Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Raymond James 2019 US Bank Conference
42 slides from Community Trust Bancorp's conference presentation, Sep 4, 2019
Slide 1: Raymond James 2019 US Bank Conference Presentation
Raymond James 2019 US Bank Conference 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
Key Metrics Total Assets $4.4 billionMarket Capitalization $751.6 millionCash Dividend Yield 3.41%P/E Ratio 11.2xPrice to Book Value 1.3xPrice to Tangible Book Value 1.4xTangible Common Equity Ratio 12.27%Competitive Position2nd largest Kentucky domiciled bank holding company 2nd 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 - $669 million Loans - $967 million Loans - $375 millionDeposits - $907 million Deposits - $1.4 billion Deposits - $517 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 ’19 Revenue annualized
Slide 8: Executive Management Team
Executive Management Team Banking Yrs. w/Name Position Experience CTBIJean R. Hale Chairman, President and CEO 50 years 50Mark A. Gooch CTB President and CEO 38 years 38Andy Waters CTIC President and CEO 32 years 15Kevin J. Stumbo EVP/Chief Financial Officer 32 years 24Steven E. Jameson EVP/Risk Man
Slide 9: Operational Philosophy
Operational Philosophy Traditional community banking business modelExecutive management and board of director commitment to corporate governanceDecentralized decision making and centralized operations and risk managementStrong loan portfolio risk management processSpecialized product offeringsMainta
Slide 10: Consistent Financial Performance
Consistent Financial Performance YTD 2019 2018 2017 2016 2015 EPS $1.88 $3.35 $2.92 $2.70 $2.66ROAA 1.56% 1.41% 1.27% 1.21% 1.23%ROAE 11.54% 10.83% 9.93% 9.58% 9.97%Net Int. Margin 3.63% 3.66% 3.67% 3.70% 3.81%Efficiency Ratio 61.39% 60.17% 58.66% 58.54% 58.20%Nonperforming Loans 0.75% 0.69% 0.91% 0
Slide 11: Earnings Review
Earnings Review 2a Community Trust Bancorp, Inc.
Slide 12: Earnings Per Share
Earnings Per Share EPS increased 21.3% from June 2018 to June 20192019 EPS goal - $3.45 to $3.52 per share 12
Slide 13: Net Income
Net Income Net income increased 21.3% from June 2018 to June 20192019 goal for net income - $61.3 to $62.6 million (in millions) 13
Slide 14: Revenues
Revenues 2018 revenues increased 4.4% from 20172019 goal for revenues - $189.0 to $194.7 million (in millions) 14 Jun ’19 annualized
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue YTD noninterest income decreased 9.7% year over year for the six months ended June 30Decreases in trust revenue, loan related fees, and other operating revenue (2018 gain on sale of partnership interest from a low income housing tax credit recapture)2019 goa
Slide 16: Net Interest Revenue
Net Interest Revenue YTD net interest revenue increased by 3.3% year over year for the six months ended June 30Net interest margin flat to prior yearAverage earning assets increased $118.9 million, or 3.0% (in millions) 16 Jun ’19 annualized
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 6/30/19 – (8.41)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2019 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 3/31/2019 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 3/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
Balance Sheet Review 2a Community Trust Bancorp, Inc.
Slide 21: Total Assets
Total Assets Total assets at 6/30/19 increased $175.6 million, or an annualized 8.4%, from 12/31/18Loans decreased $16.4 million or an annualized 1.0%Investment portfolio decreased $2.2 million or an annualized 0.7%Deposits increased $131.8 million or an annualized 7.5%2019 goal for total assets - $
Slide 22: LIBOR
LIBOR CTBI’s LIBOR exposure is limited to:Loans: $29.0 millionAvailable-for-sale securities: $21.2 millionTrust preferred debentures: $59.3 million 22
Slide 23: Total Loans
Total Loans Loans decreased $16.4 million, or an annualized 1.0%, from 12/31/182019 goal for total loans - $3.31 to $3.45 billion (in billions) 23 Loan Portfolio Mix June 30, 2019 Loan Rate Mix
Slide 24: Concentrations of Credit
Concentrations of Creditas a % of Total Loans June 30, 2019 * As a percentage of funded exposure 24
Slide 25: Indirect Lending
Indirect Lending Jun ‘19 annualized (in millions) 25
Slide 26: Net Charge-offs as a % of Average Loans
Net Charge-offsas a % of Average Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 billion. June 30, 2019 26 Nonperforming Loansas a % of Total Loans
Slide 27: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets $22.5 million in other real estate owned 27 Loan Loss Reserveas a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 28: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the six months ended 6/30/19 totaled $4.8 millionNew bookings in the first six months of 2019 totaled $1.2 millionProperties under contract to sell at June 30, 2019 totaled $1.6 million (in millions) 28
Slide 29: 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) 29 Total Depositsincluding Repurchase Agreements June 30, 2019
Slide 30: Hoops CD Product
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$221 million in Hoops CDs as of 6/30/19 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted b
Slide 31: Shareholder Value
Shareholder Value 2a Community Trust Bancorp, Inc.
Slide 32: Dividends Per Share
Dividends Per Share 2018 cash dividends increased 6.2%Dividend payout ratio at June 30, 2019 was 38.35%Desired level between 40% and 50%June 30, 2019 cash dividend yield was 3.41%Cash dividend increased to $0.38 per share effective October 1, 2019 32 *2019 is projected DPS
Slide 33: 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) 33 6.5%
Slide 34: Book Value Per Share / Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 34
Slide 35: Total Market Capitalization
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) 35 Price to Tangible Book Value 2014 2015 2016 2017 2018 6/30/19CTBI 1.67x 1.50x 2.01x 1
Slide 36: 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, 2013 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2018. 36
Slide 37: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors 37 December 31, 2018
Slide 38: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends39 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 39: Key Strategic Initiatives
Key Strategic Initiatives ‘ommunity
Slide 40: 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 41: 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 42: Yesterday
Yesterday
Community Trust Bancorp — Raymond James 2019 US Bank Conference on 6ix