Annual report pursuant to Section 13 and 15(d)

EMPLOYEE BENEFIT PLANS

v3.24.2
EMPLOYEE BENEFIT PLANS
12 Months Ended
Dec. 31, 2023
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. 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)
2023
2022
2021
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year
$
108,151
$
172,508
$
212,566
Service Cost
3,488
6,289
6,971
Interest Cost
5,831
4,665
4,885
Actuarial Loss (Gain)
6,936
(39,962)
(14,934)
Benefits Paid
(3,843)
(2,139)
(2,087)
Expenses Paid
(276)
(416)
(259)
Settlements
-
(32,794)
(34,634)
Projected Benefit Obligation at End of Year
$
120,287
$
108,151
$
172,508
Change in Plan Assets:
Fair Value
 
of Plan Assets at Beginning of Year
$
104,276
$
165,274
$
171,775
Actual Return on Plan Assets
19,138
(25,649)
30,479
Employer Contributions
6,000
-
-
Benefits Paid
(3,843)
(2,139)
(2,087)
Expenses Paid
(276)
(416)
(259)
Settlements
-
(32,794)
(34,634)
Fair Value
 
of Plan Assets at End of Year
$
125,295
$
104,276
$
165,274
Funded Status of Plan and Accrued Liability Recognized at End of Year:
Other (Assets) Liabilities
$
(5,008)
$
3,875
$
7,234
Accumulated Benefit Obligation at End of Year
$
102,642
$
91,770
$
149,569
Components of Net Periodic Benefit Costs:
Service Cost
$
3,488
$
6,289
$
6,971
Interest Cost
5,831
4,665
4,885
Expected Return on Plan Assets
(6,805)
(10,701)
(11,147)
Amortization of Prior Service Costs
5
15
15
Net Loss Amortization
934
1,713
6,764
Net Loss Settlements
-
2,321
3,072
Net Periodic Benefit Cost
$
3,453
$
4,302
$
10,560
Weighted-Average
 
Assumptions Used to Determine Benefit Obligation:
Discount Rate
5.29%
5.63%
3.11%
Rate of Compensation Increase
(1)
5.10%
5.10%
4.40%
Measurement Date
12/31/23
12/31/22
12/31/21
Weighted-Average
 
Assumptions Used to Determine Benefit Cost:
Discount Rate
5.63%
3.11%
2.88%
Expected Return on Plan Assets
6.75%
6.75%
6.75%
Rate of Compensation Increase
(1)
5.10%
4.40%
4.00%
Amortization Amounts from Accumulated Other Comprehensive Loss:
Net Actuarial Loss (Gain)
 
$
(5,397)
$
(3,612)
$
(34,265)
Prior Service Cost
(5)
(15)
(15)
Net Loss
(934)
(4,034)
(9,836)
Deferred Tax Expense
1,606
1,942
11,183
Other Comprehensive Gain, net of tax
$
(4,730)
$
(5,719)
$
(32,933)
Amounts Recognized in Accumulated Other Comprehensive Loss:
Net Actuarial Losses
$
1,322
$
7,653
$
15,300
Prior Service Cost
-
5
20
Deferred Tax Benefit
(335)
(1,941)
(3,884)
Accumulated Other Comprehensive Loss, net of tax
$
987
$
5,717
$
11,436
(1)
 
The Company utilized an age-graded approach that varies the rate based
 
on the age of the participants.
During 2022 and 2021, lump sum payments made under the Company’s
 
defined benefit pension plan triggered settlement
accounting.
 
In accordance with applicable accounting guidance for defined benefit plans, the Company recorded
 
no
 
settlement
losses during 2023 and $
2.3
 
million and $
3.1
 
million during 2022 and 2021, respectively.
 
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 $
0.2
 
million of the net actuarial loss reflected in accumulated other comprehensive
 
loss at
December 31, 2023 as a component of net periodic benefit cost during 2024.
Plan Assets.
The Company’s pension
 
plan asset allocation at December 31, 2023 and 2022, and the target
 
asset allocation for
2023 are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Target
Percentage of Plan
Allocation
Assets at December 31
(1)
2024
2023
2022
Equity Securities
68
%
70
%
73
%
Debt Securities
27
%
18
%
23
%
Cash and Cash Equivalents
5
%
12
%
4
%
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.
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 and will operate within the
following investment policy statement allocation ranges: equity securities ranging
 
from
55
% and
81
%, debt securities ranging
from
17
% and
37
%, and cash and cash equivalents ranging from
0
% and
10
%.
 
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)
2023
2022
Level 1:
U.S. Treasury Securities
$
16,126
$
17,264
Mutual Funds
92,991
81,231
Cash and Cash Equivalents
15,717
5,327
Level 2:
Corporate Notes/Bonds
461
454
Total Fair Value
 
of Plan Assets
$
125,295
$
104,276
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected Benefit Payments.
 
At December 31, expected benefit payments related to the defined benefit pension
 
plan were as
follows:
(Dollars in Thousands)
2023
2024
$
10,105
2025
11,119
2026
10,496
2027
10,042
2028
8,983
2029 through 2033
45,942
Total
$
96,687
Contributions.
 
The following table details the amounts contributed to the pension plan in 2023
 
and 2022, and the expected
amount to be contributed in 2024.
 
 
 
 
 
 
 
 
 
 
Expected
Contribution
(Dollars in Thousands)
2022
2023
2024
(1)
Actual Contributions
$
-
$
6,000
$
5,000
(1)
 
For 2023, 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)
2023
2022
2021
Change in Projected Benefit Obligation:
Benefit Obligation at Beginning of Year
$
10,948
$
13,534
$
13,402
Service Cost
18
31
35
Interest Cost
501
315
243
Actuarial (Gain) Loss
201
(2,932)
(146)
Net Settlements
(2,464)
-
-
Projected Benefit Obligation at End of Year
$
9,204
$
10,948
$
13,534
Funded Status of Plan and Accrued Liability Recognized at End of Year:
Other Liabilities
$
9,204
$
10,948
$
13,534
Accumulated Benefit Obligation at End of Year
$
8,943
$
10,887
$
12,803
Components of Net Periodic Benefit Costs:
Service Cost
$
18
$
31
$
35
Interest Cost
501
315
243
Amortization of Prior Service Cost
151
277
277
Net Loss Amortization
(531)
718
970
Net Gain Settlements
(291)
-
-
Net Periodic Benefit Cost
$
(152)
$
1,341
$
1,525
Weighted-Average
 
Assumptions Used to Determine Benefit Obligation:
Discount Rate
5.11%
5.45%
2.80%
Rate of Compensation Increase
(1)
5.10%
5.10%
4.40%
Measurement Date
12/31/23
12/31/22
12/31/21
Weighted-Average
 
Assumptions Used to Determine Benefit Cost:
Discount Rate
5.45%
2.80%
2.38%
Rate of Compensation Increase
(1)
5.10%
4.40%
4.00%
Amortization Amounts from Accumulated Other Comprehensive Loss:
Net Actuarial Loss (Gain)
$
201
$
(2,932)
$
(146)
Prior Service (Benefit) Cost
(151)
(277)
(219)
Net Gain (Loss)
531
(718)
(970)
Settlement Gain
 
291
-
-
Deferred Tax (Benefit)
 
Expense
(222)
995
154
Other Comprehensive (Gain) Loss, net of tax
$
650
$
(2,932)
$
(1,181)
Amounts Recognized in Accumulated Other Comprehensive Loss:
Net Actuarial (Loss) Gain
$
(753)
$
(1,775)
$
1,875
Prior Service Cost
-
151
429
Deferred Tax Benefit
 
(Expense)
191
412
(584)
Accumulated Other Comprehensive (Loss) Gain, net of tax
$
(562)
$
(1,212)
$
1,720
(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 $
0.3
 
million of the net actuarial gain reflected in accumulated other
comprehensive loss at December 31, 2023 as a component of net periodic
 
benefit cost during 2024.
 
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)
2023
2024
$
8,800
2025
32
2026
38
2027
42
2028
64
2029 through 2033
748
Total
$
9,724
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 for up to
6
% of the participant’s compensation for
 
eligible associates.
 
Further, in addition to the
50
% match, all associates hired after
December 31, 2019 will receive annually a contribution by the Company
 
equal to
3
% of their compensation.
 
For 2023, the
Company made annual matching contributions of $
1.7
 
million.
 
For 2022 and 2021, the Company made annual matching
contributions of $
1.4
 
million and $
1.0
 
million, respectively.
 
The participant may choose to invest their contributions into thirty-
four 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.
 
CCHL has a 401(k) Plan available to all CCHL associates who are
 
employed.
 
The plan allows 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 is determined annually by CCHL.
 
For 2023, 2022, and 2021,
matching contributions were made by CCHL up to
3
% of eligible participant’s
 
compensation totaling $
0.4
 
million, $
0.4
 
million,
and $
0.7
 
million, respectively.
 
Other Plans
The Company has a Dividend Reinvestment and Optional Stock Purchase
 
Plan.
 
A total of
250,000
 
shares have been reserved for
issuance.
 
In recent years, shares for the Dividend Reinvestment and Optional Stock Purchase Plan have
 
been acquired in the open
market and, thus, the Company did
no
t issue any new shares under this plan in 2023, 2022 and 2021.