Capital City Bank Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of components of pension expense, the funded status of the plan, amounts recognized in the consolidated statements of financial condition, and major assumptions

The following table details on a consolidated basis the changes in benefit obligation, changes in plan assets, the funded status of the plan, components of pension expense, amounts recognized in the Companys consolidated statements of financial condition, and major assumptions used to determine these amounts.

(Dollars in Thousands)	2015			2014			2013
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year	$	140,359		$	115,285		$	134,950
Service Cost		6,859			5,634			6,999
Interest Cost		5,750			5,513			5,566
Actuarial (Gain) Loss		(6,880	)		22,632			(18,965	)
Benefits Paid		(4,825	)		(8,438	)		(12,946	)
Expenses Paid		(224	)		(267	)		(319	)
Projected Benefit Obligation at End of Year	$	141,039		$	140,359		$	115,285

Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	108,172		$	103,842		$	94,164
Actual Return on Plan Assets		(2,331	)		8,035			17,943
Employer Contributions		5,000			5,000			5,000
Benefits Paid		(4,825	)		(8,438	)		(12,946	)
Expenses Paid		(224	)		(267	)		(319	)
Fair Value of Plan Assets at End of Year	$	105,792		$	108,172		$	103,842

Funded Status of Plan and Accrued Liability Recognized at End of Year:
Other Liabilities	$	35,247		$	32,186		$	11,442

Accumulated Benefit Obligation at End of Year	$	121,609		$	119,750		$	98,796

Components of Net Periodic Benefit Costs:
Service Cost	$	6,859		$	5,634		$	6,999
Interest Cost		5,750			5,513			5,566
Expected Return on Plan Assets		(7,820	)		(7,487	)		(7,371	)
Amortization of Prior Service Costs		309			309			317
Net Loss Amortization		3,564			1,365			4,316
Net Periodic Benefit Cost	$	8,662		$	5,334		$	9,827

Weighted-Average Assumptions Used to Determine Benefit Obligation:
Discount Rate		4.52	%		4.15	%		5.00	%
Rate of Compensation Increase		3.25	%		3.25	%		3.25	%
Measurement Date		12/31/15			12/31/14			12/31/13

Weighted-Average Assumptions Used to Determine Benefit Cost:
Discount Rate		4.15	%		5.00	%		4.25	%
Expected Return on Plan Assets		7.50	%		7.50	%		8.00	%
Rate of Compensation Increase		3.25	%		3.25	%		3.75	%

Amortization Amounts from Accumulated Other Comprehensive Income:
Net Actuarial Loss (Gain)	$	3,272		$	22,083		$	(29,534	)
Prior Service Cost		(309	)		(309	)		(317	)
Net Loss		(3,564	)		(1,365	)		(4,316	)
Deferred Tax Expense (Benefit)		232			(7,873	)		13,180
Other Comprehensive (Gain) Loss, net of tax	$	(369	)	$	12,536		$	(20,987	)

Amounts Recognized in Accumulated Other Comprehensive Income:
Net Actuarial Losses	$	34,373		$	34,665		$	13,947
Prior Service Cost		766			1,075			1,383
Deferred Tax Benefit		(13,556	)		(13,788	)		(5,914	)
Accumulated Other Comprehensive Loss, net of tax	$	21,583		$	21,952		$	9,416

Schedule of pension plan asset allocation and the target asset allocation

Plan Assets. The Companys pension plan asset allocation at year-end 2015 and 2014, and the target asset allocation for 2016 are as follows:

	Target Allocation			Percentage of Plan Assets at Year-End⁽¹⁾
	2016			2015			2014
Equity Securities		70	%		68	%		74	%
Debt Securities		25	%		20	%		21	%
Cash and Cash Equivalents		5	%		12	%		5	%
Total		100	%		100	%		100	%

(1)

Represents asset allocation at year-end which may differ from the average target allocation for the year due to the year-end cash contribution to the plan.

Schedule of fair value of plan assets by level of the valuation inputs within the fair value hierarchy

The major categories of assets in the Companys pension plan as of December 31 are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure fair value (see Note 19 Fair Value Measurements).

(Dollars in Thousands)	2015		2014
Level 1:
Equities	$	18,197	$	23,199
Mutual Funds		71,829		75,421
Cash and Cash Equivalents		12,402		5,626

Level 2:
U.S. Government Agency		3,364		3,926

Total Fair Value of Plan Assets	$	105,792	$	108,172

Schedule of expected benefit payments related to the defined benefit pension plan

Expected Benefit Payments. As of December 31, expected benefit payments related to the defined benefit pension plan were as follows:

(Dollars in Thousands)	2015
2016	$	8,199
2017		8,859
2018		10,608
2019		10,912
2020		10,222
2021 through 2025		54,925
Total	$	103,724

Schedule of amounts contributed to the pension plan and the expected amount to be contributed

Contributions. The following table details the amounts contributed to the pension plan in 2014 and 2015, and the expected amount to be contributed in 2016.

(Dollars in Thousands)

2014

2015

Expected
Contribution
2016⁽¹⁾

Actual Contributions

5,000

⁽¹⁾For 2016, the Company will have the option to make a cash contribution to the plan or utilize pre-funding balances.

Schedule of components of SERP's periodic benefit cost, the funded status of the plan, amounts recognized in the consolidated statements of financial condition, and major assumptions

The following table details on a consolidated basis the changes in benefit obligation, the funded status of the plan, components of pension expense, amounts recognized in the Companys consolidated statements of financial condition, and major assumptions used to determine these amounts.

(Dollars in Thousands)	2015			2014			2013
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year	$	3,003		$	2,379		$	3,492
Service Cost		3
Interest Cost		133			104			137
Actuarial Loss (Gain)		1,703			520			(1,250	)
Projected Benefit Obligation at End of Year	$	4,842		$	3,003		$	2,379

Funded Status of Plan and Accrued Liability Recognized at End of Year:
Other Liabilities	$	4,842		$	3,003		$	2,379
Accumulated Benefit Obligation at End of Year	$	4,348		$	2,982		$	2,379

Components of Net Periodic Benefit Costs:
Service Cost	$	3		$			$
Interest Cost		133			104			137
Amortization of Prior Service Cost		7			164			187
Net Loss (Gain) Amortization		179			(661	)		(237	)
Net Periodic Benefit Cost	$	322		$	(393	)	$	87

Weighted-Average Assumptions Used to Determine Benefit Obligation:
Discount Rate		4.13	%		4.15	%		5.00	%
Rate of Compensation Increase		3.25	%		3.25	%		3.25	%
Measurement Date		12/31/15			12/31/14			12/31/13

Weighted-Average Assumptions Used to Determine Benefit Cost:
Discount Rate		4.15	%		5.00	%		4.25	%
Rate of Compensation Increase		3.25	%		3.25	%		3.75	%

Amortization Amounts from Accumulated Other Comprehensive Income:
Net Actuarial Loss (Gain)	$	1,703		$	520		$	(1,250	)
Prior Service Cost		(7	)		(164	)		(187	)
Net (Loss) Gain		(179	)		660			237
Deferred Tax (Benefit) Expense		(585	)		(392	)		463
Other Comprehensive Loss (Gain), net of tax	$	932		$	624		$	(737	)

Amounts Recognized in Accumulated Other Comprehensive Income:
Net Actuarial Loss (Gain)	$	892		$	(632	)	$	(1,812	)
Prior Service Cost					7			171
Deferred Tax Liability		(344	)		241			633
Accumulated Other Comprehensive Loss (Gain), net of tax	$	548		$	(384	)	$	(1,008	)

Schedule of expected benefit payments related to the SERP

Expected Benefit Payments. As of December 31, expected benefit payments related to the SERP were as follows:

(Dollars in Thousands)	2015
2016	$	1,499
2017		1,036
2018		1,225
2019		1,196
2020
2021 through 2025
Total	$	4,956