Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2016)
51 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 26, 2016
Slide 1: 2016 Annual Shareholders' Presentation
2016AnnualShareholders’Presentation
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
12/31/15 4/22/16Market Capitalization $613.1 million $641.1 millionDividend Yield ¹ 3.55% 3.40%P/E Ratio ² 13.1x 13.8%Competitive Position2nd largest Kentucky domiciled bank holding company#1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions 6th largest bank in
Slide 4: Our Banking Franchise
Our Banking Franchise Serving customers in 80 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee 4
Slide 5: Our Banking Franchise by Region
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $634 million Loans - $886 million Loans - $341 millionDeposits - $705 million Deposits - $1.3 billion Deposits - $497 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Lexington • Hazard • Ashland• Mt. Sterling
Slide 6: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management &Trust Revenue Assets in billionsRevenue in millions 6 Includes CTB portfolio
Slide 7: 2015 Performance
7 2015 Performance
Slide 8: 2015 Performance Summary
2015 Performance Summary Budget ResultsEarnings $45.4 million $46.4 millionEPS $2.59 per share $2.66 per shareROAA 1.21% 1.23%ROAE 9.81% 9.97%Assets $3.81 billion $3.90 billionLoans $2.84 billion $2.87 billionDeposits $3.13 billion $3.23 billionShareholders’ equity $472.0 million $475.6 million 8
Slide 9: Shareholder Value
Shareholder Value 9
Slide 10: Dividends Per Share
2015 cash dividends increased 3.3%2.1% compound growth rate for past five yearsDecember 31, 2015 cash dividend yield was 3.55%Cash dividend increased to $0.31 per share effective October 1, 2015 Dividends Per Share *2016 is projected DPS 2.1% 10
Slide 11: Shareholders' Equity
Shareholders’ Equity (in millions) Shareholders’ equity has increased 29.6% during the past five years7.0% compound growth rate for the past five years2016 goal for shareholders’ equity - $485 to $520 million 7.0% 11
Slide 12: Book Value Per Share / Tangible Common Equity/Assets
Book ValuePer Share Tangible Common Equity/Assets 12
Slide 13: Total Market Capitalization / Price to Tangible Book Value
Total Market Capitalization All data is as of year-end except 2016 which is as of March 31, 2016. Peer data not available as of March 31, 2016.Peer data obtained from SNL Financial; peer group consists of publicly traded regional bank holding companies with an average asset size of $3.9 billion, as
Slide 14: 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, 2010 would have outperformed the NASDAQ Bank Stocks Index but not the NASDAQ Stock Market (U.S.) at December 31, 2015. 14
Slide 15: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies Return to Investors 3-, 5-, and 10-year total returns annualized December 31, 2015 15
Slide 16: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends35 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 2.1%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexRecognized as one
Slide 17: Earnings Review
Earnings Review 17
Slide 18: Earnings Per Share
EPS increased 6.4% from 2014 to 20152016 EPS goal - $2.72 to $2.82 per share Earnings Per Share 18
Slide 19: Return on Average Assets
Return on Average Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Net Income
(in millions) Net Income Net income increased 7.4% from 2014 to 20152016 goal for net income - $48.0 to $49.2 million 20
Slide 21: Revenues
Revenues (in millions) 2015 revenues increased 1.1% from 20142016 goal for revenues - $183.0 to $189.6 million 21
Slide 22: Noninterest Income
2015 noninterest income increased 3.8% from 2014Increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees, and decreased securities losses2016 goal for noninterest revenue – 26.0% to 26.5% of total revenue Noninterest Incomeas a % of Total Revenue (in millio
Slide 23: Net Interest Revenue
2015 net interest revenue increased by 0.1% from 2014Net interest margin decreased 11 basis pointsAverage earning assets increased $102.1 million, or 3.0% (in millions) Net Interest Revenue 23
Slide 24: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/15 – (6.43)% % of assets repricingWithin 30 days 31.76%% of liabilities repricing Within 30 days 15.42%Within 90 days 25.96%Within 180 days 36.62% Peer data obtained from the Federal Reserve Bank Holding Company Perfor
Slide 25: Noninterest Expense & Efficiency Ratio
Net Noninterest Expenseas a % of Average Earning Assets Noninterest Expense & Efficiency Ratio (in millions) (in millions) Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 26: Balance Sheet Review
Balance Sheet Review 26
Slide 27: Total Assets
Total assets at 12/31/15 increased $180.2 million, or 4.8%, from 12/31/2014Loans increased $140.1 million or 5.1%Investment portfolio decreased $45.3 million or 7.0%Deposits growth $122.6 million or 3.9%2016 goal for total assets - $3.80 to $4.20 billion (in billions) Total Assets 27
Slide 28: Total Loans
(in billions) Total Loans Total loans at 12/31/15 increased 5.1% from 12/31/14Loan production for the year totaled $0.8 billion2016 goal for total loans - $2.90 to $3.10 billion December 31, 2015 Loan PortfolioMix 28
Slide 29: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2015 * As a percentage of funded exposure 29
Slide 30: Net Charge-offs and Nonperforming Loans
Net Charge-offsas a % of Average Loans NonperformingLoansas a % of Total Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2015 30
Slide 31: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets Loan Loss Reserveas a % of Net Loans $40.7 million in other real estate owned Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 billi
Slide 32: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/15 $13.4 millionNew bookings in 2015 $18.8 millionProperties under contract to sell $3.0 million (in millions) 32
Slide 33: Total Deposits including Repurchase Agreements
(in billions) Total Depositsincluding Repurchase Agreements 2016 goal for total deposits including repurchase agreements - $3.20 to $3.40 billion Total Depositsincluding Repurchase Agreements December 31, 2015 33
Slide 34: 1st Quarter 2016 Review
1st Quarter 2016 Review 34
Slide 35: Earnings Per Share
Earnings Per Share $0.71 $0.68 $0.66 Mar'15 Jun'15 Sept'15 Dec'15 Mar 16 35
Slide 36: Net Income
Net Income {in millions) $12.4 $11.9 $10.9 Mar'15 Jun'15 Sept'15 Dec'15 Mar "16 36
Slide 37: Net Income Drivers
Net interest incomeIncreased $0.4 million year over yearIncreased $0.1 million quarter over quarterProvision for loan lossesDecreased $0.1 million year over yearDecreased $0.1 million quarter over quarterNoninterest incomeIncreased $0.2 million year over yearDecreased $0.8 million quarter over quart
Slide 38: Noninterest Income
(in millions) Noninterest Income Q-O-QDecreases in gains on sales of loans, deposit service charges, trust revenue, and loan related feesY-O-YIncrease in deposit service charges 38
Slide 39: Noninterest Expense
(in millions) Noninterest Expense Q-O-Q$0.8 million increase in personnel expense$0.5 million decrease in net other real estate owned expenseY-O-Y$0.5 million increase in personnel expense 39
Slide 40: Total Loans
Loan portfolio increased at an annualized rate of 2.1% during the quarterCommercial loans decreased $0.2 millionIndirect loans increased $18.6 millionResidential loans decreased $2.8 millionConsumer direct loans decreased $0.3 millionLoan increase from prior year first quarter 5.2% (in billions) Tot
Slide 41: Total Deposits including Repurchase Agreements
Deposits, including repurchase agreements, increased an annualized 7.6% from prior quarter and 3.4% from prior year first quarter (in billions) Total Depositsincluding Repurchase Agreements 41
Slide 42: Nonperforming Loans as a % of Total Loans
Nonperforming Loansas a % of Total Loans 42
Slide 43: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets 43
Slide 44: Net Charge-offs as a % of Average Loans
Net Charge-offsas a % of Average Loans (annualized) 44
Slide 45: Efficiency Ratio
Efficiency Ratio 58.66% 57.28% 60-53% -. 20, 58.63% Mar'15 Jun'15 Sept'15 Dec'15 Mar 16 45
Slide 46: Key Strategic Initiatives
Key Strategic Initiatives 46
Slide 47: Operational Priorities
Operational Priorities Continuing focus on improving asset qualityLiquidation of other real estate ownedBuild core earnings capacityQuality loan growthLow cost deposit growthIncrease noninterest incomeWealth managementBrokerageLife insuranceMaintain net interest marginCompliance managementOperationa
Slide 48: CTBI: 2016 Outlook
CTBI: 2016 Outlook Net Income $48.0 - $49.2 millionEarnings Per Share $2.72 - $2.82 per shareROAA 1.22% - 1.28% ROAE 9.4% - 10.4% Assets $3.8 - $4.2 billionLoans $2.9 - $3.1 billionDeposits $3.2 - $3.4 billionShareholders’ Equity $485 - $520 million 48
Slide 49: 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 50: To Our Shareholders
To Our Shareholders Your management has a Strategic Plan for the performance and operations of your company. Success will be attained by the execution of this plan, not just by management, but by approximately 1,000 employees. The continuing support by you, our shareholders, by referring your friend
Slide 51: Slide 51
Community Trust Bancorp — Shareholder Meeting (April 2016) on 6ix