Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q1 2023 Earnings Presentation
34 slides from Capital City Bank's earnings presentation, Apr 24, 2023
Slide 1: Investor Presentation First Quarter 2023
INVESTOR PRESENTATION FIRST QUARTER 2023
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: $2.6B/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 Commerc
Slide 4: Corporate Profile
CORPORATE PROFILE Ownership ~55% Retail/45% Institutional ~23% Insider Experienced Management Average of 28 Years’ Experience with CCBG Strong and Market Cap” Diversified Board $498 Million 27% Female/18% Ethnic Minority
Slide 5: Florida Advantage
FLORIDA ANCE N Highest Migration Rate in U.S. * 6th Consecutive Year N 3rd Most Populous State - Projected Population Growth CCB Targeted Areas for Growth: * * 2X National Average Government Higher Education N Projected Population Change Healthcare * (2023-2028) of 5.0% Construction N State Budget -
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, Top 3 Industries Bae
Slide 7: Deposit Franchise: Total Deposit Growth
DEPOSIT FRANCHISE Total Deposit Growth 3,763 3.817 Average Deposit Portfolio Composition 3,407 278 Koad 537 @ Nonintorest Bearing Deposits @ NOW Accounts Regular Savings Accounts, ‘Money Market Accounts © Certificates of Deposit Deposit Portfolio Highlights * CAGR® of ~ 12.5% DDA, ~ 9.1% MMA/SAV/NOW
Slide 8: Deposit Franchise
DEPOSIT FRANCHISE * Very Diversified and Granular Deposit Base Top 10 Commercial Deposit Sectors %of % of Total Deposits Public Administration 434,926 20.6% ma% Financeand insurance 261,057 12.3% 6.2% Construction 176,680 8.4% 46% > Consumer/Commercial/Institutional Mix of 45% /38%/17% (NAICS Code)
Slide 9: Loan Portfolio
Loan Portfolio $2,636,844 1% <1% @ Residential R/E © Commercial Loans © Commercial R/E jome Equity R/E Indirect Auto rect Consumer @ Construction R/E - @ Other Loans Top 25 loans represent 7% of total loans. Average loan size of $92,000 CRE Composition $935,095 251% of Tier 1 Capital @ improved Prop
Slide 10: Credit Quality
CREDIT ITY sim $8M $4M SOM Proven strong underwriting and risk management 5 year average annual credit losses of 10 basis points Strong credit quality metrics at March 31, 2023 ACL coverage 1.01% of loans Non-Performing Loans (% of Loans HFl) Classified Loans (% of Total Loans HF) 25M 113% 077% 2019
Slide 11: Investments
INVESTMENTS + Very Short Total Portfolio Duration of 2.99 Years + 73% is Government Guaranteed * Total AfterTax Unrealized Loss at March 31, 2023: > AFS (AOC) = $26.2M (6.1% of Balance) > HTM = $29.5M (4.8% of Balance) > Total Unrealized Loss = 5.3% of Balance Composition 1% $1.1 Billion Ousemmnsy O
Slide 12: Staying Power
Staying Power $300M $200M $100M 2019 2020 2021 2022 1923 @ Risk Based Capital-CCBG @ Toncible Common Equity-CCBG” © Torcible Common Equity - Publicly Traded $1-$5 Billion SE Banks 2019 2020 2021 2022 1023 @ Risk-Based Capital @ Tangible Common Equity © Excess Regulatory Capital () Adjusted Non-GAAP,
Slide 13: Capital
APITAL * YoY Growth of 14% in TBV/Share and 12% in TCE Ratio + $140M in Excess Regulatory Capital (Above Well- Capitalized) * Adjusted TCE Ratio of 6.69% if HTM Securities Loss 1 ey was Recognized in AOCI Tangible Common Equity Regulatory Capital O a mae bean se Sloe, of 2 2 sn Sa eee @ tericapiat —
Slide 14: Overnight Funds & Investments: Liquidity
Overnight Funds & Investments ‘$2B --_44.88% LIQUIDITY * Strong Balance Sheet Flexibility: > Loan/Deposit Ratio of 69% > Overnight Funds + Total Securities of 31% of Total Assets > Overnight Funds + Free Securities of 14% of Total Assets * 112% of Uninsured Deposits Are Covered By rae 00m Overnight
Slide 15: Strategic Initiatives: Three Pillars of Execution
STRATEGIC INITIATIVES: Three Pillars of Execution DRIVE REVENUES > Generate Loan Growth > Interest Rate Profile > Grow & Diversify Fee Income EN Committ E: ctiol Efficiency Initiatives in Motion EFFECTIVELY DEPLOY CAPITAL >>> Organic Growth > Return Capital > Leverage Capital > Executed Under a Stro
Slide 16: Drive Revenues: Diversified Revenues
RIVE REVENUES > Giverciifed Revenines INTEREST INCOME” FEE INCOME” 2% 1% 17% 35.5% of Operating Revenues $43.9 Million $22.2 Million © Commercial R/E @ Funds Sole & Deposits with Banks @ Mortgage Banking Revenues- © Residential R/E Indirect Auto CCHL (51% ownership) Investment Securities “ommercial
Slide 17: Drive Revenues: Gain Loan Growth
RIVE REVENUES > Garin (ean Geowail $3000 $2500 $2000 $1500 $1000 $500 $0 Period End Loans HFI ($ In Millions / % Growth) Total SBA PPP vem 02M (0) Includes SBA PPP Activity-Ex SBA PPP= 5.6% core growth 2023 vs, 10 2022 TS @1a. -s4om_ -s20m 0 s20m Growth By Segment” 60M 100M 140M 180M 220M s260m 2017
Slide 18: Drive Revenues: Interest Rate Profile
RIVE REVENUES > literest Rate Profile Loan Repricing - HFl Loans Rate Mix @ Overnight @ 12 Months 24 Months @26Mons fe $2,637 @ 48 Months (in millions) 60 Months @ >60 Months * 64% of Loan Portfolio is Variable or Adjustable ¢ 45% of Loan Portfolio Reprices within One Year ————
Slide 19: Drive Revenues: Grow and Diversify Fee Income
RIVE REVENUES > Grow ani Bieri eelncome Fee Income Mix" (In Millions) $30M $27M- $24M $21M $18M $15M $12M $25,818 1.3m Q122 @ Deposit Fees @ Bank Card Feos © Woath Management Fees @ Mortgage Banking Revenues (CCHL- 51% ownership) $22,248 1Q23 Other Fees Growth Initiatives Checking Leverage Working I
Slide 20: Expense Management: Expense Control
Continued Focus on EXPENSE MANAGEMENT >> Ex pense Control Noninterest Expense Trend sazaM $39.0 $8.0 HIGHLIGHTS $39.2M aed eal som san 750 ae + Efficiency Initiatives in Motion SE seam = Banking Office Optimization $5.5 ae Process Improvement/RPA = a5 = Enhanced Digital Front Door $5.2 : ~Leverage V
Slide 21: Expense Management: Technology Initiatives
EXPENSE MANAGEMENT >> tamil Technology Initiatives to Propel Market Growth Embracing Technology to Expand Product Offerings, Provide Exceptional Experiences & Improve Efficiency ‘Medallia Client Zelle® Contactless one Wee Sehes Implemented f Innovation ate Surveys Venture soecbeuis Refuse Marquis ee
Slide 22: Effectively Deploy Capital
IEIL>>>> ORGANIC GROWTH RETURN CAPITAL LEVERAGE CAPITAL Technology Investments Leverage Infrastructure Deepen Client Relationships Dividend Share Repurchase Program M&A Opportunities Non-Bank Businesses New Market Expansion
Slide 23: Acquisition Target Profile
>>> PROFILE * Banks with $200-600M Assets ~250 Total Banks ¢ TBV Pricing Attractive Macon TARGETS Gainesville * Strong Core Deposit Base * Lack of Scale to Absorb Regulatory Cost * Succession Plan Unclear
Slide 24: Broader Based Loan Growth and Fee Income Initiatives
¢ Market Expansion, Small Business, Commercial BROADER BASED Real Estate, Residential Real Estate, Construction LOAN GROWTH Real Estate, WCF/ABL, Participations/Pools * Checking Account Acquisition, and Strategies IMPLEMENT FEE to Drive Interchange Revenues INCOME INITIATIVES * Insurance Sales * Dee
Slide 25: Why CCBG?
WHY CCBG? NFlorida and Georgia are Growing NCombination of Stable and High Growth Markets NStrong Deposit Franchise NAsset Sensitive Balance Sheet NStrong Capital - Ability to Deploy N Insider Ownership NSeasoned and Experienced Bankers NLow Execution Risk NCCBG is One of the Few Remaining “Pure Pla
Slide 26: Capital City Bank Group
3 Capital Ci i ) Bank Grow
Slide 27: Appendix
Slide 28: Quarterly Results
QUARTERLY RESULTS 1.2 0.9 06 0.02020 3020 4020 1921 2a2r 3q21"4a2r" 1422 2022 © 3022 i Diluted Earnings Per Share Il Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share ‘includes $0.10 per share partial pension settlement expense ** Includes $0.02 per share partial pension settlement expense **" In
Slide 29: First Quarter 2023
FIRST QUARTER 2023 49.2022 19.2023 SChange | %Change (Dollars in thousands) Corecces | ccHt | Corecces | ccHi | CorecceG | CoreccBG Net interest income 38,337 (233) 40,546 (1s?) 2,209 5.76% Provision forCredit Losses 3,521 - 3,130 : (391) 1.10% Deposit Fees 5,536, = §,239 = (297) 5.36% Bank Card Fee
Slide 30: Financial Highlights
FINANCIAL HIGHLIGHTS 2020 2021 2022 1923 Interest Income sn2,e36_| $106,197 $io6,351_ | $131,348 | $43,915 Interest Expense 9,493 4871 3,490 6,888 3,526 Net Interest Income 103,343 101,326 yo2,861 | 124,460 | 40,389 Provision for Credit Losses 2,027 9,645 (1,553) 7,162 3,130 Noninterest Income 53,05
Slide 31: Financial Highlights
FINANCIAL HIGHLIGHTS As of Period-End Hafenere fers 2019 2020 2021 2022 1023 Investments $643,140 | $494,809 $995,073 | $1,074,048 | $1,056,581 Loans Held for Investment 1,835,929 | 2,006,426 1,931,465 2,525,180 | 2,636,884 Total Assets 3,088,953 | 3,798,071 4,263,849 | 4,525,958 | 4,409,742 Noninte
Slide 32: Market Demographic
MARKET DEMOGRAPHIC LEGACY MARKETS PROVIDE STABLE AND PREDICTABLE GROWTH, WHILE ATTRACTIVE NEW MARKETS PROVIDE HIGHER GROWTH OPPORTUNITIES. Population Growth Rate Household Median Income 2022 2022-2027 Tallahassee MSA 7.0% 2.8% $59,127 11.5% Walton 43.5% 6.5% $69,418 10.2% CCBG Florida Markets 15.6%
Slide 33: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollars in Thousands 2019 2020 2021 2022 1023 We presenta tangible conmnon eguky botnet TANGIBLE COMMON EQUITY RATIO removes the effect of goodwill Macahaspenen Shareowners' Equity (GAAP) $327,016 $320,837 $383,166 $394,016] $411,240 acquisition activity. We believe this
Slide 34: Capital City Bank Group
Capital Ci x) Bank cra Corporate Headquarters 217 North Monroe Street Tallahassee, FL 32301 www.ccbg.com
Capital City Bank Group — Q1 2023 Earnings Presentation on 6ix