Capital City Bank Group Stock

Capital City Bank Group, Inc. operates as the bank holding company for Capital City Bank (CCB) that provides a full range of banking services.

The company’s banking services include 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 banking offices and ATMs/ITMs in Florida, Georgia, and Alabama. Through Capital City Home Loans, LLC (‘CCHL’), the company has additional offices in the Southeast for the company’s mortgage banking business. The company’s primary market area consists of 20 counties in Florida, six counties in Georgia, and one county in Alabama.

Operating Segment

The company has one reportable segment with two principal services: Banking Services and Wealth Management Services. Banking Services are operated at CCB, and Wealth Management Services are operated under three separate subsidiaries (Capital City Trust Company, Capital City Investments, and Capital City Strategic Wealth, LLC.).

Capital City Bank

CCB is a Florida-chartered full-service bank engaged in the commercial and retail banking business. Significant services offered by CCB include:

Business Banking

The company provides banking services to corporations and other business clients. Credit products are available for a wide variety of general business purposes, including financing for commercial business properties, equipment, inventories and accounts receivable, as well as commercial leasing and letters of credit. The company also provides treasury management services, and, through a marketing alliance with Elavon, Inc., merchant credit card transaction processing services.

Commercial Real Estate Lending

The company provides a wide range of products to meet the financing needs of commercial developers and investors, residential builders and developers, and community development. Credit products are available to purchase land and build structures for business use and for investors who are developing residential or commercial property.

Residential Real Estate Lending

The company provides products through its strategic alliance with CCHL and its existing network of locations to help meet the home financing needs of consumers, including conventional permanent and construction/ permanent (fixed, adjustable, or variable rate) financing arrangements, and FHA/VA/Government National Mortgage Association (‘GNMA’) loan products.

The company offers both fixed and adjustable rate residential mortgage (ARM) loans. The company offers these products through its existing network of CCHL locations. The company does not originate subprime residential real estate loans.

Retail Credit

The company provides a full-range of loan products to meet the needs of consumers, including personal loans, automobile loans, boat/RV loans, home equity loans, and through a marketing alliance with ELAN, the company offers credit card programs.

Institutional Banking

The company provides banking services to meet the needs of state and local governments, public schools and colleges, charities, membership and not-for-profit associations, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans.

Retail Banking

The company provides a full-range of consumer banking services, including checking accounts, savings programs, interactive/automated teller machines (ATMs/ITMs), debit/credit cards, night deposit services, safe deposit facilities, online banking, and mobile banking.

Capital City Trust Company

Capital City Trust Company, or the Trust Company, provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts. Associations, endowments, and other nonprofit entities hire the Trust Company to manage their investment portfolios. Additionally, a staff of well-trained professionals serves individuals requiring the services of a trustee, personal representative, or a guardian.

Capital City Investments

The company offers its customers access to retail investment products through LPL Financial pursuant to which retail investment products would be offered through LPL. LPL offers a full line of retail securities products, including the U.S. Government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance and long-term health care. Non-deposit investment and insurance products are: not FDIC insured; not deposits, obligations, or guarantees by any bank; and subject to investment risk, including the possible loss of principal amount invested.

Capital City Strategic Wealth, LLC.

The company provides a multi-disciplinary strategic planning approach that requires examining all facets of its clients’ financial lives through the company’s business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Insurance sales within this division include life, health, disability, long-term care, and annuity solutions.

Lending Activities

Residential Real Estate Loans

The company originates 1-4 family, owner-occupied residential real estate loans at CCHL for sale in the secondary market. A vast majority of residential loan originations are fixed-rate loans which are sold in the secondary market on a non-recourse basis. The company will frequently sell loans and retain the servicing rights.

CCB also maintains a portfolio of residential loans held for investment and will periodically purchase newly originated 1-4 family secured adjustable rate loans from CCHL for that portfolio. Residential real estate loans also include home equity lines of credit, or HELOCs, and home equity loans. The company’s home equity portfolio includes revolving open-ended equity loans with interest-only or minimal monthly principal payments and closed-end amortizing loans. As of December 31, 2022, approximately 56% of the company’s residential home equity loan portfolio consisted of first mortgages.

Commercial Loans

The majority of the company’s commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory.

Commercial Real Estate Loans

The company has adopted guidelines for debt service coverage ratios, LTV ratios and documentation standards for commercial real estate loans. These loans are primarily made based on identified cash flows of the borrower with consideration given to underlying real estate collateral and personal guarantees.

Consumer Loans

The company’s consumer loan portfolio includes personal installment loans, direct and indirect automobile financing, and overdraft lines of credit. The majority of the consumer loan portfolio consists of indirect and direct automobile loans.

Seasonality

The company’s commercial banking operations are not generally seasonal in nature; however, public deposits tend to increase with tax collections in the fourth and first quarters of each year (year ended December 2022) and decline as a result of governmental spending thereafter.

Investment Securities

As of December 31, 2022, the company’s investment securities included U.S. government treasury; U.S. government agency; states and political subdivisions; mortgage-backed securities; corporate debt securities; and other securities.

Deposits

As of December 31, 2022, the company’s deposits included noninterest bearing deposits, NOW accounts, money market accounts, savings accounts, and time deposits.

Regulatory Considerations

The company is registered with the Board of Governors of the Federal Reserve as a bank holding company under the Bank Holding Company Act of 1956 (‘BHC Act’) and has also elected to be a financial holding company. As a result, the company is subject to supervisory regulation and examination by the Federal Reserve.

Capital City Bank is a state-chartered commercial banking institution that is chartered by and headquartered in the state of Florida and is subject to supervision and regulation by the Florida Office of Financial Regulation. The Florida Office of Financial Regulation supervises and regulates all areas of the company’s operations, including without limitation, the making of loans, the issuance of securities, the conduct of the company’s corporate affairs, the satisfaction of capital adequacy requirements, the payment of dividends, and the establishment or closing of banking centers. The company is also a member bank of the Federal Reserve System, which makes its operations subject to broad federal regulation and oversight by the Federal Reserve. In addition, the company’s deposit accounts are insured by the FDIC up to the maximum extent permitted by law, and the FDIC has certain supervisory enforcement powers over the company.

The company’s deposit accounts are insured by the Deposit Insurance Fund, or DIF, generally up to a maximum of $250,000 per separately insured depositor.

Pursuant to Sections 23A and 23B of the Federal Reserve Act and Regulation W, the authority of CCB to engage in transactions with related parties or ‘affiliates’ or to make loans to insiders is limited.

The company received a satisfactory rating on its most recent Community Reinvestment Act assessment.

CCB is also subject to other federal and state consumer laws and regulations that are designed to protect consumers in transactions with banks. While the list set forth below is not exhaustive, these laws and regulations include the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Check Clearing for the21st Century Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Fair and Accurate Credit Transactions Act, the Mortgage Disclosure Improvement Act, and the Real Estate Settlement Procedures Act, among others. These laws and regulations mandate certain disclosures and regulate the manner in which financial institutions must deal with clients when taking deposits or making loans to clients. CCB must comply with these consumer protection laws and regulations as part of its ongoing client relations.

In addition, the Consumer Financial Protection Bureau issues regulations and standards under these federal consumer protection laws that affect the company’s consumer businesses.

The Coronavirus Aid, Relief, and Economic Security Act, among other things, amended the SBA’s loan program, in which the bank participates, to create a guaranteed, unsecured loan program (the ‘PPP’) to fund operational costs of eligible businesses, organizations, and self-employed persons during COVID-19.

History

Capital City Bank Group, Inc. was founded in 1895. The company was incorporated under Florida law in 1982.