CAPITAL CITY BANK GROUP INCCCBG

CAPITAL CITY BANK GROUP INC Leases Disclosure

10-KFiled Feb 27, 20263 min read
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, 2025, the operating lease ROU assets and liabilities were $
26.3
million and $
26.9
 
million, respectively.
 
At December 31, 2024, the operating lease ROU assets and liabilities were $
24.9
 
million
and $
25.5
 
million, respectively. The
 
Company recognized $
0.1
 
million and $
0.7
 
million of rental income during the 12 months
ended December 31, 2025 and 2024,
 
respectively, 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)
2025
2024
2023
Operating lease expense
$
3,604
$
3,347
$
2,919
Short-term lease expense
857
838
622
Total lease expense
$
4,461
$
4,185
$
3,541
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
3,574
$
3,147
$
2,847
Right-of-use assets obtained in exchange for new operating lease liabilities
4,069
395
6,748
Weighted-average
 
remaining lease term — operating leases (in years)
15.7
16.4
16.9
Weighted-average
 
discount rate — operating leases
3.7
%
3.6
%
3.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The table below summarizes the maturity of remaining lease liabilities:
(Dollars in Thousands)
December 31, 2025
2026
$
3,601
2027
3,397
2028
3,111
2029
2,880
2030
2,848
2031 and thereafter
18,445
Total
$
34,282
Less: Interest
(7,350)
Present Value
 
of Lease Liability
$
26,932
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.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 11, 2025
2023Mar 13, 2024
2022Mar 1, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Mar 5, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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