Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Investor Presentation (February 2018)
29 slides from Capital City Bank's investor presentation, Feb 7, 2018
Slide 1: Investor Presentation Fourth Quarter 2017
Investor Presentation Fourth Quarter 2017 4 Capital Ci 29 Gop Graud
Slide 2: Forward-Looking Statement
Forward-Looking Statement Forward-looking statements in this presentation are based on current plans and expectations that are subject to uncertai s and risks, which could cause the Company’s future results to differ materially. The following factors, among others, could cause the Company's actual r
Slide 3: Corporate Profile
Corporate Profile * Oldest Florida-based Publicly Traded Bank * Managed Multiple Business Cycles Successfully * $2.9B Assets * Loans: $1.7B/Deposits: $2.5B * 85% Florida/15% Georgia * 50/50 Mix of Consumer and Commercial Clients * $1.4BAssets Under Management 59 Offices in 3 MSA's BR “R00 GEORGIA AL
Slide 4: Corporate Profile
Corporate Profile Ownership ~67% Retail/ 33% Institutional ~ 26% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap" $390 Million (1) sof 1208172017
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 TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,109,301 Total Deposits (in Thousands) $04,885 Market Share‘? 14.36% Market Share'?) 274% Market Share Rank? Fy Market Share Rank’) Py Government, Education, Healthcare, “Taps ies Education, Professional ‘Top S krdlisties Defen
Slide 7: Core Deposit Advantage
Core Deposit Advantage AVERAGE DEPOSITS BY TYPE) COST OF FUNDS() (16 bps) z $ FH + 3 BG || e 3 a ° £ 3 s | s = a | = 6 id = 2 2 © NIB Demand Deposits @ Regular Savings © Now @ cos @ Money Market (1) 2017
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification CRE COMPOSITION 144% of Tier 1 Capital $418,179 © Improved Property Vacant Land @ Construction @ Condos @ Land Development IMPROVED PROPERTY COMPOSITION $274,937 LOAN $1,658,309 © V4 Residential PORTFOLIO() © Commerc toons Chet Construction R/E ats any, © Commerc E ted
Slide 9: Credit Quality
Credit Quality CLASSIFIED LOANS + NPA Reduction: 12% Decrease QoQ and (% of Total Loans) 42% Decrease in 2017 s300m- 15.23% * Classified Loans: 15% Decrease QoQ and 25% Decrease in 2017 + Continued Strong OREO Sales with Retail Disposition Strategy: 34% Decrease QoQ and 63% Decrease in 2017 4009 401
Slide 10: Strong Capital Position
Strong Capital Position CAPITAL TO EXECUTE STAYING POWER 20 2015 2016 2017 @ PiskBased captal-cces wheats © ‘2ro}b!e Common Equity-ce8s* © sib Common Equity - Publ Traded 1-85 Billon SE Banks (1), Baseltl| Became Effective in 2015. sa (2) Adjusted Non-GAAP, See Appendictor Reconciliation
Slide 11: Strategic Initiatives: Three Pillars of Execution
Strategic Initiatives: Three Pillars of Execution ive 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 > Execute
Slide 12: Drive Revenues: Diversified Revenues
DRIVE REVENUES INTEREST INCOME) 1% 2% $86.9 Million @ Funds Sold @ Residential R/E Investment Securities Home Equity R/E Commercial Loans @ Construction R/E © Commercial R/E @ Feeson.oans (2017 Diversified Revenues FEE INCOME) 38.4% of Operating Revenues 16% $51.7 Million © Deposit Fees Bank Card Fe
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES PERIOD END LOANS (S in Millions / % Growth) $2,000,000 $1,500,000) $1,000,000 $500,000 2013 2014 2015 2016 2017, (1) 2017s. 2016 Generate Loan Growth GROWTH BY SEGMENT")
Slide 14: Drive Revenues: Loan Repricing Rate Mix
DRIVE cep REVENUES LOAN REPRICING RATE MIX @ Overnight @ 12 Months 24 Months D 36 Months @ 48 Months 60 Months @ > 60 Months * 63% of Loan Portfolio is Variable or Adjustable + ~1/2 of Loan Portfolio Re-Prices within One Year
Slide 15: Grow and Diversify Fee Income
DRIVE REVENUES FEE INCOME MIX (in Thousands) $53,681" $51,746 100% $8,907 Other Foes $6,182 80% 60% 40% 20% $21,332 Depostrees) gag a5 ° 1 2016 2017 (1) Includes $2 54 gain in 2016 on partial retirementot TRUPS ~ effected in Other Fees Grow and Diversify Fee Income GROWTH INITIATIVES ‘Check Cashing/
Slide 16: Committed to Expense Reduction
Committed to Expense Reduction EXPENSE MANAGEMENT, NONINTEREST EXPENSE TREND NONINTEREST EXPENSE MIX (in Thousands) © Salaries @ Legal & Professional @ Associate Benefits @ Processing Services @ Pension Plan @ Other Real Estate @ Occupancy © Other (1) OREO, Legal (Loan Coltections), FDIC Insurance &
Slide 17: Channel Optimization and Efficiency Initiatives
Channel Optimization Self-Service Teller Mobile & Online Digital Lending Website Enhancements Office/Market ROA Reviews Process Improvement Consolidate Platforms Electronic Documents Eliminate Non-Value- Added Tasks Reduce Cycle Costs OREO Legal Pension Support Growth Onboarding Client Segmentation
Slide 18: Effectively Deploy Capital
EFFECTIVELY DEPLOY »») CAPI * Technology Investments Organic G + 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 ‘Macon Targets Gainesville + Strong Core Deposit Base + Lack of Scale to Absorb Regulatory Cost + Succession Plan Unclear 19
Slide 20: 2018 Focus
2018 Focus Broader Based Loan Growth Implement Fee Income Initiatives Evaluate Acquisition Opportunities + Small Business Lending, WCF/ABL, and Participations + Our New Checking Account Platform and Strategies to Drive Interchange Revenues + Evaluate Both Bank and Non-bank Opportunities
Slide 21: Why CCBG?
Why CCBG? ——y + Florida is Growing =i + Growth Measures Nearing Prior Peaks | el + Stable Markets * Strong Deposit Franchise > * Strong Capital — Ability to Deploy ———_ + Insider Ownership ——p + Seasoned and Experienced Bankers + Low Execution Risk * CCBGis One of the Few Remaining aay “Pure Plays’
Slide 22: 2% Capital Ci
2% Capital Ci z ) Banik Grou
Slide 23: Appendix
ha or . — a Appendix oy Sapte,
Slide 24: Quarterly Results
Quarterly Results $0.50 $0.45 - $0.40 — $0.35 $0.30" $0.25" $0.20 $0.15 $0.10 $0.05 $0.00 “1QIS 2Q15* 3Q1S 4QIS 1Q16 2Q16" 3Q16 4Q16 1017 2017 3Q17 4Q17"** I Diluted Earnings Per Share Ill Pre-Tax Pre-Credit Costs ("PTPCC”) per diluted share" “Includes BOL! Proceeds of $0.10per Share ‘Includes TRUPs
Slide 25: Financial Highlights
Financial Highlights xcept Eamings Interest Income $89,680 $82,152 $78,221 $79,658 $61,154 $86,930 Interest Expense 5.368 4416 3.580 3.307 3.189 3,948 Net interest Income 84,312 11.736 74,641 76,351 77,966 82,982 Provision 16,166 3472 1,905 1,594 819 2215 Noninterest Income 55,185 56,416 52,536 54,0
Slide 26: Financial Highlights
Financial Highlights Investments $296,985 $399,631 «$505,129 «$638,920 $700,099 $697,590 Loans 4,521,302 1,399,668 1,442,062 1,503,907 1,572,175 1,658,309 Total Assets 2.633.984 2,611,903 2,627,169 2,797,860 2,845,197 2,898,794 Noninterest Bearing Deposits 609,235 641,463 659,115 758,283, 791,182 87
Slide 27: Market Demographic
Market Demographic Anchor and Small-Town America Markets More Stable and Predictable. Median Income Projected Change 2010-2017 2018-2023 2017 2048-2023 Tallahassee MSA 5.5% 4.40% $48,208 5.56% CCBG Florida Markets 7.06% 412% $46,306 7.27% Florida 12.26% 6.73% $53,657 10.45% us 5.76% 3.50% $61,045 8.
Slide 28: Deposit Market Share
Deposit Market Share + Market Share Gives Pricing Leverage + Keeps Cost of Funds Low + Organic Growth Going Forward Number CCBGDeposits Percentof Total Ranking: Counties ofOffices in Market CCBG with 2017 Market Share ($000)* Franchise in Top 4 Florida 48 $2,065,171 86.23% 13 0f 18 9.82% Georgia 9 $
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures We presenta tangible common equity ratio that removes the effect of goodwill resulting rom merger and acquisition actity We believe this measures, sefulto investors becauseit allows investors to more easily ‘compare our capital adequacy to ‘other companiesinthe industy. ‘
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