Capital City Bank Group, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2024
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, 2024, the operating lease ROU assets and liabilities were $ 24.9 million and $ 25.5 million, respectively. At December 31, 2023, the operating lease ROU assets and liabilities were $ 27.0 million and $ 27.4 million, respectively. The Company recognized $ 0.7 million of rental income during the 12 months ended December 31, 2024 for a lease that terminated in February 2025. The Company does not have any finance leases. The table below summarizes our lease expense and other information at December 31, related to the Company’s operating leases: (Dollars in Thousands) 2024 2023 2022 Operating lease expense $ 3,347 $ 2,919 $ 1,719 Short-term lease expense 838 622 658 Total lease expense $ 4,185 $ 3,541 $ 2,377 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,147 $ 2,847 $ 1,937 Right-of-use assets obtained in exchange for new operating lease liabilities 395 6,748 12,475 Weighted-average remaining lease term — operating leases (in years) 16.4 16.9 19.5 Weighted-average discount rate — operating leases 3.6 % 3.5 % 3.1 % The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) December 31, 2024 2025 $ 3,263 2026 3,121 2027 2,888 2028 2,633 2029 2,467 2030 and thereafter 18,223 Total $ 32,595 Less: Interest (7,056) Present Value of Lease Liability $ 25,539 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. In December 2024, the Company entered into a sale leaseback agreement related to the sale of an office location. This agreement contained a two-year operating lease which resulted in the recognition of a right-of-use asset and lease liability. Further, the sale resulted in a gain on sale of $ 0.7 million included in other noninterest income.