Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q3 2020 Earnings Presentation
33 slides from Capital City Bank's earnings presentation, Nov 5, 2020
Slide 1: Investor Presentation Third Quarter 2020
INVESTOR | - PRESENTATION THIRD QUARTER 2020 9 Banke Group
Slide 2: Forward-looking statements
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 the Company's actual results to differ: Our ability to successfully manage interest rate risk, liquidity risk, and other risks inhe
Slide 3: Corporate Profile
CORPORATE PROFILE ee * Oldest Florida-based Publicly Traded Bank ¢ Managed Multiple Business Cycles Successfully * $3.6B Assets * Loans HFI: $2.0B/Deposits: $3.0B * 85% Florida/15% Georgia * 50/50 Mix of Consumer and Commercial Clients (Deposits) ¢ $1.8B Assets Under Management
Slide 4: Florida market demographics and growth
NCE N Highest Migration Rate in U.S. N 3rd Most Populous State - Projected Population Growth 2X National Average N Projected Population Change (2020-2025) of 6.6% N Business-friendly State with No Personal Income Tax Government Higher Education Healthcare Agriculture Manufacturing Retail Distributio
Slide 5: Core markets: Tallahassee, Macon, Gainesville, Rural
WTH MARKE TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,276,973 Total Deposits (in Thousands) $87,076 Market Share” 14.7% Market Share!” 2.3% Market Share Rank” #2 Market Share Rank” #8 Top 3 Industries Government, Education, Professional Education, Healthcare, Top 3 Industries Butane P
Slide 6: Deposit Portfolio Detail
POSIT PORTFOLIO DETAIL Average Deposit Portfolio Composition @ Noninterest Bearing Deposits @ NOW Accounts Regular Savings Accounts @ Money Market Accounts © Conicates of Deposit Deposit Portfolio Highlights + CAGR" of ~ 11% DDA, ~ 3% MMA/SAV/NOW + 96% Core Deposit” to Total Deposit” Total Deposit G
Slide 7: Loan Portfolio Diversification
N PORTFOLIO DIVERSIFICATION Loan Portfolio” $1,998,160 1% 1% @ Commercial R/E —- @ Home Equity R/E @ Commercial Loans @ Construction R/E Residential R/E @ Direct Consumer @ Indirect Auto @ Other Loans Top 1Oloans represent 6% of totalloans CRE Composition $569,491 186% of Tier 1 Capital @ Improved P
Slide 8: Credit Quality
EDIT ITY Proven strong underwriting and risk management 5 year average annual credit losses of 12 basis points Strong credit quality metrics at September 30, 2020 Reserve build of $6.4 million in response to Pandemic exposure Brings ACL coverage to 1.28% of loans (ex-SBA/PPP) COVID-19: 88% of Loans
Slide 9: Strong Capital Position
STRONG CAPITAL POSITION Capital To Execute Staying Power 2018 = 2019 3Q20 Risk Based Capital -CCBG @ Tongibte Common Equity -CCBG" @ Tangible Common Equity Publicly Traded $1-$5 Billion SE Banks Som" 20162017 "2018 "2019-3020 Risk-Based Capital @ Tangible Common Equity - Excess Regulatory Capital ()
Slide 10: 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 11: Drive Revenue: Diversified Revenues
RIVE REVENUE > Biverditied Revenues INTEREST INCOME” FEE INCOME” 242 1% Yo 51.4% of Operating Revenues $80.0 Million $80.6 Million @ Commercial R/E @ Home Equity R/E @ Mortgage Banking Revenues- Residential B/E Construction R/E CCHL(51% ownership) ‘Commercial Loans @ Deposit Fees @ Investment Securi
Slide 12: Drive Revenues: Generate Loan Growth
RIVE REVENUES > Geterate teat Growth Period End Loans Growth By Segment” ($ In Millions / % Growth”) -S20M -$I0M © $20M_ $40M S60M S8OM SIOOM 120m si40M Sis0K me Ft SBA PPP. Loans $2000 $1500 $1000 Residential R/E Home EquityR/E 9.0% $500 Direct Consumer Indirect Auto Other - LIP $0 2016 2018 2019 (
Slide 13: Drive Revenue: Interest Rate Profile
RIVE REVENUE > Interest Rate Profile Loan Repricing Rate Mix 3% @ Overnight @ 12 Months” 24 Months 36 Months @ 48 Months (in millions) 60 Months @ >60 Months ¢ 54% of Loan Portfolio is Variable or Adjustable ¢ 51% of Loan Portfolio Reprices within One Year () Includes $190 Million SBA/PPP loans —
Slide 14: Drive Revenue: Grow and Diversify Fee Income
RIVE REVENUE > Grow and Diversify Fee Income Fee Income Mix" Growth Initiatives (In Millions) 90M 8 $80,642 Mangement Assets $som+ ema fgeioFee nesta yecking $70M |- $60M - $50M - $39,225 $4.3M $40M |- $30M $20M $10M $omM Leverage Working Capital Finance . Platform Residential Originations 2019 2020
Slide 15: Noninterest Expense Trend
$113.2M $32.1M. $18.3M 2016 @ Salaries ayo i Noninterest Expense Trend s13.6m sTi.5M, $109.4M sioeieaw $26.7™M s8a.am $21.7M, $18.4 Sire $18.5M s193M. $13.7M $14.8M i i : 2017 2018 2019 3a19" "3020" Associate Benefits Net Occupancy @ Other Expense @ CCHL HIGHLIGHTS * Continued control of expenses at
Slide 16: Expense management initiatives
Banking Office Process Support i Acai Digital Optimization Improvement 9 Growth | | a | | Consolidate Wee ] Account Sale/Leaseback | Platforms ae | Acquisition Reduce SF Account | | Electronic Opening | Onboarding Close/Sell | Documents ] | Virtual Tellers ] Client Profitability Office/Market __ Eli
Slide 17: Investing in Technology
Investing in EXPENSE MANAGEMEN > Technology ¢ 7:1 digital client interactions to in-office transactions — June 2020 * 30% of offices with extended-hours Interactive Teller Machines ¢ 49% of offices offering instant issue debit cards ¢ P2P-June 2019 ¢ 37% increase in mobile logins from January 2018 t
Slide 18: Effectively Deploy Capital
pee Sceaouen > D ¢ Technology Investments ORGANIC GROWTH ¢ Leverage Infrastructure * Dividend ¢ Share Repurchase Program RETURN CAPITAL ¢ M&A Opportunities * Non-Bank Businesses LEVERAGE CAPITAL
Slide 19: Acquisition target profile
En >>> PROFILE * Banks with $100-500M Assets ~250 Total Banks * TBV Pricing Attractive Macon TARGETS * Strong Core Deposit Base Tallahassee! * Lack of Scale to Absorb Regulatory Cost ‘1M Expansion Area * Succession Plan Unclear Gainesville
Slide 20: Priorities: loan growth, fee income, acquisitions
BROADER BASED © Small Business, Commercial Real Estate, Residential LOAN GROWTH Real Estate, WCF/ABL, and Participations/Pools IMPLEMENT FEE * New Checking Account Platform, Account Acquisition, INCOME INITIATIVES and Strategies to Drive Interchange Revenues EVALUATE ACQUISITION . : A OPPORTUNITIES
Slide 21: Why CCBG?
WHY CCBG? NFlorida is Growing NGrowth Measures Nearing Prior Peaks Stable Markets NStrong Deposit Franchise NAsset Sensitive Balance Sheet NStrong Capital — Ability to Deploy N Insider Ownership NSeasoned and Experienced Bankers NLow Execution Risk NCCBG is One of the Few Remaining “Pure Plays” in F
Slide 22: Capital City Bank Group
f — ain Capital Ci } Bank Group
Slide 23: Capital City Bank Group
2 Capital Ci q ) Bank Grown
Slide 24: Quarterly Results
QUARTERLY RESULTS 0.60, 0.45 0.00 sa17 4017" ta1s" 2018" 3018" ais” 1019-2019 3a19. and 1420-2020 3020 JH Diluted EamingsPerShare ll Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share ‘includes Deferred Tax Re-Measurement Expense of $0.24 per Share Includes Tax Benefits $0.09, $0.08, and $0.02 per
Slide 25: Third Quarter 2020
THIRD QUARTER 2020 | 3 | 20.2020 Schange | %Change HIGHLIGHTS | coreceas | cent | coreccas | ccm | corecca | coreccac 25,105 v 25,349 109 (248) 0.96% + Return on assets of 1.17% and efficiency ratio of 67% 1,308 : 2,005, 5 (a7) 3476 * Diversified revenue and 4316 E Sire 2 co Mae: strong balance shee
Slide 26: Supporting Our Clients: COVID-19 loan extensions and PPP
SUPPORTING O LIEN LOAN EXTENSIONS - COVID-19 % of Loans Extended At October 2, 2020 Number of Loans | ‘oan Amount - ~ | Number of Loans | Loan Amount Loans Extended 2,333 $325,014 Loans Resuming Porments (2,129) $(284,548) 91% 88% Loans Still on Extension 204 $40,466 9% 12% % Total ($) Loans (Ex-SBA
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS Dollars in Thou: rn | 2014 2015 2016 2018 | 2019 YTD 2020 oe 2017 | Interest Income $78,221 $79,658 ‘$81,154 $86,930 $99,395 | $12,836 $80,043 Interest Expense 3,580 3,307 3189 3,948 6,891 9,493 3,690 Net Interest Income 74,641 76,351 77,965 ——-82,982 92,504 | 103,343 76,353 Pro
Slide 28: Financial Highlights (period-end)
FINANCIAL HIGHLIGHTS As of Period-End Deleecn thee | 2014 2015 2016 2017 2018 2019 3Q20 Investments $505,129 $638,920 $700,099 $697,590 $663,477 $643,140 $530,846 Loans Held for Investment 1,431,375 1,492,275 1,561,289, 1,653,492 1,774,225 1,835,929 1,998,161 Total Assets 2,627,169 2,797,860 2,845,1
Slide 29: Market Demographics
ARKET DEMOGRAPHIC ANCHOR AND SMALL-TOWN AMERICA MARKETS MORE STABLE AND PREDICTABLE. Population Growth Rate Household Tallahassee MSA 7.00% 4.50% $55,732 1.91% CCBG Florida Markets 13.15% 5.59% $52,521 9.59% Florida 15.92% 6.63% $58,586 11.56% us 7.00% 3.27% $66,010 9.87% Sources: S&P Global Market
Slide 30: Deposit Market Share
POSIT MARKET SHAR Ranking: Counties |. ost market Number of CCBG Deposits in Offices Market ($000)* bpulhaed otis Share** Share in Top 4 Florida 47 $2,283,096 87.04% 12 of 18 8.26% Georgia 8 $286,551 11.03% 20f4 5.09% Alabama 2 $29,390 1.13% = 8.70% TOTALS 57 $2,599,037 10.00% S ¢ Market Share Gives
Slide 31: Analyst Estimates
LYST ESTIMATES ANALYST 2020 EPS RATING HOVDE $1.89 $23.00 Market Perform KBW $1.92 $26.00 Market Perform Janney/FIG $1.87 $20.00 Neutral Piper/Sandler $1.87 $21.00 Neutral D. A. Davidson $1.84 $23.50 Neutral
Slide 32: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES We presenta tangible i Dollars in Thousands 2014 2015 2016 2017 2018 | 2019 3020 common equity ratio effect of goodwill EQUIV EATO: resulting from merger shareowners’ Equi aedacqiktien | GQ $272,540 $274,352 $275,168 «$284,210 $302,587, $327,016 $339,425 activity. We beli
Slide 33: Corporate Headquarters
29 Bank Group Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q3 2020 Earnings Presentation on 6ix