Annual report pursuant to Section 13 and 15(d)

LONG-TERM BORROWINGS

v3.24.2
LONG-TERM BORROWINGS
12 Months Ended
Dec. 31, 2023
Long-term Borrowings [Abstract]  
LONG-TERM BORROWINGS
Note 12
LONG-TERM BORROWINGS
Federal Home Loan Bank Advances.
 
The Company had one FHLB long-term advance totaling $
0.3
 
million at December 31,
2023.
 
The advance matures in 2025 and has a rate of 4.80%. The Company had one FHLB long-term advance totaling $0.5
million at December 31, 2022 with a weighted-average rate of 4.80%.
 
The FHLB advances are collateralized by a floating lien on
certain 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.
Scheduled minimum future principal payments on our other long-term
 
borrowings at December 31 were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2023
2024
$
198
2025
116
Total
$
314
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 and adjust quarterly to a variable rate of
 
3-month CME Term SOFR
 
plus a
margin of
1.90
%.
 
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
$
0.9
 
million 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 and adjust quarterly to a variable rate of
3-month CME Term SOFR
 
plus a margin
of
1.80
%.
 
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 $
0.9
 
million 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, 2023, 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.