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	9 Months Ended
INVESTMENT SECURITIES	Sep. 30, 2021
Investments Securities [Abstract]
Investment securities	NOTE 2 – INVESTMENT SECURITIES Investment Portfolio Composition . The following table summarizes the amortized cost and related market value of investment securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses. September 30, 2021 December 31, 2020 Amortized Unrealized Unrealized Market Amortized Unrealized Unrealized Market (Dollars in Thousands) Cost Gains Losses Value Cost Gain Losses Value Available for Sale U.S. Government Treasury $ 164,806 $ 90 $ 849 $ 164,047 $ 103,547 $ 972 $ - $ 104,519 U.S. Government Agency 249,649 1,793 970 250,472 205,972 2,743 184 208,531 States and Political Subdivisions 43,834 69 357 43,546 3,543 89 - 3,632 Mortgage-Backed Securities (1) 97,131 240 164 97,207 456 59 - 515 Corporate Debt Securities 84,331 13 567 83,777 - - - - Equity Securities (2) 6,795 - - 6,795 7,673 - - 7,673 Total $ 646,546 $ 2,205 $ 2,907 $ 645,844 $ 321,191 $ 3,863 $ 184 $ 324,870 Held to Maturity U.S. Government Treasury $ 115,903 $ - $ 348 $ 115,555 $ 5,001 $ 13 $ - $ 5,014 Mortgage-Backed Securities 225,325 3,941 536 228,730 164,938 5,223 - 170,161 Total $ 341,228 $ 3,941 $ 884 $ 344,285 $ 169,939 $ 5,236 $ - $ 175,175 Total Investment Securities $ 987,774 $ 6,146 $ 3,791 $ 990,129 $ 491,130 $ 9,099 $ 184 $ 500,045 (1) Comprised of residential mortgage-backed securities (2) Includes Federal Home Loan Bank and Federal Reserve Bank stock, recorded at cost of $ 2.0 million and $ 4.8 million, respectively, at September 30, 2021 and includes Federal Home Loan Bank and Federal Reserve Bank stock recorded at cost of $ 2.9 million and $ 4.8 million, respectively, at December 31, 2020. Securities with an amortized cost of $ 312.3 million and $ 308.2 million at September 30, 2021 and December 31, 2020, 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 equity securities, is pledged to secure FHLB advances. No ready market exists for this stock, and it has no quoted market 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. Maturity Distribution . At September 30, 2021, 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 Market Value Amortized Cost Market Value Due in one year or less $ 39,614 $ 39,423 $ - $ - Due after one year through five years 264,747 263,661 115,903 115,555 Due after five year through ten years 66,347 65,614 - - Mortgage-Backed Securities 97,131 97,207 225,325 228,730 U.S. Government Agency 171,912 173,144 - - Equity Securities 6,795 6,795 - - Total $ 646,546 $ 645,844 $ 341,228 $ 344,285 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 Market Unrealized Market Unrealized Market Unrealized (Dollars in Thousands) Value Losses Value Losses Value Losses September 30, 2021 Available for Sale U.S. Government Treasury $ 143,394 $ 849 $ - $ - $ 143,394 $ 849 U.S. Government Agency 118,969 859 12,168 111 131,137 970 States and Political Subdivisions 27,355 357 - - 27,355 357 Mortgage-Backed Securities 40,012 164 - - 40,012 164 Corporate Debt Securities 57,304 567 - - 57,304 567 Total 387,034 2,796 12,168 111 399,202 2,907 Held to Maturity U.S. Government Treasury 115,555 348 - - 115,555 348 Mortgage-Backed Securities 93,023 536 - - 93,023 536 Total $ 208,578 $ 884 $ - $ - $ 208,578 $ 884 December 31, 2020 Available for Sale U.S. Government Agency $ 28,266 $ 156 $ 4,670 $ 28 $ 32,936 $ 184 Total $ 28,266 $ 156 $ 4,670 $ 28 $ 32,936 $ 184 At September 30, 2021, there were 288 positions (combined Available-for-Sale and Held-to-Maturity) with unrealized losses totaling $ 3.8 million. 206 of these positions were U.S. government agency securities issued by U.S. government sponsored entities. Municipal securities totaled 29 positions. The declines in the market value of these securities were attributable to changes in interest rates and not credit quality. The remaining 53 positions were corporate debt securities. A majority of the decline in the market value of these securities were attributable to changes in interest rates. These investment securities had allowance for credit losses totaling $ 16,000 at September 30, 2021. None of the securities held by the Company were past due or in nonaccrual status at September 30, 2021. 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 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 not assess or record expected credit losses due to the zero loss assumption. The Company monitors the credit quality of its municipal securities portfolio via credit ratings which are updated on a quarterly basis. On a quarterly basis, municipal 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.