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	3 Months Ended
LEASES	Mar. 31, 2021
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. 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 statements of income. The Company’s operating leases primarily relate to banking offices with remaining lease terms from 1 to 45 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 balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. At March 31, 2021, the operating lease ROU assets and liabilities were $ 11.8 million and $ 12.6 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 related to the Company’s operating leases. Three Months Ended March 31, (Dollars in Thousands) 2021 2020 Operating lease expense $ 344 $ 156 Short-term lease expense 140 79 Total lease expense $ 484 $ 235 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 385 $ 160 Right-of-use assets obtained in exchange for new operating lease liabilities 75 5,092 Weighted average remaining lease term — operating leases (in years) 25.5 15.4 Weighted average discount rate — operating leases 2.1% 2.4% The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) March 31, 2021 2021 $ 1,158 2022 1,389 2023 995 2024 945 2025 771 2026 and thereafter 11,132 Total $ 16,390 Less: Interest (3,837) Present Value of Lease liability $ 12,553 At March 31, 2021, the Company had additional operating lease payments for two banking offices that have not yet commenced totaling $ 4.8 million based on the initial contract term of 15 years . Payments for the banking offices are expected to commence after the construction period ends, which is expected to occur during the second quarter of 2022 and the third quarter of 2022. A related party is the lessor in an operating lease with the Company. The Company’s minimum payment is $ 0.2 million annually through 2024, for an aggregate remaining obligation of $ 0.7 million at March 31, 2021.