Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2023)
54 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 25, 2023
Slide 1: Community Trust Bancorp, Inc.
Za Community Trust Bancorp, Inc.
Slide 2: Directors
Directors CTBI Directors M. Lynn Parrish, Chairman Mark A. Gooch, Vice Chairman Charles J. Baird Franklin H. Farris, Jr. Eugenia “Crit” Luallen Ina Michelle Matthews James E. McGhee II Franky Minnifield Anthony St. Charles Chad C. Street 2 CTB Directors Mark A. Gooch, Chairman Franklin H. Farris, Jr
Slide 3: Executive Officers
Executive Officers 3 Mark A. Gooch Vice Chairman, President, and CEO Richard W. Newsom CTB President Andy Waters CTIC President and CEO Kevin J. Stumbo EVP/Chief Financial Officer Steven E. Jameson EVP/Chief Internal Audit and Risk Officer James J. Gartner EVP/Chief Credit Officer James B. Draughn E
Slide 4: 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 5: 2022 Key Metrics
2022 Key Metrics Total Assets $5.4 billion Market Capitalization $823.0 million Cash Dividend Yield 3.83% P/E Ratio 10.0x Price to Book Value 1.3x Price to Tangible Book Value 1.5x Tangible Common Equity Ratio 10.58% Competitive Position 3rd largest Kentucky domiciled bank holding company 2nd in Ken
Slide 6: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $830 million Loans - $931 million Loans - $428 million Deposits - $1.1 billion Deposits - $1.9 billion Deposits - $620 million • Danville • Floyd/Knott/Johnson • Advantage Valley • Lexington • Hazard • Ashland • Mt. Ster
Slide 7: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management & Trust Revenue Includes CTB portfolio Assets in billions Revenue in millions 7
Slide 8: 2022 Performance
2022 Performance
Slide 9: 2022 Performance Summary
2022 Performance Summary Goals Results Earnings $74.1 - $77.1 million $81.8 million EPS $4.15 - $4.31 per share $4.59 per share ROAA 1.35% - 1.40% 1.50% ROAE 10.18% - 10.59% 12.73% Assets $5.42 - $5.75 billion $5.38 billion Loans $3.41 - $3.55 billion $3.71 billion Deposits $4.63 - $4.82 billion $4.
Slide 10: Shareholder Value
a E =I 2 € =) | & ES o g CJ = 5 ey Shareholder Value l
Slide 11: Dividends Per Share
Dividends Per Share 2022 cash dividends increased 7.0% Dividend payout ratio for 2022 was 36.6%; however, the 10 year average dividend payout ratio has been 42.44% Desired level between 40% and 50% December 31, 2022 cash dividend yield was 3.83% Cash dividend increased to $0.44 per share effective O
Slide 12: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 11.3% during the past five years 3.4% compound growth rate for the past five years (in millions) 12 3.4%
Slide 13: Book Value Per Share; Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 13
Slide 14: Total Market Capitalization
Total Market Capitalization Peer data obtained from S&P Global; peer group consists of publicly traded regional bank holding companies with comparative assets, as defined in our Proxy Statement. (in millions) 14 Price to Tangible Book Value 2018 2019 2018 2021 2022 CTBI 1.41x 1.51x 1.12x 1.23x 1.46x
Slide 15: Five Year 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, 2017 would have outperformed the NASDAQ Bank Stocks Index but not the NASDAQ Stock Market (U.S.) at December 31, 2021. 15
Slide 16: Comparison to Russell 2000 Index of Small Cap Companies
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors 16 December 31, 2022
Slide 17: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends 42 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 5.3% Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index CTBI sharehold
Slide 18: CTBI's Franchise Value
CTBI’s Franchise Value History of solid investor returns Historically strong capital position Investor focused dividend policy Dividend Achievers Index Consistent financial performance Community banking strategy Economic diversity in the markets we serve Strong experienced management team and nearly
Slide 19: Earnings Review
Earnings Review
Slide 20: Earnings Per Share
Earnings Per Share EPS decreased 7.1% from 2021 to 2022 20
Slide 21: Return on Average Assets
Return on Average Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2022 for bank holding companies with consolidated assets of $3 billion to $10 billion. 21
Slide 22: Net Income
Net Income Net income decreased 7.0% from 2021 to 2022 The decrease in net income from prior year was primarily due to the $6.4 million recovery of provision for credit losses taken in 2021 (in millions) 22
Slide 23: Revenues
Revenues 2022 revenues increased 1.6% from 2021 (in millions) 23
Slide 24: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue 2022 noninterest income decreased 4.2% from 2021 Decrease primarily due to decline in gains on sales of loans, partially offset by increases in deposit related fees (in millions) 24
Slide 25: Net Interest Revenue
Net Interest Revenue 2022 net interest revenue increased by 3.7% from 2021 Net interest margin increased 11 basis points Average earning assets increased $13.4 million, or 0.3% (in millions) 25
Slide 26: Net Interest Margin
Net Interest Margin Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2022 for bank holding companies with consolidated assets of $3 billion to $10 billion. 26 % of assets repricing Within 30 days 19.35% % of liabilities repricing Within 30 days 49.21% W
Slide 27: 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 12/31/2022 for bank holding companies with consolidated assets of $3 billion to $10 billion. (in millions) 27 Noninterest Expense & Efficiency Ratio (in m
Slide 28: Balance Sheet Review
S = eS Eq CI eS & Balance Sheet Review l
Slide 29: Total Assets
Total Assets Total assets at 12/31/22 decreased $37.9 million, or 0.7%, from 12/31/21 Loans increased $300.5 million or 8.8% Investment portfolio decreased $199.3 million or 13.7% Deposits increased $26.2 million or 0.6% (in billions) 29
Slide 30: Total Loans
Total Loans Total loans at 12/31/22 increased 8.8% from 12/31/21 Loan and line of credit production for the year totaled $1.5 billion (in billions) 30 Loan Portfolio Mix December 31, 2022
Slide 31: Concentrations of Credit as a % of Total Loans
Concentrations of Creditas a % of Total Loans December 31, 2022 *As a percentage of unfunded exposure 31
Slide 32: 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 12/31/2022 for bank holding companies with consolidated assets of $3 billion to $10 billion. 32 Nonperforming Loansas a % of Total Loans
Slide 33: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets $3.7 million in other real estate owned 33 Loan Loss Reserve as a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2022 for bank holding companies with consolidated assets of $3 billion to $10 bi
Slide 34: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/22 $2.0 million New bookings in 2022 $2.4 million Properties under contract to sell at 12/31/22 $1.2 million (in millions) 34
Slide 35: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 35 Total Depositsincluding Repurchase Agreements December 31, 2022 (in billions)
Slide 36: 1st Quarter 2023 Review
1st Quarter 2023 Review
Slide 37: Key Metrics – 1st Quarter 2023
Key Metrics – 1st Quarter 2023 Total Assets $5.5 billion Market Capitalization $682.2 million Cash Dividend Yield 4.64% P/E Ratio 8.7x Price to Book Value 1.0x Price to Tangible Book Value 1.2x Tangible Common Equity Ratio 10.82% Financial data as of March 31, 2023 37
Slide 38: Earnings Per Share
Earnings Per Share Mar '22 Jun '22 Sept '22 $1.26 Dec '22 Mar '23 38
Slide 39: Net Income
Net Income {in millions) Mar '22 Jun '22 Sept '22 $22.4 Dec '22 Mar '23 38
Slide 40: Earnings
Earnings Net interest income for the quarter of $43.9 million was $0.8 million, or 1.8%, below prior quarter but $3.9 million, or 9.7%, above first quarter 2022. Provision for loan losses for the quarter of $1.1 million decreased $0.4 million from prior quarter but increased $0.2 million from prior
Slide 41: Noninterest Income
Noninterest Income YOY decrease primarily the result of a $1.2 million decrease in loan related fees due to the change in the fair market value of our mortgage servicing rights. (in millions) 41
Slide 42: Noninterest Expense
Noninterest Expense Q-O-Q increase in personnel expense and occupancy and equipment Y-O-Y increase in personnel expense and FDIC insurance premiums (in millions) 42
Slide 43: Total Assets
Total Assets Total assets at 3/31/23 increased $149.0 million, or an annualized 11.2%, during the first quarter Loans increased $68.1 million Investment portfolio decreased $14.9 million Deposits in other banks increased $97.7 million Deposits, including repurchase agreements, increased $110.6 milli
Slide 44: Total Loans
Total Loans Loan portfolio increased at an annualized rate of 7.4% during the quarter and 7.4% from prior year first quarter (in billions) 44
Slide 45: Nonperforming Loans as a % of Total Loans
Nonperforming Loansas a % of Total Loans 45
Slide 46: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets 46
Slide 47: Net Charge-offs as a % of Average Loans (annualized)
Net Charge-offsas a % of Average Loans (annualized) 47
Slide 48: Allowance for Credit Losses
Allowance for Credit Losses Provision for loan losses for the quarter was $1.1 million, compared to $1.5 million for the quarter ended December 31, 2022 and $0.9 million for the first quarter 2022. Our reserve coverage (allowance for credit losses to nonperforming loans) at March 31, 2023 was 382.3%
Slide 49: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements Deposits, including repurchase agreements, increased an annualized 2.4% from prior quarter and 1.5% from prior year first quarter (in billions) 49
Slide 50: Efficiency Ratio
Efficiency Ratio Mar '22 Jun '22 Sept '22 Dec '22 Mar '23 50
Slide 51: Key Strategic Initiatives
Key Strategic Initiatives
Slide 52: Operational Priorities
Operational Priorities Build core earnings capacity Quality loan growth Low cost deposit growth Expansion and growth through acquisitions and new branches Manage net interest margin Operational efficiency Expense control Noninterest revenue growth Compliance management Increase noninterest income Tr
Slide 53: 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 54: 2023
2023
Community Trust Bancorp — Shareholder Meeting (April 2023) on 6ix