Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2018)
51 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 24, 2018
Slide 1: 2018 Annual Shareholders' Presentation
2018 Annual Shareholders’ 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: 2017 Key Metrics
2017 Key Metrics 3 Total Assets $4.1 billionMarket Capitalization $833.3 millionCash Dividend Yield 2.80%P/E Ratio 16.1xPrice to Book Value 1.6xPrice to Tangible Book Value 1.8xTangible Common Equity Ratio 11.43%Competitive Position2nd largest Kentucky domiciled bank holding company #1 in Kentucky i
Slide 4: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $678 million Loans - $949 million Loans - $365 millionDeposits - $822 million Deposits - $1.3 billion Deposits - $527 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 Assets in billionsRevenue in millions 5 Includes CTB portfolio
Slide 6: 2017 Performance
2017 Performance WM
Slide 7: 2017 Performance Summary
2017 Performance Summary Goals ResultsEarnings $49.0 - $50.2 million $51.5 millionEPS $2.76 - $2.86 per share $2.92 per shareROAA 1.19% - 1.25% 1.27%ROAE 9.10% - 10.10% 9.93%Assets $3.90 - $4.40 billion $4.14 billionLoans $3.00 - $3.20 billion $3.12 billionDeposits $3.30 - $3.50 billion $3.51 billio
Slide 8: Shareholder Value
Shareholder Value WM
Slide 9: Dividends Per Share
2017 cash dividends increased 3.2%Dividend payout ratio for 2017 was 44.52%Desired level between 40% and 50%December 31, 2017 cash dividend yield was 2.80%Cash dividend increased to $0.33 per share effective October 1, 2017 Dividends Per Share 9
Slide 10: Shareholders' Equity
Shareholders’ Equity (in millions) Shareholders’ equity has increased 28.7% during the past five years5.8% compound growth rate for the past five years2018 goal for shareholders’ equity - $552.6 to $575.2 million 5.8% 10
Slide 11: Book Value Per Share / Tangible Common Equity/Assets
Book ValuePer 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) Price to Tangible Book Value 2013 2014 2015 2016 2017 CTBI 2.06x 1.67x 1.50x 2.01x 1.79x
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, 2012 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2017. 13
Slide 14: Comparison to Russell 2000 Index of Small Cap Companies
Comparison to Russell 2000 Indexof Small Cap Companies Return to Investors 3-, 5-, and 10-year total returns annualized December 31, 2017 14
Slide 15: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends37 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 2.7%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexRecognized as one
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 WM
Slide 18: Earnings Per Share
EPS increased 8.1% from 2016 to 20172018 EPS goal - $3.32 to $3.40 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 12/31/2017 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 8.8% from 2016 to 20172018 goal for net income - $58.8 to $60.2 million 20
Slide 21: Revenues
Revenues (in millions) 2017 revenues increased 2.5% from 20162018 goal for revenues - $188.9 to $194.6 million 21
Slide 22: Noninterest Income
2017 noninterest income increased 0.1% from 2016Increases in trust revenue and deposit service chargesDecreases in loan related fees, gains on sales of loans and securities gains2018 goal for noninterest revenue – 25.0% to 27.0% of total revenue Noninterest Incomeas a % of Total Revenue (in millions
Slide 23: Net Interest Revenue
2017 net interest revenue increased by 3.3% from 2016Net interest margin decreased 3 basis pointsAverage earning assets increased $146.4 million, or 4.0% (in millions) Net Interest Revenue 23
Slide 24: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/17 – (5.90)% % of assets repricingWithin 30 days 30.67%% of liabilities repricing Within 30 days 10.17%Within 90 days 21.56%Within 180 days 32.47% Peer data obtained from the Federal Reserve Bank Holding Company Perfor
Slide 25: Net Noninterest Expense and 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 12/31/2017 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 26: Balance Sheet Review
Balance Sheet Review WM
Slide 27: Total Assets
Total assets at 12/31/17 increased $204.1 million, or 5.2%, from 12/31/2016Loans increased $184.6 million or 6.3%Investment portfolio decreased $19.8 million or 3.3%Deposits increased $175.3 million or 5.3%2018 goal for total assets - $4.15 to $4.32 billion (in billions) Total Assets 27
Slide 28: Total Loans
(in billions) Total Loans Total loans at 12/31/17 increased 6.3% from 12/31/16Loan production for the year totaled $0.8 billion2018 goal for total loans - $3.15 to $3.35 billion December 31, 2017 Loan PortfolioMix 28
Slide 29: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2017 * 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 12/31/2017 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2017 30
Slide 31: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets Loan Loss Reserveas a % of Net Loans $32.0 million in other real estate owned Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2017 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 12/31/17 $6.1 millionNew bookings in 2017 $5.4 millionProperties under contract to sell $2.2 million (in millions) 32
Slide 33: Total Deposits including Repurchase Agreements
(in billions) Total Depositsincluding Repurchase Agreements 2018 goal for total deposits including repurchase agreements - $3.47 to $3.61 billion Total Depositsincluding Repurchase Agreements December 31, 2017 33
Slide 34: 1st Quarter 2018 Review
1st Quarter 2018 Review WM
Slide 35: Key Metrics – 1st Quarter 2018
35 Key Metrics – 1st Quarter 2018 Total Assets $4.2 billionMarket Capitalization $801.0 millionCash Dividend Yield 2.92%P/E Ratio 12.5xPrice to Book Value 1.5xPrice to Tangible Book Value 1.7xTangible Common Equity Ratio 11.43% Financial data as of March 31, 2018
Slide 36: Earnings Per Share
Earnings Per Share $0.89 $0.84 Mar'17 Jun'17 Sept'17 Dec'17 Mar '18 36
Slide 37: Net Income
(in millions) Net Income 37 Net interest income decreased 1.5% from prior quarter, but increased 4.5% from prior year 1st quarterNet interest margin at 3.65% remained flat to prior quarter but was down 3 basis points from prior year 1st quarterAverage earnings assets increased $1.2 million from prio
Slide 38: Noninterest Income
(in millions) Noninterest Income $1.2 million in bank owned life insurance revenue, partially offset by $0.3 million in losses on the sale of securities 38
Slide 39: Noninterest Expense
(in millions) Noninterest Expense Q-O-QIncreases in bank franchise taxes, net OREO, and repossession expenseDecrease in personnel expenseDecrease in bonuses and incentivesIncreases in group medical and life insurance, salaries, and payroll taxesY-O-YIncrease in personnel expense, bank franchise taxe
Slide 40: Total Assets
40 (in billions) Total Assets Total assets at 3/31/18 increased $59.5 million, or an annualized 5.8%, during the first quarterLoans decreased $4.7 millionInvestment portfolio increased $19.1 millionDeposits increased $56.8 million
Slide 41: Total Loans
Loan portfolio decreased at an annualized rate of 0.6% during the quarterLoan increase from prior year first quarter 5.0% (in billions) Total Loans 41
Slide 42: Total Deposits including Repurchase Agreements
Deposits, including repurchase agreements, increased an annualized 6.6% from prior quarter and 4.3% 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 81.18% 59.32% 56 ono, 57.76% 99.24% Mar'17 Jun'17 Sept'17 Dec'17 Mar 18 46
Slide 47: Key Strategic Initiatives
Key Strategic Initiatives WM
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: 2018 Outlook
CTBI: 2018 Outlook Net Income $58.8 - $60.2 millionEarnings Per Share $3.32 - $3.40 per shareROAA 1.41% - 1.44% ROAE 10.72% - 10.97% Assets $4.15 - $4.32 billionLoans $3.15 - $3.35 billionDeposits $3.47 - $3.61 billionShareholders’ Equity $552.6 - $575.2 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: Slide 51
Community Trust Bancorp — Shareholder Meeting (April 2018) on 6ix