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

Annual report pursuant to Section 13 and 15(d)

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2023
Leases [Abstract]
Leases	Note 7 LEASES Operating leases in which the Company is the lessee are recorded as operating lease right of use (“ROU”) assets and operating liabilities, included in other assets and liabilities , respectively, on its Consolidated Statement of Financial Condition. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy expense in the Consolidated Statement of Income. The Company’s operating leases primarily relate to banking offices with remaining lease terms from one to forty-two years . The Company’s leases are not complex and do not contain residual value guarantees, variable lease payments, or significant assumptions or judgments made in applying the requirements of ASC Topic 842. Operating leases with an initial term of 12 months or less are not recorded on the Consolidated Statement of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term. At December 31, 2023, ROU assets and liabilities were $ 27.0 million and $ 27.4 million, respectively. At December 31, 2022, the operating lease ROU assets and liabilities were $ 22.3 million and $ 22.7 million, respectively. The Company does not have any finance leases or any significant lessor agreements. The table below summarizes our lease expense and other information at December 31, related to the Company’s operating leases: (Dollars in Thousands) 2023 2022 2021 Operating lease expense $ 2,919 $ 1,719 $ 1,445 Short-term lease expense 622 658 663 Total lease expense $ 3,541 $ 2,377 $ 2,108 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,847 $ 1,937 $ 1,609 Right-of-use assets obtained in exchange for new operating lease liabilities 6,748 12,475 784 Weighted-average remaining lease term — operating leases (in years) 16.9 19.5 25.3 Weighted-average discount rate — operating leases 3.5 % 3.1 % 2.0 % The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) December 31, 2023 2024 $ 3,127 2025 3,105 2026 2,966 2027 2,888 2028 2,611 2028 and thereafter 20,670 Total $ 35,367 Less: Interest (7,976) Present Value of Lease Liability $ 27,391 A related party is the lessor in an operating lease with the Company. The terms of this lease agreement are further described in Note 19 – Related Party Transactions.