| Description of Plan |
1. Description of Plan
The following description of the Capital City Bank Group, Inc. 401(k) Plan (the “Plan”) provides general information about the Plan’s provisions. Capital City Bank Group, Inc. (the “Company”) is the plan sponsor. Participants should refer to the Plan document and Summary Plan Description for a more complete description of the Plan’s provisions, copies of which may be obtained from the plan sponsor.
General
The Plan is a defined contribution retirement plan established under the provisions of Section 401(a) of the Internal Revenue Code (the “IRC”), which includes a qualified deferred arrangement as described in Section 401(k) of the IRC. The Plan is intended to provide benefits to all eligible employees of the Company. Employees of the Company who are not excluded and otherwise meet the requirements become eligible to participate in the Plan at the time of employment. Employees may enter the Plan on the first day of the month coinciding with or following the date on which the employee becomes eligible to participate in the Plan.
Capital City Home Loans, LLC (“CCHL”) became a wholly owned subsidiary of the Company on January 1, 2025. The Plan was restated to include the employees of CCHL effective January 1, 2025 and merge the assets of the Capital City Home Loans 401(k) Plan into the Plan effective January 15, 2025.
Additionally, the Plan was amended to permit existing participant loan balances transferred in the merger to remain outstanding; however, no
new participant loans are permitted. In connection with the merger,
net assets totaling approximately $ 17.3
million were transferred into the Plan and are presented as
“Transfer of net assets from Capital City Home Loans 401(k) Plan” in the accompanying Statement of Changes in Net Assets Available for Benefits. The transferred balances primarily included participant- directed investments of $ 16.6
million, participant loans of $
0.3
million, and employer contribution
receivables, inclusive of forfeiture balances applied against such contributions, totaling $ 0.4
related to the predecessor plan year.
The overall responsibility for administering the Plan rests with the Company. However, the Company has delegated administration of the Plan to the Company’s Retirement Committee (the “Plan Administrator”). The administrative and record-keeping services are outsourced to Empower Annuity Insurance Company of America, while Reliance Trust serves as trustee and asset custodian. Strategic Retirement Partners served as the 3(38) fiduciary for the plan year ended December 31, 2025.
Contributions
Each year, participants may elect to contribute up to 100
% of pretax annual compensation, as defined in the Plan document and subject to certain limitations under the IRC. Participants may choose to change their deferral percentage at any time. The Plan also includes an automatic contribution arrangement that applies to new or re-hired employees of the Company. The automatic deferral amount is 3
compensation. The Plan auto-escalates participants’ deferral rate by 1
% annually each June until a 6
%
deferral rate is achieved. Employees who do not wish to be automatically enrolled or auto-escalate may elect not to defer or to defer another percentage. The Plan also allows participants who reach the age of 50 during the taxable year to make catch-up contributions which would exceed the ordinary deferral limits imposed by Internal Revenue Code Section 402(g). The Plan also allows participants to contribute monies as Roth contributions, subject to the same limitations as are in place for pretax contributions. For 2025, the Company provided a
50
% discretionary match on participant contributions of 6
% or less of
eligible compensation. Only employees hired after January 1, 2002, and who have completed 90 days
service, are eligible for this match. In addition, employees hired or rehired after December 31, 2019, are eligible to receive a separate non-elective contribution equal to 3
% of their eligible annual compensation, calculated on a payroll basis.
Ninety days
of service is required before this non-elective contribution
No
additional discretionary employer contributions were made for 2025.
Effective April 1, 2026, the Plan was amended to extend the 1
% automatic escalation feature until participant deferrals reach 10
%. Effective April 1, 2026, the Company approved increasing the discretionary employer match on participant contributions to a 50
% match on participant contributions of 7
% or less of eligible compensation.
Participant Accounts
Each participant’s account is credited with the participant’s contribution, the Company matching contributions, and effective January 1, 2020 the 3
% non-elective contribution for eligible employees, and allocations of Plan earnings based on the participant’s investment elections. Administrative expenses and any applicable withdrawal fees are paid by the Plan, the participants, or directly by the Company, as defined in the Plan document and/or vendor agreements. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account. Each participant directs the investment of his or her account to any of the investment options available under the Plan. Vesting
Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company’s matching portion (including the
3
% non-elective contributions) plus actual earnings thereon is
based on years of credited service. A participant is 100
% vested in the Company’s matching, 3
elective and discretionary contributions (if any), and related earnings thereon, after
three years
service (on a cliff basis). Credited service for vesting purposes requires 1,000 Hours
the Plan year.
As part of the January 1, 2025 CCHL Plan merger, transferred participants retained vested balances earned under the predecessor plan terms and become fully vested upon
3 years
A participant becomes fully vested in his or her account balance upon retirement, death or disability.
Notes Receivable from Participants
Participants in the legacy Capital City Home Loans 401(k) Plan were previously permitted to borrow from their fund accounts at minimum of $ 1,000
up to a maximum equal to the lesser of $
50,000
50
%
of their vested account balance. The loans are secured by the balance in the participant’s account. The loan interest rate was based on Prime rate plus 1
% on the date of the loan. Effective October 1, 2024, the Capital City Home Loans 401(k) Plan ceased permitting new participant loans; however, participant loan balances outstanding prior to such date were transferred to the Plan in connection with the merger on January 1, 2025. Outstanding principal and interest is repaid through monthly payroll deductions in accordance with the original loan terms. No additional participant loans are permitted under the amended Plan provisions.
Forfeitures
Forfeitures may be, and are, used to reduce employer contributions (either non-elective or matching contributions) and/or pay Plan expenses, including Plan administrative expenses. Unallocated forfeited balances as of December 31, 2025 and 2024 were approximately $ 43,900
44,800
During 2025, forfeitures of approximately $ 77,300
were allocated to participant accounts to offset
administrative expenses. The Company used forfeitures of approximately $ 55,000
Payment of Benefits
Upon termination of service due to death, disability, retirement or other reason, participants (or their beneficiary in the event of death) will, upon request, receive a lump-sum amount, or other installment distributions, as permitted by the Plan Document, equal to the value of the vested interest in their account.
Participants may also receive a distribution while in service upon demonstration of financial hardship or reaching age 59 ½. Participants that are qualified reservists and are called upon for active duty for more than 179 days or an indefinite period may receive a distribution.
Administrative Expenses
The Plan’s administrative expenses were paid, pro rata, by participants. Forfeitures were used to offset participant expenses. Expenses relating to purchases, sales, transfers or distributions of the Plan’s investments are charged to the particular investment fund and/or participant to which the expense relates. Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue
its contributions at any time and to terminate the Plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). In the event of Plan termination, participants would become
100
% vested in their employer contributions and earnings thereon.
Amendments
On September 18, 2024, the Plan was amended to allow auto portability effective January 1, 2025, whereby upon termination a third-party service provider will move the terminated participant’s account balance to an active account at a new employer’s plan.
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