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
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.
they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial
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, 2020 has been derived from the audited
statements at that date, but does not include all of the
information and footnotes required by generally accepted accounting
for complete financial statements.
For further information, refer to the consolidated financial statements
and footnotes thereto
included in the Company’s
annual report on Form 10-K for the year ended December
April 30, 2021
, a newly formed subsidiary of CCBG, Capital City Strategic
Wealth, LLC (“CCSW”)
substantially all of the assets of Strategic Wealth
Group, LLC and certain related businesses (“SWG”), including
and insurance carrier agreements, and the assignment
of all related revenues thereof.
Under the terms of the purchase agreement,
SWG principles became officers of CCSW and will continue
the operation of their five offices in South Georgia
management services and comprehensive risk management
and asset protection services for individuals and businesses.
million in cash consideration and recorded goodwill of $
million and a customer relationship intangible asset of $
Accounting Standards Updates
ASU 2020-04, "Reference Rate Reform
ASU 2020-04 provides optional expedients and exceptions for applying
to loan and lease agreements, derivative contracts, and
other transactions affected by the anticipated transition
away from LIBOR
toward new interest rate benchmarks. For transactions
that are modified because of reference rate reform and that meet certain
guidance (i) modifications of loan agreements should
be accounted for by prospectively adjusting the effective
interest rate and the
modification will be considered "minor" so that any existing
unamortized origination fees/costs would carry forward and
be amortized and (ii) modifications of lease agreements
should be accounted for as a continuation of the existing
agreement with no
reassessments of the lease classification and the discount
rate or re-measurements of lease payments that otherwise would be required
for modifications not accounted for as separate
contracts. ASU 2020-04 also provides numerous optional expedients
ASU 2020-04 is effective March 12, 2020 through
December 31, 2022.
An entity may elect to apply ASU 2020-04 for
contract modifications as of January 1, 2020, or prospectively
from a date within an interim period that includes or is subsequent
March 12, 2020, up to the date that the financial statements
are available to be issued.
Once elected for a Topic
or an Industry
Subtopic within the Codification, the amendments in this
ASU must be applied prospectively for all eligible contract
that Topic or Industry
It is anticipated this ASU will simplify any modifications executed
between the selected start date
(yet to be determined) and December 31, 2022 that are
directly related to LIBOR transition by allowing prospective
recognition of the
continuation of the contract, rather than extinguishment of
the old contract resulting in writing off unamortized
ASU 2021-01, “Reference Rate Reform
clarifies that certain optional expedients and exceptions
in ASC 848 for
contract modifications and hedge accounting apply
to derivatives that are affected by the discounting
transition. ASU 2021-01 also
amends the expedients and exceptions in ASC 848 to
capture the incremental consequences of the scope clarification and
to tailor the
existing guidance to derivative instruments.
The Company is evaluating the impact of this ASU and has not
yet determined if this
ASU will have material effects on the Company’s
business operations and consolidated financial statements.