Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q2 2017 Earnings Presentation
30 slides from Capital City Bank's earnings presentation, Jul 31, 2017
Slide 1: Investor Presentation Second Quarter 2017
3 Capital Ci = ) Gah Group Investor Presentation Second 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: $2.4B * 80% Florida/20% Georgia * 50/50 Mix of Consumer and Commercial Clients + $1.3BAssets Under Management NASDAQ:CCBG 60 Offices in 3 MSA’s a GEORGI
Slide 4: Corporate Profile: Ownership
Corporate Profile NASDAQ:CCBG Ownership ~70% Retail! 30% Institutional ~ 26% Insider Experienced Market Cap Management $346 Million Average of 27 Years’ Experience with CCBG (1) Asof323172017
Slide 5: Florida on the Rise
Florida on the Rise * 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) $1,094,853 Total Deposit in Mivons) $93,169 Market Share"? 16.49% Market Share?) 270% Market Share Rank) ra Market Share Rank’) #8 , Government, Education, Healthcare, ARGRIIES fh! Education, Professional gion 8 Ercustnie
Slide 7: Deposit Advantage
it Advantage NASDAQ:CCBG AVERAGE DEPOSITS BY TYPE") COST OF FUNDS“) (14bps) 0.5 04 03 02 04 Florida Peer Regional Peer National Peer’ 0.0 @ Now CDs @ NIB Demand Deposits @ Regular Savings. © Money Market () Y70 6902017 (2) Publically Traded $1-$5 Bilion Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO) $1,629,409 ‘Commercial Loans Construction FE @ Commercial RE © Dirvct Consumer @ Indirect Auto (9) 202017-EOM CRE COMPOSITION 144% of Tier 1 Capital IMPROVED PROPERTY COMPOSITION 3% NASDAQ:CCBG. $391,682 © irevovea Propet © const © conse $252,931
Slide 9: Credit Quality
Credit Quality + NPA Reduction: 10% Decrease QoQ and 17% Decrease in 2017 + Classified Loans: 1% Increase QoQ and 0.5% Decrease in 2017 + Continued Strong OREO Sales with Retail Disposition Strategy: 16% Decrease QoQ and 25% Decrease in 2017 NON-PERFORMING ASSETS. (% of Assets) 4011 4014 4015 4016 2
Slide 10: Strong Capital Position
Strong Capital Position NASDAQ:CCBG CAPITAL TO EXECUTE STAYING POWER 2011 2015 2016 2017 © re sees capa -ce8s © eee commen Eau 08” © = Coen tty Py Tne $5 on BE Bans (2) Base! {ll Became Btfective in 2015. (2) Adjusted Non-GAAP, See Appendix tor Reconciliation. 10
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 $1.00 :§ 05 | EE ial [ox 2008” 2011 = 2012 2014 = 2015 = 2016" YTD 2017 WH Net income Pretax Pre-Croat Costs (PTPCC) Per Dist Sra 2008-2013 (1) Includes gain on
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% 39.1% of Operating Revenues $42.0 Million $25.9 Million @ Funds Sola @ Investment Securties Commercial Loans. ‘Wealth Management Fee @ Construction RIE @ Mortgage Banking Fees © Commercial FE @ Fees on Loans @ Other ©
Slide 14: Drive Revenues: Generate Loan Growth
DRIVE REVENUES Generate Loan Growth PERIOD END LOANS. ($ in Millions / % Growth) $2,000,000 $1,500,000 $1,000,000 $500,000 2013 2014 2015 2016 2017 * Annualized, (1)2017 vs. 2016 NASDAQ:CCBG. GROWTH BY SEGMENT) 70% © Dvect Consumer @ lndvect Auto @ Other -LiP 1“
Slide 15: Drive Revenues: Positioned to Win on Rates
DRIVE REVENUES NASDAQ:CCBG Positioned to Win on Rates LOAN REPRICING RATE MIX @ Overnight @ 12. Months. © 24 Months © 36 Months, @ 48 Months 60 Months (@ > 60 Months * 65% of Loan Portfolio is Variable or Adjustable * ~ 2/3 of Loan Portfolio Re-Prices within One Year + 50 BP Rate Rise = Favorable An
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/ $27,892" $25,853 Prepaid Cards Improve Card 100 ar APA Utlization 80 Other Fees 60 ~ Bank Card Fees _ 40 (CReposit Fees) by = Residential Leverage Working Otiginations Capital Fina
Slide 17: Committed to Expense Reduction
EXPENSE MANAGEMENT NASDAQ:CCBG Committed to Expense Reduction NONINTEREST EXPENSE TREND NONINTEREST EXPENSE MIX Sa cycle Cont a @ Salaries @ Legal & Professional @ Associate Benefits @ Processing Services Pension Plan Other Real Estate @ Occupancy @ Other (1) OREO, Legal (Loan Collections), FDIC Ins
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? —— + Florida is Back Growth Measures Nearing Prior Peaks ay o Gevistewee | eed Strong Deposit Franchise = + Strong Capital — Ability to Deploy —_ + Insider Ownership =a) + Seasoned and Experienced Bankers aay Low Execution Risk aay * CCBGis One of the Few Remaining | “Pure Plays’ in Florid
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Slide 24: Appendix
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Slide 25: Quarterly Results
Quarterly Results NASDAQ:CCBG 0.33 0.35 0.30 0.30 0.20 0.21 BS 0.16 1015 2015" 3Q15 4015 1016 2Q16% 3Q16 4Q16 1Q17 2Q17 Diluted Earnings Per Share _& Pre-Tax Pre-Credit Costs ("PTPCC’) per diluted share” ‘Includes BOLI Proceeds of $0 10per Share * Includes TRUPs Repurchase Gain of $0.09per Share (1)
Slide 26: Financial Highlights
Financial Highlights NASDAQ:CCBG Dollars in Thousands, 2016 YTD 2017 except Eamings per Share Interest Income $89,680 $62,162 $78,221 $79,658 $81,154 $41,962 Interest Expense 5,368 4416 3.580 3.307 3.189 1,730 Net Interest Income 4.312 77.736 74,644 76,354 77.965 40,232 Provision 16,166 3472 1,905 4
Slide 27: Financial Highlights: As of Period-End
Financial Highlights As of Period-End 2012 2013 NASDAQ:CCBG 2014 2015 2016 2017 Investments 5295965 $399,631 $605,129 $638,620 700.099 $686,760 Loans 4is2ng02 1309.08 144.062 1503907 1.672.175 1.629.409 Total Assets 2633984 2611903 2.627.169 2.797.860 2ass.1B7 2814883 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 2010-2017 2017-2022 2017 2047-2022 Tallahassee MSA 6.36% 4.92% $41,131 4.13% CCBG Florida Markets 7.35% 5.11% $43,173 6.16% 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 2016 Deposit Market alo Offices _in Market ($000)" _/ CCBG Franchise Market Share in Top 4 Share™ Florida 48
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures ‘investors becauseit allows investorsto mor provided below. 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 sly compare cur capital adequacy to other compa
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