Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Q2 2019 Earnings Presentation
31 slides from Capital City Bank's earnings presentation, Jul 26, 2019
Slide 1: Investor Presentation Second Quarter 2019
Investor Presentation Second Quarter 2019
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes forward-looking statements, including statements about future results. These statements are subjectto uncertainties and risks, which could cause the Company's future results to differ materially. The following factors, among others, could cause th
Slide 3: Corporate Profile
Corporate Profile © Oldest Florida-based Publicly Traded Bank — cr Managed Multiple Business Cycles Successfully ALABAMA $3.0B Assets Loans: $1.8B/Deposits: $2.6B 85% Florida/15% Georgia 50/50 Mix of Consumer and : 57 Offices Commercial Clients | FLORIDA $1.7B Assets Under Management
Slide 4: Corporate Profile
Corporate Profile Ownership ~60% Retail/40% Institutional ~ 24% Insider Experienced Management Average of 25 Years’ Experience with CCBG Market Cap"? $416 Million (1) Asof 0630/19
Slide 5: Florida at a Glance
Florida at a Glance Highest Migration Rate in U.S. 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 State with No Personal Income Tax State/Local Budge
Slide 6: Growth Markets
Growth Markets TALLAHASSEE MSA MACON MSA Total Deposits (in Thousands) $1,170,535 Total Deposits in Thousands) $93,295 Market Share‘? 14.3% Market Share‘”) 2.5% Market Share Rank‘? #3 Market Share Rank? #8 Government, Education, Top 3 Industries Top 3 Industries Education, Professional Healthcare, D
Slide 7: Deposit Portfolio Detail
F Deposit Portfolio Detail da Deposit Portfolio Composition Total Deposit Growth 2,565 2s «24 ne 2 239 070 ce 258 232 ih 256 ia 258 3ST 284 273 292 _ 255 7a 227 780 06 © Noninterest Bearing Deposits ‘Toralcont NOW Accounts offunds-CcBG 0.20% = ONGK OMAK ONSK ONS ORTH OAT Regular Savings Accounts, si
Slide 8: Loan Portfolio
LOAN PORTFOLIO“) $1,845,067 1% 20% Commercial R/E @ Home Equity R/E Residential R/E —- @ Construction R/E @ Indirect Auto © Direct Consumer © Commercial Loans @ Other Loons Top 10 loans represent 6% of total loans (9) 202019-£0M Loan Portfolio Diversification 2% 2% CRE COMPOSITION 169% of Tier 1 Cap
Slide 9: Credit Quality
Credit Quality ssoom- is23% - CLASSIFIEDLOANS (% of Total Loans) NPA Reduction: 5% Decrease QoQ and 27% Decrease YoY Classified Loans: 19% Increase QoQ and 11% Decrease YoY Continued Strong OREO Sales with Retail Disposition Strategy: 47% Decrease QoQ and 70% Decrease YoY Overall credit quality has
Slide 10: Strong Capital Position
Strong Capital Position i CAPITAL TO EXECUTE STAYING POWER 201. 2015 2016 = 2017 @ Fisk Based Capital-ccas @ ‘wrsible Common Eauity-ccBs” 20n 2015” 201620172018. © Common Equity SS cee © ‘Wo.ve common Equty- Pubic Traded 15 Bitlon SE Banks (1) Basel ili became etfectve in 2015, (2) Adjusted Non-GAAP
Slide 11: Strategic Initiatives: Three Pillars of Execution
Strategic Initiatives: Three Pillars of Execution 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 > Executed
Slide 12: Drive Revenues: Diversified Revenues
DRIVE REVENUES »> Diversified Revenues INTEREST INCOME) FEE INCOME“) 2%1% 33.2% of Operating 17% Revenues $56.4 Million $25.3 Million © Commercial R/E © Commercial Loans @ DepositFees Residential B/E D Construction R/E Bank Card Fees Investment Securities @ Funds Sold Wealth Management Fee @ Home Eq
Slide 13: Drive Revenues: Generate Loan Growth
DRIVE REVENUES Generate Loan Growth PERIOD END LOANS GROWTH BY SEGMENT®) (Sin Millions / % Growth?) -$20M-S10M 0 S10M $20M $30M $40M $50M 60M $70M $2000 ‘CommercialLoans 19.2% ConstructionR/E 15.0% CommeraIR/e 6.7% Residential R/E 9.5% Home Equity R/E -5.4% Direct Consumer $1500 $1000 $500 Indirect
Slide 14: Drive Revenues: Positioned to Win on Rates
DRIVE REVENUES Positioned to Win on Rates LOAN REPRICING RATE MIX @ Overnight % @ 12.Months - 24 Months = 36 Months $1,845 5 @ 48 Months (in millions) & 60 Months > @ >60 Months * 61% of Loan Portfoliois Variable or Adjustable * 55% of Loan Portfolio Reprices within One Year + Loan Beta of 56% - Las
Slide 15: Drive Revenues: Grow and Diversify Fee Income
100% 80% 60% DRIVE REVENUES Crpiyana piverhiny Fee Income FEE INCOME MIX GROWTH INITIATIVES {in Millions) $25,019 $25,332 Loan tegen r Ciacbas See zl Improve Card "4 >» = Leverage Working Capital Finance Piatform | Grow Weaith ‘Management Assets 2018” 2019”
Slide 16: Noninterest Expense Trend
on NONINTEREST EXPENSE TREND $1: $120M ie I = $90M =i ea | = $60M $30M som ul 1 n 1 A OA i @ Salaries ; 2007 2010~=~=«OSSSONGCSCtC«ONSSONBSSCD @ Occupancy © Legal & Professional @ Other @ Processing Services @ Associate Benefits @ Other Real Estate agi (1) OREO, Legal(Loan Resolution), FDIC Insuranc
Slide 17: Banking Office Optimization
Banking Office Optimization Sale/Leaseback Close/Sell Office/Market ROA Reviews Process Improvement Consolidate Platforms Electronic Documents Eliminate Non-Value- Added Tasks Digital First Self-Service Teller Mobile & Online Digital Lending sin Support Growth Account Acquisition Onboarding Client P
Slide 18: Effectively Deploy Capital
EFFECTIVELY DEPEOY, CAPITAL * Technology Investments CK. | overage 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 Targets ® ‘Strong Core Deposit Base ® Lack of Scale to Absorb Regulatory Cost ® Succession Plan Unclear Benue Tallahassee |
Slide 20: 2019 Focus
2019 Focus + Small Business, Commercial Real Estate, Sliceltey Beisel Residential Real Estate, WCF/ABL, and Loan Growth Participations/Pools + New Checking Account Platform, Account Acquisition, and Strategies to Drive Interchange Revenues Implement Fee Income Initiatives Evaluate Acquisition Opport
Slide 21: Why CCBG?
Why CCBG? Florida is Growing = —aay = = | el Seasoned and Experienced Bankers ay Low Execution Risk CCBG is One of the Few Remaining Gy “Pure Plays” in Florida Growth Measures Nearing Prior Peaks Stable Markets Strong Deposit Franchise Asset Sensitive Balance Sheet Strong Capital — Ability to Deploy
Slide 22: Capital City Bank Group
y 2% Capital Ci q ) Bank Group _
Slide 23: Appendix
oll @ _- Appendix '
Slide 24: Quarterly Results
0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Quarterly Results 3016 4016 1017 2017: 3017 4ai7"—s las" 2a18" 3a18" 4ais™ 1019 2a19 Bl Diluted Earnings PerShare [J Pre-Tax Pre-Credit Costs ("PTPCC") per diluted share" Includes Detered Tax Re-Measurement Expense of$0 24 par Share 10,20,
Slide 25: Financial Highlights
Financial Highlights nner YTD 201: Interest Income $82,162 $78,221 $79,658 $81,154 $86,930 $99,395 $56,387 Interest Expense 4416 3,580 3,307 3,189 3.948 6,891 5,495 Net Interest Income 7736 74.641 (76,361 77,965 82,982 92,504 50,892 Provision 3.472 1,905 1.594 819 2.216 2.921 1413 Noninterest Income
Slide 26: Financial Highlights
Financial Highlights Period-E nib 2013 2014 2015 2016 2017 2018 2a1: inesiments So0ncat 5605129, sea.g20.S7O00NB | SENTSBD | SUERATT.——$60367 ts 1385668 suqome 1500907 1572.75 165800170100 1.946067 Tot ses ei1903 2627169 2787660 2046.107 268879 2.950:69 0r754 Noninterest Bearing Deposits 641,463 659
Slide 27: Market Demographic
Market Demographic Anchor and Small-Town America Markets More Stable and Predictable. Median Income Projected Change 2010-2019 2019-2024 ane se\gioos Tallahassee MSA 6.28% 451% $53,308 12.25% CCBG Florida Markets 7.94% 3.95% $44,838 589% Florida 14.28% 6.79% $55,629 10.26% us 6.64% 3.56% $63,174 8.8
Slide 28: Deposit Market Share
Deposit Market Share Ranking: Nanberof | CcuGDepestsin'| T-eicosc | 2oteMatet | Market Franchise Share in Top Share** Florida 47 $2,169,890 87.07% 12 of 18 8.30% Georgia 8 $292,360 11.73% 20f4 5.11% Alabama 2 $29,949 1.20% - 9.22% Totals 57 $2,492,199. 100.00% - + Market Share Gives Pricing Leverage
Slide 29: Analyst Estimates
Analyst Estimates 2019EPS PRICE TARGET RATING HOVDE $172 $26.00 Outperform kaw $1.64 $26.00 Market Perform Stephens $1.65 $25.00 Equal Weight Sandler O'Neill $176 $25.00 Hold
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present a tangible ‘common equity ratio that removes the effect of goodval resulting fiom merger and acquisition activity. We believe this measure is Useful to investors because it allows imestors to more easily ‘compare our capital adequacy to other ‘companies in the
Slide 31: Capital City Bank Group Contact
3 Capital Ci q ) Bank Croan William G. Smith, CEO smith.bill@ccbg.com J. Kimbrough Davis, CFO davis.kim@ccbg.com Jep Larkin, Controller larkin jep@ccbg.com Corporate Headquarters 217 North Monroe Street Tallahassee, FL32301 www.ecbg.com
Capital City Bank Group — Q2 2019 Earnings Presentation on 6ix