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

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES	9 Months Ended
LEASES	Sep. 30, 2024
Leases [Abstract]
Leases	NOTE 6 – 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. The Company’s operating leases primarily relate to banking offices with remaining lease terms from one to 41 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 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 September 30, 2024, the operating lease ROU assets and liabilities were $ 25.2 million and $ 25.8 million, respectively. At December 31, 2023, ROU assets and liabilities were $ 27.0 million and $ 27.4 million, respectively. The Company does not have any finance leases and has recognized $ 0.5 million of income for a short-term operating lease agreement in which the Company is a lessor. The table below summarizes our lease expense and other information related to the Company’s operating leases. Three Months Ended Nine Months Ended September 30, September 30, (Dollars in Thousands) 2024 2023 2024 2023 Operating lease expense $ 841 $ 710 $ 2,509 $ 2,114 Short-term lease expense 229 167 618 438 Total lease expense $ 1,070 $ 877 $ 3,127 $ 2,552 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,095 $ 720 $ 2,315 $ 2,131 Right-of-use assets obtained in exchange for new operating lease liabilities 29 55 69 3,048 Weighted average remaining lease term — operating leases (in years) 16.7 18.4 16.7 18.4 Weighted average discount rate — operating leases 3.5% 3.3% 3.5% 3.3% The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) September 30, 2024 2024 $ 1,098 2025 3,093 2026 2,957 2027 2,888 2028 2,633 2029 and thereafter 20,690 Total $ 33,359 Less: Interest (7,541) Present Value of Lease liability $ 25,818 At September 30, 2024, the Company had one additional operating lease obligation for a banking office (to be constructed) that has not yet commenced. The lease has payments totaling $ 3.8 million based on an initial contract term of 15 years. Payments for the banking office are expected to commence after the construction period ends, which is expected to occur during the fourth quarter of 2024. A related party is the lessor in a land lease with the Company. The payments under the lease agreement provide for annual lease payments of approximately $ 0.1 million annually through December 2033, and thereafter, increase by 5 % every 10 years until 2053 at which time the rent amount will adjust based on reappraisal of the parcel rental value. The Company then has four successive options to extend the lease for five years each with rental increases of 5% at each extension. The aggregate remaining obligation of the lease totaled $ 2.2 million at September 30, 2024.