Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q4 2018 Earnings Presentation
30 slides from Capital City Bank's earnings presentation, Feb 26, 2019
Slide 1: Investor Presentation Fourth Quarter 2018
Investor Presentation Fourth 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 Managed Multiple Business Cycles Successfully $3.0B Assets Loans: $1.8B/Deposits: $2.5B 85% Florida/15% Georgia als 50/50 Mix of Consumer and af FLORIDA Commercial Clients gore) $1.5B Assets Under Management
Slide 4: Corporate Profile
Corporate Profile Ownership ~64% Retail/ 36% Institutional ~ 24% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap'” $389 Million (1) Aso 128118
Slide 5: Florida at a Glance
Florida at a Glance * Highest Migration Rate in U.S. * 3° Most Populous State - Projected Population Growth 2X National Average e Government Several Growth Measures (Jobs, Personal Agari Income, GDP, Tourism) Now Surpass Prior is Peaks and National Average Realihcare Agricuttu * Business-friendly St
Slide 6: Growth Markets
Growth Markets TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,170,535 Total Deposits (in Thousands) $93,295 Market Share(") 14.3% Market Share‘) 2.5% Market Share Rank”) #3 Market Share Rank‘*) #8 Government, Education, ‘Tops indisties Education, Professional _T°P Industries Healthcare,
Slide 7: Core Deposit Advantage
Core Deposit Advantage AVERAGE DEPOSITS BY TYPE) COST OF FUNDS() — (27bps) ‘ O8e National Peer ?) ey 5 3 a = rs © © = 2 8 Ey i C3 © NIBDemand Deposits @ Regular Savings @ Now @ cos @ Money Market (y 2018 (2) Publically Traded $185 Bilion Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO\) $1,781,094 1% 2%| 19% @ Commercial R/E @ Commercial Loans Residential R/E @ Construction R/E @ Indirect Auto © Direct Consumer Home EquityR/E @ Othertoans (1) 402018-£0u 2% 1% CRE COMPOSITION 164% of Tier 1 Capital $476,637 @ Improved Property Construc
Slide 9: Credit Quality
Credit Quality * NPAReduction: 5% Decrease QoQ and 18% Decrease YoY * Classified Loans: 15% Decrease QoQ and 26% Decrease YoY * Continued Strong OREO Sales with Retail Disposition Strategy: 18% Decrease QoQ and 43% Decrease YoY soy 5.21% s137.6M NON-PERFORMING $120M ASSETS (% of Assets) $90M s6om 2.
Slide 10: Strong Capital Position
Strong Capital Position eee CAPITAL TO EXECUTE STAYING POWER 200 2015-2016 2017,— 2018 @ Fisk Based Capital CCB @ angibte Common Equity-CCBG” @ Toncivie Common Equity -Publicly Traded $1-85 Billion SE Banks (1) Basel 111 became effective in 2015. (2) Adjusted Non-GAAP, See Appendix tor Reconciliatio
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 Diversified Revenues INTEREST INCOME) FEE INCOME“) 3%2% 1% fe $99 Million $52 Million © Commercial VE © Commercial Loans © DepositFees @ Residential R/E © Construction R/E Bank Card Fees Home Equity R/E @ Direct Consumer Wealth Management Fee @ Investment Securities @ Funds Sold @ Oth
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES Generate Loan Growth PERIOD END LOANS GROWTH BY SEGMENT®) (Sin Millions / % Growth?) -$20M-S10M 0. S1OM $20M $30M S40M SSOM S6OM $70M $2,000,000 ‘ : , ‘ ‘ ‘ ‘ CommercialLoans 7.1% $1,500,000 Construction R/E 14.8% $1,400 Com ! R/E oF $1,000,000 ResidentialR/E 9.0% Home Equity R/E $500
Slide 14: Drive Revenues: Positioned to Win on Rates
Win on Rates DRIVE REVENUES »> Positioned to LOAN REPRICING RATE MIX @ Overnight @ 12 Months 24 Months 36 Months @ 48 Months 60 Months @ >60 Months 61% of Loan Portfolio is Variable or Adjustable 56% of Loan Portfolio Reprices within One Year
Slide 15: Drive Revenues: Grow and Diversify Fee Income
DRIVE REVENUES Grow and Diversify Fee Income FEE INCOME MIX GROWTH INITIATIVES {in Millions) $51,746 $51,565 tates 100% j- improve Cara Czaton 80% 60% | 40% a. 20% — | Grow Wealth da Management Assets
Slide 16: Noninterest Expense Trend and Mix
NONINTEREST EXPENSE TREND NONINTEREST EXPENSE MIX 0% © Salaries ® Pension Plan @ Occupancy @ Legal & Professional @ Other @ Processing Services (9) OREO, Legal(Loan Resolution), FDIC Insurance & Pension Costs @ Associate Benefits — @ Other Real Estate 16
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: 2019 Focus
2019 Focus + Small Business, Commercial Real Estate, Broades Based Residential Real Estate, WCF/ABL, and oan Growt Participations/Pools Implement Fee + Including Our New Checking Account Platform and Income Initiatives Strategies to Drive Interchange Revenues Evaluate Acquisition Opportunities + Eva
Slide 21: Why CCBG?
Why CCBG? Florida is Growing Growth Measures Nearing Prior Peaks ° Stable Markets Strong Deposit Franchise Asset Sensitive Balance Sheet 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
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 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 , 0.00 1Q16 2016" 3016 4016 1017 2Q17 3017 4QI7" 1a18"" 2018" 3018" 4ais** I Diluted Eamings PerShare fl Pre-Tax Pre-Credit Costs (“PTPCC”) per diluted share ts $0.09, $0.08 and $0.02 per sharefer 10, 20, and 30 respectful
Slide 25: Financial Highlights
Financial Highlights Dollars in Thousands sings per Share Interest Income Interast Expense $82,152 4416 $78,221 3,580 $79,658 3,307 $86,930 3,948 $99,395 6,891 Net Interest Income 77.736 74.641 76,351 92,504 Provision 3472 1,905 1.594 2,921 Noninterest Income 56,416 52,536 54,091 53,681 51,565 Nonin
Slide 26: Financial Highlights
Financial Highlights Investments $399,631 $505,129 $638,920 $700,099 $697,590 $663,477 Loans 1,399,668 © 1.442.062 1,503,907, 1.872.175 1,658,309 Total Assets 2614,903 «2.627.169 «2,797,860 2,845,197 2,898,794 Noninterest Bearing Deposits 641,463, 659,115, 788,283, 791,182 874,583 Interest Bearing D
Slide 27: Market Demographic
Market Demographic Anchor and Small-Town America Markets More Stable and Predictable. Population Growth Rate Household Median Income Projected Change 2010-2019 2019-2024 aia ai ata 6.28% | ase | % 5 Fda a ase sa ‘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** 4 joes [| 9 | sta + Market Share Gives Pricing Leverage + Keeps Cost of Funds Low + Organic Growth Going Forward * Sources: SNL Balances
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present s tanigtie (Dollars in Thousands) 2013 2014 2015 2016 2017 2018 Paememe comers | | | | TTT removes the effect of EQUITY RATIO. 0. lll ME SE EE ‘activity. We believe this Less: Goodwill (GAAP) sea,e43 | (s84,811) measure is useful to. Peso ncnibeia Be sccctd PBs
Slide 30: Capital City Bank Group
= = = = = = — = = Capital Ci , Bank eran Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ecbg.com
Capital City Bank Group — Q4 2018 Earnings Presentation on 6ix