UNITED STATES

CAPITAL CITY BANK GROUP, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED SEPTEMBER 30, 2016

TABLE OF CONTENTS

PART I – Financial Information			Page

Item 1.	Consolidated Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition – September 30, 2016 and December 31, 2015			4
	Consolidated Statements of Income – Three and Nine Months Ended September 30, 2016 and 2015			5
	Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2016 and 2015			6
	Consolidated Statements of Changes in Shareowners’ Equity – Nine Months Ended September 30, 2016 and 2015			7
	Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2016 and 2015			8
	Notes to Consolidated Financial Statements			9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations			27

Item 3.	Quantitative and Qualitative Disclosure About Market Risk			44

Item 4.	Controls and Procedures			44

PART II – Other Information

Item 1.		Legal Proceedings	44

Item 1A.		Risk Factors	44

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	44

Item 3.		Defaults Upon Senior Securities	44

Item 4.		Mine Safety Disclosure	44

Item 5.		Other Information	44

Item 6.		Exhibits	44

Signatures			46

INTRODUCTORY NOTE

Caution Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “goal,” and similar expressions are intended to identify forward-looking statements.

All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ materially from those set forth in our forward-looking statements.

Our ability to achieve our financial objectives could be adversely affected by the factors discussed in detail in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q and the following sections of our Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”): (a) “Introductory Note” in Part I, Item 1. “Business”; (b) “Risk Factors” in Part I, Item 1A, as updated in our subsequent quarterly reports filed on Form 10-Q; and (c) “Introduction” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Part II, Item 7, as well as:

· our ability to successfully manage interest rate risk, liquidity risk, and other risks inherent to our industry;

· legislative or regulatory changes, including the Dodd-Frank Act, Basel III, and the ability to repay and qualified mortgage standards;

· the effects of security breaches and computer viruses that may affect our computer systems or fraud related to debit card products;

· the accuracy of our financial statement estimates and assumptions, including the estimates used for our loan loss provision, deferred tax asset valuation and pension plan;

· the frequency and magnitude of foreclosure of our loans;

· the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations;

· the strength of the United States economy in general and the strength of the local economies in which we conduct operations;

· our ability to declare and pay dividends, the payment of which is now subject to our compliance with heightened capital requirements;

· changes in the securities and real estate markets;

· changes in monetary and fiscal policies of the U.S. Government;

· inflation, interest rate, market and monetary fluctuations;

· the effects of harsh weather conditions, including hurricanes, and man-made disasters;

· our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;

· the willingness of clients to accept third-party products and services rather than our products and services and vice versa;

· increased competition and its effect on pricing;

· technological changes;

· negative publicity and the impact on our reputation;

· changes in consumer spending and saving habits;

· growth and profitability of our noninterest income;

· changes in accounting principles, policies, practices or guidelines;

· the limited trading activity of our common stock;

· the concentration of ownership of our common stock;

· anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws;

· other risks described from time to time in our filings with the Securities and Exchange Commission; and

· our ability to manage the risks involved in the foregoing.

However, other factors besides those listed in Item 1A Risk Factors or discussed in this Form 10-Q also could adversely affect our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements made by us or on our behalf speak only as of the date they are made. We do not undertake to update any forward-looking statement, except as required by applicable law.

PART I. FINANCIAL INFORMATION
Item 1.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

			(Unaudited)
			September 30,		December 31,
(Dollars in Thousands)			2016		2015
ASSETS
Cash and Due From Banks			$	79,608	$	51,288
Federal Funds Sold and Interest Bearing Deposits				144,576		327,617
		Total Cash and Cash Equivalents		224,184		378,905

Investment Securities, Available for Sale, at fair value				500,139		451,028
Investment Securities, Held to Maturity, at amortized cost (fair value of $190,829 and $187,407)				189,928		187,892
		Total Investment Securities		690,067		638,920

Loans Held For Sale				10,510		11,632

Loans, Net of Unearned Income				1,557,512		1,492,275
	Allowance for Loan Losses			(13,744)		(13,953)
		Loans, Net		1,543,768		1,478,322

Premises and Equipment, Net				96,499		98,819
Goodwill				84,811		84,811
Other Real Estate Owned				12,738		19,290
Other Assets				90,577		87,161
		Total Assets	$	2,753,154	$	2,797,860

LIABILITIES
Deposits:
	Noninterest Bearing Deposits		$	801,671	$	758,283
	Interest Bearing Deposits			1,513,436		1,544,566
		Total Deposits		2,315,107		2,302,849

Short-Term Borrowings				12,113		61,058
Subordinated Notes Payable				52,887		62,887
Other Long-Term Borrowings				21,368		28,265
Other Liabilities				75,055		68,449
		Total Liabilities		2,476,530		2,523,508

SHAREOWNERS’ EQUITY
Preferred Stock, $.01 par value; 3,000,000 shares authorized; no shares issued and outstanding				-		-
Common Stock, $.01 par value; 90,000,000 shares authorized; 16,807,078 and 17,156,919 shares
issued and outstanding at September 30, 2016 and December 31, 2015 respectively				168		172
Additional Paid-In Capital				33,152		38,256
Retained Earnings				264,581		258,181
Accumulated Other Comprehensive Loss, Net of Tax				(21,277)		(22,257)
Total Shareowners’ Equity				276,624		274,352
Total Liabilities and Shareowners' Equity			$	2,753,154	$	2,797,860

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

		Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Thousands, Except Per Share Data)		2016		2015		2016		2015
INTEREST INCOME
Loans, including Fees		$	18,046	$	18,214	$	54,196	$	54,308
Investment Securities:
	Taxable		1,633		1,347		4,591		3,858
	Tax Exempt		213		193		643		427
Federal Funds Sold and Interest Bearing Deposits			212		123		892		463
Total Interest Income			20,104		19,877		60,322		59,056

INTEREST EXPENSE
Deposits			223		220		655		725
Short-Term Borrowings			43		14		91		50
Subordinated Notes Payable			341		344		1,071		1,014
Other Long-Term Borrowings			177		233		599		710
Total Interest Expense			784		811		2,416		2,499

NET INTEREST INCOME			19,320		19,066		57,906		56,557
Provision for Loan Losses			-		413		355		1,081
Net Interest Income After Provision For Loan Losses			19,320		18,653		57,551		55,476

NONINTEREST INCOME
Deposit Fees			5,373		5,721		16,094		16,944
Bank Card Fees			2,759		2,826		8,467		8,412
Wealth Management Fees			1,774		1,818		5,256		5,640
Mortgage Banking Fees			1,503		1,306		3,800		3,496
Data Processing Fees			360		400		1,042		1,137
Other			1,242		1,157		6,244		5,241
Total Noninterest Income			13,011		13,228		40,903		40,870

NONINTEREST EXPENSE
Compensation			15,993		16,653		48,285		49,581
Occupancy, net			4,734		4,446		13,777		13,100
Other Real Estate Owned, net			821		1,302		3,306		3,730
Other			6,474		6,763		20,286		20,582
Total Noninterest Expense			28,022		29,164		85,654		86,993

INCOME BEFORE INCOME TAXES			4,309		2,717		12,800		9,353
Income Tax Expense			1,436		1,034		4,350		2,839

NET INCOME		$	2,873	$	1,683	$	8,450	$	6,514

BASIC NET INCOME PER SHARE		$	0.18	$	0.10	$	0.50	$	0.38
DILUTED NET INCOME PER SHARE		$	0.17	$	0.09	$	0.49	$	0.37

Average Common Basic Shares Outstanding			16,804		17,150		17,049		17,317
Average Common Diluted Shares Outstanding			16,871		17,229		17,100		17,379

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

				Three Months Ended				Nine Months Ended
				September 30,				September 30,
(Dollars in Thousands)				2016		2015		2016		2015
NET INCOME				$	2,873	$	1,683	$	8,450	$	6,514
	Other comprehensive (loss) income, before tax:
		Investment Securities:
		Change in net unrealized gain/loss on securities available for sale			(1,158)		533		1,535		1,562
		Amortization of unrealized losses on securities transferred from
			available for sale to held to maturity		21		21		60		56
		Total Investment Securities			(1,137)		554		1,595		1,618
	Other comprehensive (loss) income, before tax				(1,137)		554		1,595		1,618
		Deferred tax (benefit) expense related to other comprehensive
			(loss) income		(439)		214		615		624
	Other comprehensive (loss) income, net of tax				(698)		340		980		994
TOTAL COMPREHENSIVE INCOME				$	2,175	$	2,023	$	9,430	$	7,508

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY
(Unaudited)

								Accumulated
								Other
								Comprehensive
	Shares	Common		Additional		Retained		Loss, Net of
(Dollars In Thousands, Except Share Data)	Outstanding	Stock		Paid-In Capital		Earnings		Taxes		Total
Balance, January 1, 2015	17,447,223	$	174	$	42,569	$	251,306	$	(21,509)	$	272,540
Net Income	-		-		-		6,514		-		6,514
Other Comprehensive Income, Net of Tax	-		-		-		-		994		994
Cash Dividends ($0.0900 per share)	-		-		-		(1,555)		-		(1,555)
Repurchase of Common Stock	(405,228)		(4)		(5,978)		-		-		(5,982)
Stock Based Compensation	-		-		783		-		-		783
Impact of Transactions Under Compensation Plans, net	102,406		1		364		-		-		365
Balance, September 30, 2015	17,144,401	$	171	$	37,738	$	256,265	$	(20,515)	$	273,659

Balance, January 1, 2016	17,156,919	$	172	$	38,256	$	258,181	$	(22,257)	$	274,352
Net Income	-		-		-		8,450		-		8,450
Other Comprehensive Income, Net of Tax	-		-		-		-		980		980
Cash Dividends ($0.1200 per share)	-		-		-		(2,050)		-		(2,050)
Repurchase of Common Stock	(435,461)		(4)		(6,308)		-		-		(6,312)
Stock Based Compensation	-		-		743		-		-		743
Impact of Transactions Under Compensation Plans, net	85,620		-		461		-		-		461
Balance, September 30, 2016	16,807,078	$	168	$	33,152	$	264,581	$	(21,277)	$	276,624

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Nine Months Ended September 30,
(Dollars in Thousands	2016		2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	8,450	$	6,514
Adjustments to Reconcile Net Income to
Cash Provided by Operating Activities:
Provision for Loan Losses		355		1,081
Depreciation		5,198		4,908
Amortization of Premiums, Discounts, and Fees, net		4,642		3,677
Impairment Loss on Security		-		90
Gain on Retirement of Trust Preferred Securities		(2,487)		-
Net Decrease (Increase) in Loans Held-for-Sale		1,122		(272)
Stock Compensation		743		783
Deferred Income Taxes		3,087		2,882
Loss on Sales and Write-Downs of Other Real Estate Owned		2,523		2,138
Loss on Disposal of Premises and Equipment		131		20
Net (Increase) Decrease in Other Assets		(6,610)		1,347
Net Increase in Other Liabilities		6,733		4,792
Net Cash Provided By Operating Activities		23,887		27,960

CASH FLOWS FROM INVESTING ACTIVITIES
Securities Held to Maturity:
Purchases		(40,320)		(65,190)
Payments, Maturities, and Calls		37,495		33,859
Securities Available for Sale:
Purchases		(125,975)		(167,438)
Payments, Maturities, and Calls		74,450		63,278
Net Increase in Loans		(68,775)		(51,385)
Proceeds From Sales of Other Real Estate Owned		7,338		12,122
Purchases of Premises and Equipment		(3,696)		(2,400)
Net Cash Used In Investing Activities		(119,483)		(177,154)

CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits		12,258		(31,811)
Net (Decrease) Increase in Short-Term Borrowings		(50,023)		15,930
Redemption of Subordinated Notes		(7,500)		-
Repayment of Other Long-Term Borrowings		(5,819)		(2,055)
Dividends Paid		(2,050)		(1,555)
Payments to Repurchase Common Stock		(6,312)		(5,982)
Issuance of Common Stock Under Compensation Plans		321		315
Net Cash Used In Financing Activities		(59,125)		(25,158)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(154,721)		(174,352)

Cash and Cash Equivalents at Beginning of Period		378,905		385,056
Cash and Cash Equivalents at End of Period	$	224,184	$	210,704

Supplemental Cash Flow Disclosures:
Interest Paid	$	2,422	$	2,511
Income Taxes (Refunded) Paid	$	(355)	$	1,593

Noncash Investing and Financing Activities:
Loans and Premises Transferred to Other Real Estate Owned	$	3,309	$	4,073
Transfer of Current Portion of Long-Term Borrowings	$	1,078	$	-

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

CAPITAL CITY BANK GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations. Capital City Bank Group, Inc. (“CCBG” or the “Company”) provides a full range of banking and banking-related services to individual and corporate clients through its subsidiary, Capital City Bank, with banking offices located in Florida, Georgia, and Alabama. The Company is subject to competition from other financial institutions, is subject to regulation by certain government agencies and undergoes periodic examinations by those regulatory authorities.

Basis of Presentation. The consolidated financial statements in this Quarterly Report on Form 10-Q include the accounts of CCBG and its wholly-owned subsidiary, Capital City Bank (“CCB” or the “Bank” and together with the Company). All material inter-company transactions and accounts have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year’s presentation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The consolidated statement of financial condition at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2015.

NOTE 2 – INVESTMENT SECURITIES

Investment Portfolio Composition. The amortized cost and related market value of investment securities available-for-sale and
held-to-maturity were as follows:
	September 30, 2016									December 31, 2015
	Amortized		Unrealized		Unrealized		Market		Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value		Cost		Gain		Losses		Value
Available for Sale
U.S. Government Treasury	$	272,656	$	1,029	$	-	$	273,685	$	250,458	$	101	$	213	$	250,346
U.S. Government Agency		129,150		569		203		129,516		101,730		357		263		101,824
States and Political Subdivisions		86,490		189		45		86,634		88,358		103		99		88,362
Mortgage-Backed Securities		1,340		142		-		1,482		1,742		159		-		1,901
Equity Securities⁽¹⁾		8,822		-		-		8,822		8,595		-		-		8,595
Total	$	498,458	$	1,929	$	248	$	500,139	$	450,883	$	720	$	575	$	451,028

Held to Maturity
U.S. Government Treasury	$	129,323	$	530	$	-	$	129,853	$	134,554	$	45	$	160	$	134,439
U.S. Government Agency		1,904		1		-		1,905		10,043		7		5		10,045
States and Political Subdivisions		9,983		69		1		10,051		15,693		38		7		15,724
Mortgage-Backed Securities		48,718		366		64		49,020		27,602		4		407		27,199
Total	$	189,928	$	966	$	65	$	190,829	$	187,892	$	94	$	579	$	187,407

Total Investment Securities	$	688,386	$	2,895	$	313	$	690,968	$	638,775	$	814	$	1,154	$	638,435

⁽¹⁾ Includes Federal Home Loan Bank, Federal Reserve Bank, and FNBB, Inc. stock recorded at cost of $3.5 million, $4.8 million, and $0.5 million, respectively, at September 30, 2016 and $3.6 million, $4.8 million, and $0.2 million, respectively, at December 31, 2015.

Securities with an amortized cost of $222.9 million and $370.1 million at September 30, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes.

The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required to own capital stock in the FHLB based generally upon the balances of residential and commercial real estate loans, and FHLB advances. FHLB stock which is included in equity securities is pledged to secure FHLB advances. No ready market exists for this stock, and it has no quoted market value; however, redemption of this stock has historically been at par value.

Maturity Distribution. As of September 30, 2016, the Company's investment securities had the following maturity distribution based on contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Mortgage-backed securities and certain amortizing U.S. government agency securities are shown separately because they are not due at a certain maturity date.

	Available for Sale				Held to Maturity
	Amortized		Market		Amortized		Market
(Dollars in Thousands)	Cost		Value		Cost		Value
Due in one year or less	$	146,612	$	146,872	$	60,424	$	60,503
Due after one through five years		252,653		253,644		80,786		81,305
Mortgage-Backed Securities		1,340		1,482		48,718		49,021
U.S. Government Agency		89,031		89,319		-		-
Equity Securities		8,822		8,822		-		-
Total	$	498,458	$	500,139	$	189,928	$	190,829

Unrealized Losses on Investment Securities. The following table summarizes the investment securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than				Greater Than
	12 Months				12 Months				Total
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in Thousands)	Value		Losses		Value		Losses		Value		Losses
September 30, 2016
Available for Sale
U.S. Government Agency	$	36,793	$	153	$	10,123	$	50	$	46,916	$	203
States and Political Subdivisions		28,831		44		298		1		29,129		45
Total		65,624		197		10,421		51		76,045		248

Held to Maturity
States and Political Subdivisions		1,252		1		-		-		1,252		1
Mortgage-Backed Securities		2,095		5		7,120		59		9,215		64
Total	$	3,347	$	6	$	7,120	$	59	$	10,467	$	65

December 31, 2015
Available for Sale
U.S. Government Treasury	$	150,061	$	213	$	-	$	-	$	150,061	$	213
U.S. Government Agency		43,508		200		9,644		63		53,152		263
States and Political Subdivisions		39,608		86		5,066		13		44,674		99
Total		233,177		499		14,710		76		247,887		575

Held to Maturity
U.S. Government Treasury		92,339		160		-		-		92,339		160
U.S. Government Agency		5,006		5		-		-		5,006		5
States and Political Subdivisions		3,791		7		-		-		3,791		7
Mortgage-Backed Securities		13,267		185		11,889		222		22,156		407
Total	$	114,403	$	357	$	11,889	$	222	$	126,292	$	579

Management evaluates securities for other than temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, the Company considers, (i) whether it has decided to sell the security, (ii) whether it is more likely than not that the Company will have to sell the security before its market value recovers, and (iii) whether the present value of expected cash flows is sufficient to recover the entire amortized cost basis. When assessing a security’s expected cash flows, the Company considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost and (ii) the financial condition and near-term prospects of the issuer. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by rating agencies have occurred, regulatory issues, and analysts’ reports.

At September 30, 2016, there were 165 positions (combined Available-for-Sale and Held-to-Maturity) with an unrealized loss totaling $0.3 million. Of the 165 positions, 69 were Ginnie Mae mortgage-backed securities (GNMA), U.S. Treasuries, or SBA securities, all of which carry the full faith and credit guarantee of the U.S. Government. SBA securities float monthly or quarterly to the prime rate and are uncapped. Of these 69 positions, there were 20 GNMA positions and 24 SBA positions in an unrealized loss position for longer than 12 months. Six agency positions were in an unrealized loss position. There were 90 municipal bonds in an unrealized loss position that were pre-refunded, or rated “AA-“or better. These debt securities are in a loss position because they were acquired when the general level of interest rates was lower than that on September 30, 2016. The Company believes that the unrealized losses in these debt securities are temporary in nature and that the full principal will be collected as anticipated. Because the declines in the market value of these investments are attributable to changes in interest rates and not credit quality and because the Company has the present ability and intent to hold these investments until there is a recovery in fair value, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2016.

NOTE 3 – LOANS, NET

Loan Portfolio Composition. The composition of the loan portfolio was as follows:

(Dollars in Thousands)		September 30, 2016		December 31, 2015
Commercial, Financial and Agricultural		$	223,278	$	179,816
Real Estate – Construction			54,107		46,484
Real Estate – Commercial Mortgage			497,775		499,813
Real Estate – Residential⁽¹⁾			287,068		290,585
Real Estate – Home Equity			235,433		233,901
Consumer			259,851		241,676
	Loans, Net of Unearned Income	$	1,557,512	$	1,492,275

⁽¹⁾ Includes loans in process with outstanding balances of $11.8 million and $8.5 million at September 30, 2016 and December 31, 2015, respectively.

Net deferred costs included in loans were $0.4 million at September 30, 2016 and net deferred fees included in loans were $0.5 million at December 31, 2015.

The Company has pledged a blanket floating lien on all 1-4 family residential mortgage loans, commercial real estate mortgage loans, and home equity loans to support available borrowing capacity at the FHLB of Atlanta and has pledged a blanket floating lien on all consumer loans, commercial loans, and construction loans to support available borrowing capacity at the Federal Reserve Bank of Atlanta.

Nonaccrual Loans. Loans are generally placed on nonaccrual status if principal or interest payments become 90 days past due and/or management deems the collectability of the principal and/or interest to be doubtful. Loans are returned to accrual status when the principal and interest amounts contractually due are brought current or when future payments are reasonably assured.

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans.

	September 30, 2016				December 31, 2015
(Dollars in Thousands)	Nonaccrual		90 + Days		Nonaccrual		90 + Days
Commercial, Financial and Agricultural	$	362	$	-	$	96	$	-
Real Estate – Construction		121		-		97		-
Real Estate – Commercial Mortgage		4,736		-		4,191		-
Real Estate – Residential		2,254		-		4,739		-
Real Estate – Home Equity		958		-		1,017		-
Consumer		183		-		165		-
Total Nonaccrual Loans	$	8,614	$	-	$	10,305	$	-

Loan Portfolio Aging. A loan is defined as a past due loan when one full payment is past due or a contractual maturity is over 30 days past due (“DPD”).

The following table presents the aging of the recorded investment in past due loans by class of loans.

	30-59		60-89		90 +		Total		Total		Total
(Dollars in Thousands)	DPD		DPD		DPD		Past Due		Current		Loans
September 30, 2016
Commercial, Financial and Agricultural	$	59	$	307	$	-	$	366	$	222,550	$	223,278
Real Estate – Construction		-		-		-		-		53,986		54,107
Real Estate – Commercial Mortgage		1,581		148		-		1,729		491,310		497,775
Real Estate – Residential		472		448		-		920		283,894		287,068
Real Estate – Home Equity		446		697		-		1,143		233,332		235,433
Consumer		1,231		278		-		1,509		258,159		259,851
Total Past Due Loans	$	3,789	$	1,878	$	-	$	5,667	$	1,543,231	$	1,557,512

December 31, 2015
Commercial, Financial and Agricultural	$	153	$	18	$	-	$	171	$	179,549	$	179,816
Real Estate – Construction		690		-		-		690		45,697		46,484
Real Estate – Commercial Mortgage		754		1,229		-		1,983		493,639		499,813
Real Estate – Residential		567		347		-

Florida		59-2273542
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

217 North Monroe Street, Tallahassee, Florida		32301
(Address of principal executive office)		(Zip Code)

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