Capital City Bank Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
INVESTMENT SECURITIES	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	Maturity Distribution . At December 31, 2020, 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 since 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 $ 104,382 $ 105,245 $ 5,001 $ 5,014 Due after one through five years 28,057 28,269 - - Mortgage-Backed Securities 456 515 164,938 170,161 U.S. Government Agency 180,623 183,168 - - Equity Securities 7,673 7,673 - - Total $ 321,191 $ 324,870 $ 169,939 $ 175,175 Unrealized Losses . The following table summarizes the investment securities with unrealized losses at December 31, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months Greater Than 12 Months Total Market Unrealized Market Unrealized Market Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses December 31, 2020 Available for Sale U.S. Government Agency 28,266 156 4,670 28 32,936 184 Total 28,266 156 4,670 28 32,936 184 December 31, 2019 Available for Sale U.S. Government Treasury $ 9,955 $ - $ 93,310 $ 67 $ 103,265 $ 67 U.S. Government Agency 36,361 244 17,364 81 53,725 325 States and Political Subdivisions 578 - - - 578 - Mortgage-Backed Securities 8 - - - 8 - Total 46,902 244 110,674 148 157,576 392 Held to Maturity U.S. Government Treasury - - 15,022 9 15,022 9 States and Political Subdivisions 1,033 - - - 1,033 - Mortgage-Backed Securities 22,581 42 16,027 138 38,608 180 Total $ 23,614 $ 42 $ 31,049 $ 147 $ 54,663 $ 189 At December 31, 2020, there were 47 available-for-sale (“AFS”) securities with unrealized losses totaling $ 0.2 million. All of these positions were U.S. government agency securities guaranteed by U.S. government sponsored entities. Because the declines in the market value of these securities 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 did not record any allowance for credit losses on any investment securities at December 31, 2020. Additionally, none of the AFS or held-to-maturity securities held by the Company were past due or in nonaccrual status at December 31, 2020. Credit Quality Indicators The Company monitors the credit quality of its investment securities through various risk management procedures, including the monitoring of credit ratings. A majority of the debt securities in the Company’s investment portfolio were issued by a U.S. government entity or agency and are either explicitly or implicitly guaranteed by the U.S. government. The Company believes the long history of no credit losses on these securities indicates that the expectation of nonpayment of the amortized cost basis is zero, even if the U.S. government were to technically default. Further, certain municipal securities held by the Company have been pre-refunded and secured by government guaranteed treasuries. Therefore, for the aforementioned securities, the Company does not assess or record expected credit losses due to the zero loss assumption. The Company monitors the credit quality of its municipal securities portfolio via credit ratings which are updated on a quarterly basis. On a quarterly basis, municipal securities in an unrealized loss position are evaluated to determine if the loss is attributable to credit related factors and if an allowance for credit loss is needed.