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Mar 31, 2022
Capital City Bank Q1 2022 Earnings Report
Reported solid financial results driven by loan growth, credit quality, rising rates, wealth management, and lower expenses.
Key Takeaways
Capital City Bank Group reported a net income attributable to common shareowners of $8.5 million, or $0.50 per diluted share, for the first quarter of 2022. The results reflect loan growth, strong credit quality, rising rates, and effective cost management.
Period-end loan balances grew $54 million, or 2.8% sequentially
Net interest income gained momentum driven by growth in investment portfolio and higher rates
Noninterest income increased by 4.6% sequentially, driven by wealth management fees (insurance commission revenues)
Noninterest expense decreased $1.0 million, or 2.4% sequentially, attributable to lower pension plan expense
Capital City Bank
Capital City Bank
Capital City Bank Revenue by Segment
Revenue by Segment
Deposit Fees Revenue
CapyFin.comBank Card Fees Revenue
CapyFin.comWealth Management Fees Revenue
CapyFin.comOther Noninterest Income Revenue
CapyFin.com Forward Guidance
The company believes it is well positioned to navigate through the year, despite rapidly escalating inflation, a pivot by the Federal Reserve, and the Russia-Ukraine war.
Positive Outlook
- Asset-sensitive balance sheet should respond well to rising rates.
- Pension related other comprehensive loss should respond well to rising rates.
- Capital City Strategic Wealth had a strong first quarter.
- Expansion efforts in west Florida and the northern arc of Atlanta are continuing.
- Focus on identifying opportunities and executing strategies believed to be sustainable.
Challenges Ahead
- Higher rates will generate unrealized losses in investment portfolio.
- Rapidly escalating inflation poses a challenge.
- Federal Reserve's pivot toward quicker tightening of monetary policy creates uncertainty.
- Russia-Ukraine war and accompanying sanctions add to macro-economic concerns.
- Financial markets' response to these macro-economic events is uncertain.