Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q1 2021 Earnings Presentation
33 slides from Capital City Bank's earnings presentation, Apr 30, 2021
Slide 1: Investor Presentation First Quarter 2021
INVESTOR PRESENTATION FIRST QUARTER 202] Omak,
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation includes forward-looking statements, including statements about future results. These 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 t
Slide 3: Corporate Profile
CORPORATE PROFILE — Oldest Florida-based Publicly Traded Bank Managed Multiple Business Cycles Successfully $3.9B Assets. Loans HFI: $2.1B/Deposits: $3.4B 87% Florida/13% Georgia 50/50 Mix of Consumer and Commercial Clients (Deposits) $2.1B Assets Under Management on . fg “2 co ene GEORGIA ALABAMA a
Slide 4: Corporate Profile
CORPORATE PROFILE Ownership ~58% Retail/42% Institutional ~20% Insider Market Cap! $438 Million Experienced Management Average of 25 Years’ Experience with CCBG
Slide 5: Florida at a Glance
FLORIDA AT A GLANCE N Highest Migration Rate in U.S. N 3rd Most Populous State - Projected Population Growth 2X National Average N Projected Population Change (2021-2026) of 5.9% N Business-friendly State with No Personal Income Tax Government Higher Education Healthcare Agriculture Manufacturing Re
Slide 6: Growth Markets
GROWTH MARKETS TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) Market Share” Market Share Rank” Top 3 Industries $1,426,015 15.4% #2 Government, Education, Professional Total Deposits (in Thousands) ‘Market Share" Market Share Rank” Top 3 Industries $120,705 2.7% #8 Education, Healthcare, De
Slide 7: Deposit Portfolio Detail
DEPOSIT PORTFOLIO DETAIL Average Deposit Total Deposit Growth Portfolio Composition 351 826 ae 781 1,389 1,254 a2 908 @ Noninterest Bearing Deposits @ NOW Accounts Regular Savings Accounts @ Money Market Accounts: patie 2017 2018 2019 2020 1921 @ Certificates of Deposit ofFunds-CCBG” 0.16% 0.27% 0.3
Slide 8: Loan Portfolio Diversification
AN PORTFOLIO DIVERSIFICATION Loan Portfolio” $2,057,727 1% CRE Composition $617,561 201% of Tier 1 Capital 3%, W% @ Improved Property Construction 22% @ Vacant Land @ Condos @ Land Development Improved Property Composition $394,415 @ Commercial R/E _ @ Home Equity R/E @ Commercial Loans! @ Construct
Slide 9: Credit Quality
REDIT ITY Proven strong underwriting and risk management 5 year average annual credit losses of 12 basis points Strong credit quality metrics at March 31, 2021 2020 reserve build of $5.0 million in response to Pandemic exposure - released $1.8 million in QI, 2021 Brings ACL coverage to 1.19% of loan
Slide 10: Capital Position
G CAPITAL POSITIO Capital To Execute Staying Power 0 | a | 2017 2018 2019 2020 1921 @ isk Based Capital-cc8G Org0l7 2018 2019 2020 1921 @ Tongivte Common Equity -CCBG” © Risk-Based Capital @ Tangible Common Equity © Excess Regulatory Capital © Tngibie Common Equity -Publicly Taded $1-$5 Bion SE Bank
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 > <PENSE MAN Committed to Expe: Efficiency Initi EFFECTIVELY DEPLOY CAPITAL >>> Organic Growth > Return Capital > Leverage Capital > Executed Under a Strong R
Slide 12: Diversified Revenues
A > Diversified Revenues INTEREST INCOME” FEE INCOME" 2% 1% 54.9% of Operating Revenues $25.5 Million $29.8 Million © Commercial R/E @ Investment Securities @ Mortgage Banking Revenues © Residential R/E CCHL(51% ownership) ‘Commercial Loans @ Deposit Fees @ Bank Card Fees ‘Wealth Management Fee @ In
Slide 13: Drive Revenue > Generate Loan Growth
PES > Generate Loan Growth Period End Loans ($ In Millions /% Growth) $2500 - 10.2% $2000 $1500 $1000 $500 $0 2016 «62017-2018 2019 2020 1021 ‘A PPPLoans-Round 1 Balance sem saa SBAPPP Loans-Round 2 Balance soom Growth By Segment” 20M -S10M © $20M S4oM $60M $BOM 100M si20M S140m S160M a a ee -11.5%
Slide 14: Drive Revenue > Interest Rate Profile
DRIVE REVENUE > titesrestlanis Peale Loan Repricing Rate Mix 3% @ Overnight @ 12 Months” ® 24 Months @ 36 Months @ 48 Months 60 Months @ >60 Months ¢ 54% of Loan Portfolio is Variable or Adjustable ¢ 52% of Loan Portfolio Reprices within One Year () Includes $208 Million SBA/PPP loans ae.
Slide 15: Drive Revenue > Grow and Diversify Fee Income
RIVE REVENUE > Grow and Diversify Fee Income Fee jncome Mee Growth Initiatives 'S) $50M - Grow Wealth . . Management Assets Improve Card ree to Fee Utilization saom - Checking $29,826 $30M - $20M $15,478 sic Leverage Working $10M Capital Finance Platform Residential Mortgage Originations $0M 2020 20
Slide 16: Expense Management
EXPENSE MANAGEMENT >> Ee nITiCan FREES Expense Control Noninterest Expense Trend S150.0M, HIGHLIGHTS $40.0M + Continued control of expenses at swam, Sia isTiacew Core CCBG - QI 2021 expenses were flat versus Q4 2020 and QI 2021 + Integration of CCHL late in 1.2020 added expenses, but greatly GES Te)
Slide 17: Banking Office Optimization and Process Improvement
Banking Office Process Optimization Improvement | Consolidate Sale/Leaseback Platforms Reduce SF Electronic Close/Sell Documents Office/Market Eliminate ROA Reviews Non-Value-Added Task Digital Online Deposit Opening Virtual Tellers Mobile & Online Digital Lending Support Growth Account Acquisition
Slide 18: Expense Management: Digital
EXPENSE MANAGEME > naa 8:1 digital client interactions to in-office transactions — February 2021 * 33% of offices with extended-hours Interactive Teller Machines ° 49% of offices offering instant issue debit cards ¢ 46% increase in mobile logins from January 2018 to February 2021 ¢ Major upgrade to
Slide 19: Effectively Deploy Capital
ORGANIC GROWTH RETURN CAPITAL LEVERAGE CAPITAL Technology Investments Leverage Infrastructure Deepen Client Relationships Dividend Share Repurchase Program M&A Opportunities Non-Bank Businesses
Slide 20: Acquisition Target Profile
SS >>> PROFILE * Banks with $100-500M Assets ~250 Total Banks ° TBV Pricing Attractive Macon TARGETS Gainesville ¢ Strong Core Deposit Base Tallahassee * Lack of Scale to Absorb Regulatory Cost (Bh Expansion Area ¢ Succession Plan Unclear 20
Slide 21: 2021 Focus
2021 FOCUS BROADER BASED LOAN GROWTH IMPLEMENT FEE INCOME INITIATIVES EVALUATE ACQUISITION OPPORTUNITIES ¢ Small Business, Commercial Real Estate, Residential Real Estate, Construction Real Estate, WCF/ABL, Participations/Pools, Market Expansion Checking Account Acquisition, and Strategies to Drive
Slide 22: Why CCBG?
WHY CCBG? NFlorida is Growing NStable Markets NStrong Deposit Franchise NAsset Sensitive Balance Sheet NStrong Capital - Ability to Deploy NInsider Ownership NSeasoned and Experienced Bankers NLow Execution Risk NCCBG is One of the Few Remaining “Pure Plays” in Florida
Slide 23: Capital City Bank Group
M = Capital Ci 2 ) Banik Grow til)’
Slide 24: Appendix
Slide 25: Quarterly Results
QUARTERLY RESULTS 0.90 0.75 0.60 . 0.45 0.30 0.00 are 2018" sare 4are” «1019-2019 3Q19. a9. ta20- 2020-3020 4020-1021 a Il Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share” “includes Tox Benefits $0.09, $0.08, and $0.02 per share or 10, 20, and 3Q respectively related to 2017 Plan Year Pension c
Slide 26: First Quarter 2021 Highlights
FIRST QUARTER 2021 HIGHLIGHTS 10.2021 40.2020 Change | %Change (Dollars in thousands) Corecess | _ccHt | Corecces | ccht | Coreccec | Coreccas * Return on assets of 1.01% Net interest income 24,652 (154) 24,930 4B (278) W% and return on equity 11.81% Provision for Credit Losses (982) 2 1,342 S: (2,3
Slide 27: Supporting Our Clients
PPORTING OUR CLIENT LOAN EXTENSIONS - COVID-19 % of Loans Extended At March 31, 2021 Number of Loans toa Amount ee Number of Loans | Loan Amount Loans Extended 2,410 $333,424 Loans Resuming Payette (2,384) $(327,870) 99% 98% Loans Still on Extension 26 $5,554 1% 2% % Total ($) Loans (Ex-SBA/PPP) 0.3
Slide 28: Financial Highlights
FINANCIAL HIGHLIGHTS Dollars in Thou: pt Earning: 2018 2019 2020 | YTD2021 Interest Income $79,658 $81,154 $86,930 $99,395_| $112,836 | $106,197 | $25,446 Interest Expense 3,307 3,189 3,948 6,891 9,493, 4871 948 Net Interest income 76,351 77,965 __-82,982___—92,504_| 103,343 | 101,326 24,498 Provisi
Slide 29: Financial Highlights
FINANCIAL HIGHLIGHTS 2015 2016 2017 2018 2019 2020 1921 Investments $638,920 $700,099 $697,590 $663,477 $643,140 | $494,809 | $605,354 Loans Held for Investment 1,492,275 1,561,289 1,653,492 1,774,225 1,835,929 | 2,006,426 | 2,057,727 Total Assets 2,797,860 2,845,197 2,898,794 2,959,183 3,088,953 |
Slide 30: Market Demographics
ARKET DEMOGRAPHIC ANCHOR AND SMALL-TOWN AMERICA MARKETS MORE STABLE AND PREDICTABLE. Population Growth Rate Household 2010-2021 2021-2026 Medien reome 9) |) roles nage Tallahassee MSA 7A% 4.0% $56,220 9.6% CCBG Florida Markets 13.4% 47% $54,095 8.1% Florida 16.5% 5.9% $61,374 1.3% us 7.2% 2.9% ‘$67,
Slide 31: Deposit Market Share
DEPOSIT MARKET SHAR Ranking: Counties Number of | CCBG Deposits in Sahip td enue! Deposit Market Offices Market ($000)* Share in Top 4 Share** Florida 47 $2,608,562 86.99% 120f18 7.51% Georgia 8 $354,608 11.83% 2084 5.54% Alabama 2 $35,393 118% - 9.63% TOTALS 57 $2,998,563 100.00% - ¢ Market Share G
Slide 32: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 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 itallows investors to more easily compare our capital adequacy to other companies in the ind
Slide 33: Capital City Bank Group
Capital Ci x) Bank rected Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q1 2021 Earnings Presentation on 6ix