CCBG 10-K & 10-Q changes, risk factors and insider trading
Capital City Bank Group Inc. · Nasdaq · State Commercial Banks · CIK 726601 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “The development and use of Artificial Intelligence (“AI”) presents risks and challenges that may adversely impact our business.”
Removed heading “Fee revenues from overdraft protection programs constitute a significant portion of our noninterest income and may continue to be subject to increased supervisory scrutiny.”
Largest changes
see in full comparisonOursystems,orincluding thoseofwe maintain with our service providers, vendors, or our clients, could be vulnerable to cybersecurity-related incidents, which includebreachescompromises of information systems, attempts to access information, including customer and company information, malicious code, computer virusesandor other malware, denial of service attacks, phishing attempts, brute force attacks, exploiting software vulnerabilities (including “zero-day attacks”), ransomware, supply chain attacks, and other events that could result in unauthorized access, theft, misuse, loss, release, or destruction of data (including confidential customer information), account takeovers, unavailability of service, or other events. These types of threats mayderiveresult from human error, fraud, ormalicecriminal activity on the part of external or internalpartiesparties, or may result fromaccidentalthetechnologicalfailurefailure.of technology or information systems. Further, these types of threats may be exacerbated by recent developments in artificial intelligence anditstheir increased use to produce sophisticated malware, phishing schemes, and other fraudulent activities. Any failure, interruption, orbreachcompromise in security of these systems could result in significant disruption to our operations.
We may be required to spend significant capital and other resources to protect against the threat of cybersecurity-related incidents or to alleviate problems caused by such incidents. Any failures related to upgrades and maintenance of our technology and information systems could increase our information and system security risk. Our increased use of cloud and other technologies, such as remote work technologies, and the increased connectivity of third parties and electronic devices to our systems also increases our risk of being subject to a cybersecurity-related incident. The risk of a cybersecurity-related incident has increased as the number, intensity, and sophistication of attempted attacks and intrusions from around the world have increased. A cybersecurity-related incident or other significant disruption of our information systems or those of our customers or third-party service providers and vendors could (i) disrupt the proper functioning of our networks and systemssee in full comparisonandand,thereforetherefore, our operationsandthose of our customers; (ii) result in the unauthorized access to,anddestruction, loss, theft, misappropriation, or release of confidential, sensitive, or otherwise valuable information of ours or our customers; (iii) result in a violation of applicable privacy, data protection, and other laws, subjecting us to additional regulatory scrutiny and exposing us to civil litigation, enforcement actions, governmental fines, sanctions, or penalties (which may not be covered by our insurance policies), and possible financial liability; (iv) require significant management attention and resources to remedy the damages that result; (v) cause increased expenses and lost revenue; or (vvi) cause negative publicity, harm ourreputationreputation, or cause a decrease in the number of customers that choose to do business with us, damaging our ability to generate deposits. The occurrence of any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations. Furthermore, in the event of acyber-relatedcybersecurity-related incident, we may be delayed in identifying or responding to the incident, which could increase the negative impact of the incident on our business, financial condition, and results of operations. While we maintain“cyber”cybersecurity insurance coverage, whichwouldmay apply in the event of certaincyber-relatedcybersecurity-related incidents, the amount of coverage may not be adequate depending on the magnitude of the incident. Furthermore, becausecyber-relatedcybersecurity -related incidents are inherently difficult to predict and can take many forms, some incidents may not be covered under our cyber insurance coverage.
“The development and use of Artificial Intelligence (“AI”) presents risks and challenges that may adversely impact our business.”see in full comparison
(see in full comparisonk7) the suitability or reasonableness of recommending particular trading or investment strategies, including the reliability of our research and models; (8) prohibiting clients from engaging in certain transactions or actions taken to debank certain clients; (h) associate sales practices; (9) failure to deliver products and services; (10) subpar standards of service and quality expected by our customers, clients, and the community; (11 compliance failures; (l12) mergers and acquisitions; (m13) the inability to manage technology change or maintain effective data management; (n14) cyber incidents; (o15) internal and external fraud (including check fraud and debit card and credit card fraud); (p16) inadequacy of responsiveness to internal controls; (q17) unintended disclosure of personal, proprietary or confidential information; (18) failure (or perceived failure) to identify and manage actual and potential conflicts of interest; (19) breach of fiduciary obligations; (20) the handling of health emergencies or pandemics, (21) the activities of our clients, customers, counterparties, and third parties, including vendors;
“We are unable to predict changes in interest rates, which are affected by factors beyond our control, including inflation, deflation, recession, unemployment, money supply and other changes in financial markets.”see in full comparison
“Fee revenues from overdraft protection programs constitute a significant portion of our noninterest income and may continue to be subject to increased supervisory scrutiny.”see in full comparison
Full comparison: every changed paragraph (121)
Our profitability depends to a large extent on Capital City Bank’s net interest income, which is the difference between income on interest-earning assets, such as loans and investment securities, and expense on interest-bearing liabilities such as deposits and borrowings. We are unable to predict changes in market interest rates, which are affected by many factors beyond our control, including inflation, changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs, recession, unemployment, federal funds target rate, money supply, domestic and international events and changes in the United States and other financial markets. Our net interest income may be reduced if: (i) more interest-earning assets than interest-bearing liabilities reprice or mature during a time when interest rates are declining or (ii) more interest-bearing liabilities than interest-earning assets reprice or mature during a time when interest rates are rising.
Changes in the difference between short-term and long-term interest rates may also harm our business. We generally use short-term deposits to fund longer-term assets. When interest rates change, assets and liabilities with shorter terms reprice more quickly than those with longer terms, which could have a material adverse effect on our net interest margin. During 2022 and 2023, the Federal Reserve raised the federal funds rate 11 times for a cumulative increase of 5.25%. In 2024, the Federal Reserve began lowering the federal funds rate and lowered it three times during the year for a cumulative decrease of 1.00%. InWe Decemberare 2024,currently operating in an environment in which the Federal Reserve releasedhas itsshifted economictoward projectionsreducing suggestinginterest thatrates, italthough willmodestly, reducewith thecuts federal funds rate twiceimplemented in 2025September, for a cumulative decrease of 0.50% for the year, but there is no guarantee that the Federal Reserve will further reduce the federal funds rate in the near-termOctober and couldDecember maintain the rate at the current level or even increase it.2025.
However, the inflationary outlook remains uncertain and if the Federal Reserve were to further decrease interest rates, this may constrain our interest rate spread due to our asset sensitivity and may adversely affect our business forecasts. On the other hand, rapid increases in the target federal funds rate may result in a change the mix of noninterest and interest-bearing accounts and effect our interest rate spread. New appointments to the Board of Governors at the Federal Reserve could result in a change in monetary policy and interest rates, and the potential erosion of Federal Reserve independence could negatively impact financial markets and impact our profitability.
We are unable to predict changes in interest rates, which are affected by factors beyond our control, including inflation, deflation, recession, unemployment, money supply and other changes in financial markets.
A decline in mortgage rates generally increases the demand for mortgage loans as borrowers refinance, but also generally leads to accelerated payoffs. Conversely, in a constant or increasing rate environment, we would expect fewer loans to be refinanced and a decline in payoffs. Although we use models to assess the impact of interest rates on mortgage-related revenues, the estimates of revenues produced by these models are dependent on estimates and assumptions of future loan demand, prepayment speeds and other factors which may differ from actual subsequent experience.
Inflation rose sharply at the end of 2021 and continued rising in 2022 at levels not seen for over 40 years. Inflationary pressures eased but remained elevated throughout 2023 and 2024. Small to medium -sized businesses may be impacted more during periods of high inflation as they are not able to leverage economies of scale to mitigate cost pressures compared to larger businesses.
Small to medium-sized businesses may be impacted more during periods of high inflation as they are not able to leverage economies of scale to mitigate cost pressures compared to larger businesses. Consequently, the ability of our business customers to repay their loans may deteriorate, and in some cases this deterioration may occur quickly, which would adversely impact our results of operations and financial condition. Furthermore, a prolonged period of inflation could cause wages and other costs to further increase which could adversely affect our results of operations and financial condition. Sustained higher interest rates by the Federal Reserve may be needed to tame persistent inflationary price pressures, which could push down asset prices and weaken economic activity. A deterioration in economic conditions in the United States and our markets could result in an increase in loan delinquencies and non-performing assets, decreases in loan collateral values and a decrease in demand for our products and services, all of which, in turn, would adversely affect our business, financial condition and results of operations.
A deterioration in economic conditions in the United States and our markets could result in an increase in loan delinquencies and non-performing assets, decreases in loan collateral values and a decrease in demand for our products and services, all of which, in turn, would adversely affect our business, financial condition and results of operations.
Changes in customer behavior may have a negative impact on our business, financial condition, and results of operations.
Individual, economic, political, industry -specific conditions and other factors outside of control, such as fuel prices, energy costs, real estate values, inflation, tariffs trade wars, taxes factors that affect customer income levels, alter anticipated customer behavior, borrowing, repayment, investment deposit practices.
Such change these practices materially adversely affect our ability to anticipate business needs and meet regulatory requirements.
Further, difficult economic conditions may negatively affect consumer confidence levels.
Further, difficult economic conditions may negatively affect consumer confidence levels. A decrease in consumer confidence levels would likely aggravate the adverse effects of these difficult market conditions on us and our customers.
The fair value of our investments could declinedecline, which would cause a reduction in shareowners’ equity.
decline in mortgage rates generally increases the demand for mortgage loans as borrowers refinance, but also generally leads to accelerated payoffs. Conversely, in a constant or increasing rate environment, we would expect fewer loans to be refinanced and a decline in payoffs. Although we use models to assess the impact of interest rates on mortgage-related revenues, the estimates of revenues produced by these models are dependent on estimates and assumptions of future loan demand, prepayment speeds and other factors which may differ from actual subsequent experience.
31, 2024,2025, commercial mortgage loans comprised approximately 29.4% of our total loan portfolio.
30.2% of our total loan portfolio.
. Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business. At December 31, 2024, commercialThese loans comprisedare approximatelyalso 7.1%sensitive to broader economic conditions, competitive pressures, and industry-specific trends, any of ourwhich totalmay loandisproportionately portfolio.impact certain segments during periods of stress and increase the likelihood of credit deterioration.
At December 31, 2025, commercial loans comprised approximately 7.1% of our total loan portfolio.
. The risk of loss is largely dependent on our initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If our estimate is inaccurate or if actual construction costs exceed estimates, which could be impacted by factors outside of our control, including tariff, trade, and immigration policies, the value of the property securing our loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral.
2024,At December 31, 2025, construction loans comprised approximately 8.3%5.8% of our total loan portfolio.
. Our open-ended home equity loans have an interest-only draw period followed by a five-year repayment period of 0.75% of the principal balance monthly and a balloon payment at maturity. Upon the commencement of the repayment period, the monthly payment can increase significantly, thus, there is a heightened risk that the borrower will be unable to pay the increased payment. Further, these loans also involve greater risk because they are generally not fully amortizing over the loan period,period but rather have a balloon payment due at maturity.
In addition, credit risk may be elevated by borrower or third party fraud, inaccuracies in financial information, or misrepresentations in loan documentation. As seen across the banking industry, evolving fraud schemes and greater digitization of financial transactions can increase the risk that loans are underwritten based on incomplete, inaccurate, or falsified information, which may heighten the risk of unexpected credit losses.
31, 2024,2025, a significant number of our loans secured by real estate are secured by commercial and residential properties located in Florida and Georgia. The concentration of our loans in these areas subjects us to risk that a downturn in the economy or recession in these areas could result in a decrease in loan originations and increases in delinquencies and foreclosures, which would more greatly affect us than if our lending were more geographically diversified. In addition, since a large portion of our portfolio is secured by properties located in Florida and Georgia, the occurrence of a natural disaster, such as a hurricane, or a man-made disaster could result in a decline in loan originations, a decline in the value or destruction of mortgaged properties and an increase in the risk of delinquencies, foreclosures or loss on loans originated by us. WeSevere weather events, catastrophic natural disasters, or other large-scale disruptions may also rapidly impair collateral values and borrower repayment capacity across an entire geographic market, increasing both credit losses and required credit-loss reserves. We suffer further losses due to the decline in the value of the properties underlying our mortgage loans, which would have an adverse impact on our results of operations and financial condition.
We are exposed to the risk that our clients may be unable to repay their loans according to their terms and that any collateral securing the payment of their loans may not be sufficient to assure full repayment. This could result in credit losses that are inherent in the lending business. We evaluate the collectability of our loan portfolio and provide an allowance for credit losses that we believe is adequate based upon such factors as: the risk characteristics of various classifications of loans; previous loan loss experience; specific loans that have loss potential; delinquency trends;
the risk characteristics of various classifications of loans;
previous loan loss experience;
specific loans that have loss potential;
delinquency trends;
estimated fair market value of the collateral;
estimated fair market value of the collateral; current and future economic conditions; and geographic and industry loan concentrations.
TheWe cannot provide any assurance that our monitoring procedures and policies will reduce certain lending risks, and while the allowance is based on management’s reasonable estimate and may not prove sufficient to cover future loan losses.
These models reflect assumptions that not be accurate, particularly times stress unforeseen circumstances.
The amount that we, as a mortgagee, may realize after a foreclosure is dependent upon factors outside of our control, including, but not limited to: general or local economic conditions; environmental cleanup liability; neighborhood values; interest rates; real estate tax rates; operating expenses of the mortgaged properties; supply of and demand for rental units or properties; ability to obtain and maintain adequate occupancy of the properties; zoning laws; governmental rules, regulations and fiscal policies; and acts of God.
The amount that we, as a mortgagee, may realize after a foreclosure is dependent upon factors outside of our control, including, but not limited to:
general or local economic conditions;
environmental cleanup liability;
neighborhood values;
interest rates;
real estate tax rates;
operating expenses of the mortgaged properties;
supply of and demand for rental units or properties;
ability to obtain and maintain adequate occupancy of the properties;
zoning laws;
governmental rules, regulations and fiscal policies; and acts of God.
In particular, a majority of our liabilities during
In particular, a majority of our liabilities during 20242025 were checking accounts and other liquid deposits, which are generally payable on demand or upon short notice.
A significant decrease public fund deposit balances result increased competition current higher interest-rate environment and seasonal nature of these deposits could materially and adversely affect our liquidity.
need raise additional future provide us with sufficient resources liquidity meet commitments and business needs, particularly if our asset quality or earnings were to deteriorate significantly.
Further, as a result of our failure to timely file our
Quarterly Report on Form 10-Q for the three-month period ended March 31, 2024, we are currently ineligible to file new short form registration statements on Form S-3 and, absent a waiver of the Form S-3 eligibility requirements, we are not currently permitted to use our existing registration statement on Form S-3D. If we seek to access the capital markets through a registered offering during the period of time that we are unable to use Form S-3, we may be required to publicly disclose the proposed offering and the material terms thereof before the offering commences and we will be required to use a registration statement on Form S-1 to register securities with the SEC, which would hinder our ability to act quickly in raising capital to take advantage of market conditions in our capital raising activities and would increase our cost of raising capital.
Declarations of any future dividends will be contingent on our ability to earn sufficient profits and to remain well capitalized, including our ability to hold and generate sufficient capital to comply with the Common Equity Tier 1 (“CET1”) Capital conservation buffer requirement. In addition, due to our contractual obligations with the holders of our trust preferred securities, if we defer the payment of accrued interest owed to the holders of our trust preferred securities, we may not make dividend payments to our shareowners.
Government authorities, including the bank regulatory agencies, are pursuing aggressive enforcement actions with respect to compliance and other legal matters involving financial activities,activities (including new prohibitions on politicized debanking), which heightens the risks associated with actual and perceived compliance failures. Directives issued to enforce such actions may be confidential and thus, in some instances, we are not permitted to publicly disclose these actions. Litigation challenging actions or regulations by federal or state authorities could, depending on the outcome, significantly affect the regulatory and supervisory framework affecting our operations.
Any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations.
Directives issued to enforce such actions may be confidential and thus, in some instances, we are not permitted to publicly disclose these actions. Litigation challenging actions or regulations by federal or state authorities could, depending on the outcome, significantly affect the regulatory and supervisory framework affecting our operations. Any of the foregoing could have a material adverse effect on our business, financial In addition, we face increased regulatory scrutiny, in the course of routine examinations and otherwise, and new regulations response to negative developments in the banking industry, which may increase our cost of doing business and reduce our profitability. Among other things, there may be increased focus by both regulators and investors on deposit composition, the level of uninsured deposits, brokered deposits, unrealized losses in securities portfolios, liquidity, commercial real estate loan composition and concentrations, and capital as well as general oversight and control of the foregoing. We could face increased scrutiny or be viewed as higher risk by regulators and the investor community, which could have a material adverse effect on our business, financial condition, and results of operations.
Fee revenues from overdraft protection programs constitute a significant portion of our noninterest income and may continue to be subject to increased supervisory scrutiny.
Revenues derived from transaction fees associated with overdraft protection programs offered to consumers represent a significant portion of our noninterest income. In 2024, the Company collected approximately $9.5 million in net consumer overdraft transaction fees.
In response to increased congressional and regulatory scrutiny (See Item 1. Business under the section captioned “Consumer Laws and Regulations”), and in anticipation of enhanced supervision and enforcement of overdraft protection practices in the future, certain banking organizations have begun to modify their overdraft protection programs, including by discontinuing the imposition of overdraft transaction fees, lowering their overdraft transaction fees, and amending their payment priority policies and procedures. These competitive pressures from our peers, as well as any adoption by our regulators of new rules or supervisory guidance or more aggressive examination and enforcement policies in respect of banks’ overdraft protection practices, could cause us to modify our program and practices in ways that may have a negative impact on our revenue and earnings, which, in turn, could have an adverse effect on our financial condition and results of operations.
(6) deficiencies in services or service delivery;
(7) negative developments in relationships with key counterparties, third-party vendors, or associates in our day-to-day operations; and (8) external events that are wholly or partially beyond our control, such as pandemics, geopolitical events, political unrest, natural disasters or acts of terrorism.
Management's Discussion & Analysis (MD&A)
New heading “Tax-equivalent net interest income totaled $171.8 million compared to $159.2 million for 2024”
New heading “Net interest margin increased by 20 basis points to 4.28% (increase in earning asset yield of 10 basis points and decrease in cost of funds of 10 basis points)”
New heading “Tangible book value per diluted share (non-GAAP financial measure) increased by $3.38, or 14.3%”
New heading “% Change in NII”
New heading “Change in Interest Rates”
Removed heading “Tax-equivalent net interest income totaled $159.2 million for 2024 compared to $159.4 million for 2023 driven by higher yields across our earning assets, partially offset by higher deposit cost which was well controlled at 89 basis points for the year – net interest margin was 4.08% for 2024 compared to 4.05% for 2023”
Removed heading “Noninterest income increased”
Removed heading “Tangible book value per share increased $3.20, or 15.6%, driven by strong earnings and favorable investment security and pension plan accumulated other comprehensive loss adjustments”
Removed heading “Percentage Change (12-month shock)”
Removed heading “+100 bp -100 bp -200 bp -300 bp -400 bp”
Removed heading “Percentage Change (24-month shock)”
Removed heading “+100 bp -100 bp -200 bp -300 bp -400 bp”
Removed heading “+100 bp -100 bp -200 bp -300 bp -400 bp”
Largest changes
“Tax-equivalent net interest income totaled $159.2 million for 2024 compared to $159.4 million for 2023 driven by higher yields across our earning assets, partially offset by higher deposit cost which was well controlled at 89 basis points for the year – net interest margin was 4.08% for 2024 compared to 4.05% for 2023”see in full comparison
“Tangible book value per share increased $3.20, or 15.6%, driven by strong earnings and favorable investment security and pension plan accumulated other comprehensive loss adjustments”see in full comparison
“Net interest margin increased by 20 basis points to 4.28% (increase in earning asset yield of 10 basis points and decrease in cost of funds of 10 basis points)”see in full comparison
“Tangible book value per diluted share (non-GAAP financial measure) increased by $3.38, or 14.3%”see in full comparison
“Tax-equivalent net interest income totaled $171.8 million compared to $159.2 million for 2024”see in full comparison
Full comparison: every changed paragraph (909)
provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management, and asset protection services. The Bank has 62 banking offices and 104 ATMs/ITMs in Florida, Georgia and Alabama.
The Bank has 62 banking offices and 108 ATMs/ITMs in Florida, Georgia and Alabama.
Through Capital City
Through Capital City Home Loans, LLC (“CCHL”), we have 2728 additional offices in the Southeast for our mortgage banking business.
Our five-year strategic plan “2025 In Focus” guides us in the areas of client experience, channel optimization, market expansion, and culture.
These markets also benefit from favorable demographic trends, including population growth, state government stability, and expanding healthcare and education sectors, which support our long-term relationship banking strategy and contribute to the resilience of our deposit base.
Additionally, we expanded our presence in the Florida Panhandle by opening a full-service office s in Watersound, Florida in the first quarter of 2023, Panama City, Florida (Lynn Haven) in the first quarter of 2024, and Panama City, Florida (West Bay) in the first quarter of 2025.To expand our presence and commitment to our Gainesville market, we opened a third full-service banking office in the area in early 2023.
To expand our presence and commitment to our Gainesville market, we opened a third full-service banking office in the area in early 2023.
On March 1, 2020, CCB acquired from BMGBMG, LLC (“BMG”) an initial 51% membership interest in CCHL (formerly known as Brand Mortgage Group, LLC), which became a consolidated entity in the Company’s financial statements. AsOn partNovember of15, 2024, CCB entered into an agreement with BMG to transfer the transaction,49% CCHL’s operating agreement included put and call options for CCBInterest to purchaseCCB, fromwhich BMGclosed theon remainingJanuary 49% of CCHL’s membership interests (the “49% Interest”).1,
On November 15, 2024, CCB entered into an agreement with BMG to transfer the 49% Interest to CCB, effective January 1, 2025.
BMG initiated the buyout by exercising its put option in CCHL’s operating agreement.
For 2024, net income attributable to common shareowners totaled $52.
For 2025, net income attributable to common shareowners totaled $61.6 million, or $3.12$3.60 per diluted share, compared to net income of $52.9 million, or $3.12 per diluted share, for 2024, and $52.3 million, or $3.07 per diluted share, for 2023, and $33.4 million, or $1.97 per diluted share, for 2022.2023.
For 2025, the increase in net income attributable to common shareowners reflected a $12.7 million increase in net interest income and a $6.4 million increase in noninterest income, that were partially offset by a $6.2 million increase in income taxes, a $1.7 million increase in noninterest expense, and a $1.2 million increase in provision for credit losses.
Net income attributable to common shareowners included a $1.3 million decrease in the deduction to record the non-controlling interest in the earnings of CCHL.
For 2023, the increase in net income attributable to common shareowners reflected a $34 million increase in net interest income that was partially offset by a $5.4 million increase in noninterest expense a $5.2 million increase in income taxes, a $3.6 million decrease in noninterest income of $3.6 million, and a $2.2 million increase in the provision for credit losses.
Net income attributable to common shareowners included a $1.3 million increase in the deduction to record the 49% non-controlling interest in the earnings of CCHL.
Tax-equivalent net interest income totaled $171.8 million compared to $159.2 million for 2024
Net interest margin increased by 20 basis points to 4.28% (increase in earning asset yield of 10 basis points and decrease in cost of funds of 10 basis points)
Tax-equivalent net interest income totaled $159.2 million for 2024 compared to $159.4 million for 2023 driven by higher yields across our earning assets, partially offset by higher deposit cost which was well controlled at 89 basis points for the year – net interest margin was 4.08% for 2024 compared to 4.05% for 2023
Credit quality metrics remained strong throughout the year – allowance coverage ratio remainedincreased stableto at1.22% in 2025 compared to 1.10% in 2024 - net loan charge-offs were 2114 basis points of average loans for 20242025 versuscompared 18to 21 basis points for 20232024
Noninterest income increased
$4.4Noninterest income increased by $6.4 million, or 6.1%,8.4%, drivendue byto higher mortgage banking revenues andof $2.6 million, wealth management fees of $1.6 million, other income of $1.5 million, and deposit fees of $0.7
$8.3$1.7 million, or 5.3%,1.0%, primarily due to higher compensation expense reflective(primarily ofperformance-based higherpay incentiveand compensation,health meritcare raises,cost) partially offset by lower pension expense and higher healthgains insurancefrom coststhe sale of banking facilities
Loan balances increaseddecreased $50.1by $83.6 million, or 1.9%3.1% (average), and decreased $82.4by $105.4 million, or 3.0%4.0% (end of period)
DepositAverage deposit balances decreasedincreased $72.2by $53.9 million, or 2.0%1.5% (average),driven andby decreasedstrong $29.8core million,deposit or 0.8% (end of period)growth
Tangible book value per diluted share (non-GAAP financial measure) increased by $3.38, or 14.3%
Tangible book value per share increased $3.20, or 15.6%, driven by strong earnings and favorable investment security and pension plan accumulated other comprehensive loss adjustments
204,387
131,910
204,564
6,888
171,825
125,347
166,384
117,528
81,717
41,075
For 2024, our taxable equivalent net interest income totaled $159.
million compared to $159.4 million for 2023 and $125.3 million for 2022.
The $0.2 million, or 0.1%, decrease in 2024 was primarily attributable to higher deposit interest expense, which was substantially offset by higher loan interest income and to a lesser extent higher overnight funds interest income.
The $34.1 million, or 27.2%, increase in 2023 reflected loan growth and higher interest rates across a majority of our earning assets, partially offset by higher deposit interest expense.
For 2024,2025, our taxable equivalent net interest income totaled $194.9$171.8 million compared to $181.4$159.2 million infor 20232024 and $132.2$159.4 million infor 2022.2023.
The $13.5$12.6 million, or 7.4%,7.9%, increase in 20242025 was primarily attributable to loanan growthincrease in investment securities income and favorableto a lesser extent an increase in overnight funds income and lower deposit interest expense, partially offset by lower loan repricing.income.
$49.2 million, or 37.2%, increase in 2023 reflected an overall improved earning asset mix driven by loan growth, and higher interest rates on earning assets.
For 2024, interest expense totaled $35.7 million compared to $22.1 million for 2023 and $6.9 million for 2022.
The $13.6 million, or 61.5% increase in 2024 was primarily attributable to increased deposit interest expense, including a $6.3 million increase attributable to money market accounts, a $4.5 million increase attributable to NOW accounts, and a $3.7 million increase attributable to certificates of deposit, all reflective of a shift in balances from noninterest bearing to interest bearing products driven by the higher interest rate environment and clients seeking higher yield deposit products.
The $15.2$0.2 million, or 220.3%,0.1%, increasedecrease in 20232024 was also driven by increasedhigher deposit interest expense,expense primarilythat was substantially offset by higher loan income and to a $9.6lesser millionextent increasehigher attributableovernight tofunds NOW accounts and a $3.5 million increase attributable to money market accounts.income.
We discuss these variances in more detail below.
For 2025, our taxable equivalent interest income totaled $204.6 million compared to $194.9 million in 2024 and $181.4 million in 2023.
The $9.7 million, or 5.0%, increase in 2025 was primarily attributable to a $10.3 million increase in investment securities income due to growth in the portfolio and favorable repricing.
A $3.7 million decrease in loan income was partially offset by a $3.1 million increase in overnight funds income.
The $13.5 million, or 7.4%, increase in 2024 was primarily attributable to $13.0 million increase in loan income driven by loan growth and favorable loan repricing.
For 2025, interest expense totaled $32.7 million compared to $35.7 million for 2024 and $22.1 million for 2023.
The $3.0 million decrease in 2025 was primarily due to decreased deposit interest expense, including a $1.4 million decrease in NOW account expense and a $1.4 million decrease in money market account expense partially offset by a $0.2 million increase in certificates of deposit expense.
The increase in NOW account expense reflected higher interest rates for our commercial accounts that have a managed rate that were increased during the year.
shift in balances from the noninterest bearing to NOW product also contributed to the increase.
The increase in the expensedecreases for NOW and money market accounts reflected adjustments to our board and managed rates for thisthese productproducts, also reflective of higheras interest rates.rates declined over the year.
The $13.6 million increase in 2024 compared to 2023 was primarily attributable to increased deposit interest expense, including a $6.3 million increase attributable to money market accounts, a $4.5 million increase attributable to NOW accounts, and a $3.7 million increase attributable to certificates of deposit, all reflective of a shift in balances from noninterest bearing to interest bearing products driven by the higher interest rate environment and clients seeking higher yield deposit products.
The increase in the net interest margin for 2025 was primarily due to a higher yield for investment securities driven by new purchases at higher yields, favorable loan repricing, and lower deposit costs.
What changed in the latest 10-Q
Risk Factors
New heading “Balance, April 1, 2026”
New heading “Balance, June 30, 2026”
New heading “Balance, April 1, 2025”
New heading “Balance, June 30, 2025”
New heading “Three Months Ended June”
Largest changes
“Activity within the allowance for the six-month period ended June 30, 2025, reflected a provision expense of $ 1.8 million and net loan charge-offs of $ 1.2 million. The net increase in the allowance was primarily attributable to qualitative factor adjustments that were partially offset by lower loan balances. …”see in full comparison
“Four unemployment forecast scenarios were utilized to estimate probability of default and are weighted based on management’s estimate of probability.”see in full comparison
Full comparison: every changed paragraph (802)
67,124
64,214
479,733
488,970
1,344,694
1,299,933
2,376,315
2,451,684
46,907
33,276
17,084,386 shares issued and outstanding at MarchJune 31,30, 2026 and December 31, 2025, respectively Additional Paid-In Capital 39,85440,821 41,650 Retained Earnings 519,632531,291 508,443 Accumulated Other Comprehensive Income (Loss), Income, net of tax 2,587 Total Shareowners’ Equity 559,912 552,851 Total Liabilities and Shareowners’ Equity 4,453,7344,450,483 4,385,765
76,466
81,350
Taxable Securities
9,042
5,802
Tax Exempt Securities
Federal Funds Sold and Interest Bearing Deposits
3,711
6,666
19,291
12,469
Tax Exempt
Funds Sold and Interest Bearing Deposits
3,366
3,909
7,077
51,459
102,858
101,241
49,782
7,395
14,328
14,788
1,090
15,843
16,510
87,015
84,731
1,631
1,388
42,105
42,564
85,384
83,343
11,254
10,381
3,630
3,774
7,488
7,288
8,236
3,820
2,402
Mortgage Banking Revenues
4,660
4,190
8,912
8,010
2,240
Management's Discussion & Analysis (MD&A)
New heading “Net Interest Income.”
New heading “Noninterest Expense.”
New heading “Net Interest Income”
New heading “Mortgage Banking Revenues.”
New heading “As of June 30, 2026”
Removed heading “As of December 31, 2025”
Largest changes
“Nonperforming assets (nonaccrual loans and other real estate) totaled $13.4 million at June 30, 2026 compared to $13.0 million at March 31, 2026 and $10.5 million at December 31, 2025. At June 30, 2026, nonperforming assets as a percentage of total assets was 0.30%, compared to 0.29% at March 31, 2026 and 0.24% at December 31, 2025. Nonaccrual loans totaled $10.0 million at June 30, 2026, a $1.1 million decrease from March 31, 202 and a $1.4 million increase over December 31, 2025. …”see in full comparison
“For the first six months of 2026, tax-equivalent net interest income totaled $87.1 million compared to $84.8 million for the same period of 2025, primarily attributable to higher investment securities income and lower deposit interest expense, partially offset by lower loan interest income and overnight funds income. New investment purchases at higher yields and higher balances drove the increase in investment securities income. The decrease in deposit interest expense reflected lower public funds deposit balances and lower rates across our product lines. …”see in full comparison
Tax-equivalent net interest income for thesee in full comparisonfirstsecond quarter of 2026 totaled$42.9$44.2 million, compared to$43.4 million for the fourth quarter of 2025, and $41.6$42.9 million for the first quarter of 2026, and $43.2 million for the second quarter of 2025. Compared to thefourthfirst quarter of2025,2026, thedecreaseincrease wasprimarilyattributabledrivento higher investment securities income and lower deposit interest expense, partially offset by lower loan interest income and overnight funds income due to lower averageloanbalances.balancesTheandincreaselower overnight funds income, partially offset by higherin investment securities incomedue toreflected new investment purchases at higheryieldsrates andlowerhigherdepositbalancesinterestasexpense.weTwodeploylessadditional liquidity into the investment security portfolio. The increase over the second quarter of 2025 was also driven by the same aforementioned factors. One additional calendardaysday also contributed to thedeclineincreasecompared toover thefourthfirst quarter of2025.2026.
Average investments totaledsee in full comparison$1,119.1$1.167millionbillion in the second quarter of 2026, a $48.2 million, or 4.31%, increase over the first quarter of2026,and a$113.1$161.3 million, or11.2 %,16.0% increase over the fourth quarter of2025 and a $136.8 million, or 13.9% increase over the first quarter of 2025.2026. Our investment portfolio represented27.4%28.7% ofouraverage earning assets for the second quarter of 2026 compared to 27.4% for the first quarter of 2026compared toand 24.9% for the fourth quarter of2025 and 24.6% for the first quarter of For the remainder of 2026, we will continue to monitor our overall liquidity position and market conditions to determine if cash flow from the investment portfolio should be reinvested or utilized to support loan growth.2025.
“2026, a $1.1 million decrease from March 31, 2026 and a $1.4 million increase over December 31, 2025. Other real estate totaled $3.4 million at June 30, 2026, a $1.6 million increase over March 31, 2026 and $1.5 million increase over December 31, 2025. Further, classified loans totaled $29.8 million at June 30, 2026, a $15.3 million increase over March 31, 2026 and a $15.5 million increase over December 31, 2025. …”see in full comparison
Full comparison: every changed paragraph (654)
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 firstsecond quarter of 2026 compares with prior periods.
These forward-looking statements include, among others, statements about our beliefs, plans, objectives, goals, expectations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond our control.
First
Second
512,575
92,733
481,000
419,842
4,450,483
4,461,233
92,733
4,361,388
4,368,500
11.03%
9.61%
17,135,824
17,072,330
28.07
24.59
First
Second
51,838
49,782
8,203
Net Interest Income
44,198
8,275
41,547
43,279
19,933
40,779
41,373
20,014
42,538
21,238
21,985
4,961
5,127
15,817
15,044
44,241
41,591
0.80
0.88
0.80
0.88
0.27
0.24
33.27
30.02
28.07
24.59
51.04
38.27
42.79
33.00
49.42
35.96
1,167,321
982,330
CCBG insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 1 filing (1 insider, 1 trade date, 6,000 shares, about $278.3K). Net open-market shares: -6,000 (purchases minus sales); net value about -$278.3K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-08-28 | Corum Bethany Harding |
Grant/award | 20 | $51.35 | $1.0K |
| 2026-07-06 | Williams Ashbel C |
Grant/award | 226 | — | — |
| 2026-07-06 | Johnson Laura L |
Grant/award | 286 | — | — |
| 2026-07-06 | Grant William E |
Grant/award | 265 | — | — |
| 2026-07-06 | Davenport Bonnie |
Grant/award | 225 | — | — |
| 2026-07-06 | Crowell Kimberly |
Grant/award | 269 | — | — |
| 2026-07-06 | Connally Stan W |
Grant/award | 366 | — | — |
| 2026-07-06 | Antoine Robert |
Grant/award | 266 | — | — |
| 2026-07-06 | Sample John G Jr |
Grant/award | 180 | — | — |
| 2026-05-26 | Barron Thomas A |
Open-market sale | 6,000 | $46.38 | $278.3K |
| 2026-05-13 | Barron Thomas A |
Gift | 1,650 | — | — |
Well-known investors holding CCBG (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Renaissance Technologies | 2026-06-30 | 132,671 | $6.6M | 0.01% | Reduced 24% |
| Two Sigma Investments | 2026-06-30 | 117,284 | $5.8M | 0.0% | Added 34% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 71,583 | $3.5M | 0.0% | Added 71% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 41,127 | $2.0M | 0.0% | Added 27% |
| Millennium Management (Israel Englander) | 2026-06-30 | 18,975 | $937.7K | 0.0% | Reduced 58% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 16,085 | $794.9K | 0.0% | Added 215% |