Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q2 2021 Earnings Presentation
32 slides from Capital City Bank's earnings presentation, Jul 30, 2021
Slide 1: Investor Presentation Second Quarter 2021
INVESTOR PRESENTATION SECOND QUARTER 2021 C9 Bahk Group
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation includes forward-looking statements, including statements about future results. These statements are subject to uncertainties and risks, which could cause the Company's future results to differ materially. The following factors, among others, could cause t
Slide 3: Corporate Profile
CORPORATE PROFILE ¢ Oldest Florida-based Publicly Traded Bank ¢ Managed Multiple Business Cycles Successfully * $4.0B Assets ¢ Loans HFI: $2.0B/Deposits: $3.4B * 87% Florida/13% Georgia ¢ 50/50 Mix of Consumer and Commercial Clients (Deposits) $2.2B Assets Under Management — Avon . Ss st fg Rico GEO
Slide 4: Corporate Profile: Ownership and Market Cap
CORPORATE PROFILE Ownership ~56% Retail/44% Institutional ~20% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap” $435 Million
Slide 5: Florida Market Dynamics
NCE N Highest Migration Rate in U.S. N 3rd Most Populous State - Projected Population Growth 2X National Average N Projected Population Change (2021-2026) of 5.9% N Business-friendly State with No Personal Income Tax Government Higher Education Healthcare Agriculture Manufacturing Retail Distributio
Slide 6: Growth Markets
GROWTH MARKETS TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,426,015 Total Deposits (in Thousands) $120,705 Market Share” 15.4% Market Share" 2.7% Market Share Rank” #2 Market Share Rank” #8 Top 3 Industries Government, Education, Top inausttes Education, Healthcare, Professional Defens
Slide 7: Deposit Portfolio Detail
POSIT PORTFOLIO DETAIL Average Deposit Total Deposit Growth 3,313 Portfolio Composition 270 su 1012 908 @ Noninterest Bearing Deposits [ i i NOW Accounts 2017 2018 2019 2020 TH21 ular Savings Accounts Ascaris Total Cost 9 tesa heehee cffunds-CCBG® 016% «027% ~—=«0.3SK «NSE —O.1OH. stfcates of Deposi
Slide 8: Loan Portfolio Diversification
AN PORTFOLIO DIVERSIFICATION Loan Portfolio $2,008,662 1% Commercial R/E —- @ Home Equity R/E @ Residential R/E ‘onstruction R/E Commercial Loans @ Direct Consumer @ Indirect Auto Top 25 loans represent 7% of total loans 22% CRE Composition $661,826 201% of Tier 1 Capital @ Improved Property Constru
Slide 9: Credit
REDIT * Proven strong underwriting and risk management + 5year average annual credit losses of 10 basis points * Strong credit quality metrics at June 30, 2021 * ACL coverage 1.15% of loans (ex-SBA/PPP) * COVID-19: all loans extended have resumed regularly scheduled payments - nominal impact on past
Slide 10: Strong Capital Position
G CAPITAL POSITIO Capital To Execute Staying Power 400M [- 20 s3som [- $300M }) 15 2 iS % 10 5 ol n fi 2017-2018 = 2019S 2020S 221 @ ek Based Captal-CoBG ON" gorr 2018 2019 2020 2021 @ Tongible Common Equty-CCBG” @ Risk-Based Capital @ Tangible Common Equity -® Excess Regulatory Capital @ Tongible C
Slide 11: Strategic Initiatives: Three Pillars of Execution
STRATEGIC INITIATIVES: Three Pillars of Execution DRIVE REVENUES > Generate Loan Growth > Interest Rate Profile > Grow & Diversify Fee Income EFFECTIVELY DEPLOY CAPITAL >>> Organic Growth > Return Capital > Leverage Capital > Executed Under a Strong Risk Management & Credit Culture <
Slide 12: Drive Revenues: Diversified Revenues
DRIVE REVENUES > iverdified Reveriics INTEREST INCOME” FEE INCOME” 2% 1% 11% 52.7% of Operating Revenues 1% $52.3 Million $56.3 Million @ Commercial R/E @ Investment Securities @ Mortgage Banking Revenues - Residential R/E CCHL (51% ownership) ‘Commercial Loans @ Deposit Fees @ Indirect Auto Bank Ca
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES > GenerraleanGrowth Period End Loans HFI ($ In Millions /% Growth) $2500 - $2000 $1500 $1000 $500 $0 — 2016 2017 « 2018-2019 ‘SBA PPP Loans- Round I Balance ‘SBA PPP Loans- Round 2 Balance Remaining SBA PPP Fees M Annual Growth By Segment” -S100M -S80M -Scom -s4om 0 $20M SoM ScoM ssom
Slide 14: Drive Revenues: Interest Rate Profile
DRIVE REVENUE > Interest Rate Profile Loan Repricing - HFl Loans Rate Mix 3% 1% @ Overnight @ 12 Months” 24 Months @ 36 Months @ 48 Months 60 Months @ >60 Months * 60% of Loan Portfolio is Variable or Adjustable * 69% of Loan Portfolio Reprices within One Year () Includes $83 Million SB4/PPP loans a
Slide 15: Drive Revenues: Grow and Diversify Fee Income
DRIVE REVENUES > Grow and Diversify Fee Income $60M $50M |- $40M $30M $20M $10M $OM (yro- Fee Income Mix" Growth Initiatives (In Millions) r $56,299 Grow Wealth $3.5m Management ASSES Improve Card impetoree Utilization i | $45,677 : 520m Leverage Working insurance en Patio Residential Se Mortgage Or
Slide 16: Expense Management: Continued Focus on Expense Control
EXPENSE MANAGEMENT >> Continued Focus on Expense Control Noninterest Expense Trend '$150.0M HIGHLIGHTS Scam * Controllable expenses at Core CCBG continued to be well ‘$113.6M managed 2020 * Q2.202] Other expense included $2 million pension plan settlement. $18.4 S19.9" charge Ei 7 E 14.81 | * Integr
Slide 17: Banking Office Optimization and Digital Initiatives
Banking Office Optimization Sale/Leaseback Reduce SF Close/Sell Office/Market ROA Reviews Non-Value-Added Process as Digital Improvement | | 7 | Consolidate Online Deposit Platforms Opening Electronic Virtual Tellers Documents Mobile & Online Eliminate End-to-End Task Loan Platform Support Growth |
Slide 18: Expense Management: Digital Progress
XPENSE MANAGEMEN > = ° 8:1 digital client interactions to in-office transactions — February 2021 * 33% of offices with extended-hours Interactive Teller Machines ° 49% of offices offering instant issue debit cards ¢ 46% increase in mobile logins from January 2018 to February 2021 ¢ Major upgrade to
Slide 19: Effectively Deploy Capital
_ TEM > SS > Technology Investments ° ORGANIC GROWTH Leverage Infrastructure ° Deepen Client Relationships Dividend Share Repurchase Program RETURN CAPITAL M&A Opportunities Non-Bank Businesses LEVERAGE CAPITAL °
Slide 20: Acquisition Target Profile
<=I>>>> PROFILE * Banks with $100-500M Assets ee po ~250 Total Banks ° TBV Pricing Attractive Macon TARGETS Gainesville ¢ Strong Core Deposit Base Tallahassee ¢ Lack of Scale to Absorb Regulatory Cost (Expansion Area ¢ Succession Plan Unclear Su )
Slide 21: Broader Based Growth Initiatives
BROADER BASED LOAN GROWTH IMPLEMENT FEE INCOME INITIATIVES EVALUATE ACQUISITION OPPORTUNITIES Small Business, Commercial Real Estate, Residential Real Estate, Construction Real Estate, WCF/ABL, Participations/Pools, Market Expansion Checking Account Acquisition, and Strategies to Drive Interchange R
Slide 22: Why CCBG?
WHY CCBG? NFlorida is Growing NStable Markets NStrong Deposit Franchise NAsset Sensitive Balance Sheet NStrong Capital — Ability to Deploy NInsider Ownership NSeasoned and Experienced Bankers NLow Execution Risk NCCBG is One of the Few Remaining “Pure Plays” in Florida
Slide 23: Capital City Bank Group
| 3% Capital Ci q ) Banik Grow
Slide 24: Appendix
Slide 25: Diluted and Pre-Tax Pre-Credit Cost Earnings Per Share
0.75 0.60 aw os =o A e 030 fi 0s | 8 | Bl | 0.00° sais aaie” aig. 2ag9.s sang. aaig.—Ss1aq20-S 2020-3020 4020s 1azl— 2021" Il Diluted Earnings Per Share Il Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share" “includes Tax Benefits $0.02 per share for 30 related to 2017 Plan Year Pension contributi
Slide 26: Second Quarter 2021
SECOND QUARTER 2021 | 20.2021 | 10.2021 | Schange | %change HIGHLIGHTS (Dottarsinthousands) | corecces | _ccht__| coreccas | crit | corecces | coreccoc_ INI ta ea Netinterestincome 25,961 19 24,652 (154) 1,309 5.30% ee ventaliyciveneys(iceg ban growth and higher SBA PPP fees Provision for Credit Los
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS Dollar in Thousands, aun 2017 2018 2019 2020 Interest Income $86,930 $99,305 | _sm12,836 s106197_| $52,282 Interest Expense 3,948 6.891 9,493 4871 1,804 Net Interest Income 82,982 92,504 103,343 101,326 | 50,478 Provision for Credit Losses 2,215 2,921 2,027 9,645 (1,553) Noninte
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS 2017 20 2019 2020 Investments $697,590 $663,477 $643,140 $494,809 $806,449 Loans Held for Investment 1,653,492 1,774,225 1,835,929 2,006,426 | 2,008,662 Total Assets 2,898,794 2,959,183 3,088,953 3,798,071 4,011,459 Noninterest Bearing Deposits 874,583 947,858 1,044,699 1,328,80
Slide 29: Market Demographics
ARKET DEMOGRAPHIC ANCHOR AND SMALL-TOWN AMERICA MARKETS MORE STABLE AND PREDICTABLE. Population Growth Rate Household 2010-2021 2021-2026 Med rcome B|/ ceok eid nee Tallahassee MSA 7.3% 4.0% $56,220 9.6% CCBG Florida Markets 13.4% 47% $54,095 8.1% Florida 16.5% 5.9% $61,374 11.3% us 7.2% 2.9% $67,76
Slide 30: Deposit Market Share
POSIT MARKET SHARE Number of | CCBG Deposits in Offices Market ($000)* Florida 47 $2,608,562 86.99% 12 of 18 751% Georgia 8 $354,608 11.83% 20f4 5.54% Alabama 2 $35,393 1.18% = 9.63% TOTALS 57 $2,998,563 100.00% = ¢ Market Share Gives Pricing Leverage ° Keeps Cost of Funds Low ¢ Organic Growth Going
Slide 31: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollars in Thousands 2017 2018 2019 2020 2021 We presenta tangible common equity ratio that ‘TANGIBLE COMMON EQUITY RATIO removes the effect of goodwill resulting from merger and Shareowners’ Equity (GAAP) $284,210 $302,587 $327,016 $320,837| $335,880 acquisition activity
Slide 32: Capital City Bank Group
Capital Ci x) Bank croup Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q2 2021 Earnings Presentation on 6ix