Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q3 2019 Earnings Presentation
31 slides from Capital City Bank's earnings presentation, Nov 4, 2019
Slide 1: Investor Presentation Third Quarter 2019
Investor Presentation Third Quarter 2019
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 — cr Managed Multiple Business Cycles Successfully ALABAMA $2.9B Assets Loans: $1.8B/Deposits: $2.5B 85% Florida/15% Georgia 50/50 Mix of Consumer and : 57 Offices Commercial Clients | FLORIDA $1.7B Assets Under Management
Slide 4: Corporate Profile
Corporate Profile Ownership ~60% Retail/40% Institutional ~ 24% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap"? $460 Million (1) Asof 09730719
Slide 5: Florida at a Glance
Florida at a Glance Highest Migration Rate in U.S. 3° Most Populous State - Projected Population Growth 2X National Average Several Growth Measures (Jobs, Personal Income, GDP, Tourism) Now Surpass Prior Peaks and National Average Business-friendly State with No Personal Income Tax State/Local Budge
Slide 6: Growth Markets
Growth Markets TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,170,535 Total Deposits in Thousands) $93,295 Market Share‘? 14.3% Market Share‘”) 2.5% Market Share Rank‘? #3 Market Share Rank? #8 Government, Education, Top 3 Industries Top 3 Industries Education, Professional Healthcare, D
Slide 7: Deposit Portfolio Composition
Deposit Portfolio Composition Deposit Portfolio Detail Total Deposit Growth 2a 2423 anes 283 132 238 093 251 2070 2: 7 aoe ie 232 fmm 205 258 32581 284 i 273 292 22 255 5 27 0 0 2014 © Noninterest Bearing Deposits ‘Torlcost NOW Accounts offunds-CCOG? 0.20% «0.6K ONMK ONS ONG OTHO.BK Regular Savings
Slide 8: Loan Portfolio
LOAN PORTFOLIO“) $1,840,828 1% 2% 33% 20% @ Commercial R/E — @ Home Equity R/E Residential R/E © Construction R/E @ Indirect Auto © Direct Consumer © CommercialLoans @ OtherLoans Top 10 loans represent 6% of total loans (9) 302019-£0M Loan Portfolio Diversification CRE COMPOSITION 170% of Tier 1 Cap
Slide 9: Credit Quality
Credit Quality NPA Reduction: 18% Decrease QoQ and 40% Decrease YoY * Classified Loans: 19% Decrease QoQ and 7% Decrease YoY * Continued Strong OREO Sales with Retail Disposition Strategy: 48% Decrease QoQ and 76% Decrease YoY * Overall credit quality has returned to pre-crisis levels i 5.21% NON-PE
Slide 10: Strong Capital Position
Strong Capital Position CAPITAL TO EXECUTE STAYING POWER $350M - 2011 2015 2016 + 2017 +2018 +3a19 2011 2015” 2016 2017 @ mm ceefal cc8s © wroivie Common Equity-Cc0G” © Common Equity -® Excess Regulatory Capital @ angibte Common Equity - Publicly Traded $1-S5 Billion SE Banks (1) Basel ili became et
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“) 2%1% $84.8 Million $39.2 Million @ Commercial R/E @ Commercial Loans. @ Deposit Fees © ResidentolR/E © Construction R/E ) Bank Card Fees Investment Securities @ FundsSold Wealth Management Fee @ Home Equity R/E @ Direct Consumer © oth
Slide 13: Generate Loan Growth
Generate Loan Growth PERIOD END LOANS GROWTH BY SEGMENT? (S in Millions / % Growth’) -$20M-SIOM 0 $10M $20M $30M S40M $SOM S60M $70M $2000 |‘CommercialLoans 8.7% Construction R/E 27.0% Commercial R/E 2.4% ResidentialR/E 7.4% Home Equity R/E $1500 $1000 $500 -9.1% |] Direct Consumer Indirect Auto $0'
Slide 14: Drive Revenues: Positioned to Win on Rates
DRIVE REVENUES Positioned to Win on Rates LOAN REPRICING RATE MIX @ Overnight @ 12 Months 24 Months 36 Months e S Montes (in millions) lonths @ >60 Months 61% of Loan Portfolio is Variable or Adjustable 55% of Loan Portfolio Reprices 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 Millions) $38,327 $39,225 See Lome Frae to Fee | Improve Card Other Fees Checking aes a S Yr. ee Leverage Working Capital Finance Platform | Grow Weaith ‘Management Assets, 2018 yD
Slide 16: Noninterest Expense Trend
on NONINTEREST EXPENSE TREND $150M $120M $90M 2019° s60m 30M > Pension Plan Legal & Professional @ Processing Services @ Associate Benefits @ Other Real Estate gl so (1) OREO, Legal(Loan Resolution), FDIC Insurance & Pension Costs (@) YTD osa02019
Slide 17: Banking Office Optimization and Digital Initiatives
Banking Office Optimization Sale/Leaseback Reduce SF Close/Sell Office/Market ROA Reviews Process Improvement Consolidate Platforms Electronic Documents Eliminate Non-Value- Added Tasks Digital First Self-Service Teller Mobile & Online Digital Lending Support Growth Account Acquisition Onboarding Cl
Slide 18: Effectively Deploy Capital
EFFECTIVELY DEPEOY, CAPITAL * Technology Investments CK. | overage Infrastructure 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 Benue Tallahassee |
Slide 20: 2019 Focus
2019 Focus + Small Business, Commercial Real Estate, Sliceltey Beisel Residential Real Estate, WCF/ABL, and Loan Growth Participations/Pools + New Checking Account Platform, Account Acquisition, and Strategies to Drive Interchange Revenues Implement Fee Income Initiatives Evaluate Acquisition Opport
Slide 21: Why CCBG?
Why CCBG? Florida is Growing = —aay = = | el Seasoned and Experienced Bankers ay Low Execution Risk CCBG is One of the Few Remaining Gy “Pure Plays” in Florida Growth Measures Nearing Prior Peaks Stable Markets Strong Deposit Franchise Asset Sensitive Balance Sheet Strong Capital — Ability to Deploy
Slide 22: Capital City Bank Group
y 2% Capital Ci q ) Bank Group _
Slide 23: Appendix
oll @ _- Appendix '
Slide 24: Quarterly Results
Quarterly Results 07 073 0.00 06 3 05 0.4 3 03 3 3 02 B i li 00° “4016 1017 2017-30174” 1018" oe 3qis" 4qis 1019 2019 -3a19 Bl Diluted Earnings PerShare [J Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share" ‘includes Deferred Tax Re-Measurement Expense of $0 24per Share ‘includes Tox Benefits $0.
Slide 25: Financial Highlights
Financial Highlights nner YTD 201: Interest Income $82,162 $78,221 $79,658 $81,154 $86,930 $99,395 $84,828 Interest Expense 4416 3,580 3,307 3,189 3.948 6,891 7,739 Net Interest Income 7736 74.641 (76,361 77,965 82,982 92,504 77,089 Provision 3.472 1,905 1.594 819 2.216 2.921 2,189 Noninterest Incom
Slide 26: Financial Highlights
Financial Highlights Period-E nib 2013 2014 2015 2016 2017 2018 3Q1: inesiments So0n6a1 5605129, seag20.«S7000NB | SENTSB0 | SuERATT_——SOtTZB4 ts 1385660 sgn 1503907 157a.75 165808 17o100 10528 Tot ses i190 2627169 2787660 2046.1o7 | 2aR870 2950.69 28NKStD Noninterest Bearing Deposits 641,463 659,11
Slide 27: Market Demographic
Market Demographic Anchor and Small-Town America Markets More Stable and Predictable. Median Income Projected Change 2010-2019 2019-2024 ane se\gioos Tallahassee MSA 6.28% 451% $53,308 12.25% CCBG Florida Markets 7.94% 3.95% $44,838 589% Florida 14.28% 6.79% $55,629 10.26% us 6.64% 3.56% $63,174 8.8
Slide 28: Deposit Market Share
Deposit Market Share Ranking: Nanberof | CcuGDepestsin'| T-eicosc | 2oteMatet | Market Franchise Share in Top Share** Florida 47 $2,169,890 87.07% 12 of 18 8.30% Georgia 8 $292,360 11.73% 20f4 5.11% Alabama 2 $29,949 1.20% - 9.22% Totals 57 $2,492,199. 100.00% - + Market Share Gives Pricing Leverage
Slide 29: Analyst Estimates
Analyst Estimates 2019EPS PRICE TARGET RATING HOVDE $173 $30.00 Market Perform kaw $1.80 $28.00 Market Perform Stephens S177 $28.00 Equal Weight Sandler O'Neill S177 $30.00 Hold
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present a tangible ‘common equity ratio that removes the effect of goodval resulting fiom merger and acquisition activity. We believe this measure is Useful to investors because it allows imestors to more easily ‘compare our capital adequacy to other ‘companies in the
Slide 31: Corporate Headquarters
=s =S = => = = Capital Ci J Bank Croan Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q3 2019 Earnings Presentation on 6ix