Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Investor Presentation (November 2017)
30 slides from Capital City Bank's investor presentation, Nov 6, 2017
Slide 1: Investor Presentation Third Quarter 2017
2% Capital C *) Bank rope Investor Presentation Third Quarter 2017 NASDAQ:CCBG
Slide 2: Forward-Looking Statement
Forward-Looking Statement NASDAQ:CCBG 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, c
Slide 3: Corporate Profile
Corporate Profile Oldest Florida-based Publicly Traded Bank + Managed Multiple Business Cycles Successfully + $2.8B Assets + Loans: $1.6B/Deposits: $2.3B * 80% Florida/20% Georgia * 50/50 Mix of Consumer and Commercial Clients + $1.4BAssets Under Management NASDAQ:CCBG 60 Offices in 3 MSA’s a GEORGI
Slide 4: Corporate Profile
Corporate Profile NASDAQ:CCBG Ownership ~70% Retail! 30% Institutional ~ 26% Insider Experienced MarketCap Management $409 Million Average of 27 Years’ Experience with CCBG (1) As of902017
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 + Several Growth Measures (Jobs, Personal Income, GDP, Tourism) Now Surpass Prior Peaks and National Average + Business-friendly S
Slide 6: Growth Markets
Growth Markets NASDAQ:CCBG TALLAHASSEE MSA MACON MSA Total Deposits fn Miions) $1,109,301 Total Deposit in Mivons) $04,865 Market Share"? 14.36% Market Share?) 274% Market Share Rank) #8 Market Share Rank’) #8 , Government, Education, Healthcare, ARGRIIES fh! Education, Professional gion 8 Ercustnie
Slide 7: Cost of Funds
NASDAQ:CCBG COST OF FUNDS®) (15bps) 3 Hal os a ee 3 cs cs es 12? Ss] se] s 6 i 2] 2] AVERAGE @ NIB Demand Deposits @ Now DEPOSITS B Hates Y ‘® Money Market © Regular Savings CDs (1) YT 9790/2017, (2) Publically Traded $1-$5 Bilion Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification NASDAQ:CCBG CRE COMPOSITION LOAN PORTFOLIO) 145% of Tier 4 Capital 3% $396,028 © improved Property © Vacantiana © Construction © condos IMPROVED PROPERTY COMPOSITION 3% $261,834 © Residential @ Hoter/Motel © Retail © Mute-Foriy Industria Warehouse © office @ orrer © Ga
Slide 9: Credit Quality
Credit Quality NASDAQ:CCBG =f CLASSIFIED LOANS + NPA Reduction: 21% Decrease QoQ and (% of Total Loans) 35% Decrease in 2017 $300M 15.23% * Classified Loans: 12% Decrease QoQ and 12% Decrease in 2017 + Continued Strong OREO Sales with Retail Disposition Strategy: 25% Decrease QoQ and 44% Decrease in
Slide 10: Strong Capital Position
Strong Capital Position NASDAQ:CCBG CAPITAL TO EXECUTE STAYING POWER 2001 2015 2016 3Q17 @ wrcaseacapiat-ccae © ‘oesbie Common Eauty -CCBG: @ tesrtened Serta © wrote commen Equity Pub Taded $155 Billo SE Banks + Bicess Capita (1). Basel! Became Efecivein 2015. i (2) Adjusted Non-GAAP, See Appendix f
Slide 11: Strong Earnings Engine
Strong Earnings Engine NASDAQ:CCBG - Cumulative Profit Through the Cycle’ = $22M or $1.32/share - Growth Will Come from Operating Leverage 2008" 2009 2010 2011 2012 2013 2014” 2015 2016" YTD 2017 THE Nevincome Prete Precio Costs PTPCC Per Dito Share 2008-2013 (1) Includes gain on sale of Merchant Se
Slide 12: Strategic Initiatives: Three Pillars of Execution
Strategic Initiatives: Three Pillars of Execution NASDAQ:CCBG 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
Slide 13: Drive Revenues: Diversified Revenues
DRIVE REVENUES NASDAQ:CCBG Diversified Revenues INTEREST INCOME) FEE INCOME) 1% 2% 38.7% of Operating Revenues 16% $64.3 $38.8 Million @ Funds Sold © Residential B/E © DepositFees @ lvestment Securities @ Home Equity R/E @ Bank Card Fees ‘Commercial Loans @ Direct Consumer ‘Wealth Management Fee © C
Slide 14: Drive Revenues: Generate Loan Growth
DRIVE REVENUES NASDAQ:CCBG Generate Loan Growth PERIOD END LOANS GROWTH BY SEGMENT") ($ in Millions / % Growth) $2,000,000 © Commercial loans © Construction R/E sash © Commercial 8/E $1,500,000 © residential R/E s20m © Home Equty R/E @ Direct Consumer sist @ indirect Auto $1,000,000 © Other-uP ston
Slide 15: Drive Revenues: Positioned to Win on Rates
DRIVE REVENUES Positioned to Win on Rates LOAN REPRICING © Overnight @ 12Months © 24™Months © 36 Months @ 48 Months 60 Months @ > 60Months * 63% of Loan Portfolio is Variable or Adjustable + ~1/2 of Loan Portfolio Re-Prices within One Year RATE MIX NASDAQ:CCBG. rt
Slide 16: Drive Revenues: Grow and Diversify Fee Income
DRIVE REVENUES NASDAQ:CCBG Grow and Diversify Fee Income FEE INCOME MIX GROWTH INITIATIVES {in Millions) ‘Check Cashing/ $40,903" $38,849 Erecar Calie. 100 Improve Cara oe other Fees $4,737 Utlization 80 60 Bank card Fees 40 20} [eed Deposit Fees Residential Leverage Working pion i Capital Finance q
Slide 17: Expense Management: Committed to Expense Reduction
EXPENSE MANAGEMENT Committed to Expense Reduction NONINTEREST EXPENSE TREND $150M $15:690 so7 58 qo cycle Cost! 6 (1) OREO, Legal (Loan Collections), FDIC Insurance & Pension Costs (2) yD 907017 NASDAQ:CCBG. NONINTEREST EXPENSE MIX @ Salaries @ Legal & Professional Associate Benefits Processing Serv
Slide 18: Expense Management: Initiatives in Motion
EXPENSE MANAGEMENT Initiatives in Motion Channel Process Optimization Improvement Sree Consolidate Platforms Mobile & Onli me Electronic Website Documents Enhancements Eliminate Office/Market Non-Value- ROA Reviews Added Tasks Reduce Cycle Costs OREO Legal Pension FDIC. NASDAQ:CCBG Support Growth On
Slide 19: Effectively Deploy Capital
Effectively Deploy Capital NASDAQ:CCBG * Technology Investments Organic Growth + Leverage Infrastructure Dividend Share Repurchase Program Return Capital Leverage Capital M&A Opportunities Non-Bank Businesses 19
Slide 20: Acquisition Opportunity
Acquisition Opportunity NASDAQ:CCBG Profile - Banks with $100-500M Assets ~300 Total Banks - TBV Pricing Attractive Targets - Strong Core Deposit Base Macon Gainesville - Lack of Scale to Absorb Regulatory Cost - Succession Plan Unclear t wa ame oa oe
Slide 21: 2017 Focus
2017 Focus NASDAQ:CCBG 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 Focus on Problem Asset Resolution Lower our NPAs and Reduce Our Credit Costs E
Slide 22: Why CCBG?
Why CCBG? ———as + Florida is Growing == Several Growth Measures Surpass 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
Slide 23: all)
ly — all) Capital Ci , Bank eoer
Slide 24: Appendix
roup Appendix > Sapital city
Slide 25: Quarterly Results
Quarterly Results NASDAQ:CCBG 0.50 | 0.45 0.40 — 0.35 0.30 — 0.25 0.20 0.15 0.10 0.05 | 0.00 1Q15 2015 3015 4Qls laie 2016" 3016 4al6 1a17 2017 3QI7 I Diluted Earnings Per Share Ml Pre-Tax Pre-Credit Costs (“PTPCC”) per diluted share: ‘Hncludes BOLI Proceeds of $0 10per Share ‘includes TRUPs Repurch
Slide 26: Financial Highlights
Financial Highlights NASDAQ:CCBG Dollars in Thousands, 2016 YTD 2017 except Eamings per Share Interest Income $89,680 $82,152 S721 $79,658 $1,154 $64,303 Interest Expense 5,368 4416 3.580 3.307 3.189 2810 Net Interest Income 4312 T1136 74.644 76.354 77.965 64.493 Provision 16,166 3472 4,905 41594 31
Slide 27: Financial Highlights
Financial Highlights As of Period-End 2012 2013 NASDAQ:CCBG 2014 2015 2016 3017 Investments 5295965 $399,631 $605,129 $638,620 700.099 $695,108 Loans 452102 1309.68 444.062 © 1503907 1.672.175 1,638,138 Total Assets 2635984 2.611.903 2627169 2797.850 885.187 2,790,842 Noninterest Bearing Deposits 09
Slide 28: Market Demographic
Market Demographic NASDAQ:CCBG Anchor and Small-Town America Markets More Stable and Predictable. Population Growth Rate Household Median Income Projected Change 2010-2018 2018-2023 2017 2048-2023 Tallahassee MSA 5.55% 4.40% $48,208 5.56% CCBG Florida Markets 7.06% 412% $46,306 7.27% Florida 10.36%
Slide 29: Deposit Market Share
Deposit Market Share NASDAQ:CCBG + Market Share Gives Pricing Leverage + Keeps Cost of Funds Low + Organic Growth Going Forward Numberof CCBGDeposits Percentof Total Ranking: Counties with 2017 Deposit Market alo Offices _in Market ($000)" _/ CCBG Franchise Market Share in Top 4 Share™ Florida 48 $2
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures NASDAQ:CCBG \We presenta tangible common equity ratio that removes he effect of goodwill resulting fom merger and acquistion acy. We believe this measures usefulto ‘investors becauseit allows investorsto more easily compare our capital adequacy to other companies inthe in
Capital City Bank Group — Investor Presentation (November 2017) on 6ix