Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q2 2023 Earnings Presentation
31 slides from Capital City Bank's earnings presentation, Aug 4, 2023
Slide 1: Investor Presentation Second Quarter 2023
INVESTOR PRESENTATION SECOND QUARTER 2023 <9 Sakic Group
Slide 2: Forward-Looking Statements
FORWARD- LOOKING STATEMENTS. tis pr dos forwar ng statements about future results. These statements Cees ce tous aerate Se coves Copel amee eae oalne ocr Matoeseey factors, among others, could cauze the Company's actual results to differ: our ability to suecessully manage credit sk, interest rate sk
Slide 3: Corporate Profile
CORPORATE PROFILE * Oldest Florida-based Publicly Traded Bank * $4.4B in Total Assets + Loans HFl: $2.7B/Deposits: $3.88 * 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 Clients (Deposits) + $2.5B Assets U
Slide 4: Corporate Profile
CORPORATE PROFILE Ownership ~55% Retail/45% Institutional 28 Years '~23% Insider Experienced Management Average of 28 Years’ Experience with CCBG Market Cap” $521 Million
Slide 5: Why CCBG
WHY CCBG * Florida and Georgia Growth and Demographics - Combination of Stable Legacy Markets and High Growth New Markets * Strong Deposit Franchise ~ Provides Low-Cost Funding - Granular and Diversified * Low Execution Risk - Strong Credit Quality ~ Diversified Revenues (Wealth, Mortgage) * Strong
Slide 6: Accolades
ACCOLADES Forbes Capital City Bank named one of “America’s Best-In-State Banks” by Forbes 2023 Selection made from direct consumer Teedback and online reviews American Bankers Association. 11 CONSECUTIVE YEARS “Best Banks to Work For” by American Bankers Association Ranked #29 out ef 90 banks nation
Slide 7: A Glance
A GLANCE FLORIDA N Highest Migration Rate in the U.S.” WN Population growth rate is two times national average N Highest Net Income Migration’ in the ‘Country 2020-2021" * $39.2 Billion + $4.48 Million in income gained per hour cover the year + Florida gained income from all but2 states N State budg
Slide 8: Tallahassee MSA, Gainesville MSA, Rural Combined Markets
TALLAHASSEE MSA GAINESVILLE MSA RURAL COMBINED - 11 MARKETS"? Tet Deposits finTowond) svar BAe Toatdepons — Nort hare! 167% o2% art hare orm Maret hare an n ‘4 Top 3 nds Govermens cveaton; Eckcaton Hels ae ee ey Projected Population Growth® 2.8% 49% ames aan — tase Top 3Markt hain? oT Mats MARKET DE
Slide 9: Georgia Legacy Markets
GEORGIA LEGACY MARK MACON MSA RURAL COMBINED - 3 MARKETS” ‘otal Deposits (in Thousands)? $148,580 Total Deposits $321,143 Market Share 28% Market Share Rank #10 Market Share! 25% Education, Healthcare, ‘Top 3 Industies jase jecte Growth Agriculture, Eroseeted Population © Ons, Market Champions Manuf
Slide 10: New Market Demographics
NEW MARKET DEMOGRAPHICS EMERALD COAST ‘BAY COUNTY MARKET "WALTON COUNTY MARKET Breakfast Poet office opened 2-20; CCB Ofices lynn Haven planned to open Q3-23;| Watersound office opened in 1-23 West Bay office planned to open Q1-24. “Population Growth Rate 2010-2023" 68% 49.8% Projected Population Gr
Slide 11: Deposit Franchise
DEPOSIT FRANCHIS Average Deposit Growth 3763 3768 Average Deposit | 2s: | Portfolio Composition 620 ican @ Noninterest Bearing Deposits © eat Sas Acs © Honey Mate Secours © CericatesofDepesit Deposit Portfolio Hig! + CAGRM of 12.16% DDA, ~ 8.95% MMA/SAV/NOW + 98% Core Depositto Total Deposit” + 40%
Slide 12: Loan Portfolio and CRE Composition
Loan Portfolio 2% ‘CRE Composition $2,667,003" n $733,864 1% <1% 193% of Tier 1 Capital @ Iroroved Property @ Construction @ Vocsntland Land Development Improved Property Composition $431,162 @ ResidontalR/E —_@ Construction R/E Scormechive Shon tnty yt ou Indirect Auto Direct Consumer Sissies © Com
Slide 13: Credit Quality
Classified Loans CREDIT QUALITY some (eottoetioans iF) si * Proven strong underwriting and risk management + Syear average annual credit losses of 11 basis points sro + ACL coverage 1.05% of loans sm Allowance for Credit Losses Activity” Non-Performing Loans (% of Loans HFI)
Slide 14: Capital: TBV/Share and TCE Ratio Growth
* YoY Growth of 17% in TBV/Share and 16% in TCE Ratio. * $153M in Excess Regulatory Capital (Above Well- Capitalized) * Adjusted TCE Ratio of 6.9% if HTM Securities Loss was Recognized in AOC! Regulatory Capital Tangible Common Equity
Slide 15: 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 LOY CAPIT) >>> Organic Growth > Return Capital > Leverage Capital > Executed Under a Strong Risk Management & Credit Culture <
Slide 16: Drive Revenues: Diversified Revenues
RIVE REVENUES Diversified Revenues INTEREST INCOME" FEE INCOME" 1%1% 17% $45.1 Million Investment Secures @ Home auiy RE @ Norigagesanking Revenues: @ Construction R/E CCCHE ST overs) © DepoutFees © Wealth ManagementFee Bank Card Fees oom
Slide 17: Generate Loan Growth
Generate Loan Growth RIVE REVENUES Period End Loans HFl Growth By Segment” ($ In Millions /% Growth) $3000 — sm sme 2 tm, 0.3% $2000 $1500 $1000 2.7% 0.9% $500 22.6% $0 2017 2018 2019 2020 2021 2022 2023 (incuder BA PrP Actvity-E<SBA PP SEX caregromth (2)20202305 202022 (3 anna
Slide 18: Interest Rate Risk Profile
RIVE REVENUES > Interest Rate Risk Profile Loan Repricing - HFl Loans Loan Rate Mix @ Overnight @ 12 Months 24 Months @ 36 Months @ 48 Months 60 Months @ >60 Months * 68% of Loan Portfolio is Variable or Adjustable * 38% of Loan Portfolio Reprices within One Year * 100% of Investment Portfolio Repri
Slide 19: Grow and Diversify Fee Income
RIVE REVENUES Grow and Diversify Fee Income Fee Income Mix” Growth Initiatives (In Millions) $60M Grow Westy Management merove Ca iieston| $50,721 $45,121 sam leyerage Working Capel Finance atm Residential Ingurance ‘Sales Mongeae Oniginatons HIGHLIGHTS 2Q22 + Wealth AUM of $2.5B - 5 yearCAGR @ vero
Slide 20: Expense Management
EXPENSE MANAGEMENT Noninterest Expense Trend seas saa. seam som oe isi == HIGHLIGHTS soon aad + ficiency Initiatives in Motion 7 — Banking Office Optimization sas —Process Improvement/RPA ssM S608 —Enhanced Digital Front Door rar sem 52m Leverage Virtual Tellers ~Data Analytics/Automated, ol i _ az
Slide 21: Technology Initiatives to Propel Growth
EXPENSE MANAGEMENT > > aime Technology Initiatives to Propel Growth Embracing Technology to Expand Product Offerings, Provide Exceptional Experiences & Improve Efficiency ient Convert Marketing JF Contactless ie Analytics! Debit Card oom pee Automation pact Processin Implemented I invested pepe) | e
Slide 22: Acquisition Opportunity
_ACOUSTION OFFORTUNTY PROFILE * Banks with $200-600M Assets ~250 Total Banks * TBV Pricing Attractive TARGETS * Strong Core Deposit Base Tallahassee * Lack of Scale to Absorb Regulatory Cost — a * Succession Plan Unclear
Slide 23: Capital City Bank Group
2% Capital Ci x) Bank Group
Slide 24: Supplemental Information
SUPPLEMENTAL INFORMATION sy Capital City ~- grt
Slide 25: Deposit Franchise
POSIT FRANCHISE Deposits Breakdown” Deposit Account Tenure Overall Average Account Balance $27,787 Overall Average Tenure = 12 Years a =~ $a Pm s103em Uninsured Deposit An: (00's) Uninsured Deposits (00's) 1,605,922 Less: Collateralized Deposits (543,809) Less: Affiliate Deposits (CCB owned) (143,81
Slide 26: Investments
INVESTMENTS ‘+ Very Short Total Portfolio Duration of 2.76 Years ‘+ 73% is Government Guaranteed ‘+ Total AftorTax Unrealized Loss at june 30, 2023: > AFS (AOC = $28.3M (6.8% of Balance) > HIM = $34.5M (5.8% of Balance) +> Total Unrealized Loss 2% offalance Composition a Securities Yield atance talo
Slide 27: Liquidity: Overnight Funds & Investments
Overnight Funds & Investments 28 LIQUIDITY + Strong Balance Sheet Flexibility > Loan/Deposit Ratio of 7% > Overnight Funds + Total Securities of Total Assets > Overnight Funds + Free Securities of Total Assets * 109% of Uninsured Deposits Are Covered By ‘Overnight Funds, Free Securities, & FHLB Capa
Slide 28: Quarterly Results
QUARTERLY RESUL 12 09 06 : | | il | 0.0°"3a20 4020 10212021" 3021" aaa" 1022 20223022 10232023 1M Diluted Earnings Per Share| Pre-ax Pro-Credit Costs("PTPCC") por diluted share “inades $0.10 per share parti pemonetlement expense Indudes 52.02 per shre pot perio setement sense nodes 50.03 par shore p
Slide 29: Quarter Highlights
QUARTER HIGHLIGHTS SECOND QUARTER 2023 ooo ‘$40: millon compare to $40.5 lon netinearestmargin increased from 404% ya2033 Eo Schnoe | cence Een Sepals as soe (Dotarsintousands) | corecesc | com _| coreccac | com | corecces | coreccee ee ee einer wos | asn_| sone | sn | G7 | acon | | “Sapinnmosgun Se
Slide 30: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollars in Th 2019 | 2020 | 2021 2023 We presenta tangible pineal TANGIBLE COMMON EQUITY RATIO removes the effectof goodwill , elton meget ‘hareowners’ Equity (GAAP) ssorow sx20.837| $083,166| 394.016) 420.779 acquisition activity. We bre Ic neceeee Less: Goodwill GAAP) s
Slide 31: Capital City Bank Group
Capital Ci , Bani eres Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 ill www.ccbg.com
Capital City Bank Group — Q2 2023 Earnings Presentation on 6ix