Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Raymond James 2020 U.S. Bank Conference
44 slides from Community Trust Bancorp's conference presentation, Sep 8, 2020
Slide 1: Raymond James 2020 U.S. Bank Conference Presentation
Raymond James 2020U.S. Bank ConferencePresentation
Slide 2: Cautionary Statement
Cautionary Statement Information provided herein by CTBI contains “forward-looking” information. CTBI cautions that any forward-looking statements made are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Please refer to
Slide 3: Key Metrics
Key Metrics Total Assets $5.0 billionMarket Capitalization $583.0 millionCash Dividend Yield 4.64%P/E Ratio 11.0xPrice to Book Value 0.9xPrice to Tangible Book Value 1.0xTangible Common Equity Ratio 11.42%Competitive Position2nd largest Kentucky domiciled bank holding company 1st in Kentucky in depo
Slide 4: Corporate History
Corporate History 1903 Pikeville National bank formed1987-2005 Acquired 14 banks and purchased 17 branch locations1997 Changed name to Community Trust Bancorp, Inc.2010 Acquired LaFollette First National CorporationPresently Two operational subsidiaries~ Community Trust Bank, Inc. and Community Trus
Slide 5: Our Banking Franchise
Our Banking Franchise Serving customers in 79 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee
Slide 6: Our Banking Franchise by Region
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $728 million Loans - $1.0 billion Loans - $422 millionDeposits - $1.1 billion Deposits - $1.7 billion Deposits - $570 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Lexington • Hazard • Ashland• Mt. Sterling
Slide 7: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management & Trust Revenue Includes CTB portfolio Assets in billionsRevenue in millions 7 Jun ’20 Revenue annualized
Slide 8: Executive Management Team
Executive Management Team Banking Yrs. w/Name Position Experience CTBIJean R. Hale Chairman, President and CEO 51 years 51Mark A. Gooch CTB President and CEO 39 years 39Andy Waters CTIC President and CEO 33 years 16Kevin J. Stumbo EVP/Chief Financial Officer 33 years 25Steven E. Jameson EVP/Risk Man
Slide 9: Operational Philosophy
Operational Philosophy Traditional community banking business modelExecutive management and board of director commitment to strong corporate governanceDecentralized decision making and centralized operations and risk managementStrong loan portfolio risk management processSpecialized product offering
Slide 10: Consistent Financial Performance
Consistent Financial Performance YTD 2020 2019 2018 2017 2016 EPS $1.48 $3.64 $3.35 $2.92 $2.70ROAA 1.14% 1.49% 1.41% 1.27% 1.21%ROAE 8.45% 10.84% 10.83% 9.93% 9.58%Net Int. Margin 3.49% 3.60% 3.66% 3.67% 3.70%Efficiency Ratio 57.12% 60.70% 60.17% 58.66% 58.54%Nonperforming Loans 1.02% 1.03% 0.69% 0
Slide 11: Earnings Review
Earnings Review
Slide 12: Earnings Per Share
Earnings Per Share EPS decreased 21.3% from June 2019 to June 20202020 EPS goal - $3.23 to $3.29 per share 12
Slide 13: Net Income
Net Income Net income decreased 21.1% from June 2019 to June 20202020 goal for net income - $57.5 to $58.6 million (in millions) 13
Slide 14: Revenues
Revenues Revenues increased 2.9% from June 2019 to June 20202020 goal for revenues - $197.8 to $201.8 million (in millions) 14
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue YTD noninterest income decreased 0.1% year over year for the six months ended June 302020 goal for noninterest revenue – 24.0% to 26.0% of total revenue (in millions) 15 Jun ’20 annualized
Slide 16: Net Interest Revenue
Net Interest Revenue YTD net interest revenue increased by 3.7% year over year for the six months ended June 30Net interest margin decreased 14 basis pointsAverage earning assets increased $308.6 million, or 7.7% (in millions) 16 Jun ’20 annualized
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 6/30/20 – (5.12)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. % of assets repricingWit
Slide 18: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expenseas a % of Average Earning Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. (in millions) 18 Noninterest Expense & Efficiency Ratio (in mi
Slide 19: Return on Average Assets
Return on Average Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
Balance Sheet Review
Slide 21: Total Assets
Total Assets Total assets at 6/30/20 increased $656.8 million, or an annualized 30.3%, from 12/31/19Loans increased $290.1 million or an annualized 18.0%Investment portfolio increased $140.1 million or an annualized 46.9%Deposits increased $635.8 million or an annualized 35.2%2020 goal for total ass
Slide 22: Total Loans
Total Loans Loans increased $290.1 million, or an annualized 18.0%, from 12/31/192020 goal for total loans - $3.33 to $3.47 billion (in billions) 22 Loan Portfolio Mix June 30, 2020 Loan Rate Mix
Slide 23: Covid-19 Deferrals
Covid-19 Deferrals 23 (in thousands) Number of Loans in Forbearance Total Loans in Forbearance Total Loans in Forbearance Contractually Delinquent > 30 Days First Lien 1-4 Family 481 $70,475 $387 Home Equity Installment Loans 24 1,779 0 Multi-Family 68 30,992 0 Commercial Real Estate 344 477,563 120
Slide 24: PPP Loans
PPP Loans 24 As of June 30, 2020, we had 2,848 PPP loans authorized totaling $275.9 million 2,703 were under $350 thousand132 were between $350 thousand and $2.0 million13 were over $2.0 million
Slide 25: Concentrations of Credit
Concentrations of Creditas a % of Total Loans June 30, 2020 25 There were no nonperforming loans in any of these loan categories as of June 30, 2020.
Slide 26: Indirect Lending
Indirect Lending Jun ‘20 annualized (in millions) 26
Slide 27: Net Charge-offs and Nonperforming Loans
Net Charge-offsas a % of Average Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. June 30, 2020 27 Nonperforming Loansas a % of Total Loans
Slide 28: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets $17.7 million in other real estate owned 28 Loan Loss Reserveas a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 29: Allowance for Credit Losses
29 Allowance for Credit Losses 4Q19 Probable Incurred Losses January 1, 2020 CECL Adoption March 31, 2020 CECL June 30, 2020 CECL (dollars in thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Allowance for loan and lease losses transitioned to allowan
Slide 30: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the six months ended 6/30/20 totaled $2.9 millionNew bookings in the first six months of 2020 totaled $1.9 millionProperties under contract to sell at June 30, 2020 totaled $2.0 million (in millions) 30
Slide 31: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 2020 goal for total deposits including repurchase agreements - $3.69 to $3.84 billion (in billions) 31 Total Depositsincluding Repurchase Agreements June 30, 2020
Slide 32: Our Hoops CD
Our Hoops CD product has been offered for over 20 years100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships$218 million in Hoops CDs as of 6/30/20 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted b
Slide 33: Shareholder Value
Shareholder Value
Slide 34: Dividends Per Share
Dividends Per Share Dividend payout ratio at June 30, 2020 was 51.43%Desired level between 40% and 50%June 30, 2020 cash dividend yield was 4.64%Cash dividend increased to $0.385 per share effective October 1, 2020, an increase of 1.32% 34 *2020 is projected DPS
Slide 35: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 29.0% during the past five years6.5% compound growth rate for the past five years2020 goal for shareholders’ equity - $632.1 to $657.9 million (in millions) 35 6.5%
Slide 36: Book Value Per Share, Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 36
Slide 37: Total Market Capitalization and Price to Tangible Book Value
Total Market Capitalization Peer data obtained from SNL Financial; peer group consists of publicly traded regional bank holding companies with comparative assets, as defined in our Proxy Statement. (in millions) 37 Price to Tangible Book Value 2015 2016 2017 2018 2019 6/30/20CTBI 1.50x 2.01x 1.79x 1
Slide 38: Cumulative Total Return Comparison
5 Year Cumulative Total ReturnComparison of CTBI, NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks An investment in CTBI stock on December 31, 2014 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2019. 38
Slide 39: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors 39 June 30, 2020
Slide 40: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends40 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 4.6%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexCTBI shareholders
Slide 41: Key Strategic Initiatives
Key Strategic Initiatives
Slide 42: Operational Priorities
Operational Priorities Build core earnings capacityQuality loan growthLow cost deposit growthMaintain net interest margin Operational efficiencyExpense controlNoninterest revenue growthCompliance managementIncrease noninterest incomeWealth managementBrokerageLife insuranceContinuing focus on improvi
Slide 43: CTBI's Franchise Value
CTBI’s Franchise Value History of solid investor returnsHistorically strong capital positionInvestor focused dividend policyDividend Achievers IndexConsistent financial performanceCommunity banking strategyEconomic diversity in the markets we serveStrong experienced management team and over 1,000 de
Slide 44: North Mayo Trail, Pikeville, KY 41501
346 North Mayo Trail, Pikeville, KY 41501
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