Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2019)
51 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 23, 2019
Slide 1: 2019 Annual Shareholders' Presentation
2019 ANNUAL SHAREHOLDERS’ PRESENTATION a Community Trust Bancorp, Inc.
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: 2018 Key Metrics
2018 Key Metrics Total Assets $4.2 billionMarket Capitalization $702.4 millionCash Dividend Yield 3.64%P/E Ratio 11.8xPrice to Book Value 1.2xPrice to Tangible Book Value 1.4xTangible Common Equity Ratio 12.06%Competitive Position2nd largest Kentucky domiciled bank holding company 2nd in Kentucky in
Slide 4: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $675 million Loans - $961 million Loans - $368 millionDeposits - $836 million Deposits - $1.4 billion Deposits - $515 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Lexington • Hazard • Ashland• Mt. Sterling
Slide 5: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management & Trust Revenue Includes CTB portfolio Assets in billionsRevenue in millions 5
Slide 6: 2018 Performance
2018 Performance 2a Community Trust Bancorp, Inc.
Slide 7: 2018 Performance Summary
2018 Performance Summary Goals ResultsEarnings $58.8 - $60.2 million $59.2 millionEPS $3.32 - $3.40 per share $3.35 per shareROAA 1.41% - 1.44% 1.41%ROAE 10.72% - 10.97% 10.83%Assets $4.15 - $4.32 billion $4.20 billionLoans $3.15 - $3.35 billion $3.21 billionDeposits $3.47 - $3.61 billion $3.54 bill
Slide 8: Shareholder Value
Shareholder Value 2a Community Trust Bancorp, Inc.
Slide 9: Dividends Per Share
Dividends Per Share 2018 cash dividends increased 6.2%Dividend payout ratio for 2018 was 41.22%Desired level between 40% and 50%December 31, 2018 cash dividend yield was 3.64%Cash dividend increased to $0.36 per share effective October 1, 2018 9
Slide 10: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 26.0% during the past five years6.5% compound growth rate for the past five years2019 goal for shareholders’ equity - $584.0 to $607.8 million (in millions) 10 6.5%
Slide 11: Book Value Per Share / Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 11
Slide 12: Total Market Capitalization / 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) 12 Price to Tangible Book Value 2014 2015 2016 2017 2018 CTBI 1.67x 1.50x 2.01x 1.79x 1.
Slide 13: Five Year Cumulative Total Return
5 Year Cumulative Total ReturnComparison of CTBI, NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks An investment in CTBI stock on December 31, 2013 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2018. 13
Slide 14: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors 14 December 31, 2018
Slide 15: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends38 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 3.6%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexCTBI shareholders
Slide 16: 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 17: Earnings Review
Earnings Review 2a Community Trust Bancorp, Inc.
Slide 18: Earnings Per Share
Earnings Per Share EPS increased 14.7% from 2017 to 20182019 EPS goal - $3.45 to $3.52 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 12/31/2018 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Net Income
Net Income Net income increased 15.0% from 2017 to 20182019 goal for net income - $61.3 to $62.6 million (in millions) 20
Slide 21: Revenues
Revenues 2018 revenues increased 4.4% from 20172019 goal for revenues - $189.0 to $194.7 million (in millions) 21
Slide 22: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue 2018 noninterest income increased 7.1% from 2017Increases in trust revenue, deposit service charges, and bank owned life insurance income2019 goal for noninterest revenue – 23.0% to 26.0% of total revenue (in millions) 22
Slide 23: Net Interest Revenue
Net Interest Revenue 2018 net interest revenue increased by 3.5% from 2017Net interest margin decreased 1 basis pointAverage earning assets increased $114.5 million, or 3.0% (in millions) 23
Slide 24: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/18 – (10.04)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2018 for bank holding companies with consolidated assets of $3 billion to $10 billion. % of assets repricing
Slide 25: Net Noninterest Expense / Efficiency Ratio
Net Noninterest Expenseas a % of Average Earning Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2018 for bank holding companies with consolidated assets of $3 billion to $10 billion. (in millions) 25 Noninterest Expense & Efficiency Ratio (in m
Slide 26: Balance Sheet Review
Balance Sheet Review 2a Community Trust Bancorp, Inc.
Slide 27: Total Assets
Total Assets Total assets at 12/31/18 increased $65.4 million, or 1.6%, from 12/31/17Loans increased $85.7 million or 2.7%Investment portfolio increased $9.1 million or 1.6%Deposits increased $31.0 million or 0.9%2019 goal for total assets - $4.20 to $4.46 billion (in billions) 27
Slide 28: Total Loans
Total Loans Total loans at 12/31/18 increased 2.7% from 12/31/17Loan production for the year totaled $0.8 billion2019 goal for total loans - $3.31 to $3.45 billion (in billions) 28 Loan Portfolio Mix December 31, 2018
Slide 29: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2018 * As a percentage of funded exposure 29
Slide 30: Net Charge-offs / Nonperforming Loans
Net Charge-offsas a % of Average Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2018 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2018 30 Nonperforming Loansas a % of Total Loans
Slide 31: Nonperforming Assets / Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets $27.3 million in other real estate owned 31 Loan Loss Reserveas a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2018 for bank holding companies with consolidated assets of $3 billion to $10 bi
Slide 32: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/18 $7.7 millionNew bookings in 2018 $5.5 millionProperties under contract to sell $3.3 million (in millions) 32
Slide 33: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 2019 goal for total deposits including repurchase agreements - $3.56 to $3.71 billion (in billions) 33 Total Depositsincluding Repurchase Agreements December 31, 2018
Slide 34: 1st Quarter 2019 Review
1st Quarter 2019 Review 2a Community Trust Bancorp, Inc.
Slide 35: Key Metrics – 1st Quarter 2019
Key Metrics – 1st Quarter 2019 Total Assets $4.3 billionMarket Capitalization $729.5 millionCash Dividend Yield 3.51%P/E Ratio 12.1xPrice to Book Value 1.3xPrice to Tangible Book Value 1.4xTangible Common Equity Ratio 12.05% Financial data as of March 31, 2019 35
Slide 36: Earnings Per Share
Earnings Per Share $0.89 $0.91 $0.89 Mar 18 Jun 18 Sept 18 Dec 18 Mar 19 36
Slide 37: Net Income
Net Income Net interest income decreased 0.8% from prior quarter, but increased 4.0% from prior year 1st quarterNet interest margin at 3.70% increased 2 basis points from prior quarter and 5 basis points from prior year 1st quarterAverage earnings assets increased $29.4 million from prior quarter an
Slide 38: Noninterest Income
Noninterest Income $1.2 million decrease in bank owned life insurance revenueDecreases in deposit service charges, trust revenue, and loan related fees year over year, offset by a positive variance in securities gains and miscellaneous income (in millions) 38
Slide 39: Noninterest Expense
Noninterest Expense Q-O-QIncrease in personnel expenseIncreases in salaries, bonuses and related taxesDecrease in group medical and life insuranceY-O-YIncrease in personnel expenseIncreases in salaries and other employee benefitsDecrease in group medical and life insurance (in millions) 39
Slide 40: Total Assets
Total Assets Total assets at 3/31/19 increased $111.7 million, or an annualized 10.8%, during the first quarterLoans decreased $18.9 millionInvestment portfolio increased $5.5 millionDeposits increased $81.9 million (in billions) 40
Slide 41: Total Loans
Total Loans Loan portfolio decreased at an annualized rate of 2.4% during the quarterLoans increase from prior year first quarter 2.3% (in billions) 41
Slide 42: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements Deposits, including repurchase agreements, increased an annualized 9.4% from prior quarter and 1.6% from prior year first quarter (in billions) 42
Slide 43: Nonperforming Loans as a % of Total Loans
Nonperforming Loansas a % of Total Loans 43
Slide 44: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets 44
Slide 45: Net Charge-offs as a % of Average Loans
Net Charge-offsas a % of Average Loans (annualized) 45
Slide 46: Efficiency Ratio
Efficiency Ratio Mar 18 Jun 18 Sept 18 Dec 18 Mar 19 46
Slide 47: Key Strategic Initiatives
Key Strategic Initiatives ‘ommunity
Slide 48: 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 49: CTBI: 2019 Outlook
CTBI: 2019 Outlook Net Income $61.3 - $62.6 millionEarnings Per Share $3.45 - $3.52 per shareROAA 1.44% - 1.47% ROAE 10.57% - 10.79% Assets $4.20 - $4.46 billionLoans $3.31 - $3.45 billionDeposits $3.56 - $3.71 billionShareholders’ Equity $584.0 - $607.8 million 49
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: Yesterday
Yesterday
Community Trust Bancorp — Shareholder Meeting (April 2019) on 6ix