CAPITAL CITY BANK GROUP INCCCBG
CAPITAL CITY BANK GROUP INC Income Taxes Disclosure
Note 13
INCOME TAXES
The provision for income taxes reflected in the Consolidated Statements of Comprehensive Income is comprised of the following
components:
(Dollars in Thousands)
2025
2024
2023
Current:
Federal
$
16,482
$
13,388
$
11,630
State
2,089
1,568
1,893
18,571
14,956
13,523
Deferred:
Federal
1,077
(877)
(391)
State
673
(116)
(351)
Change in Valuation Allowance
(161)
(39)
259
1,589
(1,032)
(483)
Total:
Federal
17,559
12,511
11,239
State
2,762
1,452
1,542
Change in Valuation Allowance
(161)
(39)
259
Total
$
20,160
$
13,924
$
13,040
Income taxes provided were different than the tax expense computed by applying the statutory federal income tax rate of
21
% to
pre-tax income as a result of the following:
(Dollars in Thousands)
2025
2024
2023
Tax Expense at Federal Statutory Rate
$
17,161
21.0
%
$
13,769
21.0
%
$
13,411
21.0
%
State Taxes, Net of Federal Benefit
(1)
2,021
2.5
1,040
1.6
1,401
2.2
Federal Tax Credits: Renewable Energy
(2)
184
0.2
(2,093)
(3.2)
(1,938)
(3.0)
Nontaxable or Nondeductible Items:
Tax Exempt Interest Income, Net of Interest Expense
Disallowance
(120)
(0.1)
(161)
(0.3)
(259)
(0.4)
Tax-Exempt Cash Surrender Value Life Insurance
Benefit
(211)
(0.3)
(201)
(0.3)
(187)
(0.3)
Other
1,309
1.6
1,025
1.6
484
0.7
Changes in Unrecognized Tax Benefits
36
0.1
66
0.1
77
0.1
Other Adjustments:
Noncontrolling Interest
-
-
340
0.5
293
0.5
Other Items, Net
(220)
(0.3)
139
0.2
(242)
(0.4)
Actual Tax Expense
$
20,160
24.7
%
$
13,924
21.2
%
$
13,040
20.4
%
(1)
(2)
in earlier periods and tax expense in later periods as the investment yield is recognized.
Deferred income tax liabilities and assets result from differences between assets and liabilities measured for financial reporting
purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that
are currently in effect.
The net deferred tax asset and the temporary differences comprising that balance at December 31, 2025 and 2024 are as follows:
(Dollars in Thousands)
2025
2024
Deferred Tax Assets Attributable to:
Allowance for Credit Losses
$
7,550
$
7,168
State Net Operating Loss and Tax Credit Carry-Forwards
1,730
1,976
Other Real Estate Owned
1,236
964
Accrued SERP Liability
2,363
2,548
Lease Liability
6,826
5,639
Net Unrealized Losses on Investment Securities
3,217
6,779
Investment in Partnership
796
4,404
Other
6,451
2,808
Total Deferred Tax Assets
$
30,169
$
32,286
Deferred Tax Liabilities Attributable to:
Depreciation on Premises and Equipment
$
3,982
$
3,538
Deferred Loan Fees and Costs
5,070
3,543
Intangible Assets
2,689
3,378
Accrued Pension/SERP
3,206
3,302
Accrued Pension Liability
1,754
1,217
Right of Use Asset
6,662
5,510
Investments
469
469
Other
1,569
1,784
Total Deferred Tax Liabilities
25,401
22,741
Valuation Allowance
1,730
1,891
Net Deferred Tax Asset
$
3,038
$
7,654
In the opinion of management, it is more likely than not that all of the deferred tax assets, with the exception of certain state net
operating loss carry-forwards and certain state tax credit carry-forwards expected to expire prior to utilization, will be realized.
Accordingly, a valuation allowance of $
1.7
1.9
respectively. At December 31, 2025, the Company had state loss and tax credit carry-forwards of approximately $
1.7
which expire at various dates from
202
6 through
2037
.
The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits:.
(Dollars in Thousands)
2025
2024
2023
Balance at January 1,
$
316
$
233
$
136
Additions Based on Tax Positions Related to Current Year
47
83
97
Balance at December 31
$
363
$
316
$
233
Of this total, $
0.3
effective tax rate in future periods. The Company does not expect the total amount of unrecognized tax benefits to significantly
increase or decrease in the next 12 months.
It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in their respective
federal or state income taxes accounts. There were
no
Statements of Income for the years ended December 31, 2025, 2024, and 2023. There were
no
Consolidated Statements of Financial Condition for penalties and interest as of December 31, 2025 and 2024.
The Company files a consolidated U.S. federal income tax return and a separate U.S. federal income tax return for CCHL. Each
subsidiary files various returns in states where its banking offices are located. The Company is generally no longer subject to
U.S. federal or state tax examinations for years before 2022.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 5, 2020 | |
| 2018 | Mar 5, 2019 | |
| 2016 | Mar 2, 2017 | |
| 2015 | Mar 8, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.