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, 2018

Compensation and Retirement Disclosure [Abstract]

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

(Dollars in Thousands)	2018		2017		2016
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year	$	165,084	$	152,585	$	141,039
Service Cost		6,884		6,752		6,453
Interest Cost		5,661		5,750		5,587
Actuarial (Gain) Loss		(16,349)		10,877		9,118
Benefits Paid		(11,686)		(10,541)		(9,412)
Expenses Paid		(247)		(339)		(200)
Projected Benefit Obligation at End of Year	$	149,347	$	165,084	$	152,585

Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	129,719	$	113,813	$	105,792
Actual (Loss) Return on Plan Assets		(6,251)		16,786		7,633
Employer Contributions		23,000		10,000		10,000
Benefits Paid		(11,686)		(10,541)		(9,412)
Expenses Paid		(247)		(339)		(200)
Fair Value of Plan Assets at End of Year	$	134,535	$	129,719	$	113,813

Funded Status of Plan and Accrued Liability Recognized at End of Year:
Other Liabilities	$	14,812	$	35,365	$	38,772

Accumulated Benefit Obligation at End of Year	$	130,477	$	144,139	$	130,109

Components of Net Periodic Benefit Costs:
Service Cost	$	6,884	$	6,752	$	6,453
Interest Cost		5,661		5,750		5,587
Expected Return on Plan Assets		(9,564)		(8,026)		(7,736)
Amortization of Prior Service Costs		199		223		278
Net Loss Amortization		3,673		3,812		3,201
Net Periodic Benefit Cost	$	6,853	$	8,511	$	7,783

Weighted-Average Assumptions Used to Determine Benefit Obligation:
Discount Rate		4.43%		3.71%		4.21%
Rate of Compensation Increase⁽¹⁾		4.00%		3.25%		3.25%
Measurement Date		12/31/18		12/31/17		12/31/16

Weighted-Average Assumptions Used to Determine Benefit Cost:
Discount Rate		3.71%		4.21%		4.52%
Expected Return on Plan Assets		7.25%		7.25%		7.50%
Rate of Compensation Increase		3.25%		3.25%		3.25%

Amortization Amounts from Accumulated Other Comprehensive Income:
Net Actuarial (Gain) Loss	$	(533)	$	2,117	$	9,221
Prior Service Cost		(199)		(223)		(278)
Net Loss		(3,673)		(3,812)		(3,201)
Deferred Tax Expense (Benefit)		1,118		5,898		(2,216)
Other Comprehensive Loss (Gain), net of tax	$	(3,287)	$	3,980	$	3,526

Amounts Recognized in Accumulated Other Comprehensive Income:
Net Actuarial Losses	$	34,491	$	38,698	$	40,392
Prior Service Cost		66		265		488
Deferred Tax Benefit		(8,757)		(9,876)		(15,772)
Accumulated Other Comprehensive Loss, net of tax	$	25,800	$	29,087	$	25,108

⁽¹⁾ For 12/31/2018, the Company utilized an age-graded approach that varies the rate based on the age of
the participants.

Schedule of pension plan asset allocation and the target asset allocation

	Target		Percentage of Plan
	Allocation		Assets at December 31⁽¹⁾
	2019		2018		2017
Equity Securities	68	%	67	%	74	%
Debt Securities	27	%	21	%	21	%
Cash and Cash Equivalents	5	%	12	%	5	%
Total	100	%	100	%	100	%

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

(Dollars in Thousands)	2018		2017
Level 1:
U.S. Treasury Securities	$	398	$	-
Mutual Funds		112,131	$	118,474
Cash and Cash Equivalents		16,788		7,103

Level 2:
U.S. Government Agency		2,822		4,142
Corporate Notes/Bonds		2,396		-

Total Fair Value of Plan Assets	$	134,535	$	129,719

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

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

(Dollars in Thousands)	2018
2019	$	11,271
2020		11,536
2021		11,466
2022		11,435
2023		11,571
2024 through 2028		54,525
Total	$	111,804

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

					Expected
					Contribution
(Dollars in Thousands)		2017		2018	2019⁽¹⁾
Actual Contributions	$	10,000	$	23,000	$	5,000

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

(Dollars in Thousands)	2018		2017		2016
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year	$	7,285	$	5,741	$	4,842
Interest Cost		227		191		162
Actuarial Loss		1,348		1,353		737
Projected Benefit Obligation at End of Year	$	8,860	$	7,285	$	5,741

Funded Status of Plan and Accrued Liability Recognized at End of Year:

Other Liabilities	$	8,860	$	7,285	$	5,741

Accumulated Benefit Obligation at End of Year	$	7,557	$	6,485	$	4,913

Components of Net Periodic Benefit Costs:
Interest Cost		227		191		162
Net Loss Amortization		1,626		597		759
Net Periodic Benefit Cost	$	1,853	$	788	$	921

Weighted-Average Assumptions Used to Determine Benefit Obligation:
Discount Rate		4.23%		3.53%		3.92%
Rate of Compensation Increase⁽¹⁾		4.00%		3.25%		3.25%
Measurement Date		12/31/18		12/31/17		12/31/16

Weighted-Average Assumptions Used to Determine Benefit Cost:
Discount Rate		3.53%		3.92%		4.13%
Rate of Compensation Increase		3.25%		3.25%		3.25%

Amortization Amounts from Accumulated Other Comprehensive Income:
Net Actuarial Loss	$	1,348	$	1,353	$	737
Net Loss		(1,626)		(597)		(759)
Deferred Tax (Benefit) Expense		71		(77)		8
Other Comprehensive Loss (Gain), net of tax	$	(207)	$	679	$	(14)

Amounts Recognized in Accumulated Other Comprehensive Income:
Net Actuarial Loss	$	1,348	$	1,626	$	870
Deferred Tax Benefit		(341)		(412)		(336)
Accumulated Other Comprehensive Loss, net of tax	$	1,007	$	1,214	$	534

⁽¹⁾ For 12/31/2018, the Company utilized an age-graded approach that varies the rate based on the age of
the participants.

Schedule of expected benefit payments related to the SERP

(Dollars in Thousands)	2018
2019	$	3,638
2020		2,294
2021		1,454
2022		1,244
2023		823
2024 through 2028		89
Total	$	9,542