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, 2022
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 1 to 43 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, 2022, the operating lease ROU assets and liabilities were $ 14.0 million and $ 14.6 million, respectively. At December 31, 2021, ROU assets and liabilities were $ 11.5 million and $ 12.2 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 Nine Months Ended September 30, September 30, (Dollars in Thousands) 2022 2021 2022 2021 Operating lease expense $ 427 $ 369 $ 1,202 $ 1,075 Short-term lease expense 158 181 495 490 Total lease expense $ 585 $ 550 $ 1,697 $ 1,565 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 439 $ 410 $ 1,303 $ 1,197 Right-of-use assets obtained in exchange for new operating lease liabilities 2,406 269 3,598 784 Weighted average remaining lease term — operating leases (in years) 22.0 25.0 22.0 25.0 Weighted average discount rate — operating leases 2.2% 2.0% 2.2% 2.0% The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) September 30, 2022 2022 $ 625 2023 1,955 2024 1,860 2025 1,445 2026 1,367 2027 and thereafter 13,362 Total $ 20,614 Less: Interest (6,025) Present Value of Lease liability $ 14,589 At September 30, 2022, the Company had five additional operating lease obligations for banking offices (to be constructed) that have not yet commenced. Three of these leases have payments totaling $ 9.3 million based on initial contract terms of 15 years and two leases have payments totaling $ 3.4 million based on the initial contract term of 10 years. Payments for the banking offices are expected to commence after the construction periods end, which are each expected to occur during the fourth quarter of 2022 and the first quarter of 2023. 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 $ 0.4 million at September 30, 2022.