Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q3 2018 Earnings Presentation
29 slides from Capital City Bank's earnings presentation, Nov 19, 2018
Slide 1: Investor Presentation Third Quarter 2018
Investor | Presentation Third 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 Managed Multiple Business Cycles Successfully $2.8B Assets Loans: $1.8B/Deposits: $2.4B 85% Florida/15% Georgia als 50/50 Mix of Consumer and af FLORIDA Commercial Clients gore) $1.5B Assets Under Management
Slide 4: Corporate Profile
Corporate Profile Ownership ~64% Retail/ 36% Institutional ~ 24% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap!” $398 Million (1) Asof 99018
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 (in Thousands) $1,109,301 Total Deposits (in Thousands) $94,865 Market Share(") 14.3% Market Share‘) 27% Market Share Rank”) #3 Market Share Rank‘*) #8 Government, Education, ‘Tops indisties Education, Professional _T°P Industries Healthcare, D
Slide 7: Core Deposit Advantage
Core Deposit Advantage AVERAGE DEPOSITS BY TYPE() COST OF FUNDS“) (25bps) National Peer”) 3 i a = 2 > by Cs Florida Pee: © NIBDemand Deposits @ Regular Savings @ now @ cds @ Money Market (y YrDoaso1e (2) Publcally Traded $ 1-5 Bilion Southeast Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO") $1,782,051 @ Commercial R/E _ @ Commercial Loans Residential R/E @ Construction R/E @ Indicect Auto © Direct Consumer @ Home EquityR/E — @ Other Loans (1) 302018-£0u 2% 1% 11% CRE COMPOSITION 169% of Tier 1 Capital $479,339 @ Improved Property Construc
Slide 9: Credit Quality
Credit Quality * NPA Reduction: 5% Increase QoQ and 24% Decrease YoY * Classified Loans: 9% Decrease QoQ and 26% Decrease YoY * Continued Strong OREO Sales with Retail Disposition Strategy: 19% Decrease QoQ and 55% Decrease YoY SON sai NONEEREORMING aM (% of Assets) ‘$90M ‘$60M 2.00% ‘$30M 679% i cr
Slide 10: Strong Capital Position
Strong Capital Position STAYING POWER CAPITAL TO EXECUTE 2011 2015 2016 2017 3Q18 2015” @ Risk Based Capital-ccws ei @ tercivie Common Equity -CcB6# © ‘nib1e Common Eqity- Publicly Traded $1.85 Billon SE Banks @ Common Equity > Excess Capital (1) Risk Based Capita (2) Adjusted Non-GAAP, See Appendis
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) 3% 3%1% $73 $38 Million © Commercial R/E © Commercial Loans © Deposit Fees ) Residential R/E @ Construction R/E ® Bank Card Fees Home Equity R/E @ Funds Sold Wealth Management Fee @ levestment Securities @ Direct Consumer @ Other © In
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES Generate Loan Growth PERIOD END LOANS GROWTH BY SEGMENT") ($ in Millions / % Growth) -$20M-$10M 0 S1OM $20M $30M $40M $50M $60M $70M $2,000,000 aaa Commercial Loans 10.7% $1,500,000 Construction R/E 28.5% SpETEESLUE | $1,000,000 ResidentialR/E 9.1% 6.8% Home Equity R/E $500,000 12.6%
Slide 14: Drive Revenues: Loan Repricing
DRIVE REVENUES LOAN REPRICING @ Overnight @ 12 Months @ 24 Months @ 36 Months @ 48 Months 60 Months @ >60 Months * 64% of Loan Portfolio is Variable or Adjustable * 64% of Loan Portfolio Reprices within One Year » Positioned to Win on Rates RATE MIX $1,782 (in millions)
Slide 15: Drive Revenues: Fee Income Mix
DRIVE REVENUES FEE INCOME MIX (in Milions) $38,849 $38,327 100% Other Fees | ae 60% fy 40% sg (Convector 0 2017" 2018” Grow and Diversify Fee Income GROWTH INITIATIVES SBA7%(a) Loan Program Improve Card Utiization Leverage Working Capital Finance Platform Grow Weaith ‘Management Assets
Slide 16: Noninterest Expense Trend and Mix
NONINTEREST EXPENSE TREND NONINTEREST EXPENSE MIX 150M som 7 @ Silas © Pension Plan 2017 3018 @ Occupancy @ Legal & Professional © Other © Processing Services @ Associate Benefits @ Other RealEstate (1) OREO, Legal (Loan Collections), FDIC Insurance & Pension Costs (2) yr0 9802018 7
Slide 17: Channel Optimization, Process Improvement, Reduce Cycle Costs
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 Organic Growth + Leverage 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 Tallahassee | IB Expansion Area Macon Gainesville
Slide 20: 2018 Focus
2018 Focus + Small Business, Commercial Real Estate, Broades Based Residential Real Estate, WCF/ABL, and oan Growt Participations/Pools Implement Fee + Including Our New Checking Account Platform and Income Initiatives Strategies to Drive Interchange Revenues Evaluate Acquisition Opportunities + Eva
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 Plays’ in Florida
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 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 8 8 3 6 201 63a16 «dale 1017 Il Diluted Earnings Per Share 0.27 3 2017-3017, 4ai7"—s1ais 2018" 3018" Il Pre-Tax Pre-Credit Costs ("PTPCC") per diluted share”
Slide 25: Financial Highlights
Financial Highlights Dollars in Thousands 2017 YTD 2018 sings per Share Interest Income $89,680 $82,152 $78221 $79,658 $81,154 $86,930 $73,025 Interest Expense 5,368 4416 3,580 3,948 4,869 Net Interest Income 84.312 71.736 74,641 82,982 68,156 Provision 16,166 3.472 1,905 2216 2.464 Noninterest Inco
Slide 26: Financial Highlights
Financial Highlights 2013 2014 Investments $296,985 $399,631 $505,129 $638,920 $700,099 $695,108 $712,166 Loans 4,521,302 1,399,668 1,442,062 1,503,907 1,572,175 1,638,138 1.782.051 Total Assets 2,633,984 2,611,903 2.627.169 2,797,860 2.845.197 2,790,842 2,819,190 Noninterest Bearing Deposits 609.23
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 Ranking: Percentof Counties with Deposit State) | Sumbacel® | Cree eal TotalCCBG — 2017Market Market cee arkeu( Franchise ShareinTop —Share** jowoe [8 [soso | fawn | 2 | Sbet! : [| = | om | + Market Share Gives Pricing Leverage + Keeps Cost of Funds Low + Organic Growth Going Fo
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present s tanigtie (Dollars in Thousands) 2011 2015 2016 2017 3018 coe sacs a A removes the effect of EQUITY RATIO. Sr tg ton a ‘activity. We believe this Less: Goodwill (GAAP) 06,158] sea.a1 | se4.e11 measure is useful to mer me ai investors because it $172,861 | $189
Capital City Bank Group — Q3 2018 Earnings Presentation on 6ix