Community Trust Bancorp, Inc. · NASDAQ:CTBI

Community Trust Bancorp — Investor Presentation (November 2022)

42 slides from Community Trust Bancorp's investor presentation, November 2022

  1. Slide 1: Community Trust Bancorp, Inc.

    ZZ Community Trust Bancorp, Inc.

  2. 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

  3. Slide 3: Key Metrics

    Key Metrics  Total Assets $5.5 billion  Market Capitalization $725.9 million  Cash Dividend Yield 4.34%  P/E Ratio 9.1x  Price to Book Value 1.2x  Price to Tangible Book Value 1.4x  Tangible Common Equity Ratio 9.93%  Competitive Position  3rd largest Kentucky domiciled bank holding company

  4. 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

  5. Slide 5: Our Banking Franchise

    Our Banking Franchise Serving customers in 78 locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee

  6. Slide 6: Our Banking Franchise

    Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $810 million Loans - $931 million Loans - $419 million Deposits - $1.2 billion Deposits - $1.9 billion Deposits - $617 million • Danville • Floyd/Knott/Johnson • Advantage Valley • Lexington • Hazard • Ashland • Mt. Ster

  7. Slide 7: Trust Assets Under Management & Trust Revenue

    Trust Assets Under Management & Trust Revenue Assets in billions Revenue in millions $3.6 $20 $3.1 $2.8 $2.2 $2.2 $16 $2.0 $12 $8 2017 2018 2019 2020 2021 Sept '22 Managed Assets Revenue Includes CTB portfolio Sept ‘22 Revenue annualized 7

  8. Slide 8: Executive Management Team

    Executive Management Team Banking Yrs. w/ Name Position Experience CTBI Mark A. Gooch Vice Chairman, President, and CEO 41 years 41 Richard W. Newsom CTB President 39 years 39 Andy Waters CTIC President and CEO 35 years 18 Kevin J. Stumbo EVP/Chief Financial Officer 35 years 27 Steven E. Jameson EVP

  9. 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 pr

  10. Slide 10: Consistent Financial Performance

    Consistent Financial Performance YTD 2022 2021 2020 2019 2018 EPS $3.33 $4.94 $3.35 $3.64 $3.35 ROAA 1.46% 1.63% 1.23% 1.49% 1.41% ROAE 12.20% 12.88% 9.36% 10.84% 10.83% Net Int. Margin 3.25% 3.21% 3.33% 3.60% 3.66% Efficiency Ratio 53.58% 53.11% 58.30% 60.70% 60.17% Nonperforming Loans 0.38% 0.49%

  11. Slide 11: Earnings Review

    Earnings Review

  12. Slide 12: Earnings Per Share

    Earnings Per Share $4.94 $3.64 $3.86 $3.35 $3.35 $3.33 $2.92 2017 2018 2019 2020 2021 Sept '21 Sept '22  EPS decreased 13.7% from September 2021 to September 2022  2022 EPS goal - $4.15 to $4.31 per share 12

  13. Slide 13: Net Income

    Net Income (in millions) $87.9 $64.5 $68.7 $59.2 $59.5 $59.4 $51.5 2017 2018 2019 2020 2021 Sept '21 Sept '22  Net income decreased 13.6% from September 2021 to September 2022  2022 goal for net income - $74.1 to $77.1 million 13

  14. Slide 14: Revenues

    Revenues (in millions) $224.3 $225.3 $223.5 $205.6 $194.1 $195.1 $185.9 2017 2018 2019 2020 2021 Sept '21 Sept '22  Revenues increased 0.4% from September 2021 to September 2022  2022 goal for revenues - $216.0 to $224.8 million 14

  15. Slide 15: Noninterest Income

    Noninterest Income as a % of Total Revenue (in millions) $60.5 $59.0 $54.6 32% $52.0 $50.2 $48.5 24% 16% 8% 0% 2017 2018 2019 2020 2021 Sept '22 Noninterest Income % of Total Revenue  Year-to-date noninterest income decreased 2.9% from September 2021 to September 2022  2022 goal for noninterest re

  16. Slide 16: Net Interest Revenue

    Net Interest Revenue (in millions) $163.1 $166.3 $144.9 $151.0 $142.2 $137.4 2017 2018 2019 2020 2021 Sept '22  YTD net interest revenue increased by 1.7% year over year for the nine months ended September 30  Net interest margin increased 3 basis points  Average earning assets increased $36.3 mi

  17. Slide 17: Net Interest Margin

    Net Interest Margin 3.67% 3.66% 3.58% 3.60% 3.54% 3.45% 3.33% 3.17% 3.21% 3.25% 3.05% 3.13% 2017 2018 2019 2020 2021 Sept '22 CTBI Peer  Pressure on the margin  % of assets repricing  1-year cumulative gap position  Within 30 days 22.63% at 9/30/22 – (18.87)%  % of liabilities repricing  Withi

  18. Slide 18: Net Noninterest Expense and Efficiency Ratio

    Net Noninterest Expense as a % of Average Earning Assets (in millions) $65.4 $68.1 2.00% $61.4 $64.7 $62.4 $58.8 1.50% 1.00% 0.50% 2017 2018 2019 2020 2021 Sept '22 Net Noninterest Expense % of Earning Assets Noninterest Expense & Efficiency Ratio (in millions) $118.3 $119.2 $119.3 $121.4 70% $109.9

  19. Slide 19: Return on Average Assets

    Return on Average Assets 1.63% 1.49% 1.46% 1.41% 1.27% 1.23% 1.25% 1.22% 1.19% 1.11% 0.95% 0.97% 2017 2018 2019 2020 2021 Sept '22 CTBI Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2022 for bank holding companies with consolidated assets of $3 b

  20. Slide 20: Balance Sheet Review

    Balance Sheet Review

  21. Slide 21: Total Assets

    Total Assets (in billions) $5.14 $5.42 $5.47 $4.20 $4.37 $4.14 2017 2018 2019 2020 2021 Sept '22  Total assets at 9/30/22 increased $56.1 million, or an annualized 1.4%, from 12/31/21  Loans increased $221.8 million or an annualized 8.7%  Investment portfolio decreased $156.8 million or an annual

  22. Slide 22: Loan Portfolio Mix

    Loan Portfolio Mix Total Loans September 30, 2022 Consumer Indirect (in billions) 19% Consumer $3.55 $3.41 $3.63 Direct Comm $3.25 $3.12 $3.21 4% R/E 40% R/E Mortgage Comm 26% Other 11% 2017 2018 2019 2020 2021 Sept '22 Loan Rate Mix  Loans increased $221.8 million, or an annualized 8.7%, from 12/3

  23. Slide 23: Concentrations of Credit

    Concentrations of Credit as a % of Total Loans September 30, 2022 10.60% 8.20% 7.20% 0.00% -0.02% -0.01% Apartments & Rental Hotel/Motel Non-Residential Real Housing Estate Rental Concentrations Net Losses/(Recoveries)  There were no nonperforming loans in any of these loan categories as of Septemb

  24. Slide 24: Indirect Lending

    Indirect Lending (in millions) $703.1 10.00% $620.1 $620.8 8.00% $533.7 $527.4 $489.6 6.00% 4.92% 4.94% 4.59% 4.68% 4.35% 4.48% 4.00% 0.64% 2.00% 0.61% 0.39% 0.28% 0.04% 0.00% -0.12% -2.00% 2017 2018 2019 2020 2021 Sept '22 Indirect Loans Yield Net Charge-offs Sept ’22 annualized 24

  25. Slide 25: Net Charge-offs and Nonperforming Loans

    Net Charge-offs as a % of Average Loans Nonperforming Loans 0.24% 0.20% as a % of Total Loans 0.18% 0.18% 0.10% 0.09% 0.11% 0.11% 0.06% 0.00% 0.03% 0.03% 1.03% 0.91% 0.75% 2017 2018 2019 2020 2021 Sept 0.69% 0.67% '22 0.55% 0.54% 0.54% 0.49% 0.48% 0.42% 0.38% CTBI Peer  Commercial loans were a net

  26. Slide 26: Nonperforming Assets and Loan Loss Reserve

    Nonperforming Assets Loan Loss Reserve as a % of Total Assets as a % of Net Loans 1.46% 1.35% 1.35% 1.26% 1.18% 1.22% 1.16% 1.22% 1.22% 1.20% 1.12% 1.08% 0.95% 0.94% 0.94% 0.67% 0.37% 0.28% 2017 2018 2019 2020 2021 Sept 2017 2018 2019 2020 2021 Sept '22 '22 CTBI Peer  $1.9 million in other real est

  27. Slide 27: Allowance for Credit Losses

    Allowance for Credit Losses 4Q19 Probable January 1, 2020 CECL September 30, 2022 Incurred Losses Adoption March 31, 2020 CECL CECL % of % of % of % of (dollars in thousands) Amount Portfolio Amount Portfolio Amount Portfolio Amount Portfolio Allowance for loan and lease losses transitioned to allow

  28. Slide 28: Total Other Real Estate Owned

    Total Other Real Estate Owned (in millions) $32.00 $27.30 $19.48 $7.69 $3.49 $1.86 2017 2018 2019 2020 2021 Sept '22  Sales of foreclosed properties for the nine months ended 9/30/22 totaled $1.9 million  New bookings in the first nine months of 2022 totaled $0.5 million  Properties under contrac

  29. Slide 29: Total Deposits

    Total Deposits including Repurchase Total Deposits Agreements including Repurchase (in billions) Agreements $4.77 $4.37 $4.62 September 30, 2022 $3.54 $3.63 $3.51 Repurchase Other Agreements Time 5% CDs 3% <$100K Noninterest 7% Bearing CDs 31% >$100K 2017 2018 2019 2020 2021 Sept 11% '22  2022 goal

  30. Slide 30: Hoops CD

     12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted by 1 basis point for each University of Kentucky win; bonus 100 basis points added to rate for National Championship win.  Our Hoops CD product has been offered for over 22 years  100 basis point increase in rate

  31. Slide 31: Shareholder Value

    Shareholder Value

  32. Slide 32: Dividends Per Share

    Dividends Per Share $1.76 60% $1.53 $1.57 $1.48 55% $1.38 $1.30 50% 45% 40% 35% 30% 2017 2018 2019 2020 2021 2022 Dividends Per Share Dividend Payout Ratio  Dividend payout ratio at September 30, 2022 was 37.2%  Desired level between 40% and 50%  September 30, 2022 cash dividend yield was 4.34% 

  33. Slide 33: Shareholders' Equity

    Shareholders’ Equity (in millions) $698.2 $654.9 $614.9 $602.6 $564.2 $530.7 6.7% 2017 2018 2019 2020 2021 Sept '22  Shareholders’ equity has increased 31.6% during the past five years  6.7% compound growth rate for the past five years  2022 goal for shareholders’ equity - $733.5 to $763.4 millio

  34. Slide 34: Book Value Per Share and Tangible Common Equity/Assets

    Book Value Per Share Tangible Common $36.77 $39.13 Equity/Assets $34.56 $33.66 $31.81 $30.00 12.78% 12.06% 11.43% 11.62%11.82% 9.93% 2017 2018 2019 2020 2021 Sept '22 2017 2018 2019 2020 2021 Sept '22 34

  35. Slide 35: Total Market Capitalization

    Total Market Capitalization (in millions) $833.3 $829.9 $778.1 $725.9 $702.4 $659.9 2017 2018 2019 2020 2021 2022 All data is as of year-end except 2021 which is as of September 30, 2022. Price to Tangible Book Value 2017 2018 2019 2020 2021 9/30/22 CTBI 1.79x 1.41x 1.51x 1.12x 1.23x 1.35x Peer 2.17

  36. Slide 36: 5 Year Cumulative Total Return

    5 Year Cumulative Total Return Comparison of CTBI, NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks $300 $200 $100 $0 2016 2017 2018 2019 2020 2021 Community Trust Bancorp, Inc. NASDAQ Stock Market (U.S.) NASDAQ Bank Stocks  An investment in CTBI stock on December 31, 2016 would have underperform

  37. Slide 37: Comparison to Russell 2000 Index

    Comparison to Russell 2000 Index of Small Cap Companies Return to Investors September 30, 2022 8.55% 0.21% 4.29% 3.55% 5.30% 2.06% 0.67% -23.50% 1-Year 3-Year 5-Year 10-Year CTBI Russell 2000 3-, 5-, and 10-year total returns annualized 37

  38. Slide 38: 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 4.5%  Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index  CTBI

  39. Slide 39: Key Strategic Initiatives

    Key Strategic Initiatives

  40. Slide 40: Operational Priorities

    Operational Priorities  Build core earnings capacity  Quality loan growth  Low cost deposit growth  Maintain net interest margin  Operational efficiency  Expense control  Noninterest revenue growth  Compliance management  Increase noninterest income  Wealth management  Brokerage  Life in

  41. Slide 41: 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

  42. Slide 42: Community Trust Bancorp, Inc.

    Z Community Trust Bancorp, Inc.

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