Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Investor Presentation (August 2016)
27 slides from Capital City Bank's investor presentation, Aug 31, 2016
Slide 1: Investor Presentation August/September 2016
= Capital C ay sone repeal Investor Presentation August/ September 2016 NASDAQ:CCBG
Slide 2: Forward-Looking Statement
Forward-Looking Statement NASDAQ.CCBG 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, c
Slide 3: Corporate Profile
Corporate Profile NASDAQ:CCBG Oldest Florida-based Publicly 61 Offices in 3 MSA’s Traded Bank + Managed Multiple Business Cycles Successfully 2 = wa oy + $2.8BAssets pena mn GEORGIA + Loans: $1.5B/Deposits: $2.3B ‘ALABAMA o—~ apron ~ * 80% Florida/20% Georgia * 50/50 Mix of Consumer and 2 oe Commerc
Slide 4: Corporate Profile
Corporate Profile NASDAQ:CCBG Ownership 70% Retail/ 30% Institutional ~ 27% Insider Experienced Market Cap Management $251 Million Average of 27 Years Experience with CCBG
Slide 5: Florida on the Rise
Florida on the Rise + Highest Migration Rate in U.S. - Twice U.S. Average ~ 1,000 People Per Day + 3rd 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-friendl
Slide 6: Growth Markets
Growth Markets NASDAQ:CCBG TALLAHASSEE MSA MACON MSA Total Deposits $073,695 Total Deposits $93,169 Market Share 10.33% Market Share 2.84% Market Share Rank) ra Market Share Rank) 7 , Government, Education, Healthcare, ARGRIIES fh! Education, Professional gion 8 Ercustnies Defense Projected Populati
Slide 7: Average Deposits by Type / Cost of Funds
NASDAQ:CCBG AVERAGE DEPOSITS BY TYPE") COST OF FUNDS() (13bps) 0.50 0.40 0.30 0.20 5 5 a 5 = 0.10 8 5 g s Ey i ing 2 2 0.00 @ Now CDs @ NIB Demand Deposits @ Regular Savings © Money Market my
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO“) $1,532,520 ‘Commercial Loans Construction PVE @ Commercial R/E @ Residential RE @ Home Equity RE @ Direct Consumer @ Indirect Auto (1) 202016-£0M NASDAQ:CCBG. CRE COMPOSITION 133% of Tier 1 Capital $355,086 © trproved Property @ vocant Lane © Conrcton
Slide 9: Credit Quality
Credit Quality NPA Reduction: 14% Decrease in Q2 and 23% Decrease in 2016 Classified Loans: 10% Decrease in Q2 and 16% Decrease in 2016 Continued Strong OREO Sales with Retail Disposition Strategy: 16% Decrease in Q2 and 24% Decrease in 2016 NON-PERFORMING ASSETS. (% of Assets) NASDAQ:CCBG. CLASSIFI
Slide 10: Strong Capital Position
Strong Capital Position NASDAQ:CCBG CAPITAL TO EXECUTE STAYING POWER 2010 2014 2015 2016 @ er tare capas-cose © te Conmin tasty ceb6 (© 1 Conon ety Pussy Traded $185 Bon SE Bars (1) Basel ll became efective in 2015. 10
Slide 11: Strong Earnings Engine
Strong Earnings Engine NASDAQ:CCBG - Cumulative profit through the cycle* = $22M or $1.32/share - Growth will come from operating leverage $3.00 om 2 us 228 $2.00 a i 1s us tat E [ | a Ps = rr | 2008" 2009, 2010 2011% 2012 2013, 20140 2015" YTD16" BEE Netincome J Pre-TaxPro-Creit Cost (PTPCC) Per Di
Slide 12: Strategic Initiatives: Three Pillars of Execution
Strategic Initiatives: Three Pillars of Execution NASDAQ:CCBG 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
Slide 13: Drive Revenues: Diversified Revenues
DRIVE REVENUES Diversified Revenues INTEREST INCOME) 1.2% 1.7% 2.9% $40.2 Million @ Funds Sold @ Investment Securities ‘Commercial Loans @ Construction RE @ Commercial RE wy © Residential RIE @ Home Equity RIE @ Direct Consumer @ Indirect Auto @ Fees On Loans NASDAQ:CCBG. FEE INCOME) 2.5% 42% of Ope
Slide 14: Drive Revenues: Generate Loan Growth
DRIVE REVENUES NASDAQ:CCBG Generate Loan Growth PERIOD END LOANS. GROWTH BY SEGMENT“) (S in billions / % growth) = MAES @ Commercial Loans Construction P/E Commercial RVE @ Residential P/E @ Home Equity RIE Direct Consumer Indirect Auto © Other - LIP 5.5% $2,000,000 ‘$50M 4.1% 3.9% $1,500,000 $1,504
Slide 15: Drive Revenues: Positioned to Win on Rates
DRIVE REVENUES NASDAQ:CCBG Positioned to Win on Rates LOAN REPRICING RATE MIX @ Overnight @ 12. Months. @ 24 Months @ 36 Months. @ 48 Months 60 Months @ > 60 Months * 64% of Loan Portfolio is Variable or Adjustable + ~ 2/3 of Loan Portfolio Re-Prices Within One Year + 50 BP Rate Rise = Favorable Ann
Slide 16: Drive Revenues: Grow and Diversify Fee Income
DRIVE REVENUES Grow and Diversify Fee Income FEE INCOME MIX $27,642 $27,892 ASS $683 Dae Recess Fon Morisoge Banking Foxe $2286 80% 60% 40% Ea $11,223 (Ceposit Fees) 0% 1 NASDAQ:CCBG. GROWTH INITIATIVES Check Cashing/ Prepaid Cards reas | Improve Card Utilization Residential 2015'" wy Leverage Worki
Slide 17: Committed to Expense Reduction
EXPENSE MANAGEMENT Committed to Expense Reduction NONINTEREST EXPENSE TREND $150,000 $120,000 = $90,000 cycle Cost $60,000 2007 2014 2018 2016 (1) OREO, Legal(Loan Collections), FDIC Insurance & Pension Costs @) YD NASDAQ:CCBG. NONINTEREST EXPENSE MIX @ Salaries @ Legal & Professional @ Associate Be
Slide 18: Expense Management: Initiatives in Motion
EXPENSE MANAGEMENT Initiatives in Motion Channel Process Optimization Improvement Sree Consolidate Platforms Mobile & Onli me Electronic Website Documents Enhancements Eliminate Office/Market Non-Value- ROA Reviews Added Tasks Reduce Cycle Costs OREO Legal Pension FDIC. NASDAQ:CCBG Support Growth On
Slide 19: Effectively Deploy Capital
Effectively Deploy Capital NASDAQ:CCBG * Technology Investments Organic Growth + Leverage Infrastructure Dividend Share Repurchase Program Return Capital Leverage Capital M&A Opportunities Non-Bank Businesses 19
Slide 20: Acquisition Opportunity
Acquisition Opportunity NASDAQ:CCBG Profile - Banks with $100-500M assets ~300 total banks - TBV pricing attractive Targets - Strong core deposit base - Lack of scale to absorb regulatory cost - Succession plan unclear
Slide 21: 2016 Focus
2016 Focus NASDAQ:CCBG 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 Focus on Problem Asset Resolution + Will lower our NPAs and reduce our cre
Slide 22: Why CCBG?
Why CCBG? = + Florida is Back Growth Measures Nearing Prior Peaks ay o Gevistewee | eed Strong Deposit Franchise => + Strong Capital — Ability to Deploy —_ + Insider Ownership i) + Seasoned and Experienced Bankers ay Low Execution Risk Gala * CCBGis One of the Few Remaining | “Pure Plays’ in Florida
Slide 23: = Capital Ci
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Slide 24: Appendix
enti @ _- Appendix Oy Gabi Grants
Slide 25: Quarterly Results
Quarterly Results NASDAQ:CCBG 045 — oat 0.40 0.36 0.35 ot 0.30 028 0.26 0.25 = 0: °. 0.20 020 015 oH 0.114) 0.10 . 0. 0.05 0.00 = jou 2014 soi 4ors ros 201s 3015 4015 1018 2016" Diluted Eamings Per Share _—_& Pre-Tax Pre-Credit Costs ("PTPCC’) per diluted share “Includes one-time tax Denefitof $0.13
Slide 26: Financial Highlights
Financial Highlights Dollars in Thousands, except Eamings per Share 2011 2012 2014 2015 NASDAQ:CCBG YTD 2016 Interest Income $99,459 $89,680 $82,152 $7821 $79,658 $40,218 Interest Expense 1537 5,368 4At6 3,580 3,307 1,632 Net Interest Income 91,922 84,312 77,736 74,641 76,351 38,586 Provision 18,996
Slide 27: Financial Highlights
Financial Highlights NASDAQ:CCBG As of Period-End 2012 2013 20t4 Investments $307,149 $296,985 $399,631 $505,129 $638,920 $690,322 Loans 4,628,683 1,521,302 1,399,668 1.442.062 1,503,907 1,532,520 Total Assets 2,641,312 2,633,984 2,611,903 2.627.169 2,797,860 2.767.636 Noninterest Bearing Deposits 6
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