Jeptha E. Larkin
About Jeptha E. Larkin
Executive Vice President and Chief Financial Officer of Capital City Bank Group, appointed effective January 1, 2023; age 61; joined Capital City in 1986. Background includes leading Internal Audit (1992–2002), serving as Controller until CFO appointment, and acting as principal financial and accounting officer overseeing accounting, financial reporting, profitability analysis, planning, and treasury; CPA licensed in Florida and Georgia; BS Economics and MBA Finance from Florida State University; graduate of Stonier School of Banking . Company performance under current management: 2024 record net income of $53 million (+1.3% YoY); EPS has grown at an average annual rate of 13% since 2019; cumulative TSR value of initial $100 investment reached $136.06 by 2024 vs $132.44 for SmallCap Banks peer index; diluted EPS $3.12 in 2024 vs $3.07 in 2023 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Capital City Bank Group | Head, Internal Audit Division | 1992–2002 | Built and led internal audit, strengthening controls and oversight . |
| Capital City Bank Group | Controller | 2002–Jan 1, 2023 | Oversaw control environment and financial reporting until CFO appointment . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed | — | — | No outside public company directorships or external roles disclosed for Larkin . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary (earned, $) | 301,958 | 333,541 |
| Base Salary (approved for year, $) | — | 350,000 |
| Target Cash Incentive ($) | — | 137,175 |
| Actual Cash Incentive Paid ($) | 137,834 | 209,206 |
| Perquisites and Other ($) | 9,564 | 3,564 |
| Notes | Awards paid shortly after determination | Compensation Committee approved target short-term incentive $182,900; equity component paid via performance shares (see below) |
Performance Compensation
| Plan | Metric | Weighting | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|---|
| Cash Incentive Plan | Net Income | 50% | >$52,258 million | Achieved | 105.03% | Paid shortly after Committee determination (Q1 following year) . |
| Cash Incentive Plan | Average Deposits | 30% | $3,489,211 | Achieved | 200% | Paid shortly after Committee determination . |
| Cash Incentive Plan | Classified Assets | 20% | ≤$31,704 million | Achieved | 200% | Paid shortly after Committee determination . |
| Cash Incentive Plan | Total Payout | — | — | — | 152.51% (weighted) | Paid shortly after Committee determination . |
| Stock-Based Incentive (Performance Shares) | Net Income | 50% | >$52,258 million | Achieved | 105.03% | Earned shares issued in calendar quarter following year (late Jan/early Feb); no additional vesting . |
| Stock-Based Incentive (Performance Shares) | Average Deposits | 30% | $3,489,211 | Achieved | 200% | Issuance timing as above . |
| Stock-Based Incentive (Performance Shares) | Classified Assets | 20% | ≤$31,704 million | Achieved | 200% | Issuance timing as above . |
| Stock-Based Incentive (Performance Shares) | Shares (Larkin) | — | 1,630 | 2,486 | Max: 3,260 | Based on 10-day avg. high/low stock price of $28.05 on grant date (Feb 29, 2024) to size target; 100% paid in performance shares . |
| Long-Term Incentive Plan (LTIP) | EPS CAGR (3-year) | — | — | — | — | Larkin does not currently have an LTIP; LTIP applies to CEO/President only . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 9,046 shares; less than 1% of outstanding . |
| Shares Outstanding Basis | 17,046,077 shares outstanding as of Feb 20, 2025 . |
| Vested vs Unvested at FY-end | No outstanding unvested equity awards at Dec 31, 2024 (none listed) . |
| 2024 PSU Payout | 2,486 performance shares earned; issued in late Jan/early Feb following year . |
| Options | Company ceased granting options in 2007; none outstanding . |
| Pledging | No pledges disclosed for Larkin; pledges disclosed for other executives in ownership table . |
| Ownership Guidelines | Larkin expected to hold ≥2x base salary; compliance expected within 6 years . |
| Compliance Status | As of Dec 31, 2024, Larkin “making significant strides” toward meeting ownership expectation; CEO/President met expectations . |
| Hedging/Short Sales Policy | Short sales prohibited; insider trading policy with blackout periods and pre-clearance for executives/directors . |
Employment Terms
- At-will employment; no employment or severance agreements; no separate change-in-control agreements; no excise tax gross-ups; no guaranteed bonuses; no stock options .
- Clawback policy updated effective Oct 2, 2023 to recover erroneously awarded incentive-based compensation upon restatements; Company considered restatements and concluded no recoupment required for impacted cash flow statement restatements . Compensation Committee discussed clawback calculations related to 2022 restated financials (consideration/approval), consistent with policy governance .
- Change-in-control treatment: SERP crediting of two years’ service generally, but named executive officers already at maximum service; for Larkin’s SERP II, change-in-control rows show N/A in table; normal retirement benefits payable under Retirement Plan and SERP upon change-in-control; no additional benefits beyond plan rules .
- Non-compete/non-solicit/garden leave: Not disclosed in proxy .
- Insider trading controls: Pre-clearance and blackout windows; prohibition on company trading while in possession of MNPI .
Pension and Post-Employment Economics
| Benefit | Present Value/Amount | Notes |
|---|---|---|
| Retirement Plan – Present Value (Dec 31, 2024) | $2,460,977 | Defined benefit plan closed to new entrants since Jan 1, 2020; annuity or lump sum available; Larkin eligible for normal retirement . |
| SERP II – Present Value | N/A (participant as of Mar 1, 2024) | Nonqualified plan restoring benefits above IRS limits; entered Mar 1, 2024 . |
| Potential Payments – Retirement Plan (various triggers, lump sum) | $2,478,765 at CIC/voluntary/retirement/death/involuntary | Lump sum basis using 417(e) mortality and prescribed yield curve . |
| Potential Payments – SERP II (Disability) | $4,148 | Disability accrual until earliest of recovery/death/retirement . |
Compensation Structure Analysis
- Mix of pay: Larkin’s total targeted incentive compensation was 34.32% of total targeted compensation in 2024; 75% cash / 25% equity; no LTIP participation (relative risk lower than CEO/President) .
- Year-over-year shifts: 2024 base salary increased 12.72%; incentive payout at 152.51% on both cash and stock plans; perquisites remained modest ($3,564) .
- Benchmarks: Base salary targeted near 50th percentile; Larkin’s base salary was 5.43% below 50th percentile of peer group in 2024, consistent with conservative base and at-risk pay emphasis .
- Governance safeguards: Broad clawback policy, independent Compensation Committee, no guaranteed bonuses, no options, prohibition on repricing, meaningful ownership guidelines .
Performance & Track Record (Company context during his CFO tenure)
- Record earnings in 2024 ($53 million, +1.3% YoY), strong credit metrics (net loan losses 21 bps of average loans; NPA/Assets 15 bps; ACL/Loans 110 bps), cost of deposits 89 bps aiding NIM .
- Capital return and balance sheet: Tangible book value/share +15.6% in 2024; dividends increased by $0.12/share (+15.8% YoY) .
- Pay-versus-performance context: TSR cumulative value $136.06 (vs peer $132.44) since 2019; diluted EPS $3.12 in 2024; measures linking CAP include Net Income, EPS Growth, Average Deposits, Classified Assets .
Say-on-Pay & Shareholder Feedback
- 2023 Say-on-Pay approval 98.8% “For” (11,864,934 of 12,010,505 votes cast), supporting the pay-for-performance approach .
Equity Ownership Details (Cross-check)
| Holder | Shares | Pledged | % of Votes |
|---|---|---|---|
| Jeptha E. Larkin | 9,046 | None disclosed | * (<1%) |
Employment Terms (Summary Table)
| Term | Provision |
|---|---|
| Employment Contract | None; at-will employment . |
| Severance Agreement | None . |
| Change-in-Control Agreement | None separate; SERP treatment only; no excise tax gross-ups . |
| Clawback | Updated Oct 2, 2023; applies to current/former executive officers for 3 prior completed fiscal years upon restatement; restated cash flows did not trigger recovery . |
| Hedging/Short Sales | Short sales prohibited; insider trading policy includes blackout and pre-clearance . |
| Ownership Guidelines | ≥2x base salary; progress noted . |
Investment Implications
- Alignment: No employment/severance contracts, robust clawback, no options, and performance shares paid annually on achievement align pay with near-term performance; ownership guideline at 2x salary with progress suggests increasing skin-in-the-game, though current beneficial ownership is <1% and no pledges disclosed for Larkin .
- Incentive levers: Annual cash and PSU metrics tied to Net Income, Average Deposits, and Classified Assets create direct incentives for profitable growth with credit discipline; lack of LTIP for CFO concentrates incentives on annual cycles, which may increase sensitivity to short-term performance but reduces multi-year overhang and insider selling pressure from unvested awards (none at FY-end 2024) .
- Retention risk: Pension and SERP participation plus normal retirement eligibility provide substantial accumulated benefits (Retirement Plan PV ~$2.46M; lump-sum ~$2.48M), which can be stabilizing but also enable retirement optionality; absence of severance/change-in-control cash multipliers limits windfall risk and signaling issues .
- Trading signals: With PSUs issued shortly after year-end and no multi-year vesting, seasonal share issuance could create modest, predictable supply; policy prohibits short sales and requires pre-clearance; no disclosed pledges for Larkin lower forced-sale risk compared to pledged positions seen for other executives .