Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q4 2022 Earnings Presentation
30 slides from Capital City Bank's earnings presentation, Mar 1, 2023
Slide 1: Investor Presentation Fourth Quarter 2022
INVESTOR PRESENTATION 1 FOURTH QUARTER 2022 o Bank Group
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS ‘This presentation includes forward-looking statements, including statements about future results. These statements are subject to uncertainties and risks that could cause the Company's future results to differ materially. The following factors, among others, could cause t
Slide 3: Corporate Profile
CORPORATE PROFILE © pian ‘Augusta, * Oldest Florida-based Publicly E Macon 2 g Traded Bank eee) Sevan GEORGIA ¢ Managed Multiple Business Cycles ALABAMA Successfully o a 2 Pye 0 Jackomite * $4.5B Assets ee 08 OS 280 camacly is Snel “ CURRENT OFFICES Daytona Booch * Loans HFI: $2.5B/Deposits: $3.9B F
Slide 4: Corporate Profile
CORPORATE PROFILE Ownership ~55% Retail/45% Institutional ~23% Insider Experienced Management Average of 28 Years’ Experience with CCBG Strong and Market Cap” Diversified Board $552 Million 27% Female/18% Ethnic Minority
Slide 5: Florida
FLORIDA A NCE N Highest Migration Rate in U.S. * 6th Consecutive Year N 3rd Most Populous State - Projected Population Growth * 2X National Average N Projected Population Change * (2023-2028) of 5.0% N State Budget - FY 2022-2023 * Largest in state history N Business-friendly State with No Personal
Slide 6: Growth Markets
GROWTH MARKETS TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,633,066 Total Deposits (in Thousands) $134,222 Market Share” 14.6% Market Share” 2.9% Market Share Rank” #3 Market Share Rank” #8 Top 3 Industries Government, Education, Professional Education, Healthcare, Industri Top 3 Indus
Slide 7: Deposit Franchise
DEPOSIT FRANCHISE Total Deposit Growth Average Deposit Ea Portfolio Composition 3,407 283 628 oe 537 @ Noninterest Bearing Deposits @ NOW Accounts 1,254 Regular Savings Accounts @ Money Market Accounts bod © Conifcates ofDeposit Deposit Portfolio Highlights + CAGR" of ~ 15.4% DDA, ~ 7.6% MMA/SAV/NOW
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Loan Portfolio 9, CRE Composition 9% 1% $2,525,179 5% $874,145 239% of Tier 1 Capital 1% 1% a 9% @ Improved Property Construction 23% @ Vacant Land @ Condos @ Land Development Improved Property Composition $539,202 @ Commercial R/E —__ @ Construction R/E © Residential
Slide 9: Credit Quality
Classified Loans REDIT LITY we of Total Loans HF) 087% 0.93% Proven strong underwriting and risk management + 5 year average annual credit losses of 10 basis points Strong credit quality metrics at December 31, 2022 ACL coverage 0.98% of loans 2018 2019=—«2020=« 202122 Allowance for Credit Losses Ac
Slide 10: Strong Capital Position
STRONG CAPITAL POSITION Capital To Execute Staying Power '$400M [— $300M $200M | $100M I 2018 2019 2020 2021 @ Risk Based Capital -CCBG 2019 2020 2021 2022 @ Tangible Common Equity-CcBs” 2018 @ Tangible Common Equity - Publicly Traded $1-$5 Billion SE Banks @ Risk-Based Capital @ Tangible Common Equ
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 > Diversified Revenues INTEREST INCOME” FEE INCOME” 3% 1% 16% 43.2% of Operating Revenues $131.3 Million $94.6 Million © Commercial R/E @ Home Equity R/E @ Mortgage Banking Revenues © Residential R/E Construction R/E ECHL (51% ownership) Investment Securities Funds Sold & Deposits wit
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES > Garsrate leanGraal Period End Loans HFI Growth By Segment” ($ In Millions / % Growth) $3000 - stom -s20m 0 520M Som si00M Si40M sieou 52200 S260M S200m S240m 5300H 4 ft $2500 — 44.4% $2000 $1500 $1000, 10.8% -5.0% $500 1.4% $0 -55.3% 2016 2017 2018 2019 2020 2021 2022 “Total SBA PPP
Slide 14: Drive Revenues: Interest Rate Profile
DRIVE REVENUES > fnterest'Rate Profile Loan Repricing - HFl Loans Rate Mix @ Overnight @ 12 Months 24 Months @ 36 Months @ 48 Months 60 Months @ >60 Months * 64% of Loan Portfolio is Variable or Adjustable ¢ 45% of Loan Portfolio Reprices within One Year —————————— el.
Slide 15: Drive Revenues: Grow and Diversify Fee Income
DRIVE REVENUES > Grow and Diversify Fee Income Fee income: Mix” Growth Initiatives illions) sno $107,545 sioomL sta $94,627 $90M - sere $80M - $70M -- $60M - $50M>- : 5 Leverage Working SD insurance saom + | "Paton Resideniat «S26 . Mongage $30M Originations $20M HIGHLIGHTS vom * Wealth AUM of $2.3B
Slide 16: Continued Focus on Expense Management
i Continued Focus on EXPENSE MANAGEMENT >> Ecatinaltartial Noninterest Expense Trend s162.5M $161.9 $42.2M $150.0M $40.0M HIGHLIGHTS sioaam — (STILSM_ SIZ. s32.M * Efficiency Initiatives in Motion = Pe — Banking Office Optimization Sa ~ Process Improvement/RPA “ salem Enhanced Digital Front Door $18
Slide 17: 50% of all transactions are digital
50% of all transactions are digital PLANNED ¢ Real time wire processing enhancement accessible in online/mobile banking * Indirect lending portal experience improvements ¢ Referral partnership with Innovation Refunds via BankTech Ventures for Employee Retention Credits (ERC) * Fintech showcase ——— i
Slide 18: Effectively Deploy Capital
IEIL>>>> ¢ Technology Investments ORGANIC GROWTH ¢ Leverage Infrastructure ¢ Deepen Client Relationships ¢ Dividend ¢ Share Repurchase Program RETURN CAPITAL ¢ M&A Opportunities LEVERAGE CAPITAL ¢ Non-Bank Businesses ¢ New Market Expansion
Slide 19: Acquisition Targets Profile
ES >>> PROFILE * Banks with $200-600M Assets ~250 Total Banks ¢ TBV Pricing Attractive TARGETS * Strong Core Deposit Base Tallahassee / * Lack of Scale to Absorb Regulatory Cost 1 Expansion Area * Succession Plan Unclear “Charleston Macon Gainesville © forties
Slide 20: Growth Strategies and Acquisition Opportunities
¢ Market Expansion, Small Business, Commercial Real Estate, Residential Real Estate, Construction Real Estate, WCF/ABL, Participations/Pools BROADER BASED LOAN GROWTH * Checking Account Acquisition, and Strategies IMPLEMENT FEE to Drive Interchange Revenues INCOME INITIATIVES * Insurance Sales * Dee
Slide 21: Why CCBG?
WHY CCBG? NFlorida is Growing NCombination of Stable and High Growth Markets j NStrong Deposit Franchise NAsset Sensitive Balance Sheet NStrong Capital — Ability to Deploy N Insider Ownership NSeasoned and Experienced Bankers Now Execution Risk NCCBG is One of the Few Remaining “Pure Plays” in Flori
Slide 22: | 3% Capital Ci
| 3% Capital Ci ; z ) Bamic Grou
Slide 23: Appendix
Slide 24: Quarterly Results
QUARTERLY RESULTS 08 06 0. 3 0. i 0.0° ja20 2020 3020 40201021202" B ix soar” a2" 1022, 2022, 30224022" IH Diluted Earnings Per Share ‘Il Pre-Tax Pre-Credit Costs (" PTPCC") per diluted share “Includes $0.10 per share partial pension settlement expense ** Includes $0.02 per share partial pension set
Slide 25: Fourth Quarter 2022 Quarter Highlights
FOURTH QUARTER 2022 QUARTER HIGHLIGHTS 30.2022 40.2022 SChange | %Change + Continued strong growth in (Dollars in thousands) Corecess | ccHt | coreccec | CCHL | CoreccaG | Coreccas atlotereat income of 4%-net Netinterestincome 33,325 2 38,337 (233) 5,012 15.04% interest margin percentage grew 45 bas
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS 2018 2019 2020 2021 Interest Income $99,395 | $112,836 $106,197 | $106,351 | $131,348 Interest Expense 6,891 9,493 471 3,490 6,888 Net Interest Income 92,504 103,343, 101,326 | 102,861 | 124,460 Provision for Credit Losses 2,921 2,027 9,645 (1,553) 7162 Noninterest Income 51,565
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS pret renee Endl 2018 2019 2020 2021 2022 Investments: $663,477 $643,140 $494,809 $995,073 $1,074,048 Loans Held for Investment 1,774,225 1,835,929 2,006,426 1,931,465, 2,525,180 Total Assets 2,959,183 3,088,953 3,798,071 4,263,849 4,525,958 Noninterest Bearing Deposits 947,858 1
Slide 28: Market Demographic
MARKET DEMOGRAPHIC LEGACY MARKETS PROVIDE STABLE AND PREDICTABLE GROWTH, WHILE ATTRACTIVE NEW MARKETS PROVIDE HIGHER GROWTH OPPORTUNITIES. Population Growth Rate Household 2010-2022 2022-2027 me pepe? Tallahassee MSA 7.0% 2.8% $59,127 1.5% Walton 43.5% 6.5% $69,418 10.2% CCBG Florida Markets 15.6% 3
Slide 29: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES inds 2018 2019 2020 2021 2022 TANGIBLE COMMON EQUITY RATIO. Dollars in Thi We presenta tangible common equity ratio that removes the effect of goodwill resulting from merger and acquisition activity. We believe this measure is useful to investors because ‘Shareowners’ Equ
Slide 30: Capital City Bank Group
Capital Ci x) Bank Grea i Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q4 2022 Earnings Presentation on 6ix