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

Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
INVESTMENT SECURITIES	Mar. 31, 2024
Investments Securities [Abstract]
Investment Securities	NOTE 2 – INVESTMENT SECURITIES Investment Portfolio Composition . The following table summarizes the amortized cost and related fair value of investment securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”) and the corresponding amounts of gross unrealized gains and losses. Available for Sale Amortized Unrealized Unrealized Allowance for Fair (Dollars in Thousands) Cost Gains Losses Credit Losses Value March 31, 2024 U.S. Government Treasury $ 24,977 $ - $ 1,226 $ - $ 23,751 U.S. Government Agency 147,113 77 8,142 - 139,048 States and Political Subdivisions 43,509 - 4,767 (39) 38,703 Mortgage-Backed Securities (1) 71,465 1 10,918 - 60,548 Corporate Debt Securities 63,256 - 6,021 (43) 57,192 Other Securities (2) 8,096 - - - 8,096 Total $ 358,416 $ 78 $ 31,074 $ (82) $ 327,338 December 31, 2023 U.S. Government Treasury $ 25,947 $ 1 $ 1,269 $ - $ 24,679 U.S. Government Agency 152,983 104 8,053 - 145,034 States and Political Subdivisions 43,951 1 4,861 (8) 39,083 Mortgage-Backed Securities (1) 73,015 2 9,714 - 63,303 Corporate Debt Securities 63,600 - 6,031 (17) 57,552 Other Securities (2) 8,251 - - - 8,251 Total $ 367,747 $ 108 $ 29,928 $ (25) $ 337,902 Held to Maturity Amortized Unrealized Unrealized Fair (Dollars in Thousands) Cost Gains Losses Value March 31, 2024 U.S. Government Treasury $ 442,762 $ - $ 16,288 $ 426,474 Mortgage-Backed Securities (1) 160,624 6 17,422 143,208 Total $ 603,386 $ 6 $ 33,710 $ 569,682 December 31, 2023 U.S. Government Treasury $ 457,681 $ - $ 16,492 $ 441,189 Mortgage-Backed Securities (1) 167,341 13 16,792 150,562 Total $ 625,022 $ 13 $ 33,284 $ 591,751 (1) Comprised of residential mortgage-backed securities (2) Includes Federal Home Loan Bank and Federal Reserve Bank stock, recorded at cost of $ 3.0 million and $ 5.1 million, respectively, at March 31, 2024 and $ 3.2 million and $ 5.1 million, respectively, at December 31, 2023. At March 31, 2024 and December 31, 2023, the investment portfolio had $ 3.4 million and $ 3.5 million, respectively in equity securities. These securities do not have a readily determinable fair value and were not credit impaired. Securities with an amortized cost of $ 452.5 million and $ 578.5 million at March 31, 2024 and December 31, 2023, 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 other securities, is pledged to secure FHLB advances. No ready market exists for this stock, and it has no quoted fair value; however, redemption of this stock has historically been at par value. As a member of the Federal Reserve Bank of Atlanta, the Bank is required to maintain stock in the Federal Reserve Bank of Atlanta based on a specified ratio relative to the Bank’s capital. Federal Reserve Bank stock is carried at cost. Investment Sales. There were no sales of investment securities for the three months ended March 31, 2024 and March 31, 2023. Maturity Distribution . At March 31, 2024, 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 (“MBS”) 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 (Dollars in Thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 31,877 $ 31,210 $ 136,137 $ 133,613 Due after one year through five years 138,581 127,809 306,625 292,861 Due after five year through ten years 34,427 29,217 - - Mortgage-Backed Securities 71,465 60,548 160,624 143,208 U.S. Government Agency 73,970 70,458 - - Other Securities 8,096 8,096 - - Total $ 358,416 $ 327,338 $ 603,386 $ 569,682 Unrealized Losses on Investment Securities. The following table summarizes the available for sale 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 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses March 31, 2024 Available for Sale U.S. Government Treasury $ 3,980 $ 1 $ 19,771 $ 1,225 $ 23,751 $ 1,226 U.S. Government Agency 13,416 78 117,053 8,064 130,469 8,142 States and Political Subdivisions 1,296 36 37,445 4,731 38,741 4,767 Mortgage-Backed Securities 71 1 60,446 10,917 60,517 10,918 Corporate Debt Securities - - 57,236 6,021 57,236 6,021 Total $ 18,763 $ 116 $ 291,951 $ 30,958 $ 310,714 $ 31,074 Held to Maturity U.S. Government Treasury 144,380 3,214 282,094 13,074 426,474 16,288 Mortgage-Backed Securities 1,785 11 140,058 17,411 141,843 17,422 Total $ 146,165 $ 3,225 $ 422,152 $ 30,485 $ 568,317 $ 33,710 December 31, 2023 Available for Sale U.S. Government Treasury $ - $ - $ 19,751 $ 1,269 $ 19,751 $ 1,269 U.S. Government Agency 12,890 74 121,220 7,979 134,110 8,053 States and Political Subdivisions 1,149 31 37,785 4,830 38,934 4,861 Mortgage-Backed Securities 23 - 63,195 9,714 63,218 9,714 Corporate Debt Securities - - 57,568 6,031 57,568 6,031 Total $ 14,062 $ 105 $ 299,519 $ 29,823 $ 313,581 $ 29,928 Held to Maturity U.S. Government Treasury 153,880 3,178 287,310 13,314 441,190 16,492 Mortgage-Backed Securities 786 14 148,282 16,778 149,068 16,792 Total $ 154,666 $ 3,192 $ 435,592 $ 30,092 $ 590,258 $ 33,284 At March 31, 2024, there were 876 positions (combined AFS and HTM) with unrealized losses totaling $ 64.8 million. 85 of these positions are U.S. Treasury bonds and carry the full faith and credit of the U.S. Government. 690 are U.S. government agency securities issued by U.S. government sponsored entities. We believe the long history of no credit losses on government securities indicates that the expectation of nonpayment of the amortized cost basis is effectively zero. The remaining 101 positions (municipal securities and corporate bonds) have a credit component. At March 31, 2024, all collateralized mortgage obligation securities, mortgage-backed securities, Small Business Administration securities, U.S. Agency, and U.S. Treasury bonds held were AAA rated. At March 31, 2024, corporate debt securities had an allowance for credit losses of $ 43,000 and municipal securities had an allowance of $ 39,000 . 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 effectively 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 no t assess or record expected credit losses due to the zero loss assumption. The Company monitors the credit quality of its municipal and corporate securities portfolio via credit ratings which are updated on a quarterly basis. On a quarterly basis, municipal and corporate 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.