Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (September 2024)
41 slides from Community Trust Bancorp's investor presentation, Sep 3, 2024
Slide 1: September 2024
September 2024
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 $5.8 billion Market Capitalization $787.0 million Cash Dividend Yield 4.21% P/E Ratio 10.0x Price to Book Value 1.1x Price to Tangible Book Value 1.2x Tangible Common Equity Ratio 11.39% Competitive Position 3rd largest Kentucky domiciled bank holding company 2nd in Kentucky
Slide 4: Corporate History
Corporate History 1903 Pikeville National bank formed 1987-2005 Acquired 14 banks and purchased 17 branch locations 1997 Changed name to Community Trust Bancorp, Inc. 2010 Acquired LaFollette First National Corporation Presently Two operational subsidiaries~ Community Trust Bank, Inc. and Community
Slide 5: Our Banking Franchise
Our Banking Franchise Serving customers in 81 locations in 36 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee
Slide 6: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $985 million Loans - $1.0 billion Loans - $478 million Deposits - $1.2 billion Deposits - $1.9 billion Deposits - $659 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 Jun ‘24 Revenue annualized
Slide 8: Executive Management Team
Executive Management Team Banking Yrs. w/ Name Position Experience CTBI Mark A. Gooch Chairman, President, and CEO 43 years 43 Richard W. Newsom CTB President 41 years 41 Andy Waters CTIC President and CEO 37 years 20 Kevin J. Stumbo EVP/Chief Financial Officer 37 years 29 C. Wayne Hancock EVP/Chief
Slide 9: Operational Philosophy
Operational Philosophy Traditional community banking business model Executive management and board of director commitment to strong corporate governance Decentralized decision making and centralized operations and risk management Strong loan portfolio risk management process Specialized product offe
Slide 10: Consistent Financial Performance
Consistent Financial Performance YTD 2024 2023 2022 2021 2020 EPS $2.13 $4.36 $4.59 $4.94 $3.35 ROAA 1.33% 1.40% 1.50% 1.63% 1.23% ROAE 10.82% 11.75% 12.74% 12.88% 9.36% Net Int. Margin 3.31% 3.32% 3.32% 3.21% 3.33% Efficiency Ratio 53.51% 54.29% 53.07% 53.11% 58.30% Nonperforming Loans 0.47% 0.34%
Slide 11: Earnings Review
Earnings Review
Slide 12: Earnings Per Share
Earnings Per Share YTD EPS decreased 1.9% from June 2023 to June 2024 2024 EPS goal - $4.31 to $4.49 per share 12
Slide 13: Net Income
Net Income YTD net income decreased 1.4% from June 2023 to June 2024 2024 goal for net income - $77.7 to $80.8 million (in millions) 13
Slide 14: Revenues
Revenues YTD revenues increased 3.8% from June 2023 to June 2024 2024 goal for revenues - $236.8 to $246.5 million (in millions) 14 Jun ‘23 and Jun ‘24 annualized
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue YTD noninterest income increased 8.5% from June 2023 to June 2024 2024 goal for noninterest revenue – 23.5% to 25.5% of total revenue (in millions) 15 Jun ’24 annualized
Slide 16: Net Interest Revenue
Net Interest Revenue Net interest revenue increased by 2.6% year over year for the six months ended June 30 Net interest margin decreased 11 basis points Average earning assets increased $303.2 million, or 5.9% (in millions) 16 Jun ’24 annualized
Slide 17: Net Interest Margin
Net Interest Margin Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2024 for bank holding companies with consolidated assets of $3 billion to $10 billion. 17 Jun ‘24 Mar ‘24 Dec ‘23 Sept ‘23 Jun ‘23 Mar ‘23 Net Interest Margin 3.38% 3.23% 3.19% 3.27% 3.
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 6/30/2024 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 6/30/2024 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
Community Trust Bancorp, Inc. Balance Sheet Review
Slide 21: Total Assets
Total Assets Total assets at 6/30/24 increased $34.6 million, or an annualized 1.2%, from 12/31/23 Loans increased $210.3 million or an annualized 10.4% Investment portfolio decreased $73.4 million or an annualized 12.7% Deposits increased $11.5 million or an annualized 0.5% 2024 goal for total asse
Slide 22: Total Loans
Total Loans Loans increased $210.3 million, or an annualized 10.4%, from 12/31/23 2024 goal for total loans - $4.18 to $4.35 billion (in billions) 22 Loan Portfolio Mix June 30, 2024 Loan Rate Mix
Slide 23: Concentrations of Credit as a % of Total Loans
Concentrations of Creditas a % of Total Loans June 30, 2024 23 There were no net losses or nonperforming loans in any of these loan categories for the six months ended June 30, 2024.
Slide 24: Indirect Lending
Indirect Lending (in millions) 24 Jun’24 annualized
Slide 25: 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 6/30/2024 for bank holding companies with consolidated assets of $3 billion to $10 billion. 25 Nonperforming Loansas a % of Total Loans Commercial loans were a net charge-
Slide 26: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets $1.6 million in other real estate owned 26 Loan Loss Reserve as a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2024 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 27: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the six months ended 6/30/24 totaled $0.4 million New bookings in the first six months of 2024 totaled $0.5 million (in millions) 27
Slide 28: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 2024 goal for total deposits including repurchase agreements - $4.97 to $5.17 billion (in billions) 28 Total Depositsincluding Repurchase Agreements June 30, 2024
Slide 29: Hoops CD
Our Hoops CD product has been offered for over 27 years 100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships $208 million in Hoops CDs as of 6/30/24 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted
Slide 30: Shareholder Value
Community Trust Bancorp, Inc. Shareholder Value
Slide 31: Dividends Per Share
Dividends Per Share Dividend payout ratio at June 30, 2024 was 43.2% Desired level between 40% and 50% June 30, 2024 cash dividend yield was 4.21% Cash dividend increased to $0.47 per share effective October 1, 2024, an increase of 2.2% 31 *2024 is projected DPS
Slide 32: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 14.2% during the past five years 4.5% compound growth rate for the past five years 2024 goal for shareholders’ equity - $711.2 to $740.3 million (in millions) 32 4.5%
Slide 33: Book Value Per Share / Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 33
Slide 34: 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. 34 Price to Tangible Book Value 2019 2020 2021 2022 2023 6/30/24 CTBI 1.51x 1.12x 1.23x 1.46x 1.24x 1.20x
Slide 35: 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, 2018 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2023. 35
Slide 36: 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 36 June 30, 2024
Slide 37: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends 44 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 5.5% Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index CTBI sharehold
Slide 38: Key Strategic Initiatives
Key Strategic Initiatives
Slide 39: Operational Priorities
Operational Priorities Build core earnings capacity Quality loan growth Low cost deposit growth Branch expansion in growth markets Maintain net interest margin Operational efficiency Expense control Noninterest revenue growth Compliance management Increase noninterest income Wealth management Broker
Slide 40: 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
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