Quarterly report pursuant to Section 13 or 15(d)

BUSINESS AND BASIS OF PRESENTATION

v3.23.4
BUSINESS AND BASIS OF PRESENTATION
 3 Months Ended
Mar. 31, 2023
Business and Basis of Presentation [Abstract]  
Business and Basis of Presentation
NOTE 1 –
BUSINESS AND BASIS OF PRESENTATION
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”).
 
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 notes 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, 2022 has been derived from the audited consolidated financial
statements at that date, but does not include all of the information and notes
 
required by generally accepted accounting principles for
complete financial statements.
 
For further information, refer to the consolidated financial statements and notes
 
thereto included in the
Company’s annual report
 
on Form 10-K/A for the year ended December 31, 2022.
Accounting Standards Updates
Adoption of New Accounting Standard,
 
On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2022-02,
“Financial Instruments – Credit Losses (Topic
 
326), Troubled Debt Restructurings and Vintage
 
Disclosures.” ASU 2022-02 eliminates
the accounting guidance for troubled debt restructurings in Accounting
 
Standards Codification (“ASC”) 310-40, “Receivables -
Troubled Debt Restructurings by Creditors
 
”
 
for entities that have adopted the current expected credit loss model introduced
 
by ASU
2016-13, “Financial Instruments – Credit Losses (Topic
 
326), Measurement of Credit Losses on Financial Instruments.”
 
ASU 2022-
02 also requires that public business entities disclose current-period
 
gross charge-offs by year of origination for financing receivables
and net investments in leases within the scope of Subtopic 326-20, “Financial
 
Instruments—Credit Losses—Measured at Amortized
Cost.”
Proposed Accounting Standards
,
ASU
 
2023-01, “Leases (Topic
 
842)
:
 
Common Control Arrangements.” ASU 2023-01 requires
entities to amortize leasehold improvements associated with common control
 
leases over the useful life to the common control group.
ASU 2023-01 also provides certain practical expedients applicable to private
 
companies and not-for-profit organizations. ASU 2023-
01 will be effective for us on January 1, 2024, though early adoption
 
is permitted. The Company is evaluating the effect that ASU
2023-01 will have on its consolidated financial statements and related disclosures.
ASU No.
 
2023-02, “Investments—Equity Method and Joint Ventures
 
(Topic
 
323)
: Accounting for Investments in Tax
 
Credit
Structures Using the Proportional Amortization Method.” ASU 2023-02
 
is intended to improve the accounting and disclosures for
investments in tax credit structures. ASU 2023-02 allows entities to elect to account
 
for qualifying tax equity investments using the
proportional amortization method, regardless of the program giving
 
rise to the related income tax credits. Previously,
 
this method was
only available for qualifying tax equity investments in low-income
 
housing tax credit structures. ASU 2023-02 will be effective for us
on January 1, 2024, though early adoption is permitted.
 
The Company is evaluating the effect that ASU 2023-02 will have on its
consolidated financial statements and related disclosures.
Restatement of Previously Issued Consolidated Financial
 
Statements
We have restated
 
herein our unaudited consolidated financial statements for the three months ended
 
March 31, 2023. We have
 
also
restated financial statement periods for the year of 2022 and restated the impacted
 
amounts within the accompanying notes to the
consolidated financial statements.
 
 
Restatement Background
CCHL sold residential mortgage loans to CCB. CCHL recorded mortgage
 
banking revenue and a mortgage servicing right. On an
ongoing basis, CCHL recognized noninterest income for servicing these loans
 
on behalf of CCB. As a result of this misstatement,
assets are overstated by $
1.2
 
million as of March 31, 2023 and net income is overstated by $
1.2
 
million for the three months ended
March 31, 2023. This represents
0.03
% of previously reported total assets as of March 31, 2023 and
8.33
% of previously reported net
income for the three months ended March 31, 2023. As a result, diluted EPS decreases
 
from $
0.88
 
per share to $
0.80
 
per share.
 
Description of Misstatements
Misstatements Associated with Mortgage Loan Sale Transactions
a)
 
Loan Origination Costs & Gain on Sale of Loan
 
CCHL originated certain mortgage loans that were sold to the Bank for
 
a premium. The gain recorded by CCHL and the
corresponding loan purchase premium recorded by the Bank were not
 
eliminated in consolidation. Additionally,
 
the
Company did not defer net loan origination costs on these loans. The impacts
 
of the loan origination costs & gain on sale of
loan misstatements on each period are presented in this note.
b)
Mortgage Servicing Right (“MSR”) Asset
CCHL recorded an MSR asset and recognized a corresponding gain related
 
to the aforementioned loans sold to and serviced
for the Bank. As the MSR asset is recorded at amortized cost, CCHL also recorded
 
amortization expense in each period in
other non-interest expense. The MSR asset, gain, and amortization expense should
 
have been eliminated in consolidation.
The impacts of the MSR Asset misstatements on each period are presented
 
in this note.
 
c)
Mortgage Servicing
 
The Bank recorded servicing fee expense and CCHL recorded servicing
 
income; these amounts should have been eliminated
in consolidation. The impacts of the mortgage servicing misstatements on each
 
period are presented in this note.
 
d)
Statement of Financial Condition Misclassification
 
CCHL classifies all mortgage production as loans held for sale. The portion
 
of this production that was designated to be sold
to the Bank should have been designated as loans held for investment for the Consolidated
 
Financial Statements. This
reclassification also reflects the reversal of the related mark-to-market
 
adjustment and the establishment of the Allowance for
Credit Losses (“ACL”) on these loans. While previously the mark-to-market
 
adjustment had been reversed and the ACL
established at the time the loans were sold to CCB, this correction reflects those entries
 
in the appropriate periods. The
impacts of the restatement on each period are presented in this note.
Description of Restatement Tables
The following tables present the amounts previously reported and a reconciliation
 
of the restatement amounts reported on the restated
Consolidated Statement of Financial Condition as of March 31, 2023
 
and December 31, 2022, the restated Consolidated Statements
 
of
Income for the three months ended March 31, 2023 and 2022, restated
 
Consolidated Statement of Comprehensive Income for the three
months ended March 31, 2023 and 2022, restated Consolidated Statements of
 
Changes in Shareowners’ Equity for the three months
ended March 31, 2023 and 2022, and the restated Consolidated Statements of Cash Flows
 
for the three months ended March 31, 2023.
The amounts previously reported for the three months ended March 31, 2023
 
were derived from our Quarterly Report on Form 10-Q
for the three months ended March 31, 2023, originally filed May 1, 2023.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART
 
I.
 
FINANCIAL INFORMATION
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENTS
 
OF FINANCIAL CONDITION
(Unaudited)
March 31, 2023
December 31, 2022
(Dollars in Thousands, Except Par Value)
As Previously
Reported
As Restated
As Previously
Reported
As Restated
ASSETS
 
 
 
 
Cash and Due From Banks
$
84,549
$
84,549
$
72,114
$
72,114
Federal Funds Sold and Interest Bearing Deposits
 
303,403
 
303,403
 
528,536
 
528,536
Total Cash and Cash Equivalents
 
387,952
 
387,952
 
600,650
 
600,650
 
 
 
 
 
Investment Securities, Available
 
for Sale, at fair value (amortized
cost of $
438,068
 
and $
455,232
)
 
402,943
 
402,943
 
413,294
 
413,294
Investment Securities, Held to Maturity (fair value of $
612,200
and $
612,701
)
 
651,755
 
651,755
 
660,744
 
660,744
Equity Securities
1,883
 
1,883
10
 
10
Total Investment
 
Securities
 
1,056,581
 
1,056,581
 
1,074,048
 
1,074,048
 
 
Loans Held For Sale, at fair value
55,118
 
28,475
54,635
 
26,909
 
 
Loans Held for Investment
2,636,884
 
2,657,147
2,525,180
 
2,547,685
Allowance for Credit Losses
 
(26,507)
 
(26,808)
 
(24,736)
 
(25,068)
Loans Held for Investment, Net
 
2,610,377
 
2,630,339
 
2,500,444
 
2,522,617
 
 
 
 
 
Premises and Equipment, Net
 
82,055
 
82,055
 
82,138
 
82,138
Goodwill and Other Intangibles
 
93,053
 
93,053
 
93,093
 
93,093
Other Real Estate Owned
13
13
431
431
Other Assets
 
124,593
 
123,294
 
120,519
 
119,337
Total Assets
$
4,409,742
$
4,401,762
$
4,525,958
$
4,519,223
 
 
 
 
 
LIABILITIES
 
 
 
 
Deposits:
 
 
 
 
Noninterest Bearing Deposits
$
1,601,388
$
1,601,388
$
1,653,620
$
1,653,620
Interest Bearing Deposits
 
2,222,532
 
2,222,532
 
2,285,697
 
2,285,697
Total Deposits
 
3,823,920
 
3,823,920
 
3,939,317
 
3,939,317
 
 
 
 
 
Short-Term
 
Borrowings
 
26,632
26,632
 
56,793
56,793
Subordinated Notes Payable
 
52,887
52,887
 
52,887
52,887
Other Long-Term
 
Borrowings
 
463
463
 
513
513
Other Liabilities
 
85,878
85,878
 
73,675
73,675
Total Liabilities
3,989,780
3,989,780
4,123,185
4,123,185
Temporary Equity
8,722
8,722
8,757
8,757
 
 
 
 
 
SHAREOWNERS’ EQUITY
 
 
 
 
Preferred Stock, $
0.01
 
par value;
3,000,000
 
shares authorized;
no
shares issued and outstanding
 
-
-
 
-
-
Common Stock, $
0.01
 
par value;
90,000,000
 
shares authorized;
17,021,748
 
and
16,986,785
 
shares issued and outstanding at March 31, 2023 and December
31, 2022, respectively
170
170
170
170
Additional Paid-In Capital
 
37,512
37,512
 
37,331
37,331
Retained Earnings
 
405,634
397,654
 
393,744
387,009
Accumulated Other Comprehensive Loss, net of tax
 
(32,076)
(32,076)
 
(37,229)
(37,229)
Total Shareowners’
Equity
 
411,240
403,260
 
394,016
387,281
Total Liabilities, Temporary
 
Equity, and Shareowners’ Equity
$
4,409,742
$
4,401,762
$
4,525,958
$
4,519,223
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
Three Months Ended
March 31, 2023
March 31, 2022
(Dollars in Thousands, Except Per Share
 
Data)
As Previously
Reported
As Restated
As Previously
Reported
As Restated
INTEREST INCOME
Loans, including Fees
$
34,880
$
34,891
$
22,133
$
22,429
Investment Securities:
Taxable Securities
4,912
4,912
2,890
2,890
Tax Exempt Securities
12
12
6
6
Federal Funds Sold and Interest Bearing Deposits
4,111
4,111
409
409
Total Interest Income
43,915
43,926
25,438
25,734
INTEREST EXPENSE
Deposits
2,488
2,488
224
224
Short-Term
 
Borrowings
461
461
192
192
Subordinated Notes Payable
571
571
317
317
Other Long-Term
 
Borrowings
6
6
9
9
Total Interest Expense
3,526
3,526
742
742
NET INTEREST INCOME
40,389
40,400
24,696
24,992
Provision for Credit Losses
3,130
3,099
-
32
Net Interest Income After Provision for Credit Losses
37,259
37,301
24,696
24,960
NONINTEREST INCOME
Deposit Fees
5,239
5,239
5,191
5,191
Bank Card Fees
3,726
3,726
3,763
3,763
Wealth Management
 
Fees
3,928
3,928
6,070
6,070
Mortgage Banking Revenues
6,995
2,871
8,946
4,055
Other
2,360
1,994
1,848
1,733
Total Noninterest
 
Income
22,248
17,758
25,818
20,812
NONINTEREST EXPENSE
Compensation
25,636
23,524
24,856
22,298
Occupancy, Net
6,762
6,762
6,093
6,093
Other
8,057
7,389
8,284
8,132
Total Noninterest
 
Expense
40,455
37,675
39,233
36,523
INCOME BEFORE INCOME TAXES
19,052
17,384
11,281
9,249
Income Tax Expense
4,133
3,710
2,235
1,720
NET INCOME
$
14,919
$
13,674
$
9,046
$
7,529
Loss (Income) Attributable to Noncontrolling Interests
35
35
(591)
(591)
NET INCOME ATTRIBUTABLE
 
TO COMMON
SHAREOWNERS
$
14,954
$
13,709
$
8,455
$
6,938
BASIC NET INCOME PER SHARE
$
0.88
$
0.81
$
0.50
$
0.41
DILUTED NET INCOME PER SHARE
$
0.88
$
0.80
$
0.50
$
0.41
Average Basic Shares
 
Outstanding
17,016
17,016
16,931
16,931
Average Diluted
 
Shares Outstanding
17,045
17,045
16,946
16,946
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
Three Months Ended
March 31, 2023
March 31, 2022
(Dollars in Thousands)
As
Previously
Reported
As Restated
As
Previously
Reported
As Restated
NET INCOME ATTRIBUTABLE
 
TO COMMON SHAREOWNERS
$
14,954
$
13,709
$
8,455
$
6,938
Other comprehensive income (loss), before
 
tax:
Investment Securities:
Change in net unrealized gain (loss) on securities available for sale
6,808
6,808
(25,448)
(25,448)
Amortization of unrealized losses on securities transferred from
available for sale to held to maturity
865
865
3
3
Derivative:
Change in net unrealized (loss) gain on effective cash flow
 
derivative
(801)
(801)
1,836
1,836
Benefit Plans:
Pension Settlement
-
-
209
209
Total Benefit Plans
-
-
209
209
Other comprehensive income (loss), before
 
tax
6,872
6,872
(23,400)
(23,400)
Deferred tax expense (benefit) related to other comprehensive income
1,719
1,719
(5,871)
(5,871)
Other comprehensive income (loss), net of tax
5,153
5,153
(17,529)
(17,529)
TOTAL COMPREHENSIVE
 
INCOME (LOSS)
$
20,107
$
18,862
$
(9,074)
$
(10,591)
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)
Three Months Ended March 31, 2023
(Dollars in thousands, except per share data)
Shares
Outstanding
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss, Net of
Taxes
Total
 
As Previously Reported
Balance, January 1, 2023, as previously reported
16,986,785
$
170
$
37,331
$
393,744
$
(37,229)
$
394,016
Net Income Attributable to Common
Shareowners
14,954
14,954
Other Comprehensive Loss, Net of Tax
5,153
5,153
Cash Dividends ($
0.18
 
per share)
(3,064)
(3,064)
Repurchase of Common Stock
 
(25,241)
(819)
(819)
Stock Based Compensation
536
536
Stock Compensation Plan Transactions, net
60,204
-
464
464
Balance, March 31, 2023, as previously reported
17,021,748
$
170
$
37,512
$
405,634
$
(32,076)
$
411,240
As Restated
Balance, January 1, 2023, as restated
16,986,785
$
170
$
37,331
$
387,009
$
(37,229)
$
387,281
Net Income Attributable to Common
Shareowners
13,709
13,709
Other Comprehensive Loss, Net of Tax
5,153
5,153
Cash Dividends ($
0.18
 
per share)
(3,064)
(3,064)
Repurchase of Common Stock
 
(25,241)
(819)
(819)
Stock Based Compensation
536
536
Stock Compensation Plan Transactions, net
60,204
-
464
464
Balance, March 31, 2023, as restated
17,021,748
$
170
$
37,512
$
397,654
$
(32,076)
$
403,260
Three Months Ended March 31, 2022
(Dollars in thousands, except per share data)
Shares
Outstanding
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss, Net of
Taxes
Total
 
As Previously Reported
Balance, January 1, 2022, as previously reported
16,892,060
$
169
$
34,423
$
364,788
$
(16,214)
$
383,166
Net Income Attributable to Common
Shareowners
8,455
8,455
Other Comprehensive Loss, Net of Tax
(17,529)
(17,529)
Cash Dividends ($
0.16
 
per share)
(2,712)
(2,712)
Stock Based Compensation
245
245
Stock Compensation Plan Transactions, net
55,542
-
520
520
Balance, March 31, 2022, as previously reported
16,947,602
$
169
$
35,188
$
370,531
$
(33,743)
$
372,145
As Restated
Balance, January 1, 2022, as restated
16,892,060
$
169
$
34,423
$
364,788
$
(16,214)
$
383,166
Net Income Attributable to Common
Shareowners
6,938
6,938
Other Comprehensive Loss, Net of Tax
(17,529)
(17,529)
Cash Dividends ($
0.16
 
per share)
(2,712)
(2,712)
Stock Based Compensation
245
245
Stock Compensation Plan Transactions, net
55,542
-
520
520
Balance, March 31, 2022, as restated
16,947,602
$
169
$
35,188
$
369,014
$
(33,743)
$
370,628
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENTS
 
OF CASH FLOWS (Unaudited)
Three Months Ended
Three Months Ended
March 31, 2023
March 31, 2022
(Dollars in Thousands)
As
Previously
Reported
As
Restated
As
Previously
Reported
As Restated
CASH FLOWS FROM OPERATING
 
ACTIVITIES
Net Income Attributable to Common Shareowners
$
14,954
$
13,709
$
8,455
$
6,938
Adjustments to Reconcile Net Income to
 
Provision for Credit Losses
3,130
3,099
-
32
 
Depreciation
1,969
1,969
1,907
1,907
 
Amortization of Premiums, Discounts, and Fees, net
1,080
1,067
2,907
2,610
 
Amortization of Intangible Assets
40
40
40
40
 
Pension Settlement Charge
-
-
209
209
 
Originations of Loans Held-for-Sale
(212,085)
(213,240)
(246,887)
(242,253)
 
Proceeds From Sales of Loans Held-for-Sale
218,597
214,545
257,550
252,584
 
Mortgage Banking Revenues
(6,995)
(2,871)
(8,946)
(4,055)
 
Net Additions for Capitalized Mortgage Servicing Rights
(633)
(91)
227
364
 
Stock Compensation
536
536
245
245
 
Net Tax Benefit From Stock-Based
 
Compensation
-
-
(19)
(19)
 
Deferred Income Taxes (Benefit)
(747)
(1,170)
(6,167)
(6,682)
 
Net Change in Operating Leases
(3)
(3)
(27)
(27)
 
Net (Gain) Loss on Sales and Write-Downs of Other Real Estate
Owned
(1,858)
(1,858)
-
-
 
Net Decrease (Increase) in Other Assets
(4,349)
(4,349)
1,441
1,897
 
Net (Decrease) Increase in Other Liabilities
12,471
12,471
7,036
7,036
Net Cash Provided (Used In) By Operating Activities
26,107
23,854
17,971
20,826
CASH FLOWS FROM INVESTING ACTIVITIES
Securities Held to Maturity:
 
Purchases
-
-
(194,448)
(194,448)
 
Payments, Maturities, and Calls
8,820
8,820
14,441
14,441
Securities Available for
 
Sale:
-
-
-
-
 
Purchases
(2,017)
(2,017)
(25,139)
(25,139)
 
Proceeds from Sale of Securities
-
-
3,365
3,365
 
Payments, Maturities, and Calls
16,559
16,559
24,824
24,824
Purchase of loans held for investment
(121,029)
(121,029)
(26,713)
(26,713)
Net Decrease (Increase) in Loans Held for Investment
7,376
9,629
(28,405)
(31,260)
Proceeds From Sales of Other Real Estate Owned
2,699
2,699
-
-
Purchases of Premises and Equipment
(1,886)
(1,886)
(1,013)
(1,013)
Noncontrolling interest contributions received
-
-
1,838
1,838
Net Cash Used In Investing Activities
(89,478)
(87,225)
(231,250)
(234,105)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits
(115,397)
(115,397)
52,645
52,645
Net (Decrease) Increase in Other Short-Term
 
Borrowings
(30,161)
(30,161)
(3,692)
(3,692)
Repayment of Other Long-Term
 
Borrowings
(50)
(50)
(78)
(78)
Dividends Paid
(3,064)
(3,064)
(2,712)
(2,712)
Payments to Repurchase Common Stock
(819)
(819)
-
-
Issuance of Common Stock Under Compensation Plans
164
164
190
190
Net Cash Provided By Financing Activities
(149,327)
(149,327)
46,353
46,353
NET DECREASE IN CASH AND CASH EQUIVALENTS
(212,698)
(212,698)
(166,926)
(166,926)
Cash and Cash Equivalents at Beginning of Period
 
600,650
600,650
1,035,354
1,035,354
Cash and Cash Equivalents at End of Period
 
$
387,952
$
387,952
$
868,428
$
868,428
Supplemental Cash Flow Disclosures:
 
Interest Paid
$
3,723
$
3,723
$
715
$
715
 
Income Taxes Paid
$
7,466
$
7,466
$
20
$
20
Noncash Investing and Financing Activities:
 
Loans and Premises Transferred to Other Real Estate Owned
$
423
$
423
$
-
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF FINANCIAL CONDITION
(Unaudited)
As of March 31, 2023
(Dollars in Thousands, except per share data)
As
Previously
Reported
2022
Restatement
Impact
2023
Restatement
Impact
As Restated
ASSETS:
Cash and Due From Banks
$
84,549
$
-
$
-
$
84,549
Federal Funds Sold and Interest Bearing Deposits
303,403
-
-
303,403
Total Cash and Cash Equivalents
387,952
-
-
387,952
Investment Securities Available
 
for Sale (amortized cost of
$
438,068
)
402,943
-
-
402,943
Investment Securities Held to Maturity (fair value of $
612,200
)
651,755
-
-
651,755
Other Equity Securities
1,883
-
-
1,883
 
Total Investment Securities
 
1,056,581
-
-
1,056,581
Loans Held For Sale
55,118
(27,726)
1,083
28,475
Loans, Net of Unearned Income
2,636,884
22,505
(2,242)
2,657,147
Allowance for Loan Losses
(26,507)
(332)
31
(26,808)
Loans, Net
2,610,377
22,173
(2,211)
2,630,339
Premises and Equipment, Net
82,055
-
-
82,055
Goodwill
93,053
-
-
93,053
Other Real Estate Owned
13
-
-
13
Other Assets
124,593
(1,182)
(117)
123,294
Total Assets
4,409,742
(6,735)
(1,245)
4,401,762
LIABILITIES
Deposits:
Noninterest Bearing Deposits
1,601,388
-
-
1,601,388
Interest Bearing Deposits
2,222,532
-
-
2,222,532
Total Deposits
3,823,920
-
-
3,823,920
Short-Term
 
Borrowings
26,632
-
-
26,632
Subordinated Notes Payable
52,887
-
-
52,887
Other Long-Term
 
Borrowings
463
-
-
463
Other Liabilities
85,878
-
-
85,878
Total Liabilities
3,989,780
-
-
3,989,780
Temporary Equity
8,722
-
-
8,722
SHAREOWNERS' EQUITY
Preferred Stock: $
.01
 
par value,
3,000,000
 
shares authorized
no
 
shares issues and outstanding
-
-
-
-
Common Stock, $
.01
 
par value,
90,000,000
 
shares authorized
17,021,748 shares issued and outstanding
170
-
-
170
Additional Paid-In Capital
37,512
-
-
37,512
Retained Earnings
405,634
(6,735)
(1,245)
397,654
Accumulated Other Comprehensive Loss, Net of Tax
(32,076)
-
-
(32,076)
Total Shareowners' Equity
411,240
(6,735)
(1,245)
403,260
 
Total Liabilities, Temporary
 
Equity, and Shareowners' Equity
$
4,409,742
$
(6,735)
$
(1,245)
$
4,401,762
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF INCOME
(Unaudited)
For Three Months Ended March 31, 2023
(Dollars in thousands, except per share data)
As
Previously
Reported
Restatement
Impact
As Restated
INTEREST INCOME
Loans, Including Fees
$
34,880
$
11
$
34,891
Taxable Securities
4,912
-
4,912
Tax Exempt Securities
12
-
12
Funds Sold
4,111
-
4,111
Total Interest Income
43,915
11
43,926
INTEREST EXPENSE
Deposits
2,488
-
2,488
Short-Term
 
Borrowings
461
-
461
Subordinated Notes Payable
571
-
571
Other Long-Term
 
Borrowings
6
-
6
Total Interest Expense
3,526
-
3,526
Net Interest Income
40,389
11
40,400
Provision for Loan Losses
3,130
(31)
3,099
Net Interest Income After Provision For Loan Losses
37,259
42
37,301
NONINTEREST INCOME
Deposit Fees
5,239
-
5,239
Bank Card Fees
3,726
-
3,726
Wealth Management
 
Fees
3,928
-
3,928
Mortgage Banking Fees
6,995
(4,124)
2,871
Other
 
2,360
(366)
1,994
Total Noninterest
 
Income
22,248
(4,490)
17,758
NONINTEREST EXPENSE
Compensation
25,636
(2,112)
23,524
Occupancy, Net
6,762
-
6,762
Other
 
8,057
(668)
7,389
Total Noninterest
 
Expense
40,455
(2,780)
37,675
INCOME BEFORE INCOME TAXES
19,052
(1,668)
17,384
Income Tax Expense
4,133
(423)
3,710
NET INCOME
14,919
(1,245)
13,674
Pre-Tax Income
 
Attributable to Noncontrolling Interests
35
-
35
NET INCOME ATTRIBUTABLE
 
TO COMMON SHAREOWNERS
$
14,954
$
(1,245)
$
13,709
BASIC NET INCOME PER SHARE
$
0.88
$
(0.07)
$
0.81
DILUTED NET INCOME PER SHARE
$
0.88
$
(0.08)
$
0.80
AVERAGE
 
SHARES:
Basic
 
17,016
-
17,016
Diluted
 
17,045
-
17,045
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended March 31, 2023
(Dollars in thousands, except per share data)
As
Previously
Reported
Restatement
Impact
As Restated
NET INCOME
$
14,954
$
(1,245)
$
13,709
Other comprehensive income (loss), before
 
tax:
Investment Securities:
Change in net unrealized (loss) gain on securities available for sale
6,808
-
6,808
Amortization of unrealized losses on securities transferred from available
 
for sale to
held to maturity
865
-
865
Derivative:
Change in net unrealized gain on effective cash flow
 
derivative
(801)
-
(801)
Benefit Plans:
Other comprehensive income (loss), before
 
tax:
6,872
-
6,872
Deferred tax expense related to other comprehensive income
1,719
-
1,719
Other comprehensive income (loss), net of tax
5,153
-
5,153
TOTAL COMPREHENSIVE
 
INCOME
$
20,107
$
(1,245)
$
18,862
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF CHANGES IN SHAREOWNERS' EQUITY
(Unaudited)
Three Months Ended March 31, 2023
(Dollars in thousands, except per share data)
Shares
Outstanding
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss, Net of
Taxes
Total
 
As Previously Reported
Balance, January 1, 2023, as previously reported
16,986,785
$170
$37,331
$393,744
$(37,229)
$394,016
Net Income Attributable to Common Shareowners
14,954
14,954
Other Comprehensive Loss, Net of Tax
5,153
5,153
Cash Dividends ($
0.18
 
per share)
(3,064)
(3,064)
 
Repurchase of Common Stock
 
(25,241)
(819)
(819)
 
Stock Based Compensation
536
536
 
Stock Compensation Plan Transactions, net
60,204
-
464
464
Balance, March 31, 2023, as previously reported
17,021,748
$170
$37,512
$405,634
$(32,076)
$411,240
Restatement Impacts
Balance, January 1, 2023, as restated
-
-
-
(6,735)
-
(6,735)
Net Income Attributable to Common Shareowners
(1,245)
(1,245)
Balance, March 31, 2023, as restated
-
-
-
(7,980)
-
(7,980)
As Restated
Balance, January 1, 2023, as restated
16,986,785
$170
$37,331
$387,009
$(37,229)
$387,281
Net Income Attributable to Common Shareowners
13,709
13,709
Other Comprehensive Loss, Net of Tax
5,153
5,153
Cash Dividends ($
0.18
 
per share)
(3,064)
(3,064)
 
Repurchase of Common Stock
 
(25,241)
(819)
(819)
 
Stock Based Compensation
536
536
 
Stock Compensation Plan Transactions, net
60,204
-
464
464
Balance, March 31, 2023, as restated
17,021,748
$170
$37,512
$397,654
$(32,076)
$403,260
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL CITY BANK
 
GROUP,
 
INC.
CONSOLIDATED STATEMENT
 
OF CASH FLOWS
(Unaudited)
Three Months Ended March 31, 2023
(Dollars in Thousands)
As Previously
Reported
Restatement
Impact
As Restated
CASH FLOWS FROM OPERATING
 
ACTIVITIES
Net Income Attributable to Common Shareowners
$
14,954
$
(1,245)
$
13,709
Adjustments to Reconcile Net Income to
 
Provision for Credit Losses
3,130
(31)
3,099
 
Depreciation
1,969
-
1,969
 
Amortization of Premiums, Discounts, and Fees, net
1,080
(13)
1,067
 
Amortization of Intangible Assets
40
-
40
 
Originations of Loans Held-for-Sale
(212,085)
(1,155)
(213,240)
 
Proceeds From Sales of Loans Held-for-Sale
218,597
(4,052)
214,545
 
Mortgage Banking Revenues
(6,995)
4,124
(2,871)
 
Net Additions for Capitalized Mortgage Servicing Rights
(633)
542
(91)
 
Stock Compensation
536
-
536
 
Deferred Income Taxes (Benefit)
(747)
(423)
(1,170)
 
Net Change in Operating Leases
(3)
-
(3)
 
Net (Gain) Loss on Sales and Write-Downs of Other Real Estate Owned
(1,858)
-
(1,858)
 
Net Decrease (Increase) in Other Assets
(4,349)
-
(4,349)
 
Net (Decrease) Increase in Other Liabilities
12,471
-
12,471
Net Cash Provided (Used In) By Operating Activities
26,107
(2,253)
23,854
CASH FLOWS FROM INVESTING ACTIVITIES
Securities Held to Maturity:
 
Payments, Maturities, and Calls
8,820
-
8,820
Securities Available for
 
Sale:
 
Purchases
(2,017)
-
(2,017)
 
Payments, Maturities, and Calls
16,559
-
16,559
Purchase of loans held for investment
(121,029)
-
(121,029)
Net Decrease in Loans Held for Investment
7,376
2,253
9,629
Proceeds From Sales of Other Real Estate Owned
2,699
-
2,699
Purchases of Premises and Equipment
(1,886)
-
(1,886)
Net Cash Used In Investing Activities
(89,478)
2,253
(87,225)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits
(115,397)
-
(115,397)
Net (Decrease) Increase
 
in Other Short-Term Borrowings
(30,161)
-
(30,161)
Repayment of Other Long-Term
 
Borrowings
(50)
-
(50)
Dividends Paid
(3,064)
-
(3,064)
Payments to Repurchase Common Stock
(819)
-
(819)
Issuance of Common Stock Under Compensation Plans
164
-
164
Net Cash Provided By Financing Activities
(149,327)
-
(149,327)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(212,698)
-
(212,698)
Cash and Cash Equivalents at Beginning of Period
 
600,650
-
600,650
Cash and Cash Equivalents at End of Period
 
$
387,952
$
-
$
387,952
Supplemental Cash Flow Disclosures:
 
Interest Paid
$
3,723
$
-
$
3,723
 
Income Taxes Paid
$
7,466
$
-
$
7,466
Noncash Investing and Financing Activities:
 
Loans and Premises Transferred to Other Real Estate Owned
$
423
$
-
$
423