
prices.
We have
risk
policies designed to monitor and
limit exposure to market
risk and we do not
participate
in activities that
give rise to
significant market
risk involving exchange
rates, commodity
prices, or equity prices.
In asset and
liability management
activities, our
policies are designed
to minimize structural
interest rate risk.
Interest Rate Risk Management.
Our net income
is largely dependent
on net interest income.
Net interest income is susceptible to
interest rate
risk to the degree that
interest-bearing liabilities mature
or reprice on a different
basis than
interest-earning assets.
When
interest-bearing liabilities
mature or reprice more
quickly than
interest-earning assets in a
given period, a significant
increase in
market rates
of interest could adversely
affect
net interest income.
Similarly, when interest-earning assets
mature or reprice more
quickly than
interest-bearing liabilities, falling
market interest
rates could result in a decrease
in net interest income.
Net interest
income is also affected
by changes in the
portion of interest-earning
assets that
are funded
by interest-bearing liabilities rather than
by
other sources of
funds, such as
noninterest-bearing deposits
and shareowners’
equity.
We have
established what
we believe to be a comprehensive
interest rate risk management
policy, which is administered by
management’s
Asset Liability Management
Committee
(“ALCO”).
The policy establishes limits of
risk, which are quantitative
measures of the percentage
change in net interest
income (a measure
of net interest income
at risk) and the
equity capital
(a measure
of economic
value of equity
(“EVE”) at risk) resulting from a hypothetical
change in interest rates
for maturities
from one
day to 30
years.
We measure
the potential
adverse impacts
that changing
interest rates may
have on
our short-term earnings, long-
term value, and
liquidity by employing simulation
analysis through
the use of computer
modeling.
The simulation model
captures
optionality factors
such as call features
and interest rate caps and
floors embedded
in investment and
loan portfolio contracts.
As with
any method
of gauging interest rate risk, there are
certain shortcomings
inherent in the interest rate
modeling methodology
used by
us.
When interest rates change,
actual
movements
in different categories
of interest-earning assets
and interest-bearing
liabilities, loan
prepayments,
and withdrawals
of time and
other deposits, may
deviate significantly
from assumptions
used in the model.
Finally, the
methodology
does not measure
or reflect the impact
that higher rates
may have
on adjustable
-rate loan clients’ ability to
service their
debts, or the impact
of rate changes
on demand
for loan and
deposit products.
The statement
of financial
condition is subject to
testing for both parallel
and upward
and downward
shifts in interest rates
(assuming
no balance
sheet growth) to indicate
the inherent interest rate
risk. We prepare a base
case (assumes
a static rate
environment)
and
several alternative
interest rate simulations
for various ranges of
upward and downward
interest rate changes.
This analysis is prepared
quarterly and
reported to ALCO, our Market
Risk Oversight Committee
(“MROC”), our Risk Oversight
Committee
(“ROC”) and
the
Board of
Directors. We will periodically
augment our interest
rate simulations
with alternative interest
rate scenarios that
may include
various non-parallel
shifts in interest rates, including
a flattening
or steepening of the
yield curve.
Our goal is to structure
the statement
of financial
condition so that
net interest earnings at
risk over 12-month and
24-month
periods
and the
economic value
of equity at
risk do not exceed
policy guidelines at the various
interest rate shock
levels. We attempt
to
achieve this goal by
balancing, within policy
limits, the volume
of floating
-rate liabilities with a similar volume
of floating
-rate assets,
by keeping the average
of fixed-rate asset
and liability contracts
reasonably
matched,
by managing
the mix of our
core
deposits, and
by adjusting
our rates to market
conditions on a
continuing basis.
Analysis.
Measures of
net interest income
at risk produced
by simulation analysis
are indicators of
an institution’s
short-term
performance
in alternative rate
environments.
These measures
are typically based
upon a
relatively brief period, and
do not
necessarily indicate
the long-term prospects
or economic value
of the institution.
The following table presents our
net interest income
simulation results
for gradual 12-month
and 24-month “ramp”
scenarios applied to the base
scenario. The “ramp”
scenario is a parallel
shift applied gradually
over a 12-month
period for the projected
12-month
and 24-month
period on a pro
rata basis.
ESTIMATED
CHANGES IN
NET INTEREST INCOME
As of September 30, 2026
% Change in NII
Change in Interest
Rates
24 Months
+200 bp Ramp
3.9%
17.5%
+100 bp Ramp
2.0%
11.1%
-100 bp Ramp
-2.0%
-1.9%
-200 bp Ramp
-4.0%
-8.9%
As of June 30, 2026
% Change in NII
Change in Interest
Rates
24 Months
+200 bp Ramp
4.8%
18.0%
+100 bp Ramp
2.4%
11.0%
-100 bp Ramp
-2.3%
-3.6%
-200 bp Ramp
-4.8%
-11.5%
The Net Interest Income
(“NII”) at Risk position
of an instantaneous
,
parallel rate shock
in the short-term (over the
next
12 months),
all rising rate environments
will positively impact
the net interest margin
of the Company,
while declining rate
s
will have a
negative impact
on the net interest
margin.
2026, these metrics became
more favorable
in the declining rate scenarios
due to the deployment
of variable
rate overnight funds
into the investment
securities
portfolio.
The measures
of equity value
at risk indicate our ongoing
economic value
by considering the effects
of changes
in interest rates on
all
of our cash
flows by discounting the cash
flows to estimate
the present value
of assets and
liabilities. The difference between
these
discounted values
of the assets
and liabilities is the economic value
of equity,
which in theory approximates
the fair value
of our net
assets.
ESTIMATED
CHANGES IN
ECONOMIC VALUE
OF EQUITY
% Change in EVE
EVE Ratio
Changes in Interest
Rates
+200 bp Shock
4.6%
10.6%
29.9%
27.2%
+100 bp Shock
3.2%
7.0%
29.0%
25.9%
-100 bp Shock
-6.1%
-9.0%
25.5%
21.4%
-200 bp Shock
-14.9%
-20.7%
22.7%
18.3%
30, 2026, the economic
value of equity
was favorable
in all rising rate environments and
unfavorable
in the falling rate
s.
EVE was within prescribed
tolerance levels as
the EVE ratio (EVE/EVA)
in all rate scenarios
is greater than
5.0%.
Factors that
can impact
EVE values include the absolute
level of rates, the overall
structure of the
balance
sheet (including liquidity
levels), pre-payment
speeds, loan floors, and
the change
of model assumptions.
As the interest rate
and the
dynamics
of the economy
continue to change,
simulations will be analyzed
to
address not
only the changing rate
environment,
but also the
change in mix of
liabilities measured over
multiple years, to
help assess the risk to
the Company.
LIQUIDITY AND CAPITAL
RESOURCES
Liquidity
In general terms, liquidity
is a measurement
of our ability to meet
our cash needs.
Our objective in managing
our liquidity is to
maintain
our ability to meet
loan commitments,
purchase securities or repay
deposits and
other liabilities in accordance
with their
terms, without an adverse
our current or future
earnings.
Our liquidity strategy
is guided by policies that
are formulated
and
monitored by
our ALCO and
senior management,
which take into account
the marketability
of assets, the
sources and
stability of
funding and
the level of unfunded
We regularly evaluate
all of our various funding
sources with an emphasis
on
accessibility,
stability, reliability and
cost-effectiveness.
Our principal source of
funding has
been our client deposits, supplemented
by our short-term and
long-term borrowings, primarily
from securities sold under
repurchase agreements,
federal funds purchased
and
FHLB borrowings.
We believe
that the cash generated
from operations,
our borrowing capacity
and our access to capital resources
are
sufficient to meet
our future operating
capital and
funding requirements.
we had the ability
to generate approximately
$1.745 billion (excludes overnight
funds position
of $340
million) in additional
liquidity through various sources
including various
federal funds
purchased
lines, Federal Home Loan
Bank
borrowings, the Federal
Reserve Discount
Window,
and brokered
deposits. We recognize
the importance
of maintaining
liquidity and
have developed
a Contingent
Liquidity Plan, which addresses various
liquidity stress levels and
our response and
action based
on the
level of severity.
We periodically
test our credit facilities
for access to
the funds
but also understand
that as
the severity of the
liquidity level increases
certain credit facilities
may no
longer be available.
We conduct
a liquidity stress test on a
quarterly basis
events that
could potentially
occur at the
Bank and
report results to our ALCO, MROC, ROC, and Board
of Directors.
We
believe the liquidity
available to us at September
was sufficient to meet
our ongoing needs and
execute our business
strategy.
We also view
our investment
portfolio as a
liquidity source and have
the option to
pledge securities in our portfolio as collateral
for
borrowings or deposits,
and/or to
sell selected securities. Our portfolio
consists of debt
issued by the U.S. Treasury,
U.S. governmental
agencies, municipal governments,
entities. Additional information
on our investment
portfolio is provided within Note 2
– Investment
Securities.
The Bank
maintained
an average
net overnight funds
(i.e., deposits with banks plus FED funds sold,
less FED funds purchased)
sold
position of $337.9
million in the third
quarter of 2026 compared
to $365.1
million in the second quarter
of 2026
and $437.5
million in
the fourth quarter
to the second quarter of
2026, the variance
reflected lower average
deposits and
the deployment
of excess liquidity into
the investment
security portfolio. Compared
2025, the variance
was driven by the
deployment
of excess liquidity into the
security portfolio. During the
of 2026, excess
liquidity was
partially deployed
into investment
securities as loan demand
remained selective and
continued its disciplined
underwriting approach.
believes the repositioning enhances
earnings while maintaining appropriate
liquidity levels.
We expect
our capital expenditures
will be approximately
$10.0 million over the next
12 months,
which will primarily consist of
construction of
a new office, office
remodeling, office equipment/furniture,
and technology
purchases.
expects that
these capital
expenditures will be funded
with existing resources without
impairing our ability
to meet our ongoing
obligations.
Average
short-term borrowings
totaled $45.7 million for
of 2026
to $44.5 million for the
of
$41.6 million for the fourth
of 2026
reflected higher repurchase
agreement balances
.
fourth quarter
of 2025
was attributable
to higher mortgage warehouse
line borrowings.
Additional detail on
warehouse borrowings
is provided in Note 4 –
Activities in the Consolidated
Financial
Statements.
We have
issued two junior subordinated
deferrable interest notes
to our 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.
We made
principal payments
on this note of
$4.1 million and $5.1
million in the first quarter of 2026
and the
of 2025,
The second note
for $32.0 million was issued
to CCBG Capital
Trust II in May
- We
made principal
on
this note of
$5.1 million each in the
first quarter of
The interest payment
for the CCBG Capital
Trust I borrowing
is due quarterly
and adjusts
quarterly to a
variable rate
of three-month
CME Term SOFR (secured overnight
financing rate) plus
a margin of 1.90%.
This note matures on
December 31, 2034. The
interest payment
for the CCBG Capital
Trust II
borrowing is due quarterly
and adjusts
quarterly to a
variable interest rate
three-month
CME Term SOFR plus a margin
of
1.80%. This note
matures on
June 15, 2035.
The proceeds from
these borrowings were used to partially
fund acquisitions.
Under the
terms of each
junior subordinated
deferrable interest note,
in the event of
default or if we elect to
defer interest on
the note, we may
not, with certain
exceptions, declare
or pay dividends
or make distributions
on our capital
stock or purchase
or acquire any
of our
capital stock.
previously maintained
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 October
2025, the interest
rate swaps were terminated.
Additional detail on
the interest rate swap
agreement is provided
in Note 5 – Derivatives
in the Consolidated
Capital
Our capital ratios
are presented
in the Selected Quarterly Financial
Data table
on page 38.
At September 30, 202
6, our regulatory
capital ratios
exceeded the
threshold to be designated
as “well-capitalized”
under the Basel
III capital
standards.
Shareowners’ equity
was $573.9
30, 2026 compared
to $570.1
million at June 30, 202
and $552.9
of 2026, shareowners’
equity was positively impacted
by net income
of $49.0
the issuance of
stock of $3.5
million, and stock compensation
accretion of
$1.5 million. Shareowners’ equity
was reduced by
a
common
stock dividends
of $13.9 million ($0.81
per share), repurchases
of our common
stock of $2.6
million (63,088 shares), net
totaling $2.5
million related to transactions
under our stock-based compensation
plans, and
an unfavorable
net change
of
$14.0 million in accumulated
loss due to an unfavorable
fair value mark
on investment
securities driven by
higher bond rates
.
our total risk-based
capital ratio was 22.99%
to 22.35% at
and 21.45
%
31, 2025. Our common
equity tier 1 capital
ratio was 20.43
%, 19.80%, and
18.56%, respectively,
on these dates.
Our leverage ratio
was 12.31%, 11.96
%, and 11.
77%, respectively, on
these dates.
At September 30,
2026, all our regulatory
capital ratios
exceeded the
thresholds to be designated
as “well-capitalized”
under the Basel III capital
standards. Further,
our tangible common
equity ratio (non-
GAAP financial
measure) was 11.25%
to 11.03%
at June 30,
10.79% at
- If our
unrealized held-to-maturity
securities loss of $16.0 million (after
-tax) were recognized in accumulated
other
loss, our adjusted
tangible capital
ratio would be 10.88%.
Our tangible capital
ratio is also impacted
by the recording of our
unfunded
pension liability through other
income in
accordance
with Accounting Standards
Topic 715. At September
30, 2026, June
the
net pension asset
reflected in other comprehensive
income was $9.
million. This liability is re-measured
annually
on December 31
st
an actuarial
calculation
of our pension liability. Significant
used in calculating the
liability include the weighted
average discount rate
used to measure the
present value of the pension
liability, the weighted
average expected
long-term rate of return
on pension plan assets,
and the assumed
rate of annual compensation
increases, all of which will vary when re-measured.
The discount
rate assumption
used to calculate
the pension liability is subject to
long-term corporate
bond rates
st
. These
and sensitivities are discussed
in the section entitled “Critical
Accounting Policies
and Estimates”
in Part II, Item
Operations, of
our 2025
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.
we had $628.8
million in commitments
credit and $7.3
million in standby letters of
credit.
credit are agreements
to lend to a client so
long as there is no violation
of any
condition established
in the
contract.
generally have fixed
expiration dates
or other termination
clauses and
may require payment
of a fee.
Since
many
of the commitments
are expected
to expire without being drawn
upon, the total
amounts
do not necessarily
represent future
cash requirements.
Standby
letters of credit are conditional
issued by us to guarantee
the performance
of a client to a
third party.
We use the same
credit policies in establishing commitments
and issuing letters of credit as
we do for on-
balance
sheet instruments.
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 our ongoing obligations.
In the event these commitments
require
funding in excess
of historical levels, management
believes current liquidity, advances
from the FHLB
and the
Federal
Reserve, and
security maturities provide
a sufficient
source of funds
to meet these
Certain agreements
provide that the commitments
are unconditionally cancellable
by the bank
and for those
agreements no
allowance
for credit losses has
been recorded.
We have
an
credit losses on loan commitments
not
unconditionally
cancellable by
the Bank,
which is included in other liabilities on the
and totaled
$2.2 million
at
CRITICAL ACCOUNTING
POLICIES
Our significant accounting
policies are described in Note 1 to
the Consolidated
Financial Statements
included in our 2025
The preparation
of our Consolidated Financial
s
in accordance
with GAAP and reporting practices applicable
to the banking
industry requires us
to make
that affect
the reported amounts
of assets, liabilities, revenues and
expenses,
and to disclose contingent
Actual results could
differ from those
estimates.
We have
identified accounting
for (i) the allowance for
credit losses, (ii) goodwill,
(iii) pension assumptions,
and (iv) income taxes
as
our most critical accounting
policies and estimates
in that they are important
to the portrayal of our
financial condition and
results, and
they require our
subjective and
complex judgment
as a result of
the need to
make estimates
about
the effects
of matters
that
are
inherently uncertain.
These accounting
policies, including the nature
of the estimates
and types
of assumptions
used, are described
throughout
this Item 2, Management’s
Operations, and
Part II, Item
7,
Operations included
in our 2025 Form
10-K.
TABLE I
AVERAGE BALANCES & INTEREST RATES (UNAUDITED)
Three Months Ended September 30,
Nine Months Ended September 30,
Average
Average
Average
Average
Average
Average
Average
Average
(Dollars in
Thousands)
Rate
Rate
Rate
Rate
Assets:
Loans Held for Sale
$
26,993
$
6.17
%
$
25,276
$
6.68
%
$
27,413
$
1,324
6.46
%
$
24,226
$
1,390
7.67
%
Loans Held for Investment
(1)(2)
2,495,535
38,277
6.09
2,606,213
39,894
6.07
2,513,086
113,914
6.06
2,641,346
120,359
6.09
Taxable Securities
1,176,534
10,629
3.60
992,260
7,175
2.88
1,153,550
29,920
3.46
993,460
19,644
2.64
Tax-Exempt
(2)
1,349
4.39
1,620
4.44
1,441
4.35
1,313
4.43
Federal Funds Sold and Interest Bearing
337,862
3,194
3.75
356,161
3,964
4.42
369,967
10,271
3.71
342,094
11,369
4.44
Total Earning
Assets
4,038,273
52,535
5.15
%
3,981,530
51,476
5.12
%
4,065,457
155,476
5.11
%
4,002,439
152,805
5.10
%
Cash & Due
From Banks
70,540
65,085
66,013
68,074
Allowance For Credit
Losses
(31,607)
(30,342)
(31,585)
(30,282)
Other Assets
309,290
301,678
304,254
300,788
TOTAL ASSETS
$
$
$
4,404,139
$
4,341,019
Liabilities:
Noninterest
Bearing Deposits
1,316,425
1,314,560
1,302,686
1,324,753
NOW Accounts
$
1,224,587
$
3,804
1.23
%
$
1,198,124
$
3,782
1.25
%
$
1,263,412
$
11,963
1.27
%
$
1,224,402
$
11,386
1.24
%
Money Market Accounts
433,430
1,964
1.80
416,656
2,090
1.99
419,028
5,573
1.78
422,817
6,617
2.09
Savings Accounts
511,313
0.08
503,189
0.13
511,500
0.09
506,255
0.13
Other Time Deposits
161,771
2.23
179,802
1,234
2.72
175,655
3,238
2.46
174,418
3,541
2.71
Bearing Deposits
2,331,101
6,780
1.15
2,297,771
7,265
1.25
2,369,595
21,108
1.19
2,327,892
22,053
1.27
Total Deposits
3,647,526
6,780
0.74
3,612,331
7,265
0.80
3,672,281
21,108
0.77
3,652,645
22,053
0.81
Repurchase
Agreements
14,160
2.20
21,966
2.86
13,616
2.09
24,752
2.58
Other Short-Term
31,532
3.98
12,753
1.82
30,984
4.28
10,251
4.62
33,303
3.45
42,582
3.52
36,045
3.58
49,113
1,473
3.95
5.55
5.55
5.68
4.50
Bearing Liabilities
2,410,663
7,476
1.23
%
2,375,753
7,874
1.32
%
2,450,875
23,319
1.27
%
2,412,763
24,384
1.35
%
Other Liabilities
83,642
85,422
78,126
75,664
TOTAL LIABILITIES
3,810,730
3,775,735
3,831,687
3,813,180
TOTAL SHAREOWNERS’ EQUITY
575,766
542,216
572,452
527,839
TOTAL LIABILITIES
AND
SHAREOWNERS’ EQUITY
$
$
$
4,404,139
$
4,341,019
Interest Rate Spread
3.92
%
3.81
%
3.83
%
3.75
%
$
45,059
$
43,602
$
132,157
$
128,421
Net Interest Margin
(3)
4.42
%
4.34
%
4.34
%
4.28
%
(1)
Average Balances
include net
loan fees,
discounts
and premiums.
Interest income
includes loan
costs of
$0.5 million
and $1.5
million for
the three and
and loan costs of $0.4 million and $1.1 million for the
three and nine month periods ended September 30, 2025.
(2)
Interest income
includes the
effects of
taxable equivalent
using a 21%
Federal tax rate.
(3)
Taxable equivalent
net interest
income divided
by average earning
assets.
QUANTITATIVE
AND QUALITATIVE
DISCLOSURES
ABOUT MARKET
RISK
See “Market
Risk and Interest
Rate Sensitivity” in Management’s
Operations, above,
which is incorporated
herein by reference.
has determined
that no
disclosures are
necessary to
assess changes
in information
about
market risk that
have occurred
since December 31, 2025.
CONTROLS AND PROCEDURES
Evaluation of
Disclosure Controls
and Procedures
,
the end of
the period covered
by this Form 10-Q, our management,
including our Chief Executive
Officer and
Chief Financial Officer,
evaluated
the effectiveness
of our disclosure controls and
procedures (as defined
in Rule 13a-15(e) under the
Securities Exchange
Act of 1934).
Based upon
that evaluation,
our Chief Executive
Officer and Chief
Financial Officer concluded
that, as
of the end
of the period covered
by this report,
our disclosure controls and
procedures were effective.
Our management,
including our Chief Executive
Officer and Chief
Financial Officer, has
reviewed our internal control over
financial
reporting (as defined
in Rule 13a-15(f) under
the Securities Exchange
Act of 1934). During the
quarter ended
there have
been no significant
changes in our internal
control over financial
reporting during our most recently
completed fiscal
quarter that
have materially
affected,
or are reasonably
likely to materially affect,
our internal control over
financial reporting.
PART
II.
OTHER INFORMATION
Legal Proceedings
We are party
to lawsuits arising out of
the normal
course of business.
In management's
opinion, there is no known
pending litigation,
the outcome
of which would, individually or
in the aggregate, have
a material
effect on
our consolidated
results of operations,
financial position,
or cash flows.
Risk Factors
In addition
to the other information
set forth in this Quarterly Report,
you should carefully
consider the factors
discussed in Part I,
in our 2025
Form 10-K, as updated
in our subsequent
quarterly reports. The
risks described in our 2025 Form
10-K, and
our subsequent
quarterly reports are
not the only risks facing
us. Additional risks and uncertainties
not currently known
to
us or that
we currently deem to be
immaterial also
may materially
adversely affect
our business, financial
condition and/or
operating
results.
There have not been
any material changes
to the risk factors
disclosed in Item 1A. of Part
I of the Company’s
Annual Report
on Form
10-K for the year
ended December
31, 2025, previously
filed with the SEC.
Unregistered Sales
of Equity Securities
and Use of Proceeds
None.
Defaults Upon Senior
None.
Mine Safety Disclosure
Not Applicable.
Other Information
(c) Rule 10b5
-1 Trading Plans
During the three months
none of our
directors or officers (as defined
in Rule 16a-1(f) under the
Exchange
Act)
adopted
, modified or
any contract,
instruction or written plan for
the purchase
or sale of our securities that
was
intended to satisfy
the affirmative
defense conditions
of Rule 10b5-1(c)
under the Exchange
Act or any “
non-Rule
10b5-1
trading
arrangement”
as defined
in Item 408(c) of
Regulation S-K.
Exhibits
(A)
Exhibits
3.1
Amended and Restated Articles of Incorporation - incorporated herein by reference to Exhibit 3.1 of
the Registrant’s
Form 8-K (filed 5/3/21) (No. 000-13358).
3.2
Amended and Restated Bylaws - incorporated herein by reference to Exhibit 3.1 of the Registrant’s
Form 8-K (filed
12/20/2024) (No. 000-13358).
31.1
Certification of William G Smith, Jr., Chairman and Chief Executive Officer of Capital City Bank Group, Inc., Pursuant
to Rule 13a-14(a) of the Securities Exchange Act of 1934.
31.2
Certification of Jeptha E. Larkin, Executive Vice President and Chief Financial Officer of Capital City Bank Group, Inc.,
Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
32.1
Certification of William G. Smith, Jr., Chairman and Chief Executive Officer of Capital City Bank Group, Inc., Pursuant
to 18 U.S.C. Section 1350.
32.2
Certification of Jeptha E. Larkin, Executive Vice President and Chief Financial Officer of Capital City Bank Group, Inc.,
Pursuant to 18 U.S.C. Section 1350.
101.SCH
Extension Schema
Document
101.CAL
Extension Calculation
101.LAB
Extension Label
101.PRE
Extension Presentation
101.DEF
Extension Definition Linkbase
Document
Cover Page Interactive
Data File (formatted
as Inline XBRL and
contained
in Exhibit 101)
SIGNATURES
Pursuant to
the requirements
of the Securities Exchange
Act of 1934, the
Registrant has
duly caused
this Report to be signed
on its
behalf by
the undersigned Chief
Financial Officer hereunto
duly authorized.
CAPITAL
CITY BANK GROUP,
INC.
(Registrant)
/s/ Jeptha
E. Larkin
Jeptha E. Larkin
Executive Vice
President and
Chief Financial Officer
(Mr. Larkin is
the Principal Financial
Officer and has
been duly authorized
to sign on behalf
of the Registrant)
Date: October 30,
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.