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
have been eliminated.
Certain previously reported amounts have been reclassified to conform to the current year’s
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 consolidated financial
statements at that date, but does not include all of the information and footnotes
required by generally accepted accounting principles
for complete financial statements.
For further information, refer to the consolidated financial statements and
included in the Company’s annual
report on Form 10-K for the year ended December 31, 2020.
April 30, 2021
, a newly formed subsidiary of CCBG, Capital City Strategic Wealth,
LLC (“CCSW”) acquired
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
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 (Topic
ASU 2020-04 provides optional expedients and exceptions for applying GAAP
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 scope
guidance (i) modifications of loan agreements should be accounted
for by prospectively adjusting the effective interest rate and
modification will be considered "minor" so that any existing unamortized
origination fees/costs would carry forward and continue to
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 for derivative
ASU 2020-04 is effective March 12, 2020 through December
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 to
March 12, 2020, up to the date that the financial statements are available to
Once elected for a Topic or
Subtopic within the Codification, the amendments in this ASU must be applied
prospectively for all eligible contract modifications for
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 fees/costs.
ASU 2021-01, “Reference Rate Reform (Topic
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
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
ASU will have material effects on the Company’s
business operations and consolidated financial statements.