Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Investor Presentation (December 2016)
30 slides from Capital City Bank's investor presentation, Dec 2, 2016
Slide 1: Investor Presentation December 2016
= Capital C *) Bank rpm Investor Presentation December 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 60 Offices in 3 MSA’s Traded Bank + Managed Multiple Business Cycles Successfully Z , gv wae 5, + $2.8BAssets see nn GEORGIA + Loans: $1.6B/Deposits: $2.3B ‘ALABAMA o—~ ape oe ~ * 80% Florida/20% Georgia * 50/50 Mix of Consumer and 2 oe Com
Slide 4: Corporate Profile: Ownership and Market Cap
Corporate Profile NASDAQ:CCBG Ownership 70% Retail/ 30% Institutional ~ 27% Insider Experienced Market Cap Management $248 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 and Cost of Funds
NASDAQ:CCBG AVERAGE DEPOSITS BY TYPE") COST OF FUNDS() (13bps) 0.5 04 03 02 04 Florida Peer Regional Peer National Peer" 0.0 @ Now CDs @ NIB Demand Deposits @ Regular Savings © Money Market ( yro (2) Publically Traded $1 -S5Bilion SE Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO“) $1,568,022 ‘Commercial Loans Construction PVE @ Commercial R/E @ Residential RE @ Home Equity RE @ Direct Consumer @ Indirect Auto (1) 992016-E0M NASDAQ:CCBG. CRE COMPOSITION 133% of Tier 1 Capital $355,086 © trproved Property @ vocant Lane © Conrcton
Slide 9: Credit Quality
Credit Quality NASDAQ:CCBG + NPA Reduction: 6% Decrease in Q3 and CLASSIFIED LOANS 28% Decrease in 2016 (% of Total Loans) soo 15.23% + Classified Loans: 4% Decrease in Q3 and 19% Decrease in 2016 + Continued Strong OREO Sales with Retail Disposition Strategy: 13% Decrease in Q3 and 34% Decrease in
Slide 10: Strong Capital Position
Strong Capital Position NASDAQ:CCBG CAPITAL TO EXECUTE STAYING POWER 2010 2014 2015, 3ai6 © Pen sence copas-coos © ove cine taty-co¥s @ 0% Crnmen Ey Pune Traded $8 bon SE Bak (2) Base! {li became effective in 2015. (@) Adjustednon-GAAP, see appendixtorreconciiation sa
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 $300 a as $2.00 228 5 $1.00 Ee I * oe : : Tea E & aa] 2 mand 2008") 2009 2010 2011 2012 2013 2014) 2015" YTD16" HH Net income Il Pre-Tax Pre-Crdt Costs (PTPCC) P
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 NASDAQ:CCBG Diversified Revenues INTEREST INCOME) FEE INCOME) 1.0% 1.5% 41% of Operating Revenues $60.3 Million $40.1 Million @ Funds Sold @ Residential P/E @ Deposit Fees @ Investment Securities @ Home Equity RIE @ Bank Card Fees ‘Commercial Loans _-@ Direct Consumer Wealth Managemen
Slide 14: Drive Revenues: Generate Loan Growth
DRIVE REVENUES Generate Loan Growth PERIOD END LOANS (Sin billions / % growth) $2,000,000 $1,500,000 $1,504] $1,568 $1,000,000 $500,000 2013-2014 «2015 316 * Annualized (130165 9015 -$10M NASDAQ:CCBG. GROWTH BY SEGMENT“) 31.7% © Commercial Loans Construction P/E Commercial RIE @ Residential RE @ Hom
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 $40,870 $40,903 100 $3,496, Mortgage Banking Fees ‘$3,800 80 60 40 Pa si6.098 a j NASDAQ:CCBG. GROWTH INITIATIVES Check Cashing/ Prepaid Cards Improve Card Utilization Residential 2015'" wy Leverage Working Capital Finance Platform | Origin
Slide 17: Committed to Expense Reduction
EXPENSE MANAGEMENT NASDAQ:CCBG Committed to Expense Reduction NONINTEREST EXPENSE TREND NONINTEREST EXPENSE MIX 's150M $120M + EE 5195,199 t i240 07 ai ae ie @ Salaries @ Legal & Professional @ Associate Benefits @ Processing Services Pension Plan Other Real Estate @ Occupancy @ Other (1) OREO, Lega
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 045 040 } 0.35 0.36 029 0.26 0 02 ot oa 5 oa 0. fos* 201 301k td 1015 20s = 3015 4S 1016 = 2016 035 030 025 020 015 010 0.05 0.00 + Diluted Eamings Per Share Pre-Tax Pre-Credit Costs ("PTPCC) per diluted share” *includes one-time tax beneftof 0. 13per share. “Includes B
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 $78.221 $79,658 $60,322 Interest Expense 1537 5,368 4At6 3,580 3,307 2.416 Net Interest Income 91,922 84,312 77,736 74,641 76,351 57,906 Provision 18,9
Slide 27: Financial Highlights (Period-End)
Financial Highlights As of Period-End 2012 2013 2014 NASDAQ:CCBG 2015 3016 Investments $307,149 $296,985 $399,631 $505,129 $638,920 $680,067 Loans 4,628,683 1,521,302 1,399,668 1.442.062 1,503,907 1,568,022 Total Assets 2,641,312 2.633.984 2,611,903 2,627,169 2,797,860 2,753,154 Noninterest Bearing
Slide 28: Market Demographic
Market Demographic NASDAQ:CCBG Anchor and small-town America markets more stable and predictable. Population Growth Rate Household Median Income Projected Change 2010-2017 2017-2022 2017 2047-2022 Tallahassee MSA 491% 431% $47,178 951% CCBG Florida Markets 7.38 5 43,173 6.16 Florida 10.36 665 49,639
Slide 29: Deposit Market Share
Deposit Market Share NASDAQ:CCBG + Market Share gives pricing leverage + Keeps cost of funds low + Organic growth going forward Numberof CCBGDeposits Percentof Total Ranking: Counties with 2012 Deposit Market alo Offices _in Market ($000)" _/ CCBG Franchise Market Share in Top 4 Share™ Florida 48 2,
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures NASDAQ:CCBG ‘We presenta tangible common equity ratio that removes the effect of goodwill resuling fom merger and acquistion actly. We believe tis measures usefulto investors becauseitallows investorsto more easily compare our capital adequacy to other companies inthe ind
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