The Treasury department was created in 2005 to oversee and manage the balance sheet risk of the Bank. While the department consists of only two associates, their impact extends throughout the institution and depends on strong collaborations with other areas of the Bank, such as Financial Accounting & Reporting, Credit Administration, and Electronic Services. The decisions made as a result of the data produced in this department impact the future direction and stability of Capital City Bank.

In order to obtain an accurate assessment of our financial status, this department analyzes past and present data and uses this information to manage risk and forecast the company's net interest margin. The net interest margin is a performance metric that examines how successful a company's investment decisions are compared to its funding structure.

The Treasury department serves as support for many areas of the Bank through deposit and loan pricing, the management of Bank Owned Life Insurance, and the oversight of collateral at the Federal Reserve Bank and Federal Home Loan Bank, which provide additional liquidity if the Bank were to need it. 

Investment Portfolio Management

The investment portfolio is comprised of diverse and safe securities purchased by the Bank to assist in meeting pledging requirements for deposits and to provide additional liquidity and yield to the Bank. Liquidity is the ease with which assets can be converted into cash or with which bank-owned assets can be used to collateralize additional borrowings if needed. The purchase of investment securities is guided by the parameters established by the Asset Liability Committee (ALCO).

Asset Liability Management (ALM)

ALM is the oversight process governed by ALCO, in which Treasury plays a key role by monitoring the interest rate, capital, and liquidity risks for the Bank. This is accomplished by analyzing financial data and utilizing simulation modeling in reports provided to ALCO and executive management. Input from other areas of the bank is also utilized in the model to determine the impact on liquidity and earnings, and to make strategic recommendations to senior management to best position the Bank in various rate environments.

View Treasury's public documents on netinterest.