Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q1 2018 Earnings Presentation
29 slides from Capital City Bank's earnings presentation, May 4, 2018
Slide 1: Investor Presentation First Quarter 2018
Investor | Presentation First Quarter 2018
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes forward-looking statements, including statements about future results. These statements are subjectto uncertainties and risks, which 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 a Managed Multiple Business Cycles Successfully GEORGIA ALABAMA $2.9B Assets Loans: $1.7B/Deposits: $2.5B 80% Florida/20% Georgia 50/50 Mix of Consumer and 59 Offices in Commercial Clients 3 MSA's FLORIDA $1.4B Assets Under Management
Slide 4: Corporate Profile: Ownership
Corporate Profile Ownership ~64% Retail/ 36% Institutional ~ 24% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap'” $422 Million (1) Asof 991718
Slide 5: Florida at a Glance
Florida at a Glance ® Highest Migration Rate in U.S. - Twice U.S Average ~1,000 People Per Day 3° Most Populous State - Projected Population Growth 2X National Average sense © Several Growth Measures (Jobs, Personal Higher eacaton Income, GDP, Tourism) Now Surpass Prior Healthcare Peaks and National
Slide 6: Growth Markets
Growth Markets TALLAHASSEE MSA MACON MSA Total Deposits (i Thousands) $1,109,301 Total Deposits (in Thousands) $04,865 Market Share!) 14.36% Market Share?) 274% Market Share Rank”) #8 Market Share Rank‘) #8 Government, Education, ons estas: Education, Professional _T°P Industries Healthcare, Defense
Slide 7: Core Deposit Advantage
Core Deposit Advantage AVERAGE DEPOSITS BY TYPE() COST OF FUNDS“) (23bps) Regional Peer? National Peer 3 2 < 3 & z= © NIB Demand Deposits @ Regular Savings @ Now @cds © Money Market (y yroowante (2) Publcally Traded $ 1-85 Bilion Southeast Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO") $1,666,740 2%| @ Commercial /E —_ @ Commercial Loans Residential R/E Construction R/E @ Indirect Auto @ Home Equity R/E (1) 102018-£0M 3% 12% 19% CRE COMPOSITION 145% of Tier 1 Capital $421,355 @ Improved Property Construction @ Vacant Land @ Condos IM
Slide 9: Credit Quality
Credit Quality CLASSIFIED LOANS (% of Total Loans) © NPAReduction: 4% Decrease QoQ and a oe 40% Decrease YoY Classified Loans: 2% Increase QoQ and 23% Decrease YoY * Continued Strong OREO Sales with Retail Disposition Strategy: 15% Decrease QoQ and 65% Decrease YoY 4009 4014 4015 4016 4017 1018. Pea
Slide 10: Strong Capital Position
Strong Capital Position STAYING POWER CAPITAL TO EXECUTE 2011-2015 2016 = 2017,—s=s1018. @ sk Bases captl-co3s © Fost refered @ ‘2n9I6'e Common Equity -CcAG™ © ‘sogib'e Common Equity - Publicly Traded $185 Billion SE Banks (1) Basel! Became Effective in 2015. (2) Adjusted Non-GAAP, See Appendixtor R
Slide 11: Strategic Initiatives: Three Pillars of Execution
Strategic Initiatives: Three Pillars of Execution 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 > Executed
Slide 12: Drive Revenues: Diversified Revenues
DRIVE REVENUES INTEREST INCOME) FEE INCOME“) Diversified Revenues $23.2 Million $12.5 Million © Commercial R/E © Commercial Loans @ Deposit Fees Residential /E @ Construction R/E Bank Card Fees Home Equity B/E @ Funds Sold ‘Wealth Management Fee @ Investment Securities @ Direct Consumer @ Other @ In
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES PERIOD END LOANS Generate Loan Growth ($ in Millions / % Growth) +S20M-S10M 0 S1OM $20M $30M $40M $50M $2,000,000 7.4 | ‘Commercial Loans 5.5% 4.7%" : ConstructionR/E 32.9% $1,500,000 CommercialR/E 9.4% $1,000,000 Residential R/E 3.1% 3.2% Home Equity R/E $500,000 12.6° Direct Consume
Slide 14: Drive Revenues: Loan Repricing Rate Mix
DRIVE cep REVENUES LOAN REPRICING RATE MIX @ Overnight @ 12 Months 24 Months » 36 Months @ 48 Months 60 Months @ >60 Months $1,667 (in millions) * 64% of Loan Portfolio is Variable or Adjustable + ~1/2 of Loan Portfolio Re-Prices within One Year
Slide 15: Grow and Diversify Fee Income
Grow and Diversify Fee Income FEE INCOME MIX GROWTH INITIATIVES {in Millions) Check Cashing $12,718 $12,477 irra 100% Uniization zone (Beposit Fees ) Management Assots 2017" 2018"
Slide 16: Noninterest Expense Trend
NONINTEREST EXPENSE TREND 150M 120M <i 90m Cycle Cont" com <= 30M, 2007 —«2010==—«2015-—S ONES (1) OREO, Legal (Loan Collections), FDIC Insurance & Pension Costs >” 10 3191/2018 Committed to Expense Reduction NONINTEREST EXPENSE MIX @ Salaries ® Pension Plan @ Occupancy @ Legal & Professional © Othe
Slide 17: Expense Reduction Initiatives
Channel Process Reduce Support Optimization Improvement Cycle Costs Growth Self-Service Teller . Consolidate OREO Patiorms Onboarding Mobile & Online es * Electronic Digital Lending eee Legal Website 5 Enhancements Eliminate Client , Segmentation Office/Market ROA Non-Value- Pension Reviews Added Ta
Slide 18: Effectively Deploy Capital
EFFECTIVELY DEPLOY CAPITAL * Technology Investments Organic Growth + Leverage Infrastructure . Dividend Share Repurchase Program Return Capital Leverage Capital . M&A Opportunities Non-Bank Businesses
Slide 19: Acquisition Opportunity
Acquisition Opportunity Profile ® Banks with $100-500M Assets ~250 Total Banks ° TBV Pricing Attractive Targets ® Strong Core Deposit Base ® Lack of Scale to Absorb Regulatory Cost ° Succession Plan Unclear Tallahassee | IB Expansion Area Macon Gainesville
Slide 20: 2018 Focus
2018 Focus 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 Evaluate Acquisition Opportunities + Evaluate Both Bank and Non-bank Opportunities
Slide 21: Why CCBG?
Why CCBG? Florida is Growing Growth Measures Nearing Prior Peaks ° Stable Markets Strong Deposit Franchise Strong Capital — Ability to Deploy Insider Ownership Seasoned and Experienced Bankers Low Execution Risk ° CCBG is One of the Few Remaining “Pure Plays” in Florida _— Ge
Slide 22: Capital City Bank Group
y = Capital City = = = = a9. Bank Group Mh
Slide 23: Appendix
val ap : Appendix 2% Capital City
Slide 24: Quarterly Results
Quarterly Results 0.50 0.45 0.40 0.35 a 0.30 is > 0.25 : ii 0.20 | 015 5 0.10 0.05 i Fl 2 L u 1 u Li n 4 fa sy 0.00 201s 3015 4ais 1016 2016" 3016 4a16 1017 2017 3017 4ai7” 1018 Il Diluted Earnings Per Share [ll Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share” ‘includes BOLI Proceeds of $0.10 p
Slide 25: Financial Highlights
Financial Highlights Dollars in Thousan ept Eamings per Share Interest Income Interest Expense $89,680 5,368 $62,152 4,416 $78,221 3.580 $79,658 3.307 $81,154 3,189 $86,930 3,948 1018 $23,214 1.451 Net interest Income 84,312 71.736 74,644 76,351 77,985 82,982 21,763 Noninterest income 16,166 55,185
Slide 26: Financial Highlights
Financial Highlights 2013 2014 Investments $296,985 $399,631 $505,129 $638,920 $700,099 $695,108 $697,388 Loans 4,521,302 1,399,668 1,442,062 1,503,907 1,572,175 1,638,138 1,666,740 Total Assets 2,633,984 2,611,903 2.627.169 2,797,960 2.845.197 2,790,842 «2,924,892 Noninterest Bearing Deposits 609.2
Slide 27: Market Demographic
Market Demographic Anchor and Small-Town America Markets More Stable and Predictable. Population Growth Rate Household Median Income Projected Change 2010-2018 2018-2023 i ois a Tallahassee MSA y% $48,208 Florida $53,657 ‘Sources: S&P Global Market inteligence; ESRI: US Census Bureau
Slide 28: Deposit Market Share
Deposit Market Share Ranking: Percentof Counties with Deposit State) | Sumbacel® | Cree eal TotalCCBG — 2017Market Market cee arkeu( Franchise ShareinTop —Share** jowoe [8 [soso | fawn | 2 | Sbet! : [| = | om | + Market Share Gives Pricing Leverage + Keeps Cost of Funds Low + Organic Growth Going Fo
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures (Dollars in Thousands) 2011 We present a 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 it $86,158 $172,861 2015 2016 2017 1018 a $84,811 $189,541 all
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