Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q1 2019 Earnings Presentation
32 slides from Capital City Bank's earnings presentation, May 3, 2019
Slide 1: Investor Presentation First Quarter 2019
NASDAQ:CCBG Investor Presentation First Quarter 2019
Slide 2: Forward-Looking Statement
Forward - Looking Statement 2 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 c
Slide 3: Corporate Profile
• Oldest Florida - based Publicly Traded Bank • Managed Multiple Business Cycles Successfully • $3.0B Assets • Loans: $ 1.8B/Deposits : $ 2.6B • 85% Florida/15% Georgia • 50/50 Mix of Consumer and Commercial Clients • $1.7B Assets Under Management 59 Offices Corporate Profile 3
Slide 4: Corporate Profile: Market Cap and Ownership
Market Cap (1) $366 Million 25 Years 60/40 Experienced Management Average of 25 Years’ Experience with CCBG Ownership ~60% Retail/40% Institutional ~ 24% Insider $ 366 M Corporate Profile 4 ( 1) As of 03/31/19
Slide 5: Florida at a Glance
• Highest Migration Rate in U.S. • 3 rd 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 Budgets Gr
Slide 6: Growth Markets
Growth Markets TALLAHASSEE MSA Total Deposits (in Thousands) $1,170,535 Market Share (1) 14.3% Market Share Rank (1) #3 Top 3 Industries Government, Education, Professional Projected Population Growth (2) 4.5% Projected HH Income Growth (2) 12.2% GAINESVILLE MSA Total Deposits (in Thousands) $277,83
Slide 7: Deposit Portfolio Detail
Deposit Portfolio Detail Deposit Portfolio Composition Total Deposit Growth Deposit Portfolio Highlights (1) Total Deposits less CDs (2) Publicly Traded $1 - $5 Billion SE Commercial Banks (Source: SNL) • CAGR of ~ 7% DDA, ~ 4% MMA/SAV/ NOW • 95% Core Deposit (1) to Total Deposit 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification CRE COMPOSITION 164% of Tier 1 Capital $479,228 8 (1 ) 1Q2019 - EOM IMPROVED PROPERTY COMPOSITION $330,732 LOAN PORTFOLIO (1) $1,801,662 Top 10 loans represent 6% of total loans
Slide 9: Credit Quality
Credit Quality NON - PERFORMING ASSETS (% of Assets) CLASSIFIED LOANS (% of Total Loans) TOTAL OREO BALANCES • NPA Reduction: 24% Decrease QoQ and 35% Decrease YoY • Classified Loans: 3% De c rease QoQ and 30% Decrease YoY • Continued Strong OREO Sales with Retail Disposition Strategy: 15 % Decrease
Slide 10: Strong Capital Position
Strong Capital Position CAPITAL TO EXECUTE STAYING POWER (1) Basel III became effective in 2015. (2) Adjusted Non - GAAP, See A ppendix for Reconciliation. 10
Slide 11: Strategic Initiatives: Three Pillars of Execution
Strategic Initiatives: Three Pillars of Execution Drive Revenues Generate Loan Growth > Positioned to Win on Rates > Grow & Diversify Fee Income Disciplined Expense Management Committed to Expense Reduction > Efficiency Initiatives in Motion Effectively Deploy Capital Organic Growth > Return Capital
Slide 12: Drive Revenues: Diversified Revenues
DRIVE REVENUES INTEREST INCOME (1) FEE INCOME (1) 12 ( 1) 1Q19 Diversified Revenues
Slide 13: Generate Loan Growth
PERIOD END LOANS ($ in Millions / % Growth (1) ) GROWTH BY SEGMENT (2) 13 (1) Year over year ( 2 ) 2019 vs. 2018 DRIVE REVENUES Generate Loan Growth
Slide 14: Positioned to Win on Rates
LOAN REPRICING • 61% of Loan Portfolio is Variable or Adjustable • 55% of Loan Portfolio Reprices within One Year • Loan Beta of 42% - Last 12 months • Deposit Beta (1) of 23% - Last 12 months 14 DRIVE REVENUES Positioned to Win on Rates RATE MIX (1) Total Beta – includes NIB accounts
Slide 15: Grow and Diversify Fee Income
FEE INCOME MIX (in Millions) GROWTH INITIATIVES 15 DRIVE REVENUES Grow and Diversify Fee Income (1) YTD
Slide 16: Expense Management: Committed to Expense Reduction
NONINTEREST EXPENSE TREND NONINTEREST EXPENSE MIX 16 (1) OREO, Legal (Loan Resolution), FDIC Insurance & Pension Costs (2) YTD 03/31/2019 EXPENSE MANAGEMENT Committed to Expense Reduction
Slide 17: Initiatives in Motion
Support Growth Account Acquisition Onboarding Client Profitability Client Segmentation Digital First Self - Service Teller Mobile & Online Digital Lending Banking Office Optimization Sale/Leaseback Close/Sell Office/Market ROA Reviews Process Improvement Consolidate Platforms Electronic Documents El
Slide 18: Effectively Deploy Capital
• Technology Investments • Leverage Infrastructure Organic Growth • Dividend • Share Repurchase Program Return Capital • M&A Opportunities • Non - Bank Businesses Leverage Capital 18 EFFECTIVELY DEPLOY CAPITAL
Slide 19: Acquisition Opportunity Profile
Acquisition Opportunity 19 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
Slide 20: 2019 Focus
20 2019 Focus • Small Business, Commercial Real Estate, Residential Real Estate, WCF/ABL, and Participations/Pools Broader Based Loan Growth • Including Our New Checking Account Platform and Strategies to Drive Interchange Revenues Implement Fee Income Initiatives • Evaluate Both Bank and Non - bank
Slide 21: Why CCBG?
Why CCBG? • Florida is Growing • Growth Measures Nearing Prior Peaks • Stable Markets • Strong Deposit Franchise • Asset Sensitive Balance Sheet • Strong Capital – Ability to Deploy • Insider Ownership • Seasoned and Experienced Bankers • Low Execution Risk • CCBG is One of the Few Remaining “Pure P
Slide 22: Capital Ci
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Slide 23: * anitiilill
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Slide 24: Quarterly Results
Quarterly Results 24 * Includes TRUPs Repurchase G ain of $0.09 per Share **Includes Deferred Tax Re - Measurement Expense of $0.24 per Share ***Includes Tax Benefits $0.09, $0.08, and $0.02 per share for 1Q, 2Q, and 3Q respectively related to 2017 Plan Year Pension co ntributions * ***Includes Tax
Slide 25: Financial Highlights
Financial Highlights Dollars in Thousands, except Earnings per Share 2013 2014 2015 2016 2017 2018 1Q19 Interest Income $82,152 $78,221 $79,658 $81,154 $86,930 $99,395 $27,722 Interest Expense 4,416 3,580 3,307 3,189 3,948 6,891 2,814 Net Interest Income 77,736 74,641 76,351 77,965 82,982 92,504 24,
Slide 26: Period-End Balance Sheet Highlights
As of Period - End Dollars in Thousands 2013 2014 2015 2016 2017 2018 1Q19 Investments $399,631 $505,129 $638,920 $700,099 $697,590 $663,477 $655,195 Loans 1,399,668 1,442,062 1,503,907 1,572,175 1,658,309 1,781,094 1,801,662 Total Assets 2,611,903 2,627,169 2,797,860 2,845,197 2,898,794 2,959,183 3
Slide 27: Market Demographic
NASDAQ: CCBG Population Growth Rate Household 2010 - 2019 2019 - 2024 Median Income 2019 Projected Change 2019 - 2024 Tallahassee MSA 6.28% 4.51% $53,308 12.25% CCBG Florida Markets 7.94% 3.95% $44,838 5.89% Florida 14.28% 6.79% $55,629 10.26% US 6.64% 3.56% $63,174 8.82% Sources: S&P Global Market
Slide 28: Deposit Market Share
NSDAQ : CCBG State Number of Offices CCBG Deposits in Market ($000)* Percent of Total CCBG Franchise Ranking: Counties with 2018 Market Share in Top 4 Deposit Market Share** Florida 48 $2,169,890 87.07% 12 of 18 8.30% Georgia 9 $292,360 11.73% 2 of 4 5.11% Alabama 2 $29,949 1.20% - 9.22% Totals 59 $
Slide 29: Analyst Estimates
Analyst Estimates Analyst 2019 EPS PRICE TARGET RATING HOVDE $1.71 $28.00 Outperform KBW $1.50 $26.00 Market Perform Stephens $1.65 $25.00 Equal Weight Sandler O’Neill $1.76 $25.00 Hold 29
Slide 30: Non-GAAP Reconciliation
30 (Dollars in Thousands) 2013 2014 2015 2016 2017 2018 1Q19 TANGIBLE COMMON EQUITY RATIO Shareowners' Equity (GAAP) $ 276,400 $272,540 $ 274,352 $ 275,168 $ 284,210 $302,587 $308,986 Less: Goodwill (GAAP) $ 8 4,843 ($84,811) $84,811 $84,811 $84,811 $84,811 $84,811 Tangible Shareowners' Equity (non
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Slide 32: Corporate Headquarters and Contacts
Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com 32 William G. Smith, CEO smith.bill@ccbg.com J. Kimbrough Davis, CFO d avis.kim@ccbg.com Jep Larkin, Controller l arkin.jep@ccbg.com
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