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

Quarterly report [Sections 13 or 15(d)]

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
INVESTMENT SECURITIES	Sep. 30, 2026
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 September 30, 2026 U.S. Government Treasury $ 605,514 $ - $ 11,171 $ - $ 594,343 U.S. Government Agency 164,330 76 4,095 - 160,311 States and Political Subdivisions 35,004 - 2,429 - 32,575 Mortgage-Backed Securities (1) 55,044 - 10,715 - 44,329 Corporate Debt Securities 33,162 - 2,574 (49) 30,539 Total $ 893,054 $ 76 $ 30,984 $ (49) $ 862,097 December 31, 2025 U.S. Government Treasury $ 331,495 $ 1,940 $ 171 $ - $ 333,264 U.S. Government Agency 174,527 71 2,484 - 172,114 States and Political Subdivisions 36,918 38 2,045 - 34,911 Mortgage-Backed Securities (1) 59,699 2 7,697 - 52,004 Corporate Debt Securities 45,810 - 2,236 (42) 43,532 Other Securities (2) 8,097 - - - 8,097 Total $ 656,546 $ 2,051 $ 14,633 $ (42) $ 643,922 Held to Maturity Amortized Unrealized Unrealized Fair (Dollars in Thousands) Cost Gains Losses Value September 30, 2026 Mortgage-Backed Securities (1) 315,142 - 21,310 293,832 Total $ 315,142 $ - $ 21,310 $ 293,832 December 31, 2025 U.S. Government Treasury $ 129,782 $ - $ 514 $ 129,268 Mortgage-Backed Securities (1) 247,664 930 8,542 240,052 Total $ 377,446 $ 930 $ 9,056 $ 369,320 (1) Comprised of residential mortgage-backed securities. (2) Includes Federal Home Loan Bank stock and Federal Reserve Bank stock recorded at cost of $ 3.0 million and $ 5.1 million at December 31, 2025, respectively. These securities are presented in Other Assets beginning September 30, 2026. At September 30, 2026 and December 31, 2025, the investment portfolio had $ 3.2 million and $ 2.1 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 $ 605.5 million and $ 461.3 million at September 30, 2026 and December 31, 2025, respectively, were pledged to secure public deposits and for other purposes. Investment Sales. There were no sales of investment securities for the three and nine months ended September 30, 2026 and 2025. Maturity Distribution . At September 30, 2026 , 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, certain amortizing U.S. government agency securities and other 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 $ 159,015 $ 158,279 $ - $ - Due after one year through five years 532,658 516,640 - - Mortgage-Backed Securities 55,044 44,329 315,142 293,832 U.S. Government Agency 146,337 142,849 - - Total $ 893,054 $ 862,097 $ 315,142 $ 293,832 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 September 30, 2026 Available for Sale U.S. Government Treasury $ 591,355 $ 11,156 $ 2,988 $ 15 $ 594,343 $ 11,171 U.S. Government Agency 54,953 1,648 74,492 2,447 129,445 4,095 States and Political Subdivisions 1,842 21 28,453 2,408 30,295 2,429 Mortgage-Backed Securities 47 1 44,274 10,714 44,321 10,715 Corporate Debt Securities 657 - 28,782 2,574 29,439 2,574 Total $ 648,854 $ 12,826 $ 178,989 $ 18,158 $ 827,843 $ 30,984 Held to Maturity Mortgage-Backed Securities 201,991 9,348 91,838 11,962 293,829 21,310 Total $ 201,991 $ 9,348 $ 91,838 $ 11,962 $ 293,829 $ 21,310 December 31, 2025 Available for Sale U.S. Government Treasury $ 31,319 $ 22 $ 8,902 $ 149 $ 40,221 $ 171 U.S. Government Agency 62,809 182 91,760 2,302 154,569 2,484 States and Political Subdivisions 3,030 124 30,705 1,921 33,735 2,045 Mortgage-Backed Securities - - 51,932 7,697 51,932 7,697 Corporate Debt Securities - - 42,333 2,236 42,333 2,236 Total $ 97,158 $ 328 $ 225,632 $ 14,305 $ 322,790 $ 14,633 Held to Maturity U.S. Government Treasury - - 129,268 514 129,268 514 Mortgage-Backed Securities 33,589 98 106,262 8,444 139,851 8,542 Total $ 33,589 $ 98 $ 235,530 $ 8,958 $ 269,119 $ 9,056 At September 30, 2026, there were 848 positions (combined AFS and HTM) with unrealized pre-tax losses totaling $ 52.3 million. 91 of these positions are U.S. Treasury bonds and carry the full faith and credit of the U.S. Government. 688 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 September 30, 2026, 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 69 positions (municipal securities and corporate bonds) have a credit component. At September 30, 2026, corporate debt securities had an allowance for credit losses of $ 49,000 . No ne of the securities held by the Company were past due or in nonaccrual status at September 30, 2026. 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 rating s 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.