Capital City Bank Group Inc: Form 10-K for the period ended Dec 31, 2025
Filed with the SEC on Feb 27, 2026 and accepted by EDGAR at Feb 27, 2026, 12:39 ET.
Business
As filed, 2,651 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
About Us
General
Capital City Bank Group, Inc. (“CCBG”) is a financial holding company headquartered in Tallahassee, Florida. CCBG was
incorporated under Florida law on December 13, 1982, to acquire five national banks and one state bank that all subsequently
became part of CCBG’s bank subsidiary, Capital City Bank (“CCB” or the “Bank”). The Bank commenced operations in 1895. In
this report, the terms “Company,” “we,” “us,” or “our” mean CCBG and all subsidiaries included in our consolidated financial
statements.
CCBG is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4. 4
billion in assets.
We
provide a full range of banking services, including traditional deposit and credit services, mortgage banking,
asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the
sale of life insurance, risk management and asset protection services. The Bank has 62 banking offices and 108 ATMs/ITMs in
Florida, Georgia, and Alabama. Through Capital City Home Loans, LLC (“CCHL”), we have 28 additional offices in the
Southeast for our mortgage banking business. The majority of the revenue, approximately 81%, is derived from our Florida
market areas while approximately 17% and 2% of the revenue is derived from our Georgia and other market areas, respectively.
Below is a summary of our financial condition and results of operations for the past three fiscal years, which we believe is a
sufficient period for understanding our general business development. Our financial condition and results of operations are more
fully discussed in our Management’s Discussion and Analysis on page 45 and our consolidated financial statements on page 70.
Dollars in millions
Year Ended
December 31,
Assets
Deposits
Shareowners’
Equity
Revenue
(1)
Net Income
2025
$4,385.8
$3,662.3
$552.9
$286.7
$61.6
2024
$4,324.9
$3,672.0
$495.3
$270.6
$52.9
2023
$4,304.5
$3,701.8
$440.6
$252.7
$52.3
(1)
Revenue represents interest income plus noninterest income
Dividends and management fees received from the Bank are CCBG’s primary source of income. Dividend payments by the Bank
to CCBG depend on the capitalization, earnings and projected growth of the Bank, and are limited by various regulatory
restrictions, including compliance with a minimum Common Equity Tier 1 Capital conservation buffer. See the section entitled
“Regulatory Considerations” in this Item 1 and Note 17 in the Notes to Consolidated Financial Statements for a discussion of the
restrictions.
Risk factors
As filed, 97,004 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
or discussed in this Annual Report also could adversely affect
our results, and you should not consider any such list of factors to be a complete set of all potential risks or uncertainties. Any
forward-looking statements made by us or on our behalf speak only as of the date they are made. We do not undertake to update
any forward-looking statement, except as required by applicable law.
BUSINESS OVERVIEW
Our Business
We are a financial holding company headquartered in Tallahassee, Florida, and we are the parent of our wholly owned subsidiary,
Capital City Bank (the “Bank” or “CCB”).
We
provide a full range of banking services, including traditional deposit and credit
services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial
advisory services. The Bank has 62 banking offices and 108 ATMs/ITMs in Florida, Georgia and Alabama. Through Capital City
Home Loans, LLC (“CCHL”), we have 28 additional offices in the Southeast for our mortgage banking business. Please see the
section captioned “About Us” beginning on page 5 for more detailed information about our business.
Our profitability, like most financial institutions, is dependent, to a large extent upon net interest income, which is the difference
between the interest and fees received on interest earning assets, such as loans and securities, and the interest paid on interest-
bearing liabilities, principally deposits and borrowings. Results of operations are also affected by the provision for credit losses,
operating expenses such as salaries and employee benefits, occupancy , and other operating expenses including income taxes, and
noninterest income such as mortgage banking revenues, wealth management fees, deposit fees, and bank card fees.
Strategic Review
Operating Philosophy
. Our philosophy is to build long-term client relationships based on quality service, high ethical standards,
and safe and sound banking practices. We maintain a locally oriented, community-based focus, which is augmented by
experienced, centralized support in select specialized areas. Our local market orientation is reflected in our network of banking
office locations, experienced community executives with a dedicated President for each market, and community boards which
support our focus on responding to local banking needs. We strive to offer a broad array of sophisticated products and to provide
quality service by empowering associates to make decisions in their local markets.
Strategic Initiatives
. Our strategic plan guides us in the areas of client experience, channel optimization, market expansion, and
culture. As part of the strategic plan, we aim to take our brand of relationship banking to the next level, further deepen
relationships within our communities, expand into new higher growth markets, diversify our revenue sources, invest in new
technology that will support the expansion of client relationships, scale within our lines of business, and drive higher profitability.
We have implemented initiatives in support of the strategic plan, including the implementation of an integrated marketing
software aimed at deepening client relationships, the continuation of our comprehensive review of our banking office network,
and expansion into new markets and further diversification of revenues by expanding our residential mortgage banking and
wealth businesses.
Markets
. We maintain a blend of large and small markets in Florida and Georgia, all in close proximity to major interstate
thoroughfares such as Interstates 10 and 75. Our larger markets include Tallahassee (Leon County, Florida), Gainesville
(Alachua County, Florida), Macon (Bibb County, Georgia), and Suncoast (Hernando/Pasco/Citrus Counties, Florida). The larger
employers in these markets are state and local governments, healthcare providers, educational institutions, and small businesses,
providing stability and good growth dynamics that have historically grown in excess of the national average. We serve an
additional 15 smaller, less competitive, rural markets located on the outskirts of, and centered between, our larger markets where
we are positioned as a market leader. In 7 of 12 markets in Florida and one of three Georgia markets (excluding Northern Arc of
Atlanta markets entered into in 2022 and 2023), we frequently rank within the top three banks in terms of deposit market share.
Furthermore, in the counties in which we operate, we maintain an 8.0% deposit market share in the Florida counties and 5.0% in
the Georgia counties (excluding Northern Arc of Atlanta). Our markets provide for a strong core deposit funding base, a key
differentiator and driver of our profitability and franchise value. These markets also benefit from favorable demographic trends,
including population growth, state government stability, and expanding healthcare and education sectors, which support our long-
term relationship banking strategy and contribute to the resilience of our deposit base.
Recent Acquisition/Expansion Activity
. We expanded into the Northern Arc of Atlanta, Georgia by opening full-service offices in
Marietta (Cobb County) in the fourth quarter of 2022 and Duluth (Gwinnett County) in the second quarter of 2023. Additionally,
we expanded our presence in the Florida Panhandle by opening a full-service office s in Watersound, Florida in the first quarter of
2023, Panama City, Florida (Lynn Haven) in the first quarter of 2024, and Panama City, Florida (West Bay) in the first quarter of
2025. To expand our presence and commitment to our Gainesville market, we opened a third full-service banking office in the
area in early 2023. During 2022 and 2023, we hired leadership and banking teams in the Northern Arc and Walton County office
markets, including commercial bankers, retail delivery support, private banking, wealth advisors, and treasury professionals.
Further, CCHL loan originators reside in the Northern Arc and Walton County offices.
On March 1, 2020, CCB acquired from BMGBMG, LLC (“BMG”) an initial 51% membership interest in CCHL (formerly
known as Brand Mortgage Group, LLC), which became a consolidated entity in the Company’s financial statements. On
November 15, 2024, CCB entered into an agreement with BMG to transfer the 49% Interest to CCB, which closed on January 1,
EXECUTIVE OVERVIEW
For 2025, net income attributable to common shareowners totaled $61.6 million, or $3.60 per diluted share, compared to net
income of $52.9 million, or $3.12 per diluted share, for 2024, and $52.3 million, or $3.07 per diluted share, for 2023.
For 2025, the increase in net income attributable to common shareowners reflected a $12.7 million increase in net interest income
and a $6.4 million increase in noninterest income, that were partially offset by a $6.2 million increase in income taxes, a $1.7
million increase in noninterest expense, and a $1.2 million increase in provision for credit losses. Net income attributable to
common shareowners included a $1.3 million decrease in the deduction to record the non-controlling interest in the earnings of
CCHL.
For 2024, the increase in net income attributable to common shareowners reflected a $5.7 million decrease in provision for credit
losses and a $4.4 million increase in noninterest income, that were partially offset by a $8.3 million increase in noninterest
expense, a $0.9 million increase in income taxes, and a $0.1 million decrease in net interest income. Net income attributable to
common shareowners included a $0.2 million decrease in the deduction to record the non-controlling interest in the earnings of
CCHL.
Below are
Summary Highlights
of our 2025 financial performance:
Income Statement
Tax-equivalent net interest income totaled $171.8 million compared to $159.2 million for 2024
Net interest margin increased by 20 basis points to 4.28% (increase in earning asset yield of 10 basis points and decrease
in cost of funds of 10 basis points)
Credit quality metrics remained strong throughout the year – allowance coverage ratio increased to 1.22% in 2025
compared to 1.10% in 2024 - net loan charge-offs were 14 basis points of average loans for 2025 compared to 21 basis
points for 2024
Noninterest income increased by $6.4 million, or 8.4%, due to higher mortgage banking revenues of $2.6 million, wealth
management fees of $1.6 million, other income of $1.5 million, and deposit fees of $0.7 million
Noninterest expense increased $1.7 million, or 1.0%, primarily due to higher compensation expense (primarily performance-
based pay and health care cost) partially offset by lower pension expense and higher gains from the sale of banking facilities
Balance Sheet
Loan balances decreased by $83.6 million, or 3.1% (average), and decreased by $105.4 million, or 4.0% (end of period)
Average deposit balances increased by $53.9 million, or 1.5% driven by strong core deposit growth
Tangible book value per diluted share (non-GAAP financial measure) increased by $3.38, or 14.3%
For more detailed information, refer to the following additional sections of the MD&A “Results of Operations” and “Financial
Condition”.
RESULTS OF OPERATIONS
A condensed earnings summary for the last three fiscal years is presented in Table 1 below:
Table 1
CONDENSED SUMMARY OF EARNINGS
(Dollars in Thousands, Except Per Share Data)
2025
2024
2023
Interest Income
204,387
194,657
181,068
Taxable Equivalent Adjustments
177
241
367
Total Interest Income (FTE)
204,564
194,898
181,435
Interest Expense
32,739
35,719
22,080
Net Interest Income (FTE)
171,825
159,179
159,355
Provision for Credit Losses
5,264
4,031
9,714
Taxable Equivalent Adjustments
177
241
367
Net Interest Income After Provision for Credit Losses
166,384
154,907
149,274
Noninterest Income
82,355
75,976
71,610
Noninterest Expense
167,022
165,315
157,023
Income Before Income Taxes
81,717
65,568
63,861
Income Tax Expense
20,160
13,924
13,040
Pre-Tax Loss Attributable to Noncontrolling Interests
1,271
1,437
Net Income Attributable to Common Shareowners
61,557
52,915
52,258
Basic Net Income Per Share
3.61
3.12
3.08
Diluted Net Income Per Share
3.60
3.12
3.07
Net Interest Income and Margin
Net interest income represents our single largest source of earnings and is equal to interest income and fees generated by earning
assets, less interest expense paid on interest bearing liabilities. We provide an analysis of our net interest income, including
average yields and rates in Tables 2 and 3 below. We provide this information on a “taxable equivalent” basis to reflect the tax-
exempt status of income earned on certain loans and investments.
For 2025, our taxable equivalent net interest income totaled $171.8 million compared to $159.2 million for 2024 and $159.4
million for 2023. The $12.6 million, or 7.9%, increase in 2025 was primarily attributable to an increase in investment securities
income and to a lesser extent an increase in overnight funds income and lower deposit interest expense, partially offset by lower
loan income. The $0.2 million, or 0.1%, decrease in 2024 was driven by higher deposit interest expense that was substantially
offset by higher loan income and to a lesser extent higher overnight funds income. We discuss these variances in more detail
below.
For 2025, our taxable equivalent interest income totaled $204.6 million compared to $194.9 million in 2024 and $181.4 million in
2023. The $9.7 million, or 5.0%, increase in 2025 was primarily attributable to a $10.3 million increase in investment securities
income due to growth in the portfolio and favorable repricing. A $3.7 million decrease in loan income was partially offset by a
$3.1 million increase in overnight funds income. The $13.5 million, or 7.4%, increase in 2024 was primarily attributable to a
$13.0 million increase in loan income driven by loan growth and favorable loan repricing.
For 2025, interest expense totaled $32.7 million compared to $35.7 million for 2024 and $22.1 million for 2023. The $3.0 million
decrease in 2025 was primarily due to decreased deposit interest expense, including a $1.4 million decrease in NOW account
expense and a $1.4 million decrease in money market account expense , partially offset by a $0.2 million increase in certificates of
deposit expense. The decreases for NOW and money market accounts reflected adjustments to our board and managed rates for
these products, as interest rates declined over the year. The $13.6 million increase in 2024 compared to 2023 was primarily
attributable to increased deposit interest expense, including a $6.3 million increase attributable to money market accounts, a $4.5
million increase attributable to NOW accounts, and a $3.7 million increase attributable to certificates of deposit, all reflective of a
shift in balances from noninterest bearing to interest bearing products driven by the higher interest rate environment and clients
seeking higher yield deposit products.
Our cost of interest bearing deposits was 127 basis points for 2025, 142 basis points for 2024, and 81 basis points for 2023. Our
total cost of deposits (including noninterest bearing accounts) was 81 basis points for 2025, 89 basis points for 2024, and 48 basis
points for 2023. Our total cost of funds (interest expense/average earning assets) was 82 basis points for 2025, 92 basis points for
2024, and 56 basis points for 2023.
Our net interest margin (defined as taxable-equivalent interest income less interest expense divided by average earning assets)
was 4.28% for 2025, 4.08% for 2024, and 4.05% for 2023. The increase in the net interest margin for 2025 was primarily due to a
higher yield for investment securities driven by new purchases at higher yields, favorable loan repricing, and lower deposit costs.
The increase in the net interest margin for 2024 reflected a combination of earning assets repricing at higher interest rates and an
improved earning asset mix driven by loan growth, partially offset by a higher, but well controlled cost of deposits.
The Federal Open Market Committee decreased the Federal Funds Rate during 2025. The Federal Funds Rate is currently in a
target range of 3.50% to 3.75%, with the Effective Federal Funds Rate at 3.64% at December 31, 2025, and 4.33% at
December 31, 2024. Management actively manages its balance sheet mix and volume and will make loan and deposit product
pricing changes to help mitigate interest rate risk. See section titled “Financial Condition - Market Risk and Interest Rate
Sensitivity” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional
information regarding this risk.
Table 2
AVERAGE BALANCES AND INTEREST RATES
2025
2024
2023
(Taxable Equivalent Basis - Dollars
in Thousands)
Average
Balance
Interest
Average
Rate
Average
Balance
Interest
Average
Rate
Average
Balance
Interest
Average
Rate
ASSETS
Loans Held for Sale
24,234
1,764
7.28
27,306
2,776
6.72
55,510
3,232
5.82
Loans Held for Investment
(1)(2)
2,622,877
159,589
6.08
2,706,461
162,385
6.03
2,656,394
149,366
5.62
Investment Securities
Taxable Investment Securities
996,222
27,399
2.75
923,253
17,073
1.85
1,016,550
18,652
1.83
Tax-Exempt Investment Securities
(2)
1,391
61
4.39
848
37
4.34
2,199
59
2.68
Total Investment Securities
997,613
27,460
2.75
924,101
17,110
1.85
1,018,749
18,711
1.83
Fed Funds Sold & Int Bearing Dep
366,151
15,751
4.30
239,712
12,627
5.27
203,147
10,126
4.98
Total Earning Assets
4,010,875
204,564
5.10
3,897,580
194,898
5.00
3,933,800
181,435
4.61
Cash & Due From Banks
67,876
73,881
75,786
Allowance for Credit Losses
(30,443)
(29,902)
(28,190)
Other Assets
299,269
293,044
297,290
TOTAL ASSETS
4,347,577
4,234,603
4,278,686
LIABILITIES
Noninterest Bearing Deposits
1,319,336
1,336,601
1,507,657
NOW Accounts
1,227,316
15,441
1.26
1,183,962
16,835
1.42
1,172,861
12,375
1.06
Money Market Accounts
420,992
8,594
2.04
400,664
9,957
2.49
299,581
3,670
1.22
Savings Accounts
504,951
666
0.13
518,869
723
0.14
592,033
598
0.10
Time Deposits
178,756
4,896
2.74
157,342
4,647
2.95
97,480
939
0.96
Total Interest Bearing Deposits
2,332,015
29,597
1.27
2,260,837
32,162
1.42
2,161,955
17,582
0.81
Total Deposits
3,651,351
29,597
0.81
3,597,438
32,162
0.89
3,669,612
17,582
0.48
Repurchase Agreements
23,728
612
2.58
26,970
838
3.11
19,917
513
2.57
Short-Term Borrowings
12,949
571
4.40
4,882
242
4.94
24,146
1,538
6.37
Subordinated Notes Payable
47,466
1,924
4.00
52,887
2,449
4.56
52,887
2,427
4.53
Other Long-Term Borrowings
736
35
4.74
534
28
5.31
408
20
4.77
Total Interest Bearing Liabilities
2,416,894
32,739
1.35
2,346,110
35,719
1.52
2,259,313
22,080
0.98
Other Liabilities
76,385
71,964
81,842
TOTAL LIABILITIES
3,812,615
3,754,675
3,848,812
Temporary Equity
6,712
8,392
TOTAL SHAREOWNERS’
EQUITY
534,962
473,216
421,482
TOTAL LIABILITIES,
TEMPORARY EQUITY AND
SHAREOWNERS’ EQUITY
4,347,577
4,234,603
4,278,686
Interest Rate Spread
3.74
3.47
3.63
Net Interest Income
171,825
159,179
159,355
Net Interest Margin
(3)
4.28
4.08
4.05
(1)
Average balances include net loan fees, discounts and premiums, and nonaccrual loans. Interest income includes net loan cost of $1.4 million for 2025
and $0.7 million for 2024 and net loan fees of $0.05 million for 2023.
(2)
Interest income includes the effects of taxable equivalent adjustments using a 21% tax rate.
(3)
Taxable equivalent net interest income divided by average earning assets.
Table 3
RATE/VOLUME ANALYSIS
(1)
2025 vs. 2024
2024 vs. 2023
(Taxable Equivalent Basis -
Dollars in Thousands)
Increase (Decrease) Due to Change In
Increase (Decrease) Due to Change In
Total
Calendar
(3)
Volume
Rate
Total
Calendar
(3)
Volume
Rate
Earnings Assets:
Loans Held for Sale
(2)
(1,012)
(8)
(304)
(700)
(456)
9
(1,651)
1,186
Loans Held for Investment
(2)
(2,796)
(444)
(4,571)
2,219
13,019
409
2,406
10,204
Taxable Investment Securities
10,326
(47)
1,396
8,977
(1,579)
51
(1,763)
133
Tax-Exempt Investment
Securities
(2)
24
24
(22)
(36)
14
Funds Sold
3,124
(35)
6,695
(3,536)
2,501
28
1,795
678
Total
9,666
(534)
3,240
6,960
13,463
497
751
12,215
Interest Bearing Liabilities:
NOW Accounts
(1,394)
(46)
662
(2,010)
4,460
34
83
4,343
Money Market Accounts
(1,363)
(27)
532
(1,868)
6,287
10
1,228
5,049
Savings Accounts
(57)
(2.00)
(17)
(38)
125
2
(76)
199
Time Deposits
249
(13)
645
(383)
3,708
3
574
3,131
Short-Term Borrowings
103
(3)
167
(61)
(971)
6
(574)
(403)
Subordinated Notes Payable
(525)
(7)
(244)
(274)
22
7
(7.00)
22
Other Long-Term Borrowings
7
11
(4)
8
6
2
Total
(2,980)
(98)
1,756
(4,638)
13,639
62
1,234
12,343
Changes in Net Interest Income
12,646
(436)
1,484
11,598
(176)
435
(483)
(128)
(1)
This table shows the change in taxable equivalent net interest income for comparative periods based on either changes in
average volume or changes in average rates for interest earning assets and interest bearing liabilities. Changes which
are not solely due to volume changes or solely due to rate changes have been attributed to rate changes.
(2)
Interest income includes the effects of taxable equivalent adjustments using a 21% tax rate to adjust on tax-exempt loans and
and securities to a taxable equivalent basis.
(3)
Reflects one extra calendar day in 2024.
Provision for Credit Losses
For 2025, we recorded a provision for credit loss expense of $5.3 million ($5.3 million expense for loans held for investment
(“HFI”)) compared to provision expense of $4.0 million for 2024 ($5.0 million expense for loans HFI and $1.0 million benefit for
unfunded loan commitments) and provision expense of $9.7 million for 2023 ($9.5 million expense for loans HFI and $0.2
million expense for unfunded loan commitments). We discuss the various factors that impacted our provision expense for Loans
HFI in further detail below under the heading Allowance for Credit Losses.
Noninterest Income
For 2025, noninterest income totaled $82.4 million, a $6.4 million, or 8.4%, increase over 2024, attributable to increases in
mortgage banking revenues of $2.6 million, wealth management fees of $1.6 million, other income of $1.5 million, and deposit
fees of $0.7 million. Higher secondary market production volume and gain on sale margin drove the improvement in mortgage
banking revenues. The increase in wealth management fees was due to higher trust fees and reflected a combination of new
business, higher account valuations, and fee adjustments. The increase in other income reflected the aforementioned $0.7 million
gain from the sale of our insurance subsidiary, CCSW, in 2025. Fee adjustments implemented in mid-2025 contributed to the
increase in deposit fees and other income.
For 2024, noninterest income totaled $76.0 million, a $4.4 million, or 6.1% , increase over 2023, primarily attributable to a $3.9
million increase in mortgage banking revenues and a $2.8 million increase in wealth management fees, partially offset by a $2.2
million decrease in other income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The
increase in wealth management fees was primarily driven by higher retail brokerage fees and to a lesser extent trust fees,
primarily attributable to both new account growth and higher account values driven by higher market returns. The decrease in
other income was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights in 2023, and to a lesser
extent a decrease in vendor bonus income and miscellaneous income.
Noninterest income as a percentage of total operating revenues (net interest income plus noninterest income) was 32.42% in 2025,
32.34% in 2024, and 31.05% in 2023. The variance in 2024 was primarily attributable to higher mortgage banking revenues and
wealth management fees. The table below reflects the major components of noninterest income.
Table 4
NONINTEREST INCOME
(Dollars in Thousands)
2025
2024
2023
Deposit Fees
22,069
21,346
21,325
Bank Card Fees
14,705
14,707
14,918
Wealth Management Fees
20,667
19,113
16,337
Mortgage Banking Revenues
16,959
14,343
10,400
Other
7,955
6,467
8,630
Total Noninterest Income
82,355
75,976
71,610
Significant components of noninterest income are discussed in more detail below.
Deposit Fees
. For 2025, deposit fees (service charge fees, insufficient fund/overdraft fees, and business account analysis fees)
totaled $22.1 million compared to $21.3 million in 2024 and $21.3 million in 2023. The increase in 2025 was primarily due to
service charge fee adjustments made late in the second quarter of 2025. Deposit fees for 2024 reflected a $0.2 million increase in
commercial account analysis fees that was offset by a $0.2 million decrease in overdraft fees.
Bank Card Fees
. Bank card fees totaled $14.7 million in 2025 compared to $14.7 million in 2024 and $14.9 million in 2023. The
decrease in 2024 was generally due to lower card volume reflective of overall slower consumer spending.
Wealth Management Fees
. Wealth management fees include trust fees through Capital City Trust (i.e., managed accounts and
trusts/estates) and retail brokerage fees through Capital City Investments (i.e., investment, insurance products, and retirement
accounts). In September 2025, we sold our subsidiary, Capital City Strategic Wealth, which provided the sale of life insurance,
risk management and asset protection services, and whose insurance commission and retail brokerage fees were included in
wealth management fees.
Wealth management fees for 2025 totaled $20.7 million compared to $19.1 million in 2024 and $16.3 million in 2023. The
increase in 2025 reflected a $1.4 million increase in trust fees and a $0.2 million increase in retail brokerage fees. The increase in
trust fees reflected new account growth and a fee increase in the first quarter of 2025. The increase in 2024 was attributable to a
$2.1 million increase in retail brokerage fees and a $0.9 million increase in trust fees, which were partially offset by a $0.3 million
decrease in insurance commission revenue. The increase in retail brokerage fees was driven by increased fixed income and
annuity product sales and new account growth, and the increase in trust fees reflected new account growth, higher account values
reflective of improved market returns, and a mid-year fee increase.
Capital City Strategic Wealth insurance commission revenues were $1.1 million for 2025, $1.1 million for 2024 and $1.3 million
for 2023, and retail brokerage fees were $1.3 million, $2.4 million, and $1.0 million for those respective years, and resulted in
nominal impact on consolidated operating profit of $0.2 million, $0.4 million, and ($0.3 million) in each respective year.
At December 31, 2025, total assets under management (“AUM”) were approximately $2.867 billion compared to $3.049 billion at
December 31, 2024, and $2.588 billion at December 31, 2023. The slight decline in 2025 was primarily attributable to lower
retail brokerage assets related to the sale of Capital City Strategic Wealth. The increase in AUM in 2024 reflected a combination
of new account growth and higher account values due to improved market returns.
Mortgage Banking Revenues
. Mortgage banking revenues totaled $17.0 million in 2025 compared to $14.3 million in 2024 and
$10.4 million in 2023. The increase in both 2025 and 2024 was attributable to a higher gain on sale margin which reflected a
higher percentage of secondary market/mandatory delivery loan sales. We provide a detailed overview of our mortgage banking
operation, including a detailed break-down of mortgage banking revenues, mortgage servicing activity, and warehouse funding
within Note 4 - Mortgage Banking Activities in the Notes to Consolidated Financial Statements.
Other
. Other noninterest income totaled $8.0 million in 2025 compared to $6.5 million in 2024 and $8.6 million in 2023. The
increase in 2025 was primarily due to a $0.7 million gain from the sale of our insurance subsidiary (Capital City Strategic Wealth)
in the third quarter of 2025 and to a lesser extent higher miscellaneous income , primarily other fees and commissions which
reflected a mid-year fee increase. The decrease in 2024 was attributable to lower miscellaneous income, primarily a $1.4 million
gain from the sale of mortgage servicing rights realized in 2023, and to a lesser extent a decrease in vendor bonus income and
miscellaneous income.
Noninterest Expense
For 2025, noninterest expense totaled $167.0 million compared to $165.3 million for 2024 with the $1.7 million, or 1.0%,
increase primarily due to a $6.5 million increase in compensation expense that was partially offset by a $4.7 million decrease in
other expense. The increase in compensation was driven by higher performance-based pay and health insurance cost, and to a
lesser extent an increase in 401k matching expense. The decrease in other expense was primarily due to a $3.4 million decrease
in other real estate expense due to higher gains from the sale of banking facilities in 2025 and a $3.7 million decrease in pension
expense (non-service component), partially offset by increases in processing expense of $1.2 million (outsource of core
processing system) and charitable contribution expense of $0.9 million. The variance in pension expense included a $1.5 million
pension settlement gain that occurred in the fourth quarter of 2025.
For 2024, noninterest expense totaled $165.3 million, an $8.3 million, or 5.3%, increase over 2023, primarily attributable to
increases in compensation expense of $6.9 million, occupancy expense of $0.3 million, and other expense of $1.1 million. The
increase in compensation reflected a $5.3 million increase in salary expense and a $1.6 million increase in other associate benefit
expense. The increase in salary expense was primarily due to a decrease of $3.1 million in realized loan cost (credit offset to
salary expense - lower new loan volume in 2024), a $2.2 million increase in base salary expense (primarily annual merit raises),
and a $1.2 million increase in cash incentive compensation that were partially offset by a decrease of $1.4 million in commission
expense (lower residential mortgage volume). The unfavorable variance in other associate benefit expense was due to a $0.9
million increase in associate insurance cost and a $0.6 million increase in stock compensation expense. The increase in
occupancy expense was attributable to increases in software license and maintenance agreement expenses. The increase in other
expense was driven by a $1.1 million increase in other real estate expense and a $1.4 million increase in processing expense that
were partially offset by a $1.4 million decrease in miscellaneous expense. The increase in other real estate expense reflected a
lower level of gains from the sale of banking offices in 2024. The increase in processing expense reflected both inflationary
increases on contract renewals and the outsourcing of our core processing system. The decrease in miscellaneous expense was
attributable to lower pension plan expense for the non-service related component of the plan.
Our operating efficiency ratio (expressed as noninterest expense as a percentage of taxable equivalent net interest income plus
noninterest income) was 65.71%, 70.30% and 67.99% in 2025, 2024 and 2023, respectively. The improvement in this metric for
2025 was driven by higher taxable equivalent net interest income (refer to caption headed Net Interest Income and Margin). The
decline in this metric for 2024 was attributable to a higher level of noninterest expense. Expense management is an important
part of our culture and strategic focus. We will continue to review and evaluate opportunities to optimize our delivery operations
and invest in technology that provides favorable returns/scale and/or mitigates risk. The table below reflects the major
components of noninterest expense.
Table 5
NONINTEREST EXPENSE
(Dollars in Thousands)
2025
2024
2023
Salaries
88,689
84,639
79,278
Associate Benefits
18,489
16,082
14,509
Total Compensation
107,178
100,721
93,787
Premises
12,694
12,593
13,033
Equipment
15,259
15,389
14,627
Total Occupancy, net
27,953
27,982
27,660
Legal Fees
1,867
1,724
1,721
Professional Fees
5,816
6,311
6,245
Processing Services
9,580
8,411
6,984
Advertising
3,190
3,111
3,349
Travel and Entertainment
1,747
1,795
1,896
Telephone
3,030
2,857
2,729
Insurance – Other
2,990
3,137
3,120
Pension - Other
(3,489)
(1,675)
76
Pension Settlement Gain
(1,552)
(291)
Other Real Estate, Net
(4,308)
(868)
(1,969)
Miscellaneous
13,020
11,809
11,716
Total Other Expense
31,891
36,612
35,576
Total Noninterest Expense
167,022
165,315
157,023
Significant components of noninterest expense are discussed in more detail below.
Compensation
. Compensation expense totaled $107.2 million in 2025 compared to $100.7 million in 2024, and $93.8 million in
2023. For 2025, the $6.5 million, or 6.4%, net increase reflected a $4.1 million increase in salary expense and a $2.4 million
increase in associate benefit expense. The increase in salary expense was driven by a $2.6 million increase in incentive plan
expense, a $0.7 million increase in base salary expense, and a $0.6 million increase in 401k matching expense. Improved
company performance drove the increase in incentive plan expense. Annual merit raises drove the increase in base salary
expense. The increase in 401k plan expense was primarily due to the addition of CCHL associates in 2025 to the company’s 401k
plan. The unfavorable variance in associate benefit expense was primarily attributable to a $2.1 million increase in associate
insurance cost due to higher health insurance cost and a $0.4 million increase in stock compensation expense attributable to a
higher incentive pay-out.
For 2024, the $6.9 million, or 7.4%, net increase reflected a $5.3 million increase in salary expense and a $1.6 million increase in
associate benefit expense. The increase in salary expense was primarily due to a $3.1 million decrease in realized loan cost which
is a credit offset to salary expense and reflected lower new loan volume and a $2.2 million increase in base salary expense,
primarily annual merit raises, which were partially offset by a $1.4 million decrease in commission expense driven by lower
residential mortgage volume. The unfavorable variance in other associate benefit expense was due to a $0.9 million increase in
associate insurance cost due to higher health insurance cost and a $0.6 million increase in stock compensation expense
attributable to a higher incentive pay-out.
Occupancy
. Occupancy expense (including premises and equipment) totaled $28.0 million for 2025 compared to $28.0 million
for 2024, and $27.7 million for 2023. For 2025, higher premises rent expense of $0.8 million related to a new banking office
opening in late 2024 was offset by lower expenses for our operations center building that was sold in early 2025, and to a lesser
extent lower building/FF&E insurance cost due to a lower premium in 2025. For 2024, the $0.3 million, or 1.2%, increase was
attributable to an increase in maintenance agreement expense, primarily for security upgrades and addition of interactive teller
machines.
Other
. Other noninterest expense totaled $31.9 million in 2025 compared to $36.6 million in 2024 and $35.6 million in 2023.
For 2025, the $4.7 million decrease was primarily due to a $3.4 million decrease in other real estate expense due to higher gains
from the sale of banking facilities in 2025 and a $3.7 million decrease in pension expense (non-service component), partially
offset by increases in processing expense of $1.2 million and charitable contribution expense of $0.9 million. The outsourcing of
our core processing system in mid-2024 drove the increase in processing expense. The variance in pension expense was due to
the aforementioned $1.5 million pension settlement gain in 2025, and strong asset returns in the plan.
For 2024, the $1.0 million variance in other expense was driven by a $1.1 million increase in other real estate expense and a $1.4
million increase in processing expense that were partially offset by a $1.4 million decrease in miscellaneous expense. The
increase in other real estate expense reflected a lower level of gains from the sale of banking offices in 2024. The increase in
processing expense reflected both inflationary increases on contract renewals and the outsourcing of our core processing system.
The decrease in miscellaneous expense was attributable to lower pension plan expense for the non-service related component of
the plan.
Income Taxes
For 2025, we realized income tax expense of $20.2 million (effective rate of 24.7%) compared to $13.9 million (effective rate of
21.2%) for 2024 and $13.0 million (effective rate of 20.4%) for 2023. A lower level of tax benefit accrued from a solar tax credit
equity fund drove the increase in our effective tax rate compared to 2024 and to a lesser extent a higher than projected Internal
Revenue Code (“IRC”) Section 162(m) limitation related to current and future compensation. The increase in our effective tax
rate in 2024 was due to a higher than projected Internal Revenue Code Section 162(m) limitation and lower tax-exempt interest
income.
Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2026.
FINANCIAL CONDITION
Average assets totaled approximately $4.348 billion for 2025, an increase of $113.0 million, or 2.7%, over 2024. Average
earning assets were approximately $4.011 billion for 2025, an increase of $113.3 million, or 2.9%, over 2024. Compared to 2024,
the change in earning assets was primarily attributable to a $126.4 million increase in overnight funds sold and a $73.5 million
increase in investment securities that was partially offset by an $83.6 million decrease in loans HFI. We discuss these variances
in more detail below.
Table 2 provides information on average balances and rates, Table 3 provides an analysis of rate and volume variances, and Table
6 highlights the changing mix of our interest earning assets over the last three fiscal years.
Loans
For 2025, average loans HFI decreased $83.6 million or 3.1% compared to an increase of $50.1 million, or 1.9% in 2024.
Compared to 2024, the decrease in loans was primarily driven by a decrease of $39.1 million in consumer loans, primarily
indirect auto loans, a decrease of $27.8 million in construction loans, and a decrease in commercial real estate loans of $26.7
million, partially offset by increases in residential real estate loans of $17.4 million and home equity loans of $16.2 million.
Total loans HFI at December 31, 2025 totaled $2.546 billion, a $105.4 million decrease from December 31, 2024 that was largely
attributable to a decrease in construction loans of $73.1 million, and to a lesser extent decreases in consumer loans (primarily auto
indirect) of $17.2 million, commercial real estate loans of $10.4 million, commercial loans of $8.9 million, and residential real
estate loans of $16.8 million, that were partially offset by a $20.8 million increase in home equity loans.
As part of our overall strategy, we will originate 1-4 family real estate secured adjustable-rate loans and home equity loans
through CCHL, which provides us a larger pool of loan origination opportunities, and in large part drove the aforementioned
growth in average residential real estate and home equity loans in 2025. This loan volume can vary according to the direction of
residential mortgage interest rates.
In 2025, average loans held for sale (“HFS”) decreased $3.1 million, or $11.3% , from 2024. Loans HFI and HFS as a percentage
of average earning assets decreased to 66.0% in 2025 compared to 70.1% in 2024, primarily attributable to a decline in loans HFI.
Table 6
SOURCES OF EARNING ASSET GROWTH
2024 to
Percentage
Components of
2025
of Total
Average Earning Assets
(Average Balances – Dollars In Thousands)
Change
Change
2025
2024
2023
Loans:
Loans HFS
(3,072)
(2.7)
0.6
0.7
1.4
Loans HFI:
Commercial, Financial, and Agricultural
(23,668)
(20.9)
4.5
5.3
5.9
Real Estate – Construction
(27,768)
(24.5)
4.4
5.3
5.8
Real Estate – Commercial Mortgage
(26,665)
(23.5)
19.8
21.0
20.7
Real Estate – Residential
17,372
15.3
26.2
26.3
22.5
Real Estate – Home Equity
16,238
14.3
5.7
5.5
5.2
Consumer
(39,093)
(34.5)
4.9
6.0
7.6
Total HFI Loans
(83,584)
(73.8)
65.5
69.4
67.7
Total Loans HFS and HFI
(86,656)
(76.5)
66.1
70.1
69.1
Investment Securities:
Taxable
72,969
64.4
24.8
23.7
25.8
Tax-Exempt
543
0.5
0.1
Total Securities
73,512
64.9
24.8
23.7
25.9
Federal Funds Sold and Interest Bearing Deposits
126,439
111.6
9.1
6.2
5.0
Total Earning Assets
113,295
100
100
100
100
Our average total loans (HFS and HFI)-to-deposit ratio was 72.5% in 2025, 76.0% in 2024, and 73.9% in 2023.
The composition of our HFI loan portfolio at December 31 for each of the past three years is shown in Table 7. Table 8 arrays
our HFI loan portfolio at December 31, 2025, by maturity period. As a percentage of the HFI loan portfolio, loans with fixed
interest rates represented 24.1% at December 31, 2025 compared to 25.3% at December 31, 2024. Higher residential real estate
adjustable-rate loan balances and lower commercial real estate mortgage adjustable-rate loan balances at December 31, 2025
drove the decrease in the percentage.
Table 7
LOANS HFI BY CATEGORY
(Dollars in Thousands)
2025
2024
2023
Commercial, Financial and Agricultural
180,341
189,208
225,190
Real Estate – Construction
146,920
219,994
196,091
Real Estate – Commercial Mortgage
768,731
779,095
825,456
Real Estate – Residential
1,025,690
1,042,504
1,004,219
Real Estate – Home Equity
240,897
220,064
210,920
Consumer
183,539
200,685
272,042
Total Loans HFI, Net of Unearned Income
2,546,118
2,651,550
2,733,918
Table 8
LOANS HFI MATURITIES
Maturity Periods
(Dollars in Thousands)
One Year
or Less
Over One
Through
Five Years
Five
Through
Fifteen
Years
Over
Fifteen
Years
Total
Commercial, Financial and Agricultural
31,786
116,764
29,568
2,223
180,341
Real Estate – Construction
76,019
60,399
434
10,068
146,920
Real Estate – Commercial Mortgage
65,819
131,848
291,187
279,877
768,731
Real Estate – Residential
22,493
14,236
119,688
869,273
1,025,690
Real Estate – Home Equity
713
12,237
45,474
182,473
240,897
Consumer
(1)
5,441
117,190
60,627
281
183,539
Total
202,271
452,674
546,978
1,344,195
2,546,118
Total Loans HFI with Fixed Rates
71,315
326,393
170,097
44,745
612,550
Total Loans HFI with Floating or Adjustable-Rates
130,956
126,281
376,881
1,299,450
1,933,568
Total
202,271
452,674
546,978
1,344,195
2,546,118
(1)
Demand loans and overdrafts are reported in the category of one year or less.
Credit Quality
Table 9 provides the components of nonperforming assets and various other credit quality and risk metrics at December 31 for the
last three fiscal years. Information regarding our accounting policies related to nonaccruals, past due loans, and financial
difficulty modifications is provided in Note 3 – Loans Held for Investment and Allowance for Credit Losses.
Nonperforming assets (nonaccrual loans and other real estate) totaled $10.5 million at December 31, 2025, compared to $6.7
million at December 31, 2024. At December 31, 2025, nonperforming assets as a percentage of total assets was 0.24%, compared
to 0.15% at December 31, 2024. Nonaccrual loans totaled $8.6 million at December 31, 2025, a $2.3 million increase over
December 31, 2024. Further, classified loans totaled $14.3 million at December 31, 2025, a $5.6 million decrease from
December 31, 2024.
Table 9
CREDIT QUALITY
(Dollars in Thousands)
2025
2024
2023
Nonaccruing Loans:
Commercial, Financial and Agricultural
1,278
37
311
Real Estate – Construction
322
Real Estate – Commercial Mortgage
2,560
566
909
Real Estate – Residential
2,143
3,127
2,990
Real Estate – Home Equity
1,769
1,782
999
Consumer
845
790
711
Total Nonaccruing Loans
8,595
6,302
6,242
Other Real Estate Owned
1,936
367
1
Total Nonperforming Assets
10,531
6,669
6,243
Past Due Loans 30 – 89 Days
7,017
4,311
6,855
Classified Loans
14,334
19,896
22,203
Nonaccruing Loans/Loans
0.34
0.24
0.23
Nonperforming Assets/Total Assets
0.24
0.15
0.15
Nonperforming Assets/Loans Plus OREO
0.41
0.25
0.23
Allowance/Nonaccruing Loans
360.69
464.14
479.70
Nonaccrual Loans
. Nonaccrual loans totaled $8.6 million at December 31, 2025, a $2.3 million increase over December 31, 2024
with the increase primarily attributable to two home equity loans totaling $1.8 million. Generally, loans are placed on nonaccrual
status if principal or interest payments become 90 days past due or management deems the collectability of the principal and
interest to be doubtful. Once a loan is placed in nonaccrual status, all previously accrued and uncollected interest is reversed
against interest income. Interest income on nonaccrual loans is recognized when the ultimate collectability is no longer
considered doubtful. Loans are returned to accrual status when the principal and interest amounts contractually due are brought
current or when future payments are reasonably assured. If interest on our loans classified as nonaccrual during 2025 had been
recognized on a fully accruing basis, we would have recorded an additional $0.4 million of interest income for the year ended
December 31, 2025.
Other Real Estate Owned
. OREO represents property acquired as the result of borrower defaults on loans or by receiving a deed
in lieu of foreclosure. OREO is recorded at the lower of cost or estimated fair value, less estimated selling costs, at the time of
foreclosure. Write-downs occurring at foreclosure are charged against the allowance for credit losses. On an ongoing basis,
properties are either revalued internally or by a third-party appraiser as required by applicable regulations. Subsequent declines in
value are reflected as other noninterest expense. Carrying costs related to maintaining the OREO properties are expensed as
incurred and are also reflected as other noninterest expense.
OREO totaled $1.9 million at December 31, 2025, versus $0.4 million at December 31, 2024. During 2025, we added properties
totaling $4.4 million and sold properties totaling $2.9 million. For 2024, we added properties totaling $1.0 million and sold
properties totaling $0.6 million.
Modifications to Borrowers Experiencing Financial Difficulty
. Occasionally, we will modify loans to borrowers who are
experiencing financial difficulty. Loan modifications to borrowers in financial difficulty are loans in which we will grant an
economic concession to the borrower that we would not otherwise consider. In these instances, as part of a work-out alternative,
we will make concessions including the extension of the loan term, a principal moratorium, a reduction in the interest rate, or a
combination thereof. A modified loan classification can be removed if the borrower’s financial condition improves such that the
borrower is no longer in financial difficulty, the loan has not had any forgiveness of principal or interest, and the loan is
subsequently refinanced or restructured at market terms and qualifies as a new loan. At December 31, 2025, we maintained four
loans for $3.8 million that we modified due to the borrower experiencing financial difficulty.
Past Due Loans
. A loan is defined as a past due loan when one full payment is past due or a contractual maturity is over 30 days
past due. Past due loans at December 31, 2025 totaled $7.0 million compared to $4.3 million at December 31, 2024. Indirect
auto loans represented a large portion of the past due balances representing 26% and 56%, respectively, of the total dollars past
due at December 31, 2025 and December 31, 2024, respectively.
Potential Problem Loans
. Potential problem loans are defined as those loans which are now current but where management has
doubt as to the borrower’s ability to comply with present loan repayment terms. At December 31, 2025, we had $4.7 million in
loans of this type which were not included in either of the nonaccrual or 90 days past due loan categories compared to $2.8
million at December 31, 2024. Management monitors these loans closely and reviews their performance on a regular basis.
Loan Concentrations
. Loan concentrations exist when there are amounts loaned to multiple borrowers engaged in similar
activities which cause them to be similarly impacted by economic or other conditions and such amount exceeds 10% of our total
loans. Due to the lack of diversified industry within our markets and the relatively close proximity of the markets, we have both
geographic concentrations as well as concentrations in the types of loans funded. Specifically, due to the nature of our markets, a
significant portion of our HFI loan portfolio has historically been secured with real estate, approximately 86% at December 31,
2025 and 85% at December 31, 2024, with the increase driven by lower loan volume in 2025 for commercial and consumer
(indirect auto) loans and a higher volume of 1-4 family residential real estate loans originated in 2025 in comparison to other loan
types. The primary types of real estate collateral are commercial properties and 1-4 family residential properties.
We review our loan portfolio segments and concentration limits on an ongoing basis and will make adjustments as needed to
mitigate/reduce risk to segments that reflect decline or stress.
We
have established an internal lending limit of $10 million for the total aggregate amount of credit that will be extended to a
client and any related entities within our Board approved policies. This compares to our legal lending limit of approximately
$101 million.
The following table summarizes our real estate loan category as segregated by the type of property. Property type concentrations
are stated as a percentage of total real estate loans at December 31.
Table 10
REAL ESTATE LOANS BY PROPERTY TYPE
2025
2024
(Dollars in Thousands)
Investor Real
Estate
Owner
Occupied
Real Estate
Investor Real
Estate
Owner
Occupied
Real Estate
Vacant Land, Construction, and Land
Development
246,361
11.3
317,881
14.1
Improved Property
520,731
23.9
1,415,146
64.8
542,858
24.2
1,386,912
61.7
767,092
35.2
64.8
860,739
38.3
61.7
A major portion of our real estate loan segment is centered in the owner occupied category, which carries a lower risk of non-
collection than certain segments of the investor category. The owner occupied category was approximately 65% of total real
estate loans at December 31, 2025 and 62% of total real estate loans at December 31, 2024. Further, investor real estate totaled
35% and 38% of total real estate loans at December 31, 2025 and December 31, 2024, respectively.
The table below further segments the investor real estate category for improved property.
Table 11
REAL ESTATE LOANS IMPROVED PROPERTY
DISTRIBUTION
(Dollars in Thousands)
2025
2024
Hotel/Motel
77,527
14.9
74,400
13.7
Gas Station/C-Store
7,716
1.5
7,628
1.4
Industrial/Warehouse
32,292
6.2
30,427
5.6
Multi-Family
49,649
9.5
49,295
9.1
Office
35,127
6.7
45,541
8.4
Retail & Shopping Centers
107,095
20.6
116,402
21.4
Commercial Condos
2,127
0.4
867
0.2
Other
44,663
8.6
32,022
5.9
Total Improved Property
356,196
68.4
356,582
65.7
Non-Owner Occupied 1-4 Residential
164,535
31.6
186,276
34.3
Total Investor Real Estate Improved Property
520,731
100
542,858
100
Allowance for Credit Losses
The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net
amount expected to be collected on the loans. The allowance for credit losses is adjusted by a credit loss provision which is
reported in earnings and reduced by the charge-off of loan amounts, net of recoveries. Loans are charged off against the
allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the
aggregate of amounts previously charged-off and expected to be charged-off. Expected credit loss inherent in non-cancellable
off-balance sheet credit exposures is provided through the credit loss provision but recorded separately in other liabilities.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to
past events, current conditions, and reasonable and supportable forecasts. Historical loan default and loss experience provides the
basis for the estimation of expected credit losses. Adjustments to historical loss information incorporate management’s view of
current conditions and forecasts.
Detailed information regarding the methodology for estimating the amount reported in the allowance for credit losses is provided
in Note 1 – Significant Accounting Policies/Allowance for Credit Losses in the Consolidated Financial Statements.
Note 3 – Loans Held for Investment and Allowance for Credit Losses in the Consolidated Financial Statements provides the
activity in the allowance and the allocation by loan type for each of the past three fiscal years.
At December 31, 2025, the allowance for credit losses for HFI loans totaled $31.0 million compared to $29.2 million at December
31, 2024 and $29.9 million at December 31, 2023. The $1.8 million increase in the allowance in 2025 reflected a credit loss
provision of $5.3 million and net loan charge-offs of $3.6 million. The $0.7 million decrease in the allowance in 2024 reflected a
credit loss provision of $5.0 million and net loan charge -offs of $5.7 million. The increase in the allowance in 2025 was primarily
attributable to qualitative factor adjustments that were partially offset by lower loan balances. The decrease in the allowance in
2024 was primarily attributable to lower new loan volume and loan balances and favorable loan migration.
For 2025, we realized net loan charge-offs of $3.6 million, or 0.14%, of average HFI loans, compared to net loan charge -offs of
$5.7 million, or 0.21%, for 2024, and net loan charge-offs of $4.7 million, or 0.18%, for 2023. Consumer (indirect auto) net loan
charge-offs represented 66%, 62%, and 76% of total net loan charge-offs for the same respective years. Further, indirect auto net
loan charge-offs represented approximately 1.38% of average indirect auto loans in 2025, 1.68% in 2024, and 1.31% in 2023.
Since 2022, we have reduced our exposure to this loan segment.
At December 31, 2025, the allowance for credit losses represented 1.22% of HFI loans and provided coverage of 361% of
nonperforming loans compared to 1.10% and 464%, respectively, at December 31, 2024 and 1.10% and 480%, respectively, at
December 31, 2023.
Table 12 further segments the allocation of allowance for credit losses at December 31 for each of the last three fiscal years.
Table 12
ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES
2025
2024
2023
(Dollars in Thousands)
ACL
Amount
Percent of
Loans to
Total Loans
ACL
Amount
Percent of
Loans to
Total Loans
ACL
Amount
Percent of
Loans to
Total Loans
Commercial, Financial and Agricultural
1,751
7.1
1,514
7.1
1,482
8.2
Real Estate:
Construction
1,681
5.8
2,384
8.3
2,502
7.2
Commercial
6,859
30.2
5,867
29.4
5,782
30.2
Residential
15,317
40.2
14,568
39.3
15,056
36.7
Home Equity
2,368
9.5
1,952
8.3
1,818
7.7
Consumer
3,025
7.2
2,966
7.6
3,301
10.0
Total
31,001
100
29,251
100
29,941
100
Investment Securities
Our average investment portfolio balance was $998 million in 2025, $924 million in 2024, and $1.019 billion in 2023. As a
percentage of average earning assets, our investment portfolio represented 24.9% in 2025, compared to 23.7% in 2024, and 25.9%
in 2023. Compared to 2024, investment portfolio activity reflected the reinvestment of cash flow from matured securities as well
as growth in the balance due to a higher level of liquidity. For comparison to 2023, the decline in the investment portfolio was
attributable to the allocation of investment cash flows to support loan growth. In 2026, we plan to reinvest cash flow from the
investment portfolio and as appropriate allocate to support loan demand and other liquidity management strategies.
For 2025, average taxable investments increased by $73.0 million, or 7.9%, while tax-exempt investments increased $0.5 million,
or 64.0%. Both taxable and non-taxable bonds increased as part of our overall investment strategy to reinvest cash flows from
investments plus additional funds to grow the portfolio. At December 31, 2025, municipal securities (taxable and non-taxable)
comprised 3% of the portfolio.
Our investment portfolio is a significant component of our operations and, as such, it functions as a key element of liquidity and
asset/liability management. Two types of classifications are approved for investment securities which are Available -for-Sale
(“AFS”) and Held-to-Maturity (“HTM”). For 2025 and 2024, we maintained securities under both the AFS and HTM
designations. At December 31, 2025, $643.9 million, or 62.9%, of our investment portfolio was classified as AFS, with $377.4
million, or 36.9%, classified as HTM, and $2.1 million, or 0.2%, classified as equity securities. At December 31, 2024, $403.3
million, or 41.5%, of our investment portfolio was classified as AFS, with $567.2 million, or 58.3%, classified as HTM and $2.4
million, or 0.2%, classified as equity securities.
Table 13 provides the composition of our investment securities portfolio at December 31 for each of the last three fiscal years.
Table 13
INVESTMENT SECURITIES COMPOSITION
2025
2024
2023
(Dollars in Thousands)
Carrying
Amount
Percent
Carrying
Amount
Percent
Carrying
Amount
Percent
Available for Sale
U.S. Government Treasury
333,264
32.6
105,801
10.9
24,679
2.6
U.S. Government Agency
172,114
16.7
143,127
14.8
145,034
15.1
States and Political Subdivisions
34,911
3.4
39,382
4.0
39,083
4.0
Mortgage-Backed Securities
52,004
5.1
55,477
5.7
63,303
6.6
Corporate Debt Securities
43,532
4.3
51,462
5.3
57,552
6.0
Other Securities
8,097
0.8
8,096
0.8
8,251
0.9
Total
643,922
62.9
403,345
41.5
337,902
35.1
Held to Maturity
U.S. Government Treasury
129,782
12.7
368,005
37.8
457,681
47.4
Mortgage-Backed Securities
247,664
24.2
199,150
20.5
167,341
17.3
Total
377,446
36.9
567,155
58.3
625,022
64.7
Other Equity Securities
2,069
0.2
2,399
0.2
3,450
0.2
Total Investment Securities
1,023,437
100
972,899
100
966,374
100
The classification of a security is determined upon acquisition based on how the purchase will affect our asset/liability strategy
and future business plans and opportunities. Classification determinations will also factor in regulatory capital requirements,
volatility in earnings or other comprehensive income, and liquidity needs. Securities in the AFS portfolio are recorded at fair
value with unrealized gains and losses associated with these securities recorded net of tax, in the accumulated other
comprehensive income (loss) component of shareowners’ equity. Securities designated as HTM are those acquired or owned with
the intent of holding them to maturity (final payment date). HTM investments are measured at amortized cost. It is neither
management’s current intent nor practice to participate in the trading of investment securities for the purpose of recognizing gains
and therefore we do not maintain a trading portfolio.
At December 31, 2025, there were 736 positions (combined AFS and HTM) with pre-tax unrealized losses totaling $23.7 million.
The Government National Mortgage Association mortgage-backed securities, U.S. Treasuries, and SBA securities held carry the
full faith and credit guarantee of the U.S. Government and are deemed to be 0% risk-weighted assets. Other mortgage-backed
securities held (Federal National Mortgage Association and Federal Home Loan Mortgage Corporation) are issued by U.S.
Government sponsored entities. Direct obligations of U.S. Government agencies (Federal Farm Credit Bank and Federal Home
Loan Bank of Atlanta) are also owned. We believe the long history of no credit losses on government securities indicates that the
expectation of nonpayment of the amortized cost basis is zero. A large portion of the SBA securities float monthly or quarterly
with the prime rate and are uncapped. The remaining positions owned are municipal and corporate bonds. At December 31,
2025, 42 corporate bond positions had a total allowance for credit loss of $42,000. All of these positions maintain an overall
rating of at least “BBB+”, and all are expected to mature at par.
The average maturity of our investment portfolio at December 31, 2025 was 2.57 years, with a duration of 2.12 compared to 2.54
years and 2.19, respectively, at December 31, 2024. The average life of our investment portfolio increased primarily due to
continued reinvestment of maturities in the portfolio in conjunction with additional purchases of new securities.
The weighted average taxable equivalent yield of our investment portfolio at December 31, 2025 was 3.17% versus 2.41% in
2024. This increase in yield reflected a favorable reinvestment rate on securities purchased in 2025. Our bond portfolio contained
no investments in obligations, other than U.S. Governments, of any state, municipality, political subdivision, or any other issuer
that exceeded 10% of our shareowners’ equity at December 31, 2025.
Table 14 and Note 2 in the Notes to Consolidated Financial Statements present a detailed analysis of our investment securities as
to type, maturity, unrealized losses, and yield at December 31.
Table 14
MATURITY DISTRIBUTION OF INVESTMENT SECURITIES
Within 1 year
1 - 5 years
5 - 10 years
After 10 years
Total
(Dollars in
Thousands)
Amount
WAY
(3)
Amount
WAY
(3)
Amount
WAY
(3)
Amount
WAY
(3)
Amount
WAY
(3)
Available for Sale
U.S. Government
Treasury
49,706
2.25
283,558
3.88
333,264
3.82
U.S. Government
Agency
36,384
0.96
133,531
4.06
2,199
4.57
172,114
3.41
States and Political
Subdivisions
3,884
1.37
26,449
1.78
4,578
2.14
34,911
1.78
Mortgage-Backed
Securities
(1)
2
4.79
10,414
1.44
41,588
2.49
52,004
2.29
Corporate Debt
Securities
12,799
1.51
27,960
1.86
2,774
2.05
43,532
1.77
Other Securities
(2)
8,097
6.22
8,097
6.22
Total
102,775
2.25
481,912
3.67
51,139
2.52
8,097
6.22
643,922
3.35
Held to Maturity
U.S. Government
Treasury
129,782
1.79
129,782
1.79
Mortgage-Backed
Securities
(1)
3,583
2.23
204,456
3.26
39,625
4.49
247,664
3.44
Total
133,365
1.80
204,456
3.26
39,625
4.49
377,446
2.87
Equity Securities
2,069
0.92
2,069
0.92
Total Investment
Securities
236,140
2.00
686,368
3.55
90,764
3.38
10,166
6.22
1,023,437
3.17
(1)
Based on weighted-average maturity.
(2)
Federal Home Loan Bank Stock and Federal Reserve Bank Stock are included in this category for weighted average yield, but do not have stated maturities.
(3)
Weighted average yield ("WAY") calculated based on current amortized cost balances – not presented on a tax equivalent basis.
Deposits
Average total deposits for 2025 were $3.651 billion compared to $3.597 billion in 2024 with the $53.9 million, or 1.5%, increase
reflective of increases in NOW accounts of $43.3 million, money market accounts of $20.3 million, and certificates of deposit of
$21.4 million, partially offset by decreases in noninterest bearing accounts of $17.3 million and savings accounts of $13.9 million.
The aforementioned increases generally reflected growth in average core deposit balances throughout 2025 and re-mix in
balances due to clients seeking higher yield deposit products.
At December 31, 2025, total deposits were $3.662 billion, a decrease of $9.7 million, or 0.3% from December 31, 2024. The
decrease reflected decreases in noninterest bearing accounts of $54.4 million, money market accounts of $13.5 million, and
savings accounts of $3.3 million, partially offset by increases in NOW accounts of $36.8 million and certificates of deposit of
$24.7 million. Public funds balances totaled $654.7 million at December 31, 2025 and $660.9 million at December 31, 2024.
Although the overnight funds rate was lowered in the second half of 2025 by 75 basis points to a target range of 3.50%-3.75%,
the overall rate environment remains higher than early 2022 when the overnight funds rate was 0.00%-0.25%. As a result in
2025, we continued to see a shift in mix out of noninterest bearing accounts into interest bearing accounts, primarily NOW,
money market, and certificates of deposit accounts. We have several strategies in place to protect core deposits and mitigate
deposit run-off, and we will continue to closely monitor several metrics such as the sensitivity of our clients to our deposit rates,
our overall liquidity position, and competitor rates when pricing deposits. This strategy is consistent with previous rate cycles and
allows us to manage the mix of our deposits as well as the overall client relationship rather than competing solely on rate.
Table 2 provides an analysis of our average deposits, by category, and average rates paid for each of the last three fiscal years.
Table 15 reflects the shift in our deposit mix over the last year and Table 16 provides a maturity distribution of time deposits in
denominations of greater than $250,000 at December 31, 2025. For 2025, noninterest bearing deposits represented 36.1% of total
average deposits. This compares to 37.2% in 2024 and 41.1% in 2023. The declines in 2025 and 2024 reflected slight migration
into higher yielding deposit products.
Table 15
SOURCES OF DEPOSIT GROWTH
2024 to
Percentage
Components of
2025
of Total
Total Deposits
(Average Balances - Dollars in Thousands)
Change
Change
2025
2024
2023
Noninterest Bearing Deposits
(17,265)
32.0
36.2
37.2
41.1
NOW Accounts
43,354
(80.4)
33.6
32.9
32.0
Money Market Accounts
20,328
(37.7)
11.5
11.1
8.2
Savings Accounts
(13,918)
25.8
13.8
14.4
16.1
Time Deposits
21,414
(39.7)
4.9
4.4
2.6
Total Deposits
53,913
100
100
100
100
Table 16
MATURITY DISTRIBUTION OF CERTIFICATES OF DEPOSITS GREATER THAN $250,000
2025
(Dollars in Thousands)
Certificates
of Deposit
Percent
Three months or less
18,657
27.2
Over three through six months
30,313
44.3
Over six through 12 months
13,969
20.4
Over 12 months
5,537
8.1
Total
68,476
Market Risk and Interest Rate Sensitivity
Overview.
Market risk arises from changes in interest rates, exchange rates, commodity prices, and equity prices. We have risk
management policies designed to monitor and limit exposure to market risk and we do not participate in activities that give rise to
significant market risk involving exchange rates, commodity prices, or equity prices. In asset and liability management activities,
our policies are designed to minimize structural interest rate risk.
Interest Rate Risk Management.
Our net income is largely dependent on net interest income. Net interest income is susceptible to
interest rate risk to the degree that interest-bearing liabilities mature or reprice on a different basis than interest-earning
assets. When interest-bearing liabilities mature or reprice more quickly than interest-earning assets in a given period, a significant
increase in market rates of interest could adversely affect net interest income. Similarly, when interest-earning assets mature or
reprice more quickly than interest-bearing liabilities, falling market interest rates could result in a decrease in net interest
income. Net interest income is also affected by changes in the portion of interest-earning assets that are funded by interest-
bearing liabilities rather than by other sources of funds, such as noninterest -bearing deposits and shareowners’ equity.
We have established what we believe to be a comprehensive interest rate risk management policy, which is administered by
management’s Asset Liability Management Committee (“ALCO”). The policy establishes limits of risk, which are quantitative
measures of the percentage change in net interest income (a measure of net interest income at risk) and the fair value of equity
capital (a measure of economic value of equity (“EVE”) at risk) resulting from a hypothetical change in interest rates for
maturities from one day to 30 years. We measure the potential adverse impacts that changing interest rates may have on our
short-term earnings, long-term value, and liquidity by employing simulation analysis through the use of computer modeling.
The Company’s interest rate risk sensitivity simulations apply various behavior models and assumptions to account for customer
tendencies stemming from interest rate risk changes. The key behavior models and assumptions incorporated in the NII and EVE
simulations impact deposit pricing, deposit runoff, time deposit early withdrawal, and prepayments on loans and investments. The
deposit pricing model is one of the most significant of these assumptions and determines to what degree our deposit rates change
when benchmark interest rates change. The deposit runoff model reflects the increased attrition rate observed in noninterest
bearing deposits in higher rate scenarios as customers migrate to interest bearing deposits and/or alternative investments. The time
deposit early withdrawal model incorporates the customer’s ability to early terminate time deposits and reprice higher. The
prepayment models applied to loans and investments reflects the incentive borrowers have to refinance when market rates are low
while conversely slowing down their payments in higher rate environments. Each of the models and assumptions are tailored to
the specific interest rate environment and validated on a regular basis. However, assumptions and models are inherently uncertain
and actual results may differ from those derived in simulation analysis for multiple reasons, which may include actual balance
sheet composition differences, timing, magnitude and frequency of interest rate changes, deviations from projected customer
behavioral assumptions, and changes in market conditions or management strategies.
The statement of financial condition is subject to testing for both parallel and non-parallel upward and downward shifts in interest
rates (assuming no balance sheet growth) to indicate the inherent interest rate risk. We prepare a base case (assumes a static rate
environment) and several alternative interest rate simulations for various ranges of upward and downward interest rate changes.
This analysis is prepared quarterly and reported to ALCO, our Market Risk Oversight Committee (“MROC”), our Risk Oversight
Committee (“ROC”) and the Board of Directors. We will periodically augment our interest rate simulations with alternative
interest rate scenarios that may include various non-parallel shifts in interest rates, including a flattening or steepening of the yield
curve.
Our goal is to structure the statement of financial condition so that net interest earnings at risk over 12-month and 24-month
periods and the economic value of equity at risk do not exceed policy guidelines at the various interest rate shock levels. We
attempt to achieve this goal by balancing, within policy limits, the volume of floating-rate liabilities with a similar volume of
floating-rate assets, by keeping the average maturity of fixed-rate asset and liability contracts reasonably matched, by managing
the mix of our core deposits, and by adjusting our rates to market conditions on a continuing basis.
Analysis.
Measures of net interest income at risk produced by simulation analysis are indicators of an institution’s short-term
performance in alternative rate environments. These measures are typically based upon a relatively brief period, and do not
necessarily indicate the long-term prospects or economic value of the institution. The following table presents our net interest
income simulation results for gradual 12-month and 24-month “ramp” scenarios applied to base scenario. The “ramp” scenario is
a parallel shift applied gradually over a 12-month period for the projected 12-month and 24-month period on a pro rata basis.
Table 17
ESTIMATED CHANGES IN NET INTEREST INCOME
% Change in NII
Policy Limit
Change in Interest Rates
12 Months
24 Months
12 Months
24 Months
+200 bp Ramp
5.3
18.5
-10.0
-12.5
+100 bp Ramp
2.0
10.8
-7.5
-10.0
-100 bp Ramp
-2.7
-4.9
-7.5
-10.0
-200 bp Ramp
-5.5
-13.3
-10.0
-12.5
Net Interest Income at risk is within our prescribed policy limits over both the 12-month and 24-month periods for all rate
scenarios with the exception of the down 200 bps scenario primarily due to our limited ability to lower our deposit rates relative
to the decline in market rates for that scenario. Given that our average nonmaturity deposit rate is less than 1.00%, this down 200
bps scenario is more impactful to asset yields than deposit rates.
The measures of equity value at risk indicate our ongoing economic value by considering the effects of changes in interest rates
on all of our cash flows by discounting the cash flows to estimate the present value of assets and liabilities. The difference
between these discounted values of the assets and liabilities is the economic value of equity, which in theory approximates the fair
value of our net assets. The following table presents our equity value at risk simulation applied to immediate parallel shock
scenarios.
Table 18
ESTIMATED CHANGES IN ECONOMIC VALUE OF EQUITY
2025
2024
Changes in Interest Rates
% Change in
EVE
Policy Limit
% Change in
EVE
Policy Limit
EVE Ratio
Policy
Minimum
+200 bp Shock
-21.0
-20.0
-23.7
-20.0
17.1
5.0
+100 bp Shock
-9.7
-15.0
-17.2
-15.0
19.8
5.0
-100 bp Shock
7.0
-15.0
9.0
-15.0
24.2
5.0
-200 bp Shock
10.4
-20.0
17.0
-20.0
25.4
5.0
At December 31, 2025, the economic value of equity was favorable in all rising rate scenarios and unfavorable in the falling rate
scenarios. EVE was within prescribed tolerance levels as the EVE ratio (EVE/EVA) in all rate scenarios is greater than 5.0%.
Factors that can impact EVE values include the absolute level of rates, the overall structure of the balance sheet (including
liquidity levels), pre-payment speeds, loan floors, and the change of model assumptions.
As the interest rate environment and the dynamics of the economy continue to change, additional simulations will be analyzed to
address not only the changing rate environment, but also the changing statement of financial condition mix, measured over
multiple years, to help assess the risk to the Company.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity
In general terms, liquidity is a measurement of our ability to meet our cash needs. Our objective in managing our liquidity is to
maintain our ability to fund loan commitments, purchase securities, accommodate deposit withdrawals or repay other liabilities in
accordance with their terms, without an adverse impact on our current or future earnings. Our liquidity strategy is guided by
policies that are formulated and monitored by our ALCO and senior management, and take into account the marketability of
assets, the sources and stability of funding and the level of unfunded commitments. We regularly evaluate all of our various
funding sources with an emphasis on accessibility, stability, reliability, and cost-effectiveness. For 2025 and 2024, our principal
source of funding was client deposits, supplemented by our short-term and long-term borrowings, primarily from our trust-
preferred securities, securities sold under repurchase agreements, federal funds purchased, and FHLB borrowings. We believe
that the cash generated from operations, our borrowing capacity and our access to capital resources are sufficient to meet our
future operating capital and funding requirements.
At December 31, 2025, we had the ability to generate approximately $1.523 billion (excludes overnight funds position of $467.8
million) in additional liquidity through various sources, including various Federal Home Loan Bank borrowings, the Federal
Reserve Discount Window, federal funds purchased lines, and brokered deposits. We recognize the importance of maintaining
liquidity and have developed a Contingent Liquidity Plan, which addresses various liquidity stress levels and our response and
action based on the level of severity. We periodically test our credit facilities for access to the funds but also understand that as
the severity of the liquidity level increases certain credit facilities may no longer be available. We conduct quarterly liquidity
stress tests, and the results are reported to ALCO, MROC, ROC and the Board of Directors. We believe the liquidity available to
us is sufficient to meet our ongoing needs.
We also view our investment portfolio as a liquidity source and have the option to pledge securities in our portfolio as collateral
for borrowings or deposits, and/or to sell selected securities. Our portfolio consists of debt issued by the U.S. Treasury, U.S.
governmental agencies, municipal governments, and corporate entities. At December 31, 2025, the weighted-average maturity
and duration of our portfolio were 2.57 years and 2.12, respectively, and the AFS portfolio had a net unrealized tax-effected loss
of $9.5 million.
Our average net overnight funds sold position (defined as funds sold plus interest-bearing deposits with other banks less funds
purchased) was $366.2 million in 2025 compared to an average net overnight funds sold position of $239.7 million in 2024. The
increase was primarily attributable to deposit growth and a decline in our average loan balances, partially offset by growth in the
investment portfolio.
We expect capital expenditures over the next 12 months to be approximately $10.0 million, which will consist primarily of
technology purchases for banking offices, office leasehold improvements, business applications, and information technology
security needs as well as furniture and fixtures and banking office remodels. We expect that these capital expenditures will be
funded with existing resources without impairing our ability to meet our ongoing obligations.
Borrowings
Average short -term borrowings totaled $36.7 million in 2025 compared to $31.9 million in 2024 with the $4.8 million increase
primarily attributable to a higher level of warehouse line of credit borrowing s to support loans held for sale. Additional detail on
these warehouse borrowings is provided in Note 4 – Mortgage Banking Activities in the Consolidated Financial Statements.
At December 31, 2025, there were no outstanding advances from the FHLB. One advance totaling $0.1 million comprised of one
note was paid off in the third quarter of 2025. FHLB advances are collateralized by a floating lien on certain 1-4 family
residential mortgage loans, commercial real estate mortgage loans, and home equity mortgage loans.
We have issued two junior subordinated deferrable interest notes to wholly owned Delaware statutory trusts. The first note for
$30.9 million was issued to CCBG Capital Trust I in November 2004, of which $10 million was retired in April 2016 and an
additional $5.1 million of principal payments were made in 2025. The second note for $32.0 million was issued to CCBG Capital
Trust II in May 2005, of which $5.1 million of principal payments were made in 2025. The interest payment for the CCBG
Capital Trust I borrowing is due quarterly and adjusts quarterly to a variable rate of three-month CME Term SOFR (secured
overnight financing rate) plus a margin of 1.90%. This note matures on December 31, 2034. The interest payment for the CCBG
Capital Trust II borrowing is due quarterly and adjusts quarterly to a variable interest rate based on three-month CME Term
SOFR plus a margin of 1.80%. This note matures on June 15, 2035. The proceeds from these borrowings were used to partially
fund acquisitions. Under the terms of each junior subordinated deferrable interest note, in the event of default or if we elect to
defer interest on the note, we may not, with certain exceptions, declare or pay dividends or make distributions on our capital stock
or purchase or acquire any of our capital stock. In the second quarter of 2020, we entered into a ten-year derivative cash flow
hedge of our interest rate risk related to our subordinated debt. The notional amount of the derivative is $30 million ($10 million
of the CCBG Capital Trust I borrowing and $20 million of the CCBG Capital Trust II borrowing). In October 2025, the interest
rate swaps were terminated. Additional detail on the interest rate swap agreement is provided in Note 5 – Derivatives in the
Consolidated Financial Statements.
See Note 11 – Short Term Borrowings and Note 12 – Long Term Borrowings in the Notes to Consolidated Financial Statements
for additional information on borrowings.
In the ordinary course of business, we have entered into contractual obligations and have made other commitments to make future
payments. Refer to the accompanying notes to consolidated financial statements elsewhere in this report for the expected timing
of such payments as of December 31, 2025. These include payments related to (i) long-term borrowings (Note 12 – Long-Term
Borrowings), (ii) short-term borrowings (Note 11 – Short-Term Borrowings), (iii) operating leases (Note 7 – Leases), (iv) time
deposits with stated maturities (Note 10 – Deposits), and (v) commitments to extend credit and standby letters of credit (Note 21 –
Commitments and Contingencies).
Capital Resources
Shareowners’ equity was $552.9 million at December 31, 2025, compared to $495.3 million at December 31, 2024. For 2025,
shareowners’ equity was positively impacted by net income attributable to shareowners of $61.6 million, a net $9.1 million
decrease in the accumulated other comprehensive loss, the issuance of common stock of $3.5 million, and stock compensation
accretion of $2.4 million. The net favorable change in accumulated other comprehensive loss reflected a $10.7 million decrease in
the investment securities loss that was partially offset by a $1.3 million decrease in the fair value of the interest rate swap related
to subordinated debt and a $0.3 million decrease in the pension plan loss from the year-end re-measurement of the plan.
Shareowners’ equity was reduced by common stock dividends of $17.1 million ($1.00 per share) and net adjustments totaling
$1.9 million related to transactions under our stock compensation plans.
Additional historical information on capital changes is provided in the Consolidated Statements of Changes in Shareowners’
Equity in the Consolidated Financial Statements.
We continue to maintain a strong capital position. The ratio of shareowners' equity to total assets at December 31, 2025 was
12.61% compared to 11.45% at December 31, 2024. Further, our tangible common equity ratio was 10.79% (non-GAAP
financial measure) at December 31, 2025 compared to 9.51% at December 31, 2024. If our unrealized HTM securities losses of
$6.0 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be
10.65%. The improvement in the ratios in 2025 was primarily attributable to strong earnings and a decrease in the unrealized loss
on AFS securities which is recognized in accumulated other comprehensive loss.
We are subject to regulatory risk-based capital requirements that measure capital relative to risk-weighted assets and off-balance
sheet financial instruments. At December 31, 2025, our total risk-based capital ratio was 21.45% compared to 18.64% at
December 31, 2024. Our common equity tier 1 capital ratio was 18.56% and 15.54%, respectively, on these dates. Our leverage
ratio was 11.77% and 11.05%, respectively, on these dates. For a detailed discussion of our regulatory capital requirements, refer
to the “Regulatory Considerations – Capital Regulations” section on page 14. See Note 17 in the Notes to Consolidated Financial
Statements for additional information as to our capital adequacy.
At December 31, 2025, our common stock had a book value of $32.23 per diluted share compared to $29.11 at December 31,
2024. Book value is impacted by the net unrealized gains and losses on investment securities. At December 31, 2025, the net
unrealized loss was $9.5 million compared to an unrealized loss of $20.2 million at December 31, 2024. Book value is also
impacted by the recording of our unfunded pension liability through other comprehensive income in accordance with Accounting
Standards Codification Topic 715. At December 31, 2025, the net pension asset reflected in accumulated other comprehensive
loss was $9.4 million compared to $9.7 million at December 31, 2024.
In January 2024, our Board of Directors authorized the Capital City Bank Group, Inc. Share Repurchase Program (“the
Program”), effective February 1, 2024, which authorizes the repurchase of up to 750,000 shares of our outstanding common stock
over a five-year period. Under the Program, shares may be repurchased by the Company from time to time in the open market or
in privately negotiated transactions, as market conditions warrant; however, the Program does not obligate the Company to
repurchase any specified number of shares. We did not repurchase any shares in 2025. We repurchased (i) 73,349 shares under
the Program in 2024 at an average price of $28.03 per share and (ii) 9,101 shares in January 2024 at an average price of $29.47
per share under a substantially similar repurchase plan that was authorized in 2019 and expired in 2024. There are 676,561 shares
remaining for purchase under the Program.
Dividends
Adequate capital and financial strength are paramount to our stability and the stability of CCB. Cash dividends declared and paid
should not place unnecessary strain on our capital levels. When determining the level of dividends, the following factors are
considered:
Compliance with state and federal laws and regulations;
Our capital position and our ability to meet our financial obligations;
Projected earnings and asset levels; and
The ability of the Bank and us to fund dividends.
OFF-BALANCE SHEET ARRANGEMENTS
We are a party to financial instruments with off-balance sheet risks in the normal course of business to meet the financing needs
of our clients. See Note 21 in the Notes to Consolidated Financial Statements.
If commitments arising from these financial instruments continue to require funding at historical levels, management does not
anticipate that such funding will adversely impact our ability to meet on-going obligations. In the event these commitments
require funding in excess of historical levels, management believes current liquidity, investment security maturities, available
advances from the FHLB and Federal Reserve Bank, and warehouse lines of credit provide a sufficient source of funds to meet
these commitments.
In conjunction with the sale and securitization of loans held for sale and their related servicing rights, we may be exposed to
liability resulting from recourse, repurchase, and make-whole agreements. If it is determined subsequent to our sale of a loan or
its related servicing rights that a breach of the representations or warranties made in the applicable sale agreement has occurred,
which may include guarantees that prepayments will not occur within a specified and customary time frame, we may have an
obligation to either (a) repurchase the loan for the unpaid principal balance, accrued interest, and related advances; (b) indemnify
the purchaser against any loss it suffers; or (c) make the purchaser whole for the economic benefits of the loan and its related
servicing rights. Although such claims can vary with market condition, they have historically been limited.
Our repurchase, indemnification and make-whole obligations vary based upon the terms of the applicable agreements, the nature
of the asserted breach, and the status of the mortgage loan at the time a claim is made. We establish reserves for estimated losses
of this nature inherent in the origination of mortgage loans by estimating the losses inherent in the population of all loans sold
based on trends in claims and actual loss severities experienced. The reserve will include accruals for probable contingent losses
in addition to those identified in the pipeline of claims received. The estimation process is designed to include amounts based on
actual losses experienced from actual activity.
ACCOUNTING POLICIES
Critical Accounting Policies and Estimates
The consolidated financial statements and accompanying Notes to Consolidated Financial Statements are prepared in accordance
with accounting principles generally accepted in the United States of America, which require us to make various estimates and
assumptions (see Note 1 in the Notes to Consolidated Financial Statements). We believe that, of our significant accounting
policies, the following may involve a higher degree of judgment and complexity.
Allowance for Credit Losses
. The amount of the allowance for credit losses represents managemen t’s best estimate of current
expected credit losses considering available information, from internal and external sources, relevant to assessing exposure to
credit loss over the contractual term of the instrument. Relevant available information includes historical credit loss experience,
current conditions, and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the
estimation of expected credit losses, adjustments to historical loss information may be made for changes in loan risk grades, loss
experience trends, loan prepayment trends, differences in current portfolio-specific risk characteristics, environmental conditions,
future expectations, or other relevant factors. While management utilizes its best judgment and information available, the
ultimate adequacy of our allowance accounts is dependent upon a variety of factors beyond our control, including the
performance of our portfolios, the economy, changes in interest rates, and the view of the regulatory authorities toward
classification of assets. Detailed information on the Allowance for Credit Losses valuation, and the assumptions used are provided
in Note 1 – Significant Accounting Policies of the Notes to Consolidated Financial Statements.
Goodwill
. Goodwill represents the excess of the cost of acquired businesses over the fair value of their identifiable net
assets. We perform an impairment review on an annual basis or more frequently if events or changes in circumstances indicate
that the carrying value may not be recoverable. Adverse changes in the economic environment, declining operations, or other
factors could result in a decline in the estimated implied fair value of goodwill. If the estimated implied fair value of goodwill is
less than the carrying amount, a loss would be recognized to reduce the carrying amount to the estimated implied fair value.
We evaluate goodwill for impairment on an annual basis. Accounting Standards Update 2017-04, Intangibles – Goodwill and
Other (Topic 350): Simplifying Accounting for Goodwill Impairment allows for a qualitative assessment of goodwill impairment
indicators. If the assessment indicates that impairment has more than likely occurred, the Company must compare the estimated
fair value of the reporting unit to its carrying amount. If the carrying amount of the reporting unit exceeds its estimated fair value,
an impairment charge is recorded equal to the excess.
During the fourth quarter of 2025, we performed our annual impairment testing. We proceeded with qualitative assessment by
evaluating impairment indicators and concluded there were none that indicated that goodwill impairment had occurred.
Pension Assumptions
We have a defined benefit pension plan for the benefit of a portion of our associates. On December 30,
2019, the plan was amended to remove plan eligibility for new associates hired after December 31, 2019. Our funding policy
with respect to the pension plan is to contribute, at a minimum, amounts sufficient to meet minimum funding requirements as set
by law. Pension expense is determined by an external actuarial valuation based on assumptions that are evaluated annually as of
December 31, the measurement date for the pension obligation. The service cost component of pension expense is reflected as
“Compensation Expense” in the Consolidated Statements of Income. All other components of pension expense are reflected as
“Other Expense”.
The Consolidated Statements of Financial Condition reflect an accrued pension benefit cost due to funding levels and
unrecognized actuarial amounts. The most significant assumptions used in calculating the pension obligation are the weighted-
average discount rate used to determine the present value of the pension obligation, the weighted-average expected long-term rate
of return on plan assets, and the assumed rate of annual compensation increases. These assumptions are re-evaluated annually
with the external actuaries, taking into consideration both current market conditions and anticipated long-term market conditions.
The discount rate is determined by matching the anticipated defined pension plan cash flows to the spot rates of a corporate AA-
rated bond index/yield curve and solving for the single equivalent discount rate which would produce the same present value.
This methodology is applied consistently from year to year. The discount rate utilized in 2025 was 5.82%. The estimated impact
to 2025 pension expense of a 25 basis point increase or decrease in the discount rate would have been an approximate $0.5
million decrease or increase, respectively. We anticipate using a 5.67% discount rate in 2026.
Based on the balances at the December 31, 2025 measurement date, the estimated impact on accumulated other comprehensive
loss of a 25 basis point increase or decrease in the discount rate would have been a decrease or increase of approximately $3.2
million (after-tax). The estimated impact on accumulated other comprehensive loss of a 1% favorable/unfavorable variance in the
actual rate of return on plan assets versus the assumed rate of return on plan assets of 6.75% would have been an approximate
$1.0 million (after-tax) decrease/increase, respectively.
The weighted-average expected long-term rate of return on plan assets is determined based on the current and anticipated future
mix of assets in the plan. The assets currently consist of equity securities, U.S. Government and Government agency debt
securities, and other securities (typically temporary liquid funds awaiting investment). The weighted-average expected long-term
rate of return on plan assets utilized for 2025 was 6.75%. The estimated impact to 2024 pension expense of a 25 basis point
increase or decrease in the rate of return would have been an approximate $0.2 million decrease or increase, respectively. We
anticipate using a rate of return on plan assets of 6.50% for 2026.
The assumed rate of annual compensation increases of 4.67% for 2025 was based on an experience study performed for the plan
in 2022. It is anticipated that this compensation increase assumption may change based on updates to the actual plan participants
remaining in the plan at the end of each plan year.
Detailed information on the pension plan, the actuarially determined disclosures, and the assumptions used are provided in Note
15 of the Notes to Consolidated Financial Statements.
Income Taxes
Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax
assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between
carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed,
reduces deferred tax assets to the amount expected to be realized.
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax
examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is
greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax
benefit is recorded.
We
recognize interest and/or penalties related to income tax matters in other expenses.
Cybersecurity
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Cybersecurity
Risk Management
and Strategy
Our enterprise risk management program is designed to identify, assess, and mitigate risks across various aspects of our
Company, including financial, operational, market, regulatory, technology, legal, and reputational. Cybersecurity is a critical risk
area given the increasing reliance on technology and potential of cyber risk threats.
Our Chief Information Security Officer
(“CISO”) reports to the CCB President who provides oversight of the information security program and its activities, along with
our management-level Enterprise Risk Oversight Committee (“ROC”) and our Board of Directors.
Our objective for managing cybersecurity risk is to avoid or minimize the impacts of external threat events or other efforts to
penetrate, disrupt or misuse systems or information. Our cybersecurity risk management program is designed around the National
Institute of Standards and Technology (“NIST”) Cybersecurity Framework, regulatory guidance, and other industry standards,
although we cannot guarantee that we meet all technical specifications, or requirements under NIST. Our CISO and Information
Security Officers (“ISOs”) along with key members of the information security team collaborate with peer banks, industry groups,
and policymakers to discuss cybersecurity trends and issues and identify best practices. Our information security program,
including our cyber risk management policies and procedures and our incident response program, are periodically reviewed by the
CISO with the goal of addressing changing threats and conditions.
The parts of our information security program relating to cybersecurity are built on a multi-layered and integrated defense model
and include the following processes:
Risk-based controls for information systems and information on our networks:
We maintain risk management
processes designed to identify, assess, and manage cybersecurity risks associated with external service providers and the
services we provide to our clients. We leverage people, processes, and technology as part of our efforts to manage and
maintain cybersecurity controls. We also employ a variety of preventative and detective tools designed to monitor, block,
and provide alerts regarding suspicious activity, as well as to report on suspected advanced persistent threats. We seek to
maintain a risk management infrastructure that implements physical, administrative and technical controls that are
designed, based on risk, to protect our information systems and the information stored on our networks, including personal
information, intellectual property and proprietary information of our Company and our clients.
Incident response program:
We have an incident response program and dedicated teams to respond to cybersecurity
incidents. When a cybersecurity incident occurs, we have cross-functional teams that are responsible for leading the initial
assessment of priority and severity and communicating potentially material cybersecurity incidents to the appropriate
members of management and the Board of Directors.
Training and testing:
We have established processes and systems designed to mitigate cybersecurity risk, including
regular education and training for associates, preparedness simulations and tabletop exercises, and recovery and resilience
tests. We also monitor our email gateways for malicious phishing email campaigns and monitor remote connections.
Internal and external risk assessments:
We engage in ongoing assessments of our infrastructure, software systems, and
network architecture using internal experts and
third-party
specialists, including to identify material risks from
cybersecurity threats. Our internal auditor and other independent external partners will periodically
review
our processes,
systems, and controls, including with respect to our information security program, to assess their design and operating
effectiveness and make recommendations to strengthen our risk management processes.
Notwithstanding our defensive measures and processes, threats posed by cyberattacks are severe. Our internal systems,
processes, and controls are designed to mitigate loss from cyber-attacks and, while we have experienced cybersecurity incidents
in the past, to date, risks from cybersecurity threats have
not materially
affected, and are not reasonably likely to materially affect,
the Company, including its business strategy, results of operations or financial condition. Despite the Company’s efforts, there
can be no assurance that its cybersecurity risk management processes and measures described will be fully implemented,
complied with, or effective in protecting its systems and information. The company faces risks from certain cybersecurity threats
that, if realized, are reasonably likely to materially affect its business strategy, results of operations or financial condition.
For
further discussion of risks from cybersecurity threats, see Item 1A. Risk Factors under the section captioned “Cybersecurity
incidents, including security breaches and failures of our information systems could significantly disrupt our business, result in
the unintended disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs, and
cause losses.”
Governance
Management’s Role
Our
CISO
is responsible for managing our Corporate Security Department and overseeing our information security program,
including cybersecurity risks.
The responsibilities of this department include cybersecurity risk assessment, defense operations,
incident response, vulnerability assessment, threat intelligence, third-party risk management, information governance risk and
compliance and business resilience. The foregoing responsibilities are covered on a day-to-day basis with oversight and guidance
provided by our CISO, the ISOs and key members of the information security team.
The department, as a whole, consists of
information security professionals with varying degrees of education and experience. Associates within the department are
generally subject to professional education and certification requirements. In particular, our CISO has over 15 years of substantial
relevant expertise and formal training in the areas of information security and cybersecurity risk management and also serves on
several advisory boards and committees within the financial sector.
Our CISO regularly
reports
on the status of the information
security program to the CCB President.
On a quarterly basis, and as needed, the CISO reports the status of the information
security program, notable threats or incidents, and other developments related to information security and cybersecurity risks to
our ROC.
Board Oversight of Cybersecurity
The Board of Directors oversee cybersecurity risk and the information security program which includes overseeing management’s
actions to identify, assess, mitigate and remediate or prevent material cybersecurity risks. The CISO provides reports to the Board
of Directors annually on the status of the information security program and risks, notable threats and incidents, and other
developments related to cybersecurity of the information security program . An appropriate committee of the Board of Directors
may also receive from the CISO periodic reports on these activities, as well as the status of any incident response and remediation
efforts the Company may undertake.
Properties
As filed, 704 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
We are headquartered in Tallahassee, Florida. Our executive office is in the Capital City Bank building located on the corner of
Tennessee and Monroe Streets in downtown Tallahassee. The building is owned by CCB, but is located on land leased under a
long-term agreement.
At December 31, 2025, Capital City Bank had 62 banking offices. Of these locations, we lease the land, buildings, or both at 18
locations and own the land and buildings at the remaining 44. CCHL had 28 loan production offices, 27 of which were leased.
Capital City Strategic Wealth, LLC (“CCSW”) maintained five offices, all of which were leased and subsequently sold with the
divestiture of CCSW in the third quarter of 2025.
Legal proceedings
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Legal Proceedings
We are party to lawsuits and claims arising out of the normal course of business. In management’s opinion, there are no known
pending claims or litigation, the outcome of which would, individually or in the aggregate, have a material effect on our
consolidated results of operations, financial position, or cash flows.
Management's discussion and analysis
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s discussion and analysis (“MD&A”) provides supplemental information, which sets forth the major factors that
have affected our financial condition and results of operations and should be read in conjunction with the Consolidated Financial
Statements and related notes included in the Annual Report on Form 10-K. The MD&A is divided into subsections entitled
“Business Overview,” “Executive Overview,” “Results of Operations,” “Financial Condition,” “Liquidity and Capital Resources,”
“Off-Balance Sheet Arrangements,” and “Accounting Policies.” The following information should provide a better understanding
of the major factors and trends that affect our earnings performance and financial condition, and how our performance during
2025 compares with prior years. Throughout this section, Capital City Bank Group, Inc., and its subsidiaries, collectively, are
referred to as “CCBG,” “Company,” “we,” “us,” or “our.”
CAUTION CONCERNING FORWARD -LOOKING STATEMENTS
This Annual Report on Form 10-K, including this MD&A section, contains “forward -looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements about
our beliefs, plans, objectives, goals, expectations, estimates and intentions that are subject to significant risks and uncertainties
and are subject to change based on various factors, many of which are beyond our control. The words “may,” “could,” “should,”
“would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are
intended to identify forward-looking statements.
All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ
materially from those set forth in our forward-looking statements. Please see the Introductory Note and
Market risk
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QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
See “Financial Condition - Market Risk and Interest Rate Sensitivity” in Management’s Discussion and Analysis of Financial
Condition and Results of Operations, above, which is incorporated herein by reference.
Controls and procedures
As filed, 7,971 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Evaluation of Disclosure Controls and Procedures for 2025.
At December 31, 2025, the end of the period covered by this
Annual Report on Form 10-K, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934).
Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer each concluded that our disclosure controls
and procedures were effective as of December 31, 202 5.
Management’s Report on Internal Control Over Financial Reporting.
Our management is responsible for establishing and
maintaining effective internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities
Exchange Act of 1934). Internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S.
generally accepted accounting principles.
Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of
its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is
subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting can also be
circumvented by collusion or improper management override. Because of such limitations, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these
inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process
safeguards to reduce, though not eliminate, this risk.
Management is also responsible for the preparation and fair presentation of the consolidated financial statements and other
financial information contained in this report. The accompanying consolidated financial statements were prepared in conformity
with U.S. generally accepted accounting principles and include, as necessary, best estimates and judgments by management.
Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial
Officer, we conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in
Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(2013 framework) (the COSO criteria). Based on this evaluation under the framework in Internal Control - Integrated
Framework, our management has concluded that our internal control over financial reporting, as such term is defined in Exchange
Act Rule 13a-15(f), was effective as of December 31, 2025.
Forvis Mazars, LLP, an independent registered public accounting firm, has audited our consolidated financial statements as of and
for the year ended December 31, 2025, and opined as to the effectiveness of internal control over financial reporting at December
31, 2025, as stated in its report, which is included herein on page 131.
Change in Internal Control.
There have been no changes in our internal control during our most recently completed fiscal quarter
that materially affected, or are likely to materially affect, our internal control over financial reporting.
Report of Independent Registered Public Accounting Firm
Shareowners, Board of Directors, and Audit Committee
Capital City Bank Group, Inc.
Tallahassee, Florida
Opinion on the Internal Control Over Financial Reporting
We have audited Capital City Bank Group, Inc.’s (Company) internal control over financial reporting as of December 31, 2025
based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated
Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(“PCAOB”), the consolidated financial statements of the Company as of December 31, 2025 and 2024, and for each of the three
years in the period ended December 31, 2025, and our report dated February 27, 2026 expressed an unqualified opinion on those
consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report
on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over
financial reporting based on our audit.
We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.
Definitions and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of reliable consolidated financial statements in accordance with accounting
principles generally accepted in the United States of America. A company’s internal control over financial reporting includes
those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of consolidated financial statements in accordance with accounting principles generally accepted
in the United States of America, and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention, or timely
detection and correction of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect
on the consolidated financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Forvis Mazars, LLP
Little Rock, Arkansas
February 27, 2026
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2025-12-31. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Income tax | 12 months2025-01-01 to 2025-12-31 | $20.2m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 12 months2025-01-01 to 2025-12-31 | $61.6m | us-gaap:NetIncomeLoss |
| Diluted EPS | 12 months2025-01-01 to 2025-12-31 | $3.60 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 12 months2025-01-01 to 2025-12-31 | $3.61 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 12 months2025-01-01 to 2025-12-31 | 17,102,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 12 months2025-01-01 to 2025-12-31 | $87.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 12 months2025-01-01 to 2025-12-31 | $7.6m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 12 months2025-01-01 to 2025-12-31 | $17.1m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 12 months2025-01-01 to 2025-12-31 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Total assets | At period end2025-12-31 | $4.39bn | us-gaap:Assets |
| Total liabilities | At period end2025-12-31 | $3.83bn | us-gaap:Liabilities |
| Short-term borrowings | At period end2025-12-31 | $50.1m | us-gaap:ShortTermBorrowings |
| Shareholders' equity | At period end2025-12-31 | $552.9m | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0000726601-26-000007. Last ingested by Listed: Oct 26, 2026, 16:44 ET. Listed shows no prices and gives no investment advice.