Capital City Bank Group, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
EMPLOYEE BENEFIT PLANS	Dec. 31, 2025
Employee benefits plans [Abstract]
EMPLOYEE BENEFIT PLANS	Note 15 EMPLOYEE BENEFIT PLANS Pension Plan The Company sponsors a noncontributory pension plan covering a portion of its associates. On December 30, 2019, the plan was amended to remove plan eligibility for new associates hired after December 31, 2019. There were no amendments to the Plan in 2020 or 2021. The Plan was also amended in December 2022, effective January 1, 2020, increasing the required minimum distribution age to 72 , per the SECURE Act 1.0. During 2023 and effective January 1, 2023, the Plan was amended increasing the required minimum distribution age to 73 , per the SECURE Act 2.0. Benefits under this plan generally are based on the associate’s total years of service and average of the five highest years of compensation during the ten years immediately preceding their departure. The Company’s general funding policy is to contribute amounts sufficient to meet minimum funding requirements as set by law and to ensure deductibility for federal income tax purposes. 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 Company’s Consolidated Statements of Financial Condition, and major assumptions used to determine these amounts. (Dollars in Thousands) 2025 2024 2023 Change in Projected Benefit Obligation: Benefit Obligation at Beginning of Year $ 123,019 $ 120,287 $ 108,151 Service Cost 3,441 3,715 3,488 Interest Cost 6,706 6,097 5,831 Actuarial Loss (Gain) 2,813 (1,974) 6,936 Benefits Paid (2,320) (4,829) (3,843) Expenses Paid (368) (277) (276) Settlements (12,600) - - Projected Benefit Obligation at End of Year $ 120,691 $ 123,019 $ 120,287 Change in Plan Assets: Fair Value of Plan Assets at Beginning of Year $ 140,477 $ 125,295 $ 104,276 Actual Return on Plan Assets 16,956 20,288 19,138 Employer Contributions - - 6,000 Benefits Paid (2,320) (4,829) (3,843) Expenses Paid (368) (277) (276) Settlements (12,600) - - Fair Value of Plan Assets at End of Year $ 142,145 $ 140,477 $ 125,295 Funded Status of Plan and Prepaid Asset Recognized at End of Year: Other Assets $ 21,454 $ 17,458 $ 5,008 Accumulated Benefit Obligation at End of Year $ 103,427 $ 105,201 $ 102,642 Components of Net Periodic Benefit (Income) Costs: Service Cost $ 3,441 $ 3,715 $ 3,488 Interest Cost 6,706 6,097 5,831 Expected Return on Plan Assets (9,058) (8,117) (6,805) Amortization of Prior Service Costs - - 5 Net (Gain) Loss Amortization (1,654) 165 934 Net Gain Settlements (1,552) - - Net Periodic Benefit (Income) Cost $ (2,117) $ 1,860 $ 3,453 Weighted-Average Assumptions Used to Determine Benefit Obligation: Discount Rate 5.67% 5.82% 5.29% Rate of Compensation Increase (1) 4.67% 4.75% 5.10% Measurement Date 12/31/25 12/31/24 12/31/23 Weighted-Average Assumptions Used to Determine Benefit Cost: Discount Rate 5.82% 5.29% 5.63% Expected Return on Plan Assets 6.75% 6.75% 6.75% Rate of Compensation Increase (1) 4.67% 4.75% 5.10% Amortization Amounts from Accumulated Other Comprehensive Income: Net Actuarial Gain $ (5,085) $ (14,145) $ (5,397) Prior Service Cost - - (5) Net Gain (Loss) 3,206 (165) (934) Deferred Tax Expense 476 3,628 1,606 Other Comprehensive Income, net of tax $ (1,403) $ (10,682) $ (4,730) Amounts Recognized in Accumulated Other Comprehensive (Income) Loss: Net Actuarial (Gain) Loss $ (14,867) $ (12,988) $ 1,322 Deferred Tax Expense (Benefit) 3,769 3,293 (335) Accumulated Other Comprehensive (Income) Loss, net of tax $ (11,098) $ (9,695) $ 987 (1) The Company utilized an age-graded approach that varies the rate based on the age of the participants. During 2025, lump sum payments made under the Company’s defined benefit pension plan triggered settlement accounting, which resulted in a $ 1.6 million settlement gain in accordance with applicable accounting guidance for defined benefit plans. The Company recorded no settlement gains or losses during 2024 and 2023. The service cost component of net periodic benefit cost is reflected in compensation expense in the accompanying Consolidated Statements of Income. The other components of net periodic cost are included in “other” within the noninterest expense category in the Consolidated Statements of Income. See Note 1 – Significant Accounting Policies for additional information. The Company expects to recognize $ 1.9 million of the net actuarial gain reflected in accumulated other comprehensive income at December 31, 2025 as a component of net periodic benefit cost during 202 6. Plan Assets. The Company’s pension plan asset allocation at December 31, 2025 and 2024, and the target asset allocation at December 31, 2025 are as follows: Target Percentage of Plan Allocation Assets at December 31 (1) 2026 2025 2024 Equity Securities 50 % 55 % 73 % Debt Securities 50 % 42 % 20 % Cash and Cash Equivalents (2) - % 3 % 7 % Total 100 % 100 % 100 % (1) Represents asset allocation at December 31 which may differ from the average target allocation for the year due to the year- end cash contribution to the plan. (2) Cash levels will be maintained in the Plan sufficient to fund expected distributions. The Company’s pension plan assets are overseen by the CCBG Retirement Committee. Capital City Trust Company acts as the investment manager for the plan. The investment strategy is to maximize return on investments while minimizing risk. The Company believes the best way to accomplish this goal is to take a conservative approach to its investment strategy by investing in mutual funds that include various high-grade equity securities and investment -grade debt issuances with varying investment strategies. The target asset allocation will periodically be adjusted based on market conditions. For the majority of 2025, the target asset allocation was within the following investment allocation ranges: equity securities ranging from 55 % and 75 %, debt securities ranging from 17 % and 37 %, and cash and cash equivalents ranging from 0 % and 10 %. In December 2025, the target asset allocation was changed to the following: 50 % equity securities and 50 % fixed income. Cash levels will be maintained in the Plan sufficient to fund expected distributions. The overall expected long-term rate of return on assets is a weighted-average expectation for the return on plan assets. The Company considers historical performance data and economic/financial data to arrive at expected long-term rates of return for each asset category. The major categories of assets in the Company’s pension plan at 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 22 – Fair Value Measurements). (Dollars in Thousands) 2025 2024 Level 1: U.S. Treasury Securities $ 10,352 $ 17,039 Mutual Funds 121,288 111,426 Cash and Cash Equivalents 4,417 9,010 Level 2: Corporate Notes/Bonds 6,088 3,002 Total Fair Value of Plan Assets $ 142,145 $ 140,477 Expected Benefit Payments. At December 31, expected benefit payments related to the defined benefit pension plan were as follows: (Dollars in Thousands) 2025 2026 $ 11,363 2027 10,680 2028 9,693 2029 9,474 2030 9,225 2031 through 2035 47,772 Total $ 98,207 Contributions. The following table details the amounts contributed to the pension plan in 2025 and 2024, and the expected amount to be contributed in 2026. Expected Contribution (Dollars in Thousands) 2024 2025 2026 (1) Actual Contributions $ - $ - $ 5,000 (1) For 2026, the Company will have the option to make a cash contribution to the plan or utilize pre-funding balances. Supplemental Executive Retirement Plan The Company has a Supplemental Executive Retirement Plan (“SERP”) and a Supplemental Executive Retirement Plan II (“SERP II”) covering selected executive officers. Benefits under this plan generally are based on the same service and compensation as used for the pension plan, except the benefits are calculated without regard to the limits set by the Internal Revenue Code on compensation and benefits. The net benefit payable from the SERP is the difference between this gross benefit and the benefit payable by the pension plan. The SERP II was adopted by the Company’s Board on May 21, 2020 and covers certain executive officers that were not covered by the SERP. 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 Company’s Consolidated Statements of Financial Condition, and major assumptions used to determine these amounts. (Dollars in Thousands) 2025 2024 2023 Change in Projected Benefit Obligation: Benefit Obligation at Beginning of Year $ 10,132 $ 9,204 $ 10,948 Service Cost 46 37 18 Interest Cost 525 454 501 Actuarial Loss 2,240 198 201 Plan Amendments - 239 - Net Settlements - - (2,464) Projected Benefit Obligation at End of Year $ 12,943 $ 10,132 $ 9,204 Funded Status of Plan and Accrued Liability Recognized at End of Year: Other Liabilities $ 12,943 $ 10,132 $ 9,204 Accumulated Benefit Obligation at End of Year $ 11,935 $ 9,580 $ 8,943 Components of Net Periodic Benefit Costs: Service Cost $ 46 $ 37 $ 18 Interest Cost 525 454 501 Amortization of Prior Service Cost 102 - 151 Net Gain Amortization (117) (281) (531) Net Gain Settlements - - (291) Net Periodic Benefit Cost $ 556 $ 210 $ (152) Weighted-Average Assumptions Used to Determine Benefit Obligation: Discount Rate 5.24% 5.57% 5.11% Rate of Compensation Increase (1) 4.67% 4.75% 5.10% Measurement Date 12/31/25 12/31/24 12/31/23 Weighted-Average Assumptions Used to Determine Benefit Cost: Discount Rate 5.57% 5.11% 5.45% Rate of Compensation Increase (1) 4.67% 4.75% 5.10% Amortization Amounts from Accumulated Other Comprehensive Loss: Net Actuarial Loss $ 2,240 $ 198 $ 201 Prior Service (Cost) Benefit (102) 239 (151) Net Gain 117 281 531 Settlement Gain - - 291 Deferred Tax Benefit (571) (183) (222) Other Comprehensive Loss, net of tax $ 1,684 $ 535 $ 650 Amounts Recognized in Accumulated Other Comprehensive Loss (Income): Net Actuarial Loss (Gain) $ 2,083 $ (275) $ (753) Prior Service Cost 137 239 - Deferred Tax (Benefit) Expense (563) 9 191 Accumulated Other Comprehensive Loss (Income), net of tax $ 1,657 $ (27) $ (562) (1) The Company utilized an age-graded approach that varies the rate based on the age of the participants. The Company expects to recognize approximately $ 1.1 million of the net actuarial loss reflected in accumulated other comprehensive loss at December 31, 2025 as a component of net periodic benefit cost during 2026. In June 2023, lump sum retirement distributions to two plan participants required the application of settlement accounting. The amount of the settlement gain was $ 0.3 million. Expected Benefit Payments . As of December 31, expected benefit payments related to the SERP were as follows: (Dollars in Thousands) 2025 2026 $ 11,208 2027 275 2028 290 2029 266 2030 360 2031 through 2035 1,826 Total $ 14,225 401(k) Plan The Company has a 401(k) Plan which enables CCB and CCBG associates to defer a portion of their salary on a pre-tax basis. The plan covers substantially all associates of the Company who meet minimum age requirements. The plan is designed to enable participants to contribute any amount, up to the maximum annual limit allowed by the IRS, of their compensation withheld in any plan year placed in the 401(k) Plan trust account. Matching contributions of 50 % from the Company are made on participant’s contributions for up to 6 % of eligible compensation for eligible associates. Further, in addition to the 50 % match, all associates hired after December 31, 2019, will receive 3 % of their eligible compensation as a nonelective contribution on each payroll period. For 2025, the Company made total 401(k) contributions of $ 2.6 million. For 2024 and 2023, the Company made total 401(k) contributions of $ 1.9 million and $ 1.7 million, respectively. The participant may choose to invest their contributions into thirty-two investment options available to 401(k) participants, including the Company’s common stock. A total of 50,000 shares of CCBG common stock have been reserved for issuance. Shares issued to participants have historically been purchased in the open market. Effective January 1, 2025, the Company amended its 401(k) Plan to merge and include associates of the CCHL 401(k) Plan, at which time the CCHL 401(k) Plan was terminated. The CCHL 401(k) Plan was previously available to all associates employed by CCHL. Prior to the termination, the plan allowed participants to contribute any amount, up to the maximum annual limit allowed by the IRS, of their compensation withheld in any plan year placed in the 401(k) Plan trust account. A discretionary matching contribution was determined annually by CCHL. For 2024 and 2023, matching contributions were made by CCHL up to 3 % of eligible participant’s compensation totaling $ 0.4 million for each respective year. Other Plans The Company has an Amended and Restated Dividend Reinvestment Plan (the “DRIP”). The DRIP is an “Open Market Only” plan, which means that shares that participants receive under the DRIP will only be purchased by the plan agent in the open market. The Company did no t issue any new shares under the DRIP in 2025, 2024 and 2023.