Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q3 2022 Earnings Presentation
30 slides from Capital City Bank's earnings presentation, Oct 31, 2022
Slide 1: Investor Presentation Third Quarter 2022
/INVESTOR | PRESENTATION THIRD QUARTER 2022
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements, including statements about future results. These statements are subject to uncertainties and risks that 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 ° $4.3B Assets ¢ Loans HFI: $2.3B/Deposits: $3.8B * 88% Florida/12% Georgia - Florida Deposit market share of 7.7% - Georgia Deposit market share of 5.5% * 50/50 Mix of Consumer and Commercial
Slide 4: Corporate Profile
CORPORATE PROFILE Experienced Management Ownership ‘Average of 25 Years’ ~56% Retail/44% Institutional ~24% Insider Experience with CCBG Strong and Market Cap” 25 Years Diversified Board $528 Million 27% Female/18% Ethnic Minority
Slide 5: Florida Advantage
FLORIDA A ANCE N Highest Migration Rate in U.S. * 5th Consecutive Year N 3rd Most Populous State - Projected Population Growth * 2X National Average N Projected Population Change * (2022-2027) of 4.6% N State Budget - FY 2022-2023 * Largest in state history N Business-friendly State with No Personal
Slide 6: Growth Markets
ROWTH MARKE TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,633,066 Total Deposits (in Thousands) $134,222 Market Share 14.6% Market Share” 2.9% Market Share Rank" #3 Market Share Rank"! #8 Government, Education, Education, Healthcare, Top 3 Industries Top 3 Industries Professional Defens
Slide 7: Deposit Franchise
DEPOSIT FRANCHISE Average Deposit Portfolio Composition @ Noninterest Bearing Deposits NOWAccounts Regular Savings Accounts @ Money Market Accounts © Corticates of Deposit Total Deposit Growth 3,750 3,407 287 s 624 278 2,844 on 2,538 370 2,423 351 Deposit Portfolio Highlights + CAGR of ~ 15.5% DDA,
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Loan Portfolio $2,346,185 1% 1% ‘Commercial VE @ Construction R/E @ Residential R/E Top 25 loans represent 7% of total loans. Average loan size of $63,000 CRE Composition $786,716 216% of Tier 1 Capital 5%, 1% @ Improved Property Construction 25% @ Vocantiand @ condos
Slide 9: Credit Quality
Giassificd Loans of Total Loans REDIT LITY 12 * Proven strong underwriting and risk management + 5 year average annual credit losses of 10 basis points * Strong credit quality metrics at September 30, 2022 * ACL coverage 0.96% of loans ‘208 -2019~=«2020~=~«OMTSCTD Allowance for Credit Losses Activit
Slide 10: Strong Capital Position
STRONG CAPITAL POSITION Capital To Execute $300M F} $200M $100M Risk-Based Capital 2019 @ Tangible Common Equity ® Excess Regulatory Capital 20 15 10 Staying Power " . "2021 2020 Risk Based Capital- CCB. @ Tongibie Common Equily-CcBG” @ Tongible Common Equity -Publicy Traded $185 Billon SE Banks
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
IVE REVENUE >> Diversified Revenues INTEREST INCOME” FEE INCOME” 1%1% $90.1 Million $73.7 Million @ Commercial R/E @ Home Equity R/E @ Mortgage Banking Revenues- © Residential R/E @ Construction R/E CCHL(519% ownership) Investment Securities Inds Sold & Deposits with Banks © Doposit Fees ject Consum
Slide 13: Drive Revenue: Generate Loan Growth
IVE REVENUE >2 Generate Loan Growth Period End Loans HFI ($ In Millions /% Growth) $2500 $2000 $1500 $1000 $500 $0 Total SBA PPP Growth By Segment® Son $200 0 s20m saan scom stom stom st20m s34oM s1cOM stom 52000 -38.4% 4.1% | Home Equity R/E 7.8% Direct Consumer f Indirect Auto 3.7% Other-LIP 52.4%
Slide 14: Drive Revenue: Interest Rate Profile
DRIVE REVENU >) Interest Rate Profile Loan Repricing - HFI Loans Rate Mix @ Overnight @ 12. Months : 24 Months 36 Months $ 2,346 @ 48 Months (in millions) 60 Months @ >60 Months ¢ 62% of Loan Portfolio is Variable or Adjustable ¢ 49% of Loan Portfolio Reprices within One Year tc tC
Slide 15: Drive Revenue: Grow and Diversify Fee Income
IVE REVENUE > Grow and Diversify Fee Income Fee Income Mix" (In Millions) $100M - Grow Weath Management ACS rercye Card $90M+ —- $82,873 Sesking wmeesen $80M - ian $73,655 $70M |- = $60M |- $50M |- $4om + Leverage Working Insuronce Re? Residential Seles $30M- Ongietors $20M + stom HIGHLIGHTS $OM * W
Slide 16: Noninterest Expense Trend
Noninterest Expense Trend $162.5M $150.0 $40.0M 123M ‘$109.4M 262m $19.9M ‘ae s17.0m si5.4m s119.5M $15.9M 2017 2018 2019 @ Salaries ()CCHL acquired on 03/01/2020 ‘YTD22' P Associate Benofits “/ NetOccupancy @ Other Expense @ CCHL HIGHLIGHTS 2022 pension expense (ex-settlement charges) to decrease $
Slide 17: Expense Management
EXPENSE MANAGEMENT,» > Suwa ° 50% ofall transactions are digital ¢ Implemented industry-leading marketing analytics and automation platform - 2Q22 ¢ Participation and Investment in BankTech Venture Fund * Launched widely recognized P2P solution - 2Q22 * Opening 3 additional digital offices in Florid
Slide 18: Effectively Deploy Capital
Sess pe D> _ ORGANIC GROWTH RETURN CAPITAL LEVERAGE CAPITAL Technology Investments Leverage Infrastructure Deepen Client Relationships Dividend ¢ Share Repurchase Program M&A Opportunities Non-Bank Businesses New Market Expansion
Slide 19: Acquisition Profile and Targets
ES >>> PROFILE * Banks with $200-600M Assets ~250 Total Banks ¢ TBV Pricing Attractive TARGETS Gainesville * Strong Core Deposit Base Tallahassee | ¢ Lack of Scale to Absorb Regulatory Cost HE Expansion Area * Succession Plan Unclear
Slide 20: Strategies for Loan Growth, Fee Income and Efficiency
¢ Market Expansion, Small Business, Commercial Real Estate, Residential Real Estate, Construction Real Estate, WCF/ABL, Participations/Pools BROADER BASED LOAN GROWTH ° Checking Account Acquisition, and Strategies IMPLEMENT FEE to Drive Interchange Revenues INCOME INITIATIVES * Insurance Sales * Dee
Slide 21: Why CCBG?
WHY CCBG? NFlorida is Growing NCombination of Stable and High Growth 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 22: Capital City Bank Group
| 43 Capital Ci q ) Banik Grow
Slide 23: Appendix
Slide 24: Diluted Earnings Per Share by Quarter
1020-2020 «3020 4020S 1021 a2 )=— a2” 4azi™ = 1022, 2022 [Wl Diluted Earnings Per Share IJ Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share
Slide 25: Third Quarter 2022
THIRD QUARTER 2022 202022 | 30.2022 $change QUARTER HIGHLIGHTS % Change * Continued strong growth in Corecess | ccHt | CorecceG | ccHt | CorecceG | Coreccas Golo CIS 28,173 160 33,325 2 5,152 18.29% intorest margin percentage grew Adbpsto 3.31% 1,542 - 2,099 a 557 0.00% * Solid loan growth of 6.0% (
Slide 26: Financial Highlights
Dollars Thousands, FINANCIAL HIGHLIGHTS pupal donde 2018 | = 2019 2020 2021 | 3022 Interest Income $99,395 $112,836 $106,197 $106,351 $90,122 Interest Expense 6,891 9,493 4,871 3,490 3,766 Net Interest Income 92,504 103,343 101,326 102,861 86,356 Provision for Credit Losses 2,921 2,027 9,645 (1,553)
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS As of Period-End Investments $663,477 $643,140 $494,809 $995,073 | $1,094,272 Loans Held for Investment 1,774,225 1,835,929 2,006,426 1,931,465 2,346,185 Total Assets 2,959,183 3,088,953 3,798,071 4,263,849 4,332,671 Noninterest Bearing Deposits 947,858 1,044,699, 1,328,809 1,66
Slide 28: Market Demographic
MARKET DEMOGRAPHIC LEGACY MARKETS PROVIDE STABLE AND PREDICTABLE GROWTH, WHILE ATTRACTIVE NEW MARKETS PROVIDE HIGHER GROWTH OPPORTUNITIES. Population Growth Rate Household Tallahassee MSA. 7.0% 2.8% $59,127 15% Walton 43.5% 6.5% $69,418 10.2% CCBG Florida Markets 15.6% 3.7% $59,942 mK Florida 16.9%
Slide 29: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollars in Thousands | 2018 2019 2020 2021 | 3022 We presenta tangible common equity ratio that ‘TANGIBLE COMMON EQUITY RATIO removes the effect of goodwill ; resulting from merger and ‘Shareowners’ Equity (GAAP) $302,587 $327,016 $320,837 $383,166) $373,165 acquisition a
Slide 30: Capital City Bank Group
Capital Ci a) Bank rari Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbhg.com
Capital City Bank Group — Q3 2022 Earnings Presentation on 6ix