Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q2 2018 Earnings Presentation
29 slides from Capital City Bank's earnings presentation, Jul 27, 2018
Slide 1: Investor Presentation Second Quarter 2018
Investor | Presentation Second Quarter 2018
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes forward-looking statements, including statements about future results. These statements are subjectto uncertainties and risks, which could cause the Company's future results to differ materially. The following factors, among others, could cause th
Slide 3: Corporate Profile
Corporate Profile Oldest Florida-based Publicly Traded Bank a Managed Multiple Business Cycles Successfully GEORGIA ALABAMA $2.9B Assets Loans: $1.7B/Deposits: $2.5B 85% Florida/15% Georgia 50/50 Mix of Consumer and 59 Offices in Commercial Clients 3 MSA's FLORIDA $1.4B Assets Under Management
Slide 4: Corporate Profile
Corporate Profile Ownership ~63% Retail/ 37% Institutional ~ 24% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap'” $403 Million (1) Asof 6018
Slide 5: Florida at a Glance
Florida at a Glance ® Highest Migration Rate in U.S. - Twice U.S Average ~1,000 People Per Day 3° Most Populous State - Projected Population Growth 2X National Average sense © Several Growth Measures (Jobs, Personal Higher eacaton Income, GDP, Tourism) Now Surpass Prior Healthcare Peaks and National
Slide 6: Growth Markets
Growth Markets TALLAHASSEE MSA MACON MSA Total Deposits (i Thousands) $1,109,301 Total Deposits (in Thousands) $04,865 Market Share!) 14.36% Market Share?) 274% Market Share Rank”) #8 Market Share Rank‘) #8 Government, Education, ons estas: Education, Professional _T°P Industries Healthcare, Defense
Slide 7: Core Deposit Advantage
Core Deposit Advantage AVERAGE DEPOSITS BY TYPE() COST OF FUNDS() (24bps) National Peer ‘ ce : g é & a S @ 3 & 8 2 z= @ © NIB Demand Deposits —_ @ Regular Savings @ Now @ cos @ Money Market (y yro ossar8 (2) Publicaly Traded $1-S5 Billion Southeast Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO") $1,732,721 2%| © CommercialR/E —_ @ CommercialLoans Residential /E Construction R/E © Indirect Auto ject Consumer @ Home Equity 8/E ther Loans (1) 202018-£0u 2% 1% N% CRE COMPOSITION $461,290 163% of Tier 1 Capital @ Improved Property Construction @ Va
Slide 9: Credit Quality
Credit Quality CLASSIFIED LOANS (% of Total Loans) * NPA Reduction: 14% Decrease QoQ and 43% Decrease YoY * Classified Loans: 7% Decrease QoQ and 28% Decrease YoY SOM * Continued Strong OREO Sales with Retail Disposition Strategy: 58% Decrease YoY si00m 1.87% 1.71% so 4009 4014 4Q15 4016 4017 2018 P
Slide 10: Strong Capital Position
Strong Capital Position STAYING POWER CAPITAL) TO EXECUTE 20-2015 2016S 2017_— 2018 @ Mish Based Capital-coes © "Prcibie common Equity CCG © ‘erate Common Equity Publ Taded $185 ition SE Bons 10
Slide 11: Strategic Initiatives: Three Pillars of Execution
Strategic Initiatives: Three Pillars of Execution Drive Revenues Generate Loan Growth > Positioned to Win on Rates > Grow & Diversify Fee Income Committed to Expense Reduction > Efficiency Initiatives in Motion Effectively Deploy Capital Organic Growth > Return Capital > Leverage Capital > Executed
Slide 12: Drive Revenues: Diversified Revenues
DRIVE REVENUES Diversified Revenues INTEREST INCOME() FEE INCOME“) 4% 3%1% 36% of Operating 17% Revenues $25 Million © depositFees © Bank Card Fees ‘Wealth Management Fee @ Other @ Mortgage Banking Fees ( Y10 6802018
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES Generate Loan Growth PERIOD END LOANS GROWTH BY SEGMENT“) ($ in Millions / % Growth) 6.3% _ J ey pe ep yy 2013 2014 2015 2016 2017 2a18 $20M-SIOM_ $0. S1OM $20M $30M 40M $50M $60M (1) 2a18 vs. 2017
Slide 14: Drive Revenues: Positioned to Win on Rates
DRIVE REVENUES Positioned to Win on Rates LOAN REPRICING RATE MIX 4% © Overnight @ 12.Months 24Months ® 36 Months $1,733 @ 48 Months (iamillions) 60 Months @ >60 Months * 62% of Loan Portfolio is Variable or Adjustable * 60% of Loan Portfolio Re-Prices within One Year
Slide 15: Drive Revenues: Grow and Diversify Fee Income
DRIVE REVENUES Grow and Diversify Fee Income FEE INCOME MIX GROWTH INITIATIVES (in Miilions) $25,853 $25,019 = , , Free to Fe 100 — "Otten ~ X 60 40 20 feeetee Sion Pato ] Grow Weath a F j Management Assets 4 2017” 2018"
Slide 16: Noninterest Expense Trend
NONINTEREST EXPENSE TREND s1s0M, 120M, 4m cyeteosts* 30M, aI (1) OREO, Legal Loan Collections), FDIC Insurance & Pension Costs >” to 6902018 Committed to Expense Reduction NONINTEREST EXPENSE MIX © Salaries Pension Plan @ Occupancy @ Legal & Professional @ Other © Processing Services @ Associate Ben
Slide 17: Channel Optimization, Process Improvement, Cost Reduction
Channel Process Reduce Support Optimization Improvement Cycle Costs Growth Self-Service Teller . Consolidate OREO Patiorms Onboarding Mobile & Online es * Electronic Digital Lending eee Legal Website 5 Enhancements Eliminate Client , Segmentation Office/Market ROA Non-Value- Pension Reviews Added Ta
Slide 18: Effectively Deploy Capital
EFFECTIVELY DEPLOY CAPITAL »>} * Technology Investments + Leverage Infrastructure Organic Growth . Dividend Share Repurchase Program Return Capital Leverage Capital . M&A Opportunities Non-Bank Businesses
Slide 19: Acquisition Opportunity
Acquisition Opportunity Profile ® Banks with $100-500M Assets ~250 Total Banks ° TBV Pricing Attractive Targets ® Strong Core Deposit Base ® Lack of Scale to Absorb Regulatory Cost ° Succession Plan Unclear 1 Expansion Area
Slide 20: 2018 Focus
2018 Focus Broader Based + Small Business Lending, WCF/ABL and Loan Growth Participations Implement Fee + Including Our New Checking Account Platform and Income Initiatives Strategies to Drive Interchange Revenues Evaluate Acquisition Opportunities + Evaluate Both Bank and Non-bank Opportunities
Slide 21: Why CCBG?
Why CCBG? Florida is Growing Growth Measures Nearing Prior Peaks ° Stable Markets Strong Deposit Franchise Strong Capital — Ability to Deploy Insider Ownership Seasoned and Experienced Bankers Low Execution Risk ° CCBG is One of the Few Remaining “Pure Plays” in Florida _— Ge
Slide 22: Capital City Bank Group
y = Capital City = = = = a9. Bank Group Mh
Slide 23: Appendix
val ap : Appendix 2% Capital City
Slide 24: Quarterly Results
Quarterly Results 0.50 0.454 ¢ 0.40 é = 0.35/ a 0.304 a (CU 5 i 0.25/ My i 8 7 3 0.20 § 3 015“ 3 3 0.10 0.05/ g 0.00” 1016 2Q16" 3Q16 4Ql6 1a17 2Q17 3017 4Qi7” jais” 2a BB Diluted Earnings Per Share Bh Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share" “Includes TRUPs Repurchase Gainof $009 per S
Slide 25: Financial Highlights
Financial Highlights Dollars in Thousan ept Eamings per Share Interest Income Interest Expense $89,680 5,368 $62,152 4,416 $78,221 3.580 $79,658 3.307 $81,154 3,189 2017 $86,930 3,948 YTD 2018 Net interest Income 84,312 71.736 74,644 76,351 77,985 82,982 Noninterest income 16,166 55,185 3472 56.416
Slide 26: Financial Highlights
Financial Highlights 2012 2013 2014 YTD 2018 Investments $296,985 $399,631 $505,129 $638,920 $700,099 $695,108 $730,426 Loans 4,521,302 1,399,668 1.442.062 1,503,907 1,672,175 1,638,138 4.732.721 Total Assets 2,633,984 2,611,903 2.627.169 2,797,860 2,845,197 2,790,842 2,880,278 Noninterest Bearing D
Slide 27: Market Demographic
Market Demographic Anchor and Small-Town America Markets More Stable and Predictable. Population Growth Rate Household Median Income Projected Change 2010-2018 2018-2023 ~ ois a $48,208 Florida $53,657 ‘Sources: S&P Global Market inteligence; ESRI: US Census Bureau
Slide 28: Deposit Market Share
Deposit Market Share . Percentof Deposit state || Numberet fe veries st0oF TotalccBG —_with 2017 Market Franchise MarketShare Share** in Top4 a ce fawn | 2 | Sbet! | + Market Share Gives Pricing Leverage + Keeps Cost of Funds Low + Organic Growth Going Forward * Sources: SNL Balances as of 6/30/2017
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present s tanigtie (Dollars in Thousands) 2011 2015 2016 2017 2018 removes the effect of EQUITY RATIO. ‘activity. We believe this meneth ctes: oeetl CN Insta bocaiee t angie Saison allows investors to more ‘easily compare our capital adequacy to other ‘companies in the
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