Capital City Bank Group, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
INVESTMENT SECURITIES	Mar. 31, 2025
Investment 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, 2025 U.S. Government Treasury $ 158,473 $ 556 $ 469 $ - $ 158,560 U.S. Government Agency 153,326 33 4,250 - 149,109 States and Political Subdivisions 41,885 - 3,152 (2) 38,731 Mortgage-Backed Securities (1) 64,583 - 9,634 - 54,949 Corporate Debt Securities 55,549 - 3,698 (73) 51,778 Other Securities (2) 8,097 - - - 8,097 Total $ 481,913 $ 589 $ 21,203 $ (75) $ 461,224 December 31, 2024 U.S. Government Treasury $ 106,710 $ 25 $ 934 $ - $ 105,801 U.S. Government Agency 148,666 39 5,578 - 143,127 States and Political Subdivisions 43,212 - 3,827 (3) 39,382 Mortgage-Backed Securities (1) 66,379 - 10,902 - 55,477 Corporate Debt Securities 55,970 - 4,444 (64) 51,462 Other Securities (2) 8,096 - - - 8,096 Total $ 429,033 $ 64 $ 25,685 $ (67) $ 403,345 Held to Maturity Amortized Unrealized Unrealized Fair (Dollars in Thousands) Cost Gains Losses Value March 31, 2025 U.S. Government Treasury $ 306,419 $ - $ 4,245 $ 302,174 Mortgage-Backed Securities (1) 210,757 90 12,820 198,027 Total $ 517,176 $ 90 $ 17,065 $ 500,201 December 31, 2024 U.S. Government Treasury $ 368,005 $ - $ 6,476 $ 361,529 Mortgage-Backed Securities (1) 199,150 16 16,235 182,931 Total $ 567,155 $ 16 $ 22,711 $ 544,460 (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, 2025 and at December 31, 2024. At March 31, 2025 and December 31, 2024, the investment portfolio had $ 2.3 million and $ 2.4 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 $ 456.1 million and $ 489.5 million at March 31, 2025 and December 31, 2024, 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. The Bank’s investment in 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, 2025 and 2024. Maturity Distribution . At March 31, 2025, 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 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 $ 59,318 $ 58,196 $ 248,348 $ 245,163 Due after one year through five years 252,607 245,032 58,071 57,011 Mortgage-Backed Securities 64,583 54,949 210,757 198,027 U.S. Government Agency 97,308 94,950 - - Other Securities 8,097 8,097 - - Total $ 481,913 $ 461,224 $ 517,176 $ 500,201 Unrealized Losses on Investment Securities. The following table summarizes the available for sale and held to maturity 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, 2025 Available for Sale U.S. Government Treasury $ 15,895 $ 8 $ 14,648 $ 461 $ 30,543 $ 469 U.S. Government Agency 47,557 149 97,046 4,101 144,603 4,250 States and Political Subdivisions 844 3 37,887 3,149 38,731 3,152 Mortgage-Backed Securities 51 - 54,884 9,634 54,935 9,634 Corporate Debt Securities 2,159 91 49,619 3,607 51,778 3,698 Total $ 66,506 $ 251 $ 254,084 $ 20,952 $ 320,590 $ 21,203 Held to Maturity U.S. Government Treasury - - 302,174 4,245 302,174 4,245 Mortgage-Backed Securities 57,699 342 115,401 12,478 173,100 12,820 Total $ 57,699 $ 342 $ 417,575 $ 16,723 $ 475,274 $ 17,065 December 31, 2024 Available for Sale U.S. Government Treasury $ 81,363 $ 318 $ 14,510 $ 616 $ 95,873 $ 934 U.S. Government Agency 33,155 184 100,844 5,394 133,999 5,578 States and Political Subdivisions 2,728 164 36,654 3,663 39,382 3,827 Mortgage-Backed Securities 54 - 55,409 10,902 55,463 10,902 Corporate Debt Securities 3,093 249 48,369 4,195 51,462 4,444 Total $ 120,393 $ 915 $ 255,786 $ 24,770 $ 376,179 $ 25,685 Held to Maturity U.S. Government Treasury - - 361,529 6,476 361,529 6,476 Mortgage-Backed Securities 58,230 1,000 119,353 15,235 177,583 16,235 Total $ 58,230 $ 1,000 $ 480,882 $ 21,711 $ 539,112 $ 22,711 At March 31, 2025, there were 829 positions (combined AFS and HTM) with unrealized losses totaling $ 38.3 million. 59 of these positions are U.S. Treasury bonds and carry the full faith and credit of the U.S. Government. 674 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. At March 31, 2025, all collateralized mortgage obligation securities, mortgage-backed securities, Small Business Administration securities, U.S. Agency, and U.S. Treasury bonds held were AAA rated. The remaining 96 positions (municipal securities and corporate bonds) have a credit component. At March 31, 2025, corporate debt securities had an allowance for credit losses of $ 73,000 and municipal securities had an allowance of $ 2,000 . None of the securities held by the Company were past due or in nonaccrual status at March 31, 2025. 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.