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]

DERIVATIVES

DERIVATIVES	12 Months Ended
DERIVATIVES	Dec. 31, 2025
Derivatives [Abstract]
DERIVATIVES	Note 5 DERIVATIVES The Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s subordinated debt. Cash Flow Hedges of Interest Rate Risk At December 31, 2024, the Company maintained interest rate swaps with notional amounts totaling $ 30 million designated as a cash flow hedge for subordinated debt. Under the swap arrangement, the Company paid a fixed interest rate of 2.50 % and received a variable interest rate based on three-month CME Term SOFR (secured overnight financing rate). In October 2025, the Company terminated the swaps and derecognized the derivative assets. The unrealized gain of $ 2.7 million is deferred in accumulated other comprehensive income and will be amortized on a straight-line basis into interest expense through the remaining term of the original cash flow hedge. The Company estimates there will be approximately $ 0.8 million reclassified as a decrease to interest expense within the next 12 months. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive loss (“AOCI”) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate subordinated debt. The following table reflects the cash flow hedges included in the Consolidated Statements of Financial Condition. Statement of Financial Notional Fair Weighted Average (Dollars in Thousands) Condition Location Amount Value Maturity (Years) Interest rate swaps related to subordinated debt: December 31, 2024 Other Assets $ 30,000 $ 5,319 5.5 The following table presents the net gains (losses) recorded in AOCI and the Consolidated Statement of Income related to the cash flow derivative instruments (interest rate swaps related to subordinated debt). Amount of Gain Amount of Gain (Loss) Recognized (Loss) Reclassified (Dollars in Thousands) Category in AOCI from AOCI to Income December 31, 2025 Interest Expense $ 2,676 $ 1,102 December 31, 2024 Interest Expense $ 3,971 $ 1,459 December 31, 2023 Interest Expense $ 3,969 $ 1,395 At December 31, 2024, the Company had a collateral liability of $ 5.5 million.