Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION

v3.22.0.1
STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2021
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION
Note 14
STOCK-BASED COMPENSATION
At December 31, 2021, the Company had three stock-based compensation
 
plans, consisting of the 2021 Associate Incentive Plan
(“AIP”), the 2021 Associate Stock Purchase Plan (“ASPP”), and
 
the 2021 Director Stock Purchase Plan (“DSPP”).
 
These plans,
which were approved by the shareowners in April 2021, replaced substantially
 
similar plans approved by the shareowners in
2011.
 
Total compensation
 
expense associated with these plans for 2019 through 2021 was $
2.2
 
million, $
1.6
 
million, and $
1.6
million, respectively.
 
 
AIP.
 
The AIP allows key associates and directors to earn various forms of equity-based
 
incentive compensation.
 
Under the 2021
AIP there were
700,000
 
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
 
for associates under the 2021 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 2021 was approximately
 
$
1.0
 
million.
 
Approximately
60
% of the award is
in the form of stock and
40
% in the form of a cash bonus.
 
For 2021, a total of
25,356
 
shares were eligible for issuance, but
additional shares could be earned if performance exceeded established goals.
 
A total of
29,926
 
shares were earned for 2021 that
were issued in January 2022.
 
For 2021, Directors earned
10,377
 
shares under the plan. The Company recognized expense of $
1.2
million, $
1.0
 
million and $
0.9
 
million for the years ended December 31, 2021, 2020 and 2019, respectively related
 
to the AIP.
 
Executive Long-Term
 
Incentive Plan (“LTIP”)
.
 
The Company has 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.,
Thomas A. Barron, the President of CCB, and J. Kimbrough Davis, Chief Financial
 
Officer of the Company to earn shares based
on the compound annual growth rate in diluted earnings per share over
 
a three-year period.
 
The Company recognized expense of
$
0.2
 
million, $
0.4
 
million and $
1.2
 
million for the years ended December 31, 2021, 2020 and 2019, respectively.
 
Shares issued
under the plan were
27,915
,
32,482
, and
15,272
 
for the years ended December 31, 2021, 2020 and 2019, respectively.
 
A total of
6,849
 
shares were earned in 2021 that were issued in January 2022.
 
After deducting the shares earned, but not issued, in 2021 under the AIP and LTIP,
603,251
 
shares remain eligible for issuance
under the 2021 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 2021 DSPP,
 
there were
300,000
 
shares reserved for issuance.
 
The Company recognized $
0.1
million in expense under the DSPP for the years ended December 31, 2021, 2020
 
and 2019.
 
The Company issued shares under
the DSPP totaling
19,362
,
16,119
 
and
15,332
 
for the years ended December 31, 2021, 2020 and 2019, respectively.
 
At December
31, 2021, there are
280,638
 
shares eligible for issuance under the 2021 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 2021 ASPP,
 
there were
400,000
 
shares of common stock
reserved for issuance.
 
The Company recognized $
0.1
 
million, $
0.2
 
million and $
0.1
 
million in expense under the ASPP for the
years ended December 31, 2021, 2020 and 2019, respectively.
 
The Company issued shares under the ASPP totaling
22,126
,
33,910
 
and
27,304
 
for the years ended December 31, 2021, 2020 and 2019, respectively.
 
At December 31, 2021,
377,874
 
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 $
3.96
 
for 2021.
 
For 2020 and 2019, the weighted average fair value purchase right granted was
$
5.83
 
and $
3.61
, 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:
2021
2020
2019
Dividend yield
2.5
%
2.4
%
2.0
%
Expected volatility
21.8
%
45.6
%
17.4
%
Risk-free interest rate
0.1
%
0.9
%
2.3
%
Expected life (in years)
0.5
0.5
0.5