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

Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
STOCK-BASED COMPENSATION	Dec. 31, 2020
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	Note 14 STOCK-BASED COMPENSATION At December 31, 2020, the Company had three stock-based compensation plans, consisting of the 2011 Associate Incentive Plan (“AIP”), the 2011 Associate Stock Purchase Plan (“ASPP”), and the 2011 Director Stock Purchase Plan (“DSPP”). These plans, which were approved by the shareowners in April 2011, replaced substantially similar plans approved by the shareowners in 2004. Total compensation expense associated with these plans for 2018 through 2020 was $ 1.9 million, $ 2.2 million, and $ 1.6 million, respectively. AIP. The AIP allows the Company's Board of Directors to award key associates various forms of equity-based incentive compensation. Under the 2011 AIP there were 875,000 shares reserved for issuance. On an annual basis, the Company, pursuant to the terms and conditions of the AIP, will create an annual incentive plan (“Plan”), under which all participants are eligible to earn performance shares. Awards under the 2020 Plan were tied to internally established performance goals. At base level targets, the grant-date fair value of the shares eligible to be awarded in 2020 was approximately $ 0.9 million. Approximately 60 % of the award is in the form of stock and 40 % in the form of a cash bonus. For 2020 a total of 20,230 shares were eligible for issuance, but additional shares could be earned if performance exceeded established goals. A total of 21,682 shares were earned for 2020. The Company recognized expense of $ 1.0 million, $ 0.9 million, and $ 1.1 million for years ended 2020, 2019 and 2018, respectively related to the AIP. Executive Long-Term Incentive Plan (“LTIP”) . In 2007, the Company established a Performance Share Unit Plan under the provisions of the AIP that allows William G. Smith, Jr., the Chairman, President, and Chief Executive Officer of CCBG, Inc. to earn shares based on the compound annual growth rate in diluted earnings per share over a three-year period. At December 31, 2020, there were three LTIP agreements in place for the years 2018-2020. The Company recognized $ 0.2 million, $ 0.6 million, and $ 0.3 million in expense for years 2020, 2019 and 2018, respectively, under these LTIP agreements. In addition, the Company entered into similar LTIP agreements with Thomas A. Barron, the President of CCB for the years 2018-2020 that allows shares to be earned based on the compound annual growth rate in diluted earnings per share over a three-year period. At December 31, 2020, there were three LTIP agreements in place for the years 2018-2020. The Company recognized $ 0.1 million, $ 0.2 , and $ 0.2 million in expense for years 2020, 2019 and 2018, respectively. Shares issued under Mr. Barron’s LTIP plans were 7,218 in 2020, 10,460 in 2017 and 9,810 in 2018. The Company also entered into a similar agreement with J. Kimbrough Davis, Chief Financial Officer of the Company for the years 2018-2020 that allows shares to be earned based on the compound annual growth rate in diluted earnings per share. The Company recognized $ 0.1 million, $ 0.4 million, and $ 0.2 million in expense for the years ended 2020, 2019 and 2018, respectively, under this agreement. Shares issued under Mr. Davis’s LTIP plan were 7,218 in 2020, 4,812 in 2019 and 2,406 in 2018. After deducting the shares earned in 2020 under the AIP and LTIP, 299,344 shares remain eligible for issuance under the 2011 AIP. DSPP. The Company’s DSPP allows the directors to purchase the Company’s common stock at a price equal to 90 % of the closing price on the date of purchase. Stock purchases under the DSPP are limited to the amount of the directors' annual retainer and meeting fees. Under the 2011 DSPP there were 150,000 shares reserved for issuance. For 2020, the Company issued 16,119 shares and recognized approximately $ 36,000 in expense under the DSPP. For 2019, the Company issued 15,332 shares and recognized approximately $ 38,000 in expense under the DSPP. For 2018, the Company issued 14,470 shares under the DSPP and recognized approximately $ 35,000 in expense related to this plan. At December 31, 2020, there are 2,459 shares eligible for issuance under the 2011 DSPP. ASPP. Under the Company’s ASPP, substantially all associates may purchase the Company’s common stock through payroll deductions at a price equal to 90 % of the lower of the fair market value at the beginning or end of each six-month offering period. Stock purchases under the ASPP are limited to 10 % of an associate's eligible compensation, up to a maximum of $ 25,000 (fair market value on each enrollment date) in any plan year. Under the 2011 ASPP there were 593,750 shares of common stock reserved for issuance. For 2020, 33,910 shares were acquired and approximately $ 160,000 in expense was recognized under the ASPP. For 2019, 27,304 shares were acquired and approximately $ 100,000 in expense was recognized under the ASPP. For 2018, 19,503 shares were acquired under the ASPP and approximately $ 70,000 in expense was recognized related to this plan. At December 31, 2020, 242,859 shares remained eligible for issuance under the ASPP. Based on the Black-Scholes option pricing model, the weighted average estimated fair value of each of the purchase rights granted under the ASPP was $ 5.83 for 2020. For 2019 and 2018, the weighted average fair value purchase right granted was $ 3.61 and $ 3.57 , respectively. In calculating compensation, the fair value of each stock purchase right was estimated on the date of grant using the following weighted average assumptions: 2020 2019 2018 Dividend yield 2.4 % 2.0 % 1.4 % Expected volatility 45.6 % 17.4 % 18.7 % Risk-free interest rate 0.9 % 2.3 % 1.8 % Expected life (in years) 0.5 0.5 0.5