Capital City Bank Group (CCBG) risk factors, FY2025 10-K

Capital City Bank Group's FY2025 10-K, filed Feb 27, 2026, lists 57 risk factors in 8 groups. Against the prior year's 58: 7 new, 8 dropped, 24 substantially reworded.

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Risk factors listed
578 groups
New this year
7vs 58 last year
Dropped
8since the prior 10-K
Substantially reworded
24of those kept
Section length
13k wordsItem 1A

What the changes say

  • New risks emphasize AI deployment, payment-stablecoin competition, operational resilience, and regulatory scrutiny.
  • Florida hurricanes and flooding remain a specific threat to collateral values, loan performance, and local economies.
  • Interest-rate discussion now highlights mortgage volumes, refinancing, and trade-policy factors including tariffs.
  • The filing drops standalone overdraft-fee, liquidity, fraud, insurance, and reputation risks while expanding related technology disclosures.

What changed since the prior 10-K

New

  • NewMarket Risks

    We are unable to predict changes in interest rates, which are affected by factors beyond our control, including inflation, deflation, recession, unemployment, money supply and other changes in financial markets

    Unpredictable interest rates could weaken interest-rate risk management, mortgage originations and refinancings, mortgage banking revenue, and profitability.

  • NewOperational Risks

    In addition, evolving regulatory expectations regarding operational resilience, business continuity, vendor oversight, and internal control effectiveness may require additional investment and may heighten supervisory scrutiny if deficiencies are identified

    Evolving expectations for operational resilience, continuity, vendor oversight, and internal controls could increase investment and supervisory scrutiny.

  • NewOperational Risks

    Failure to successfully keep pace with technological change affecting the banking and financial services industry could negatively affect our revenue and profitability

    AI used by CCBG, vendors, customers, or counterparties could create regulatory, privacy, bias, intellectual-property, confidentiality, and operational risks.

  • NewOperational Risks

    If any of these risks materialized, they could have an adverse effect on our business and operations and may have other adverse effects on us in ways that we are unable to predict

    Florida hurricanes, tropical storms, flooding, and wind damage could disrupt operations, reduce property values, increase delinquencies and losses, and raise insurance costs.

  • NewStrategic Risks

    Depending on consumer and business interest in payment stablecoins, and the characteristics and utility of payment stablecoins, the passage of the GENIUS Act could result in increased competition with respect to our deposit products

    Payment stablecoins authorized by the GENIUS Act could compete with CCBG deposits, reduce fee income, and weaken margins, earnings, or market share.

  • NewStrategic Risks

    William G. Smith, Jr., our Chairman and Chief Executive Officer beneficially owned 17.3% of our shares as of that date

    William G. Smith Jr.’s 17.3% ownership, combined with directors and executives, may enable control over elections, transactions, and management direction.

  • NewStrategic Risks

    (vi) difficulty in estimating the value of the target company or assets to be sold; and (vii) potential changes in banking or tax laws or regulations that may affect the target company

    Regulators could delay, condition, or deny acquisitions based on CCBG’s capital, management, compliance, condition, or other regulatory issues.

Dropped

  • DroppedLiquidity and Capital Risks

    If we are unable to maintain adequate liquidity, it could materially and adversely affect our business, results of operations or financial condition

  • DroppedRegulatory and Compliance Risks

    Any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations

  • DroppedRegulatory and Compliance Risks

    Revenues derived from transaction fees associated with overdraft protection programs offered to consumers represent a significant portion of our noninterest income. In 2024, the Company collected approximately $9.5 million in net consumer overdraft transaction fees

  • DroppedOperational Risks

    Insurance coverage may not be available for losses relating to such event, or where available, such losses may exceed insurance limits

  • DroppedOperational Risks

    Increased fraudulent activity may cause losses to us or our clients, damage to our brand, and increases in our costs, in turn, materially and adversely affecting our business, financial condition, Additionally, fraud losses have risen in recent years due in large part to growing and evolving schemes

  • DroppedStrategic Risks

    Smith, Jr. is the Chairman, President, and Chief Executive Officer of CCBG and Chairman of CCB, he has substantial over all matters on a day-to-day basis, including the nomination and election of directors

  • DroppedStrategic Risks

    Potential acquisitions by us, or our inability to complete acquisitions, may financial condition, and results of operations

  • DroppedReputational Risks

    Harm to our reputation may adversely and materially affect our competitive position, business prospects, and financial results

Reworded

  • 88% rewrittenStrategic Risks

    Technology and other changes have lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks. In particular, the activity of financial technology companies has grown significantly over recent years and is expected to continue to grow

    The discussion now adds large technology companies, embedded finance, digital wallets, payment platforms, and customers’ demand for seamless digital service.

    Was: Technology and other changes have lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks

  • 87% rewrittenLiquidity and Capital Risks

    Periods of high interest rates could promote increased competition for deposits, including from new financial technology competitors, or provide customers with alternative investment options

    The risk now adds deposit competition from fintechs and alternative investments, plus specific liquidity pressure from higher rates and seasonal public deposits.

  • 71% rewrittenReputational Risks

    Reputation risk, or the risk to our earnings, liquidity, and capital from negative public opinion, is inherent in our business

    The examples of reputation damage now expressly include actions to debank certain clients.

  • 67% rewrittenCredit Risks

    Loan defaults would likely increase our loan losses and nonperforming assets and could adversely affect our allowance for credit losses and our results of operations

    The risk now adds borrower or third-party fraud, inaccurate financial information, and falsified loan documents as drivers of credit losses.

  • 64% rewrittenMarket Risks

    We may incur losses if we are unable to successfully manage interest rate risk

    The interest-rate factors now expressly include U.S. and foreign trade-policy changes, including tariffs and retaliatory tariffs.

  • 57% rewrittenOperational Risks

    Cybersecurity incidents, security breaches failures information systems significantly disrupt business, result unintended disclosure misuse confidential proprietary information, damage reputation, increase our costs, and cause losses

    Cybersecurity examples now include third-party systems, phishing, brute-force attacks, zero-day vulnerabilities, ransomware, and supply-chain attacks.

  • 53% rewrittenCredit Risks

    Commercial Loans

    Commercial loans now include sensitivity to economic, competitive, and industry trends; the portfolio figure remains 7.1% but the date changes to December 31, 2025.

  • 46% rewrittenMarket Risks

    Changes in interest rates can impact our mortgage-related revenues and net revenues associated with our mortgage activities

    The current text retains the mortgage-rate, refinancing, payoff, and modeling risks but removes the appended common-stock and FDIC-insurance disclaimer.

  • 38% rewrittenRegulatory and Compliance Risks

    Regulators have continued to focus on compliance with AMLA and BSA obligations and the rules enforced by OFAC

  • 36% rewrittenLiquidity and Capital Risks

    Furthermore, we believe it is unlikely that we would be required to sell any such securities before recovery of their amortized cost bases, which may be at maturity

  • 35% rewrittenCredit Risks

    Our concentration in loans secured by real estate may increase our credit losses, which would negatively affect our financial results

  • 35% rewrittenCredit Risks

    Construction Loans

  • 35% rewrittenMarket Risks

    The fair value of our investments could decline, which would cause a reduction in shareowners’ equity

  • 34% rewrittenMarket Risks

    Changes in customer behavior may have a negative impact on our business, financial Individual, economic, political, industry

    Was: Individual, economic, political, industry

  • 28% rewrittenOperational Risks

    We regularly assess and monitor operational risk in our businesses. Despite our efforts to assess and monitor operational risk, our risk management framework may not be effective in all cases

  • 27% rewrittenStrategic Risks

    CCBG is registered with the Federal Reserve as a financial holding company under the Bank Holding Company Act, or BHC Act

  • 27% rewrittenCredit Risks

    Consumer Loans

  • 26% rewrittenCredit Risks

    An inadequate allowance for credit losses would reduce our earnings

  • 25% rewrittenMarket Risks

    While our common stock is listed and traded on the Nasdaq Global Select Market, there has historically been limited trading activity in our common stock

  • 24% rewrittenStrategic Risks

    We rely on a diversified mix of financial products and services through multiple distribution channels

  • 23% rewrittenMarket Risks

    Inflationary pressures and rising prices may affect our results of operations and financial condition

  • 23% rewrittenCredit Risks

    A borrower’s ability to make a balloon payment typically will depend on the borrower’s ability to either refinance the loan or timely sell the underlying property

  • 23% rewrittenCredit Risks

    Our interest-earning assets are heavily concentrated in mortgage loans secured by real estate, particularly real estate located in Florida and Georgia

  • 21% rewrittenOperational Risks

    Severe weather, natural disasters, global climate change, widespread health emergencies (including pandemics), acts of terrorism and global conflicts may have a negative impact on our business and operations

All 57 risk factors

Headings as the filing states them, in filing order.

Market Risks

  1. 01We may incur losses if we are unable to successfully manage interest rate risk64% rewritten
  2. 02We are unable to predict changes in interest rates, which are affected by factors beyond our control, including inflation, deflation, recession, unemployment, money supply and other changes in financial marketsNew
  3. 03Changes in interest rates can impact our mortgage-related revenues and net revenues associated with our mortgage activities46% rewritten
  4. 04Inflationary pressures and rising prices may affect our results of operations and financial condition23% rewritten
  5. 05Our profitability depends significantly on economic conditions in the States of Florida and Georgia
  6. 06Changes in customer behavior may have a negative impact on our business, financial Individual, economic, political, industry34% rewritten
  7. 07The fair value of our investments could decline, which would cause a reduction in shareowners’ equity35% rewritten
  8. 08While our common stock is listed and traded on the Nasdaq Global Select Market, there has historically been limited trading activity in our common stock25% rewritten
  9. 09Securities analysts may not initiate coverage or continue to cover our common stock, and this may have a negative impact on its market price

Credit Risks

  1. 10Our loan portfolio includes loans with a higher risk of loss which could lead to higher loan losses and nonperforming assets
  2. 11Commercial Real Estate Loans
  3. 12A borrower’s ability to make a balloon payment typically will depend on the borrower’s ability to either refinance the loan or timely sell the underlying property23% rewritten
  4. 13Commercial Loans53% rewritten
  5. 14Construction Loans35% rewritten
  6. 15Vacant Land Loans
  7. 16At December 31, 2025, vacant land loans comprised approximately 3.8% of our total loan portfolio
  8. 17Consumer Loans27% rewritten
  9. 18Loan defaults would likely increase our loan losses and nonperforming assets and could adversely affect our allowance for credit losses and our results of operations67% rewritten
  10. 19Our interest-earning assets are heavily concentrated in mortgage loans secured by real estate, particularly real estate located in Florida and Georgia23% rewritten
  11. 20Our concentration in loans secured by real estate may increase our credit losses, which would negatively affect our financial results35% rewritten
  12. 21Due to the exposure in these concentrations, disruptions in markets, economic conditions, changes in laws or regulations or other events could cause a significant impact on the ability of borrowers to repay and may have a material adverse effect on our business, financial condition and results of operations
  13. 22An inadequate allowance for credit losses would reduce our earnings26% rewritten
  14. 23We cannot provide any assurance that our monitoring procedures and policies will reduce certain lending risks, and while the allowance is based on management’s reasonable estimate and may not prove sufficient to cover future loan losses
  15. 24Our regulators may require us to recognize additional losses based on their judgments about information available to them at the time of their examination
  16. 25Failures in the analytical and forecasting models relied upon for our accounting estimates and risk management processes could have a material adverse effect on our business, financial condition, and results of operations
  17. 26These models reflect assumptions accurate, particularly times stress unforeseen circumstances
  18. 27Since we originate loans secured by real estate, we may have to foreclose on the collateral property to protect our investment and may thereafter own and operate such property, in which case we would be exposed to the risks inherent in the ownership of real estate

Liquidity and Capital Risks

  1. 28Liquidity risk could impair our ability to fund operations and jeopardize our financial condition
  2. 29In particular, a majority of our liabilities during 2025 were checking accounts and other liquid deposits, which are generally payable on demand or upon short notice
  3. 30Periods of high interest rates could promote increased competition for deposits, including from new financial technology competitors, or provide customers with alternative investment options87% rewritten
  4. 31Unrealized losses in our securities portfolio could materially and adversely affect our liquidity
  5. 32Furthermore, we believe it is unlikely that we would be required to sell any such securities before recovery of their amortized cost bases, which may be at maturity36% rewritten
  6. 33In 2025, our Board of Directors declared four quarterly cash dividends

Regulatory and Compliance Risks

  1. 34Regulators have continued to focus on compliance with AMLA and BSA obligations and the rules enforced by OFAC38% rewritten
  2. 35U.S. federal banking agencies may require us to increase our regulatory capital, long-term debt or liquidity requirements, which could result in the need to issue additional qualifying securities or to take other actions, such as to sell company assets
  3. 36It is possible that regulators may increase regulatory capital requirements, change how regulatory capital is calculated or increase liquidity requirements. Requirements to maintain higher levels of capital may lower our return on equity
  4. 37Changes in accounting standards or assumptions in applying accounting policies could adversely affect us

Operational Risks

  1. 38We regularly assess and monitor operational risk in our businesses. Despite our efforts to assess and monitor operational risk, our risk management framework may not be effective in all cases28% rewritten
  2. 39While we have in place many controls and business continuity plans designed to address these factors and others, these plans may not operate successfully to mitigate these risks effectively
  3. 40In addition, evolving regulatory expectations regarding operational resilience, business continuity, vendor oversight, and internal control effectiveness may require additional investment and may heighten supervisory scrutiny if deficiencies are identifiedNew
  4. 41Cybersecurity incidents, security breaches failures information systems significantly disrupt business, result unintended disclosure misuse confidential proprietary information, damage reputation, increase our costs, and cause losses57% rewritten
  5. 42Failure to successfully keep pace with technological change affecting the banking and financial services industry could negatively affect our revenue and profitabilityNew
  6. 43We may not be able to attract and retain skilled people, which may have a negative impact on our business and operations
  7. 44Issues we encounter with respect to external vendors upon which we rely could have a material adverse effect on our business and, in turn, our financial condition and results of operations
  8. 45In addition, our operations are exposed to risk that these vendors will not perform in accordance with the contracted arrangements under service level agreements. Although we have selected these external vendors carefully, we do not control their actions
  9. 46Severe weather, natural disasters, global climate change, widespread health emergencies (including pandemics), acts of terrorism and global conflicts may have a negative impact on our business and operations21% rewritten
  10. 47If any of these risks materialized, they could have an adverse effect on our business and operations and may have other adverse effects on us in ways that we are unable to predictNew
  11. 48Litigation may adversely affect our results
  12. 49Section 404 of the Sarbanes

Strategic Risks

  1. 50Our future success is dependent on our ability to compete effectively in the highly competitive banking and financial services industry
  2. 51Technology and other changes have lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks. In particular, the activity of financial technology companies has grown significantly over recent years and is expected to continue to grow88% rewritten
  3. 52Depending on consumer and business interest in payment stablecoins, and the characteristics and utility of payment stablecoins, the passage of the GENIUS Act could result in increased competition with respect to our deposit productsNew
  4. 53We rely on a diversified mix of financial products and services through multiple distribution channels24% rewritten
  5. 54William G. Smith, Jr., our Chairman and Chief Executive Officer beneficially owned 17.3% of our shares as of that dateNew
  6. 55CCBG is registered with the Federal Reserve as a financial holding company under the Bank Holding Company Act, or BHC Act27% rewritten
  7. 56(vi) difficulty in estimating the value of the target company or assets to be sold; and (vii) potential changes in banking or tax laws or regulations that may affect the target companyNew

Reputational Risks

  1. 57Reputation risk, or the risk to our earnings, liquidity, and capital from negative public opinion, is inherent in our business71% rewritten

Other Capital City Bank Group 10-Ks

  • FY2024 10-K risk factors
    58 risks

    Credit losses are concentrated in Florida and Georgia real estate lending, especially commercial, construction, vacant-land and mortgage loans.

    Filed Mar 11, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.