This determination of affiliate status is not a determination for other purposes. Exhibits and Financial Statement Schedules120 Item 16. The Bank commenced operations in 1895. The nature of these subsidiaries is provided below. We applied this guidance to qualifying loan modifications. Nearly all of the failed banks were community banks. Accordingly, we are committed to the health, safety and wellness of our associates. The rule became effective September 30, 2020. Our common stock is registered under Section 12 of the Exchange Act. These requirements are described below under "Capital Regulations." The use of LIBOR as a reference rate in the banking industry is beginning to decline. The information on our website is not incorporated by referenc e into this report. Any failure to adequately manage this transition could adversely impact our reputation. As of this same date, approximately 7% was secured by property under construction. An inadequate allowance for credit losses would reduce our earnings. This could result in credit losses that are inherent in the lending business. Effective liquidity management is essential for the operation of our business. Capital and liquidity requirements are frequently introduced and amended. Properties We are headquartered in Tallahassee, Florida. We also pivoted to an intense focus on organic growth and operational improvements. Partially offsetting this decline was a lower cost of funds. At December 31, 2020 we had $3.2 million (net) in deferred SBA PPP loan fees. For 2020, taxable equivalent interest income decreased $6.7 million, or 5.9%, from 2019. Prior to 2020, the provision for unfunded loan commitments was recorded in other expense. We discuss these variances in more detail below. Subsequent declines in value are reflected as other noninterest expense. During 2020, we modified three loan contracts totaling approximately $0.2 million. The composition of our TDR portfolio as of December 31 is provided in the table below. HTM investments are measured at amortized cost. See Table 12 for a break-down of maturities by investment type. The first note for $30.9 million was issued to CCBG Capital Trust I in November 2004. Our leverage ratio was 9.33% and 11.25%, respectively, on these dates. We recognize interest and/or penalties related to income tax matters in other expenses. 63 CAPITAL CITY BANK GROUP, INC. In addition, we involved an actuarial specialist to assist with our procedures. The remainder period reflects the remaining life of the loan. The Company periodically evaluates its MSRs asset for impairment. Repairs and maintenance are charged to noninterest expense as incurred. Many of the leases have one or more lease renewal options. See Note 8 – Goodwill for additional information. ASU 2020-04 also provides numerous optional expedients for derivative accounting. ASU 2020-09, "Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. See MD&A (Credit Quality/COVID-19 Exposure) for disclosure of the impact to date. FHLB stock which is included in other securities is pledged to secure FHLB advances. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy guidelines. Collateral consists of mortgage liens on 1-4 family residential properties. More than the ordinary amount of attention is warranted for these loans. FNMA and private investor loans are structured as actual/ac
