EMPLOYEE BENEFIT PLANS |
12 Months Ended |
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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
amended to remove plan eligibility for new associates hired after December 31,
2020 or 2021. The Plan was also amended in December 2022, effective
distribution age to
72
, per the SECURE Act 1.0. Benefits under this plan generally are based on the associate’s
service and average of the
five
ten years
Company’s general funding
ensure deductibility for federal income tax purposes.
The following table details on a consolidated basis the changes in benefit
the plan, components of pension expense, amounts recognized in the
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
$
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
$
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
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
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)
During 2022 and 2021, lump sum payments made under the Company’s
accounting.
no
losses during 2023 and $
2.3
3.1
The service cost component of net periodic benefit cost is reflected in compensation
Statements of Income.
in the Consolidated Statements of Income.
The Company expects to recognize $
0.2
December 31, 2023 as a component of net periodic benefit cost during 2024.
Plan Assets.
The Company’s pension
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
end cash contribution to the plan.
The Company’s pension plan assets are overseen
investment manager for the plan.
Company believes the best way to accomplish this goal is to take a conservative
in mutual funds that include various high-grade equity securities and investment
strategies.
following investment policy statement allocation ranges: equity securities ranging
55
% and
81
%, debt securities ranging
from
17
% and
37
%, and cash and cash equivalents ranging from
0
% and
10
%.
assets is a weighted-average expectation for the return on plan assets.
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
segregated by the level of the valuation inputs within the fair value hierarchy
fair value (see Note 22 – Fair Value
(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
$
125,295
$
104,276
Expected Benefit Payments.
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
amount to be contributed in 2024.
Expected
Contribution
(Dollars in Thousands)
2022
2023
2024
(1)
Actual Contributions
$
-
$
6,000
$
5,000
(1)
Supplemental Executive Retirement Plan
The Company has a Supplemental Executive Retirement Plan (“SERP”) and
(“SERP II”) covering selected executive officers.
compensation as used for the pension plan, except the benefits are calculated without
Revenue Code on compensation and benefits.
and the benefit payable by the pension plan.
certain executive officers that were not covered by
The following table details on a consolidated basis the changes in benefit
pension expense, amounts recognized in the Company’s
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
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
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)
(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
191
412
(584)
Accumulated Other Comprehensive (Loss) Gain, net of tax
$
(562)
$
(1,212)
$
1,720
(1)
The Company expects to recognize approximately $
0.3
comprehensive loss at December 31, 2023 as a component of net periodic
In June 2023, lump sum retirement distributions to two plan participants
amount of the settlement gain was $
0.3
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
basis.
enable participants to contribute any amount, up to the maximum annual limit allowed
in any plan year placed in the 401(k) Plan trust account.
50
% from the Company are made for up to
6
% of the participant’s compensation for
50
% match, all associates hired after
December 31, 2019 will receive annually a contribution by the Company
3
% of their compensation.
Company made annual matching contributions of $
1.7
contributions of $
1.4
1.0
four investment options available to 401(k) participants, including the Company’s
50,000
CCBG common stock have been reserved for issuance.
market.
CCHL has a 401(k) Plan available to all CCHL associates who are
amount, up to the maximum annual limit allowed by the IRS, of their compensation
401(k) Plan trust account.
matching contributions were made by CCHL up to
3
% of eligible participant’s
0.4
0.4
and $
0.7
Other Plans
The Company has a Dividend Reinvestment and Optional Stock Purchase
250,000
issuance.
market and, thus, the Company did
no
t issue any new shares under this plan in 2023, 2022 and 2021.
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