Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q2 2022 Earnings Presentation
30 slides from Capital City Bank's earnings presentation, Jul 28, 2022
Slide 1: Investor Presentation Second Quarter 2022
INVESTOR PRESENTATION 1) SECOND QUARTER 2022 oO Bank Group
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 t
Slide 3: Corporate Profile
CORPORATE PROFILE * Oldest Florida-based Publicly Traded Bank ¢ Managed Multiple Business Cycles Successfully ° $4.4B Assets * Loans HFI: $2.2B/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 Commerci
Slide 4: Corporate Profile
CORPORATE PROFILE Ownership ~57% Retail/43% Institutional ~24% Insider Experienced Management Average of 25 Years’ Experience with CCBG Strong and Market Cap” Diversified Board $473 Million 27% Female/18% Ethnic Minority
Slide 5: Florida Advantage
FLORIDA A NCE N Highest Migration Rate in U.S. * Sth 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
GROWTH MARKETS 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 Top 3 Industries Government, Education, Professional Education, Healthcare, Industri Top 3 Indus
Slide 7: Deposit Franchise
DEPOSIT FRANCHISE Average Deposit Total Deposit Growth Portfolio Composition 3,739 3,407 278 On 537 © Noninterest Bearing Deposits @ NOW Accounts Regular Savings Accounts 2018 2020 2021 2022 @ Money Market Accounts Total Cost © Certificates of Deposit ofFunds-CCBG™ 0.27% 0.35% 0.16% 0.10% 0.09%. Tot
Slide 8: Loan Portfolio Diversification
LOAN PORTFOLIO DIVERSIFICATION Loan Portfolio $2,231,653 1% @ Commercial /E — @ Construction R/E jome Equity R/E @ Commercial Loans Top 25 loans represent 8% of total loans. Average loan size of $63,000 4%, | 9% 27% CRE Composition $763,995 215% of Tier 1 Capital @ Improved Property Construction @ V
Slide 9: Credit Quality: Classified Loans
Classified Loans REDIT LITY we of Total Loans HF) 087% 0.93% Proven strong underwriting and risk management * 5 year average annual credit losses of 10 basis points Strong credit quality metrics at June 30, 2022 ACL coverage 0.96% of loans 2018 2019=«2020=« 20212022 Allowance for Credit Losses Ac’!
Slide 10: Strong Capital Position
STRONG CAPITAL POSITION Capital To Execute ‘$400M [— Staying Power 2018 = 2019 2020 2021 @ Fisk Based Capital-ccBs SoM aos. 2019 2020 2021 «2022 @ encible Common Equity-CcBG” @ Risk-Based Capital @ TangibleCommon Equity - Excess Regulatory Capital @ ‘Tnoible Common Equity - Publicly Traded $1-$5 Bil
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 Revenues: Diversified Revenues
DRIVE REVENUES > Diversified Revenues INTEREST INCOME” FEE INCOME” 1% 1% 48.9% of Operating Revenues $54.8 Million $50.7 Million © Commercial R/E @ Home Equity R/E @ Mortgage Banking Revenues- @ Residential B/E Construction R/E CCHL (51% ownership) Indirect Auto jortTerm Investments @ Wealth Managem
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES > Garsrate leanGraal Period End Loans HFI ($ In Millions /% Growth) $2500 $2000 $1500 $1000 $500 $0 Growth By Segment” “S100 -S00m -S6om s4om 520m © $20M S40M 560M $80M stooM 5120 sa214 -99.9% 2016 2017 2018 2019 2020 2021 2Q22 Total SBA PPP vam 0.2m OM OM 1.2% -3.6% it t t t t t ba e
Slide 14: Drive Revenues: Interest Rate Profile
DRIVE REVENUES > fnterest'Rate Profile Loan Repricing - HFl Loans Rate Mix @ Overnight @ 12 Months 24 Months @ 36 Months @ 48 Months 60 Months @ >60 Months * 60% of Loan Portfolio is Variable or Adjustable * 49% of Loan Portfolio Reprices within One Year —————————— el.
Slide 15: Drive Revenues: Grow and Diversify Fee Income
DRIVE REVENUES > Grow and Diversify Fee Income $60M $50M $40M $30M $20M $10M $OM Fee Income Mix” Growth Initiatives (In Millions) $56,299 $3.4M $50,721 ae 2021 2022 © deposit Fees Wath Management Fees) Other ees @ Bonk CardFees —_@ Mortgage Banking Revenues (CCHL- 51% ownership) Leverage Working Sl
Slide 16: Continued Focus on Expense Control
Continued Focus on Expense Control EXPENSE MANAGEMENT Noninterest Expense Trend ‘$162.5M s42.2M $150.0m $40.0M| HIGHLIGHTS s1i3.6m = + 2022 pension expense s109.4m STIS (ex-settlement charges) to s29.20 i sz0.0m decrease $5 million from 2021 s26.2M a $82.6M * Efficiency Initiatives in Motion siasm —
Slide 17: Expense Management
EXPENSE MANAGEMENT 50% of all transactions are digital > Investing in Technology Implementing industry-leading marketing analytics and automation platform - 2Q22 Participation and Investment in BankTech Venture Fund Launching widely recognized P2P solution - 2Q22 Opening 3 additional digital offices
Slide 18: Effectively Deploy Capital
IEIL>>>> ¢ Technology Investments ORGANIC GROWTH ¢ Leverage Infrastructure ¢ Deepen Client Relationships ¢ Dividend ¢ Share Repurchase Program RETURN CAPITAL ¢ M&A Opportunities LEVERAGE CAPITAL ¢ Non-Bank Businesses ¢ New Market Expansion
Slide 19: M&A Target Profile
ES >>> 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 1 Expansion Area * Succession Plan Unclear “Charleston Macon Gainesville © forties
Slide 20: Strategic Priorities
¢ 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 j NStrong Deposit Franchise NAsset Sensitive Balance Sheet NStrong Capital — Ability to Deploy N Insider Ownership NSeasoned and Experienced Bankers Now Execution Risk NCCBG is One of the Few Remaining “Pure Plays” in Flori
Slide 22: | 3% Capital Ci
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Slide 23: Appendix
Slide 24: Quarterly Results
QUARTERLY RESULTS 0.90 0.75 0.60 g : 3 0.45 : 0.30 015 0.00" 2019 3ai94a19. 1020-2020 3020 4020» a2} 202!" 3a2I" saa 1022-2022 0.62 Il Diluted Earnings PerShare I Pre-Tax Pre-Credit Costs (”PTPCC”) per diluted share” “Includes $0.10 per share partial pension settlement expense ** Includes $0.02 per
Slide 25: Second Quarter 2022 Highlights
SECOND QUARTER 2022 22 2022 Schange | %Change interest f 1e202e 2025 Crane chang + Netinterest income grew 14.7% driven (Dollars in thousands) Corecess | ccHt_| corecces | ccht | Corecces | coreccac by strong loan growth and higher Netinterestincome 24,621 75 23,173 160 3,552 14.4% interest rates: H
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS 2018 2019 2020 2021 Interest Income $99,395 $112,836 $106,197 | 106,351 54,758 Interest Expense 6,891 9,493 4,871 3,490 1,729 Net Interest income 92,504 103,343 101,326 | 102,861 53,029 Provision for Credit Losses 2,921 2,027 9,645 (1,553) 1,542 Noninterest Income 51,565, 53,053
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS pret renee Endl 2018 2019 2020 2021 2022 Investments: $663,477 $643,140 $494,809 $995,073 $1,130,563 Loans Held for Investment 1,774,225 1,835,929 2,006,426 1,931,465, 2,219,653 Total Assets 2,959,183 3,088,953 3,798,071 4,263,849 4,354,297 Noninterest Bearing Deposits 947,858 1
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 2010-2022 2022-2027 me pepe? Tallahassee MSA 7.0% 2.8% $59,127 1.5% Walton 43.5% 6.5% $69,418 10.2% CCBG Florida Markets 15.6% 3
Slide 29: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES inds 2018 2019 2020 2021 2022 TANGIBLE COMMON EQUITY RATIO. Dollars in Thi We presenta 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 ‘Shareowners’ Equ
Slide 30: Capital City Bank Group
Capital Ci x) Bank Grea i Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q2 2022 Earnings Presentation on 6ix