Annual report pursuant to Section 13 and 15(d)

LONG-TERM BORROWINGS

v3.20.4
LONG-TERM BORROWINGS
12 Months Ended
Dec. 31, 2020
Long-term Borrowings [Abstract]  
LONG-TERM BORROWINGS
Note 12
LONG-TERM BORROWINGS
 
 
Federal Home Loan Bank Advances.
 
FHLB long-term advances totaled $
2.2
 
million at December 31, 2020 and $
5.0
 
million at
December 31, 2019.
 
The advances mature at varying dates from 2022 through 2025 and had a weighted-average rate of 3.47%
and 3.13% at December 31, 2020 and 2019, respectively.
 
The FHLB advances are collateralized by a blanket floating
 
lien on all
1-4 family residential mortgage loans, commercial real
 
estate mortgage loans, and home equity mortgage loans.
 
Interest on the
FHLB advances is paid on a monthly basis.
 
Note Payable.
 
Long-term note payable totaled $
0.9
 
million at December 31, 2020 and $
1.5
 
million at December 31, 2019.
 
The
note matures on
March 30, 2027
.
 
Interest is payable
quarterly
 
on the note equal to the prime interest rate which is adjusted
quarterly.
 
A principal payment of $
0.3
 
million is required on an annual basis.
 
 
Scheduled minimum future principal payments on our
 
other long-term borrowings at December 31 were as follows:
(Dollars in Thousands)
2020
2021
$
1,008
2022
1,170
2023
553
2024
210
2025
116
Total
$
3,057
Junior Subordinated Deferrable Interest
 
Notes.
 
The Company has issued two junior subordinated deferrable
 
interest notes to
wholly owned Delaware statutory trusts.
 
The first note for $
30.9
 
million was issued to CCBG Capital Trust I.
 
The second note
for $
32.0
 
million was issued to CCBG Capital Trust II.
 
The two trusts are considered variable interest entities for which
 
the
Company is not the primary beneficiary.
 
Accordingly, the accounts
 
of the trusts are not included in the Company’s
 
consolidated
financial statements. See Note 1 - Significant Accounting
 
Policies for additional information about the Company’s
 
consolidation
policy.
 
Details of the Company’s transaction
 
with the two trusts are provided below.
 
In November 2004, CCBG Capital Trust
 
I issued $
30.0
 
million of trust preferred securities which represent interest in the assets
of the trust.
 
The interest payments are due quarterly at
3-month LIBOR
 
plus a margin of
1.90
%, adjusted quarterly.
 
The trust
preferred securities will mature on
December 31, 2034
, and are redeemable upon approval of the Federal Reserve in
 
whole or in
part at the option of the Company at any time after
 
December 31, 2009 and in whole at any time upon occurrence
 
of certain
events affecting their tax or regulatory
 
capital treatment. Distributions on the trust preferred securities are
 
payable quarterly on
March 31, June 30, September 30, and December 31 of
 
each year.
 
CCBG Capital Trust I also issued $
928,000
 
of common equity
securities to CCBG.
 
The proceeds of the offering of trust preferred
 
securities and common equity securities were used to
purchase a $
30.9
 
million junior subordinated deferrable interest note issued by the
 
Company, which has terms similar
 
to the trust
preferred securities.
 
On April 12, 2016, the Company retired $
10
 
million in face value of trust preferred securities that were
auctioned as part of a liquidation of a pooled collateralized
 
debt obligation fund.
 
The trust preferred securities were originally
issued through CCBG Capital Trust
 
I.
 
In May 2005, CCBG Capital Trust
 
II issued $
31.0
 
million of trust preferred securities which represent interest in
 
the assets of the
trust.
 
The interest payments are due quarterly at
3-month LIBOR
 
plus a margin of
1.80
%, adjusted quarterly.
 
The trust preferred
securities will mature on
June 15, 2035
, and are redeemable upon approval of the Federal Reserve in whole
 
or in part at the option
of the Company and in whole at any time upon occurrence
 
of certain events affecting their tax or regulatory capital
 
treatment.
 
Distributions on the trust preferred securities are payable
 
quarterly on March 15, June 15, September 15, and December 15
 
of
each year.
 
CCBG Capital Trust II also issued $
959,000
 
of common equity securities to CCBG.
 
The proceeds of the offering of
trust preferred securities and common equity securities were
 
used to purchase a $
32.0
 
million junior subordinated deferrable
interest note issued by the Company,
 
which has terms substantially similar to the trust preferred
 
securities.
 
 
The Company has the right to defer payments of interest
 
on the two notes at any time or from time to time for a
 
period of up to
twenty consecutive quarterly interest payment periods.
 
Under the terms of each note, in the event that under certain
circumstances there is an event of default under the
 
note or the Company has elected to defer interest on the note, the
 
Company
may not, with certain exceptions, declare or pay any dividends
 
or distributions on its capital stock or purchase or acquire any
 
of
its capital stock.
 
At December 31, 2020, the Company has paid all interest payments
 
in full.
 
 
The Company has entered into agreements to guarantee
 
the payments of distributions on the trust preferred securities and
payments of redemption of the trust preferred securities.
 
Under these agreements, the Company also agrees, on a subordinated
basis, to pay expenses and liabilities of the two trusts other
 
than those arising under the trust preferred securities.
 
The obligations
of the Company under the two junior subordinated notes, the trust
 
agreements establishing the two trusts, the guarantee and
agreement as to expenses and liabilities, in aggregate,
 
constitute a full and unconditional guarantee
 
by the Company of the two
trusts' obligations under the two trust preferred security issuances.
 
Despite the fact that the accounts of CCBG Capital Trust
 
I and CCBG Capital Trust II are
 
not included in the Company’s
consolidated financial statements, the $
20.0
 
million and $
31.0
 
million, respectively,
 
in trust preferred securities issued by these
subsidiary trusts are included in the Tier
 
1 Capital of Capital City Bank Group, Inc. as allowed by
 
Federal Reserve guidelines.