Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2017)
52 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 25, 2017
Slide 1: Annual Shareholders Presentation
ANNUAL a SHAREHOLDERS PRESENTATION 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: Key Metrics
Key Metrics 3 Total Assets $3.9 billionMarket Capitalization $874.4 millionCash Dividend Yield 2.58%P/E Ratio 18.4xPrice to Book Value 1.8xPrice to Tangible Book Value 2.0xTangible Common Equity Ratio 11.25%Competitive Position2nd largest Kentucky domiciled bank holding company #1 in Kentucky in dep
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 - $639 million Loans - $886 million Loans - $351 millionDeposits - $773 million Deposits - $1.4 billion Deposits - $501 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: 2016 Performance
7 2016 Performance
Slide 8: 2016 Performance Summary
2016 Performance Summary Budget ResultsEarnings $48.7 million $47.3 millionEPS $2.77 per share $2.70 per shareROAA 1.25% 1.21%ROAE 9.91% 9.58%Assets $3.98 billion $3.93 billionLoans $3.01 billion $2.94 billionDeposits $3.26 billion $3.33 billionShareholders’ equity $502.3 million $500.6 million 8
Slide 9: Shareholder Value
Shareholder Value 9
Slide 10: Dividends Per Share
2016 cash dividends increased 3.3%Dividend payout ratio for 2016 was 46.67%Desired level between 40% and 50%December 31, 2016 cash dividend yield was 2.58%Cash dividend increased to $0.32 per share effective October 1, 2016 Dividends Per Share 10
Slide 11: Shareholders' Equity
Shareholders’ Equity (in millions) Shareholders’ equity has increased 25.0% during the past five years6.4% compound growth rate for the past five years2017 goal for shareholders’ equity - $510 to $550 million 6.4% 11
Slide 12: Book Value Per Share / Tangible Common Equity to Assets
Book ValuePer Share Tangible Common Equity/Assets 12
Slide 13: Total Market Capitalization / Price to Tangible Book Value
Total Market Capitalization Peer data not available as of March 31, 2017. Peer data obtained from S&P Global; peer group consists of publicly traded regional bank holding companies with an average asset size of $4.1 billion, as defined in our Proxy Statement. (in millions) Price to Tangible Book Val
Slide 14: 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, 2011 would have outperformed the NASDAQ Stock Market (U.S.) but not the NASDAQ Bank Stocks Index at December 31, 2016. 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, 2016 15
Slide 16: Core Value: Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends36 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 2.4%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 1.5% from 2015 to 20162017 EPS goal - $2.76 to $2.86 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 12/31/2016 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 2.0% from 2015 to 20162017 goal for net income - $49.0 to $50.2 million 20
Slide 21: Revenues
Revenues (in millions) 2016 revenues increased 1.3% from 20152017 goal for revenues - $187.8 to $193.8 million 21
Slide 22: Noninterest Income
2016 noninterest income increased 3.5% from 2015Increases in deposit service charges, trust revenue, loan related fees, and securities gains (losses)2017 goal for noninterest revenue – 25.0% to 25.8% of total revenue Noninterest Incomeas a % of Total Revenue (in millions) 22
Slide 23: Net Interest Revenue
2016 net interest revenue increased by 0.6% from 2015Net interest margin decreased 11 basis pointsAverage earning assets increased $128.2 million, or 3.6% (in millions) Net Interest Revenue 23
Slide 24: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/16 – (4.04)% % of assets repricingWithin 30 days 30.88%% of liabilities repricing Within 30 days 15.44%Within 90 days 25.40%Within 180 days 35.36% 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 12/31/2016 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 12/31/16 increased $28.2 million, or 0.7%, from 12/31/2015Loans increased $64.4 million or 2.2%Investment portfolio increased $9.7 million or 1.6%Deposits growth $100.4 million or 3.1%2017 goal for total assets - $3.90 to $4.40 billion (in billions) Total Assets 27
Slide 28: Total Loans
(in billions) Total Loans Total loans at 12/31/16 increased 2.2% from 12/31/15Loan production for the year totaled $0.8 billion2017 goal for total loans - $3.00 to $3.20 billion December 31, 2016 Loan PortfolioMix 28
Slide 29: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2016 * 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 12/31/2016 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2016 30
Slide 31: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets Loan Loss Reserveas a % of Net Loans $35.9 million in other real estate owned Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2016 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 12/31/16 $9.5 millionNew bookings in 2016 $5.9 millionProperties under contract to sell $1.9 million (in millions) 32
Slide 33: Total Deposits including Repurchase Agreements
(in billions) Total Depositsincluding Repurchase Agreements 2017 goal for total deposits including repurchase agreements - $3.30 to $3.50 billion Total Depositsincluding Repurchase Agreements December 31, 2016 33
Slide 34: 1st Quarter 2017 Review
1st Quarter 2017Review 34
Slide 35: Earnings Per Share
Earnings Per Share $0.66 $0.66 %2:70 $0.67 = $0.64 Mar'16 Jun'16 Sept'16 Dec'16 Mar "17 35
Slide 36: Net Income
Net Income {in millions) 12.3 sui6 suc © $11.9 $44.3 Mar'16 Jun'16 Sept'16 Dec'16 Mar‘'17 36
Slide 37: Net Income Drivers
Net interest incomeDecreased $0.2 million year over yearDecreased $0.3 million quarter over quarterProvision for loan lossesDecreased $0.5 million year over yearDecreased $0.8 million quarter over quarterNoninterest incomeIncreased $0.6 million year over yearDecreased $0.9 million quarter over quart
Slide 38: Noninterest Income
(in millions) Noninterest Income Q-O-QDecreases in gains on sales of loans, deposit service charges, and loan related feesY-O-YIncrease in deposit service charges and loan related fees 38
Slide 39: Noninterest Expense
(in millions) Noninterest Expense Q-O-Q$0.5 million increase in personnel expenseY-O-Y$0.8 million increase in personnel expense 39
Slide 40: Total Assets
40 (in billions) Total Assets Total assets at 3/31/17 increased $102.0 million, or an annualized 10.5%, during the first quarterLoans increased $31.5 millionInvestment portfolio increased $0.3 millionDeposits increased $84.9 million
Slide 41: Total Loans
Loan portfolio increased at an annualized rate of 4.3% during the quarterCommercial loans increased $20.6 millionIndirect loans increased $12.6 millionResidential loans decreased $0.8 millionConsumer direct loans decreased $0.9 millionLoan increase from prior year first quarter 2.8% (in billions) To
Slide 42: Total Deposits including Repurchase Agreements
Deposits, including repurchase agreements, increased an annualized 10.3% from prior quarter and 3.8% from prior year first quarter (in billions) Total Depositsincluding Repurchase Agreements 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 58.63% 59-98% 57.45% 58-15% 61.18% Mar'16 Jun'16 Sept'16 Dec'16 Mar ‘17 46
Slide 47: Key Strategic Initiatives
Key Strategic Initiatives 47
Slide 48: Operational Priorities
Operational Priorities 48 Build core earnings capacityQuality loan growthLow cost deposit growthMaintain net interest margin Operational efficiencyExpense controlNoninterest revenue growthCompliance managementIncrease noninterest incomeWealth managementBrokerageLife insuranceContinuing focus on impr
Slide 49: CTBI: 2017 Outlook
CTBI: 2017 Outlook Net Income $49.0 - $50.2 millionEarnings Per Share $2.76 - $2.86 per shareROAA 1.19% - 1.25% ROAE 9.10% - 10.10% Assets $3.9 - $4.4 billionLoans $3.0 - $3.2 billionDeposits $3.3 - $3.5 billionShareholders’ Equity $510 - $550 million 49
Slide 50: 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 51: 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
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