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, 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 March 31, 2026 U.S. Government Treasury $ 488,048 $ 619 $ 1,681 $ - $ 486,986 U.S. Government Agency 184,208 74 2,433 - 181,849 States and Political Subdivisions 36,717 28 2,014 - 34,731 Mortgage-Backed Securities (1) 58,307 - 7,920 - 50,387 Corporate Debt Securities 40,768 - 2,289 (37) 38,442 Other Securities (2) 8,155 - - - 8,155 Total $ 816,203 $ 721 $ 16,337 $ (37) $ 800,550 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 March 31, 2026 U.S. Government Treasury $ 58,580 $ - $ 127 $ 58,453 Mortgage-Backed Securities (1) 294,716 295 9,873 285,138 Total $ 353,296 $ 295 $ 10,000 $ 343,591 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 recorded at cost of $ 3.1 million and $ 3.0 million at March 31, 2026 and December 31, 2025, respectively, and Federal Reserve Bank stock recorded at cost of $ 5.1 million at March 31, 2026 and at December 31, 2025. At March 31, 2026 and December 31, 2025, the investment portfolio had $ 2.1 million in equity securities. These securities do not have a readily determinable fair value and were not credit impaired. Securities with an amortized cost of $ 395.9 million and $ 461.3 million at March 31, 2026 and December 31, 2025, 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, 2026 and 2025. Maturity Distribution . At March 31, 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 $ 121,530 $ 121,174 $ 58,580 $ 58,453 Due after one year through five years 467,465 462,738 - - Due after five year through ten years 6,658 5,926 - - Mortgage-Backed Securities 58,307 50,387 294,716 285,138 U.S. Government Agency 154,088 152,170 - - Other Securities 8,155 8,155 - - Total $ 816,203 $ 800,550 $ 353,296 $ 343,591 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, 2026 Available for Sale U.S. Government Treasury $ 269,603 $ 1,583 $ 8,932 $ 98 $ 278,535 $ 1,681 U.S. Government Agency 62,428 294 81,269 2,139 143,697 2,433 States and Political Subdivisions 1,909 75 31,659 1,939 33,568 2,014 Mortgage-Backed Securities 17 - 50,320 7,920 50,337 7,920 Corporate Debt Securities - - 37,432 2,289 37,432 2,289 Total $ 333,957 $ 1,952 $ 209,612 $ 14,385 $ 543,569 $ 16,337 Held to Maturity U.S. Government Treasury - - 58,453 127 58,453 127 Mortgage-Backed Securities 134,957 1,204 96,232 8,669 231,189 9,873 Total $ 134,957 $ 1,204 $ 154,685 $ 8,796 $ 289,642 $ 10,000 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 March 31, 2026, there were 790 positions (combined AFS and HTM) with unrealized pre-tax losses totaling $ 26.3 million. 50 of these positions are U.S. Treasury bonds and carry the full faith and credit of the U.S. Government. 663 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, 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 77 positions (municipal securities and corporate bonds) have a credit component. At March 31, 2026, corporate debt securities had an allowance for credit losses of $ 37,000 . No ne of the securities held by the Company were past due or in nonaccrual status at March 31, 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 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.