Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q3 2021 Earnings Presentation
32 slides from Capital City Bank's earnings presentation, Nov 1, 2021
Slide 1: Third Quarter 2021
THIRD QUARTER 2021 NASDAQ: CCBG rice y
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT 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 cause t
Slide 3: Corporate Profile
CORPORATE PROFILE Oldest Florida-based Publicly Traded Bank Managed Multiple Business Cycles Successfully $4.0B Assets Loans HFI: $1.9B/Deposits: $3.5B 87% Florida/13% Georgia 50/50 Mix of Consumer and Commercial Clients (Deposits) $2.2B Assets Under Management
Slide 4: Corporate Profile
CORPORATE PROFILE Ownership ~55% Retail/45% Institutional ~20% Insider Market Cap” $418 Million Experienced Management Average of 25 Years’ Experience with CCBG
Slide 5: Florida at a Glance
FLORIDA AT A GLANCE N Highest Migration Rate in U.S. N 3rd Most Populous State - Projected Population Growth 2X National Average N Projected Population Change (2021-2026) of 5.9% N Business-friendly State with No Personal Income Tax Government Higher Education Healthcare Agriculture Manufacturing Re
Slide 6: Growth Markets
GROWTH MARKETS TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) Market Share” Market Share Rank” Top 3 Industries $1,426,015 15.4% #2 Government, Education, Professional Total Deposits (in Thousands) Market Share" Market Share Rank” Top 3 Industries $120,705 2.7% #8 Education, Healthcare, Def
Slide 7: Deposit Portfolio Detail
EPOSIT PORTFOLIO DETAIL Average Deposit Total Deposit Growth Portfolio Composition 2,844 525 104 iaza ‘966 826 781 1,491 1,254 908 Noninterest Bearing Deposits © NOW Accounts Regular Savings Accounts ota Cost 2017 2018 2019 2020 3021 @ Money Market Accounts. tno besser offunds-CCBG” 016% «0.27% «0.3
Slide 8: Loan Portfolio Diversification
AN PORTFOLIO DIVERSIFICATION Loan Portfolio” $1,941,425 @ CommercialR/E — @ Home Equity R/E @ Residential R/E © Construction R/E IndirectAuto —@- @ Direct Consumer @ Commercial Loans Top 25 loans represent 8% of total loans CRE Composition $659,929 200% of Tier 1 Capital 2%, 2% 10% @ Improved Proper
Slide 9: Classified Loans
Classified Loans (% of Total Loans HF) 35M EDIT Proven strong underwriting and risk management 5 year average annual credit losses of 10 basis points Strong credit quality metrics at September 30, 2021 ACL coverage 1.11% of loans 4a 4aie—«4a19——«4a20.—~—«3021 COVID-19: all loans extended have resume
Slide 10: Capital Position
G CAPITAL POSITIO Capital To Execute 2017 @ Risk-Based Capital 2018 2019 2020 3021 @ Tongible Common Equity © Excess Regulatory Capital Staying Power 20 17. 10 9 2017 2018 2019 2020 3Q21 @ fiskBased Capital-ccBG @ Tangible Common Equity -CCBG” @ Tongibie Common Equity -Publicy Taded $185 Billion SE
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 Revenue: Diversified Revenues
DRIVE REVENUE > Diverifiad Reaeraee INTEREST INCOME” FEE INCOME" 1% 1% 51.5% of Operating Revenues $80.8 Million $82.9 Million @ Commercial R/E @ Investment Securities @ Mortgage Banking Revenues - © Residential R/E CCHL (51% ownership) ‘Commercial Loans @ Deposit Fees © Bank Card Fees @ Indirect Au
Slide 13: Drive Revenue: Loan Growth by Segment
DRIVE REVENUE > Garinandiccat Gina Period End Loans HFI Growth By Segment” ($ In Millions /% Growth) $2500 - -S100M -S80M -s6om -s40M 0 $20M SoM S6oM s8om sioom $2000 -°.7% | Commercial Loans - Core ~95.9% || Commercial Loans - SBA $1500 wee 4.2% $1000 6.0% -4.9% | Home Equity R/E $500 -12.2% | Dire
Slide 14: Drive Revenue: Interest Rate Profile
DRIVE REVENUE > tiniest fae Patil Loan Repricing - HFl Loans Rate Mix 4% 2% @ Overnight @ 12 Months” 24 Month: @ 36 fone $ 1,94 1 @ 48 Months (in millions) 60 Months @ >60 Months * 60% of Loan Portfolio is Variable or Adjustable * 69% of Loan Portfolio Reprices within One Year () Includes $7.5 Millo
Slide 15: Drive Revenue: Grow and Diversify Fee Income
DRIVE REVENUE > GrowraidiGieadiyeelneonie $90M $80M $70M $60M $50M $40M $30M $20M $10M $OM ayro- Fee Income Mix" Growth Initiatives (In Millions) 7 $80,642 $82,873 ‘Grow Wealth Management ASSES Improve Card 5.2m Free to Fee Utilization ‘Checking i Leverage Working “NE Insurance Capital Finance . Sal
Slide 16: Expense Management
on EXPENSE MANAGEMENT Noninterest Expense Trend $150.0m HIGHLIGHTS S40.0M * Controllable expenses at Core —— CCBG continued to be well si09.4m msm svia.6m ee on $29.0 s28.0m * YTD 2021 Other expense included S15.5M. 3.8m : * Integration of CCHL late in $50.76 '$49.1M 1.2020 added expenses, but great
Slide 17: Banking Office Optimization, Process Improvement, Digital
Banking Office Optimization Sale/Leaseback Reduce SF Close/Sell Office/Market ROA Reviews Process Improvement ' Consolidate Platforms Electronic Documents Eliminate Non-Value-Added Task Digital Online Deposit Opening Virtual Tellers Mobile & Online End-to-End Loan Platform Support Growth Account Acq
Slide 18: Investing in Technology
Investing EXPENSE MANAGEME > tema - =chnology 8:1 digital client interactions to in-office transactions — February 2021 * 33% of offices with extended-hours Interactive Teller Machines *° 49% of offices offering instant issue debit cards ¢ 46% increase in mobile logins from January 2018 to February
Slide 19: Effectively Deploy Capital
ORGANIC GROWTH RETURN CAPITAL LEVERAGE CAPITAL Technology Investments Leverage Infrastructure Deepen Client Relationships Dividend Share Repurchase Program M&A Opportunities Non-Bank Businesses
Slide 20: Acquisition Target Profile
So >>> PROFILE * Banks with $100-500M Assets ~250 Total Banks ¢ TBV Pricing Attractive Macon TARGETS ¢ Strong Core Deposit Base * Lack of Scale to Absorb Regulatory Cost * Succession Plan Unclear Gainesville 20
Slide 21: Broader Based Growth
BROADER BASED LOAN GROWTH IMPLEMENT FEE INCOME INITIATIVES EVALUATE ACQUISITION OPPORTUNITIES Small Business, Commercial Real Estate, Residential Real Estate, Construction Real Estate, WCF/ABL, Participations/Pools, Market Expansion Checking Account Acquisition, and Strategies to Drive Interchange R
Slide 22: Why CCBG?
WHY CCBG? NFlorida is Growing NStable Markets NStrong Deposit Franchise NAsset Sensitive Balance Sheet NStrong Capital - Ability to Deploy NInsider Ownership NSeasoned and Experienced Bankers NLow Execution Risk NCCBG is One of the Few Remaining “Pure Plays” in Florida
Slide 23: Capital City Bank Group
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Slide 24: Capital City Bank Group
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Slide 25: Quarterly Results
QUARTERLY RESULTS 0.90 0.75 0.60 2 ; 0.45 i i : 0.30 0.15 | 0.00° sais a9 201939 a20 2020 3q20 «4020» a2) 2a2i” 3021” IM Diluted Earnings PerShare ‘Ml Pre-Tax Pre-Crediit Costs ("PTPCC”) per diluted share” “includes Tax Benefit of $0.02 per share related to a premises cost segregation analysis *"Inc
Slide 26: Third Quarter 2021
THIRD QUARTER 2021 30.2021 20.2021 Change | %Change (Dollars in thousands) coreccas | ccHt | Coreccsc | ccHt | Corecca | CoreccBG HIGHLIGHTS * Netinterest income grew $1.7 million, 0 6.5% sequentially, driven by Deposit Fees 5075 2 4.236 : 330) _~(19.81% Bote cones 1) million (primarily Bank Card Fe
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS Pees eatler 2017 2018 2019 2020 3021 Interest Income $86,930 $99,395 $112,836 $106,197 80,802 Interest Expense 3,948 6,891 9,493 4871 2,652 Net Interest Income 82,982 92,504 | 103,343 101,326 | 78,150 Provision for Credit Losses 2,215 2,921 2,027 9,645, (1,553) Noninterest Incom
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS As of Peri See 2017 2018 2019 2020 3921 Investments $697,590 $663,477 $643,140 $494,809 $987,072 Loans Held for Investment 1,653,492 1,774,225 1,835,929 2,006,426 1,941,425 Total Assets 2,898,794 2,959,183 3,088,953 3,798,071 4,048,733 Noninterest Bearing Deposits 874,583 947,85
Slide 29: Market Demographics
ARKET DEMOGRAPHIC ANCHOR AND SMALL-TOWN AMERICA MARKETS MORE STABLE AND PREDICTABLE. Population Growth Rate Household 2010-2021 2021-2026 Medien income) | “Prolected Change Tallahassee MSA 7.3% 4.0% $56,220 9.6% CCBG Florida Markets 13.4% 47% $54,095 8.1% Florida 16.5% 5.9% $61,374 11.3% us 7.2% 2.9
Slide 30: Deposit Market Share
DEPOSIT MARKET SHARE Ranking: Counties | pe osit Market Number of | CCBG Deposits in SR ZOCOMETREE Offices Market ($000)* Share In Top 4 Share** Florida 47 $2,608,562 86.99% 120f18 7.51% Georgia 8 $354,608 11.83% 2084 5.54% Alabama 2 $35,393 118% - 9.63% TOTALS 57 $2,998,563 100.00% - ¢ Market Share
Slide 31: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 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 itallows investors to more easily compare our capital adequacy to other companies in the in
Slide 32: Capital City Bank Group
Capital Ci x) Bank croup Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q3 2021 Earnings Presentation on 6ix