Capital City Bank Group, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

LEASES

LEASES	9 Months Ended
LEASES	Sep. 30, 2025
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 Statements of Financial Condition. The Company’s operating leases primarily relate to banking offices with remaining lease terms from less than one to 40 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 Statements of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term. At September 30, 2025, the operating lease ROU assets and liabilities were $ 26.9 million and $ 27.5 million, respectively. At December 31, 2024, ROU assets and liabilities were $ 24.9 million and $ 25.5 million, respectively. The Company recognized $ 0.1 million of rental income during the nine months ended September 30, 2025 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 related to the Company’s operating leases. Three Months Ended Nine Months Ended September 30, September 30, (Dollars in Thousands) 2025 2024 2025 2024 Operating lease expense $ 928 $ 841 $ 2,689 $ 2,509 Short-term lease expense 171 229 722 618 Total lease expense $ 1,099 $ 1,070 $ 3,411 $ 3,127 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 882 $ 1,095 $ 2,676 $ 2,315 Right-of-use assets obtained in exchange for new operating lease liabilities 44 29 4,041 69 Weighted average remaining lease term — operating leases (in years) 15.7 16.7 15.7 16.7 Weighted average discount rate — operating leases 3.7% 3.5% 3.7% 3.5% The table below summarizes the maturity of remaining lease liabilities: (Dollars in Thousands) September 30, 2025 2025 $ 896 2026 3,591 2027 3,387 2028 3,102 2029 2,880 2030 and thereafter 21,293 Total $ 35,149 Less: Interest (7,601) Present Value of Lease liability $ 27,548 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 $ 2.1 million at September 30, 2025. Further, in accordance with this lease agreement, the Company made a $ 0.2 million payment in July 2025 to the lessor as reimbursement for a portion of the costs related to the development of subject property to support the construction of a new banking office by the Company.