Capital City Bank Group · NASDAQ:CCBG
Capital City Bank — Investor Presentation (May 2017)
30 slides from Capital City Bank's investor presentation, May 8, 2017
Slide 1: Investor Presentation May 2017
pene 2\ Capital City = == ZeY. Bank Group =a | ~el >. a. ——a =a Investor Presentation May 2017
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 + $2.9B Assets + Loans: $1.6B/Deposits: $2.5B * 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
Corporate Profile NASDAQ:CCBG Ownership 70% Retail/ 30% Institutional ~ 26% Insider Experienced MarketCap Management $363 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: Average Deposits by Type / Cost of Funds
NASDAQ:CCBG AVERAGE DEPOSITS BY TYPE") COST OF FUNDS() (13bps) 0.5 04 03 02 04 Florida Peer Regional Peer National Peer’ 0.0 @ now CDs @ NIB Demand Deposits @ Regular Savings © Money Market () yID 9812017 (2) Publically Traded $1-S5 Bilion Commercial Banks (Source: SNL) 7
Slide 8: Loan Portfolio Diversification
Loan Portfolio Diversification LOAN PORTFOLIO) $1,592,457 ® Commercial Loans Construction FE © Commercial FE @ Residential RE @ Home Equity FE © Direct Consumer © Indirect Auto (9) 102017-EOM CRE COMPOSITION 141% of Tier 1 Capital IMPROVED PROPERTY COMPOSITION 3% NASDAQ:CCBG. $380,356 © irevovea Pro
Slide 9: Credit Quality
Credit Quality NASDAQ:CCBG + NPA Reduction: 7% Decrease QoQ and CLASSIFIED LOANS 33% Decrease YoY (% of Total Loans) 15.23% * Classified Loans: 1% Decrease QoQ and 18% Decrease YoY + Continued Strong OREO Sales with Retail Disposition Strategy: 11% Decrease QoQ and 46% Decrease YoY 40034014 «4015-40
Slide 10: Strong Capital Position
Strong Capital Position NASDAQ:CCBG CAPITAL TO EXECUTE STAYING POWER 2011 2015 2016 1017 © 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 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 sale of Merchant Services
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) 1.0% 2.4% 39.2% of Operating Revenues $20.5 Million $12.7 Million @ Funds Sols @ Residential RE @ Deposit Fees @ Investment Securties @ Bank Card Fees ‘Commercial Loans, ‘Wealth Management Fee @ Construction RE @ Indirect A
Slide 14: Drive Revenues: Generate Loan Growth
DRIVE REVENUES Generate Loan Growth PERIOD END LOANS. ($ in Millions / % Growth) $2,000,000 $1,500,000 $1,000,000 $500,000 2013 2014 2015 2016 1017 * Annualized (910175. 1016 NASDAQ:CCBG. GROWTH BY SEGMENT) © Commercial Loans anatuction RIE ‘ammotcal FUE josdential VE sim lame Equity RIE eect Consum
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 Grow and Diversify Fee Income FEE INCOME MIX (in Millions) $12,677 $12,718 100 Bank Card Fees _ 20 z (Ceposit Fees) 2016" (71 3812017 NASDAQ:CCBG. GROWTH INITIATIVES Check Cashing/ Prepaid Cards Improve Card Utiization Residential Leverage Working Originations Capital Finance Platform
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 0.30 iL, | 1015 2Q15* 3Q15 : 4Q15 1016 " 2016" 3Q16 4Q16 1017 =Diluted Earnings Per Share —& Pre-Tax Pre-Credit Costs ("PTPCC") per diluted share"! 0.45 0.40 0.35 0.30 0.25 0.20 0.15 - 0.10 0.05 0.00 ‘Includes BOLI Proceeds of $0 10per Share * Includes TRUPs Repurchase
Slide 26: Financial Highlights
Financial Highlights NASDAQ:CCBG Dollars in Thousands, except Eamings per Share Interest Income $89,680 $82,152 s7a221 $79,658 $1,154 $20,540 Interest Expense 5,368 4416 3.580 3.307 3.189 804 Net Interest Income 4312 T1136 74.644 76.354 77.965 19,736 Provision 16,166 3472 4,905 41594 319 310 Noninte
Slide 27: Financial Highlights
Financial Highlights As of Period-End 2012 2013 NASDAQ:CCBG 2014 2015 2016 1017 Investments 5295965 $399,631 $605,129 $638,620 700099 $699,617 Loans 452102 1309.68 144.062 1503907 4.672.175 1.582487 Total Assets 2635984 2.611.903 2.627.169 2.797.850 2esb.187 2.895.831 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 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
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