Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2022)
56 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 26, 2022
Slide 1: Community Trust Bancorp, Inc.
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Slide 2: Directors
Directors CTBI DirectorsM. Lynn Parrish, ChairmanMark A. Gooch, Vice ChairmanCharles J. BairdFranklin H. Farris, Jr.Eugenia “Crit” LuallenIna Michelle MatthewsJames E. McGhee IIFranky MinnifieldAnthony St. CharlesChad C. Street 2 CTB DirectorsMark A. Gooch, ChairmanFranklin H. Farris, Jr.Ina Michell
Slide 3: Executive Officers
Executive Officers 3 Mark A. Gooch Vice Chairman, President, and CEORichard W. Newsom CTB PresidentAndy Waters CTIC President and CEOKevin J. Stumbo EVP/Chief Financial OfficerSteven E. Jameson EVP/Chief Internal Audit and Risk OfficerJames J. Gartner EVP/Chief Credit OfficerJames B. Draughn EVP/Ope
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: 2021 Key Metrics
2021 Key Metrics Total Assets $5.4 billionMarket Capitalization $778.1 millionCash Dividend Yield 3.67%P/E Ratio 8.8xPrice to Book Value 1.1xPrice to Tangible Book Value 1.2xTangible Common Equity Ratio 11.82%Competitive Position3rd largest Kentucky domiciled bank holding company 3rd in Kentucky in
Slide 6: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $756 million Loans - $931 million Loans - $394 millionDeposits - $1.2 billion Deposits - $1.8 billion Deposits - $616 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Lexington • Hazard • Ashland• Mt. Sterling
Slide 7: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management & Trust Revenue Includes CTB portfolio Assets in billionsRevenue in millions 7
Slide 8: 2021 Performance
2021 Performance
Slide 9: 2021 Performance Summary
2021 Performance Summary Goals ResultsEarnings $67.1 - $69.8 million $87.9 millionEPS $3.76 - $3.92 per share $4.94 per shareROAA 1.30% - 1.35% 1.63%ROAE 9.88% - 10.28% 12.88%Assets $5.04 - $5.35 billion $5.42 billionLoans $3.48 - $3.63 billion $3.41 billionDeposits $4.30 - $4.47 billion $4.62 billi
Slide 10: Shareholder Value
Shareholder Value
Slide 11: Dividends Per Share
Dividends Per Share 2020 cash dividends increased 2.6%Dividend payout ratio for 2021 was 31.8%; however, the 10 year average dividend payout ratio has been 44.31%Desired level between 40% and 50%December 31, 2021 cash dividend yield was 3.67%Cash dividend increased to $0.40 per share effective Octob
Slide 12: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 31.6% during the past five years6.7% compound growth rate for the past five years (in millions) 12 6.7%
Slide 13: Book Value Per Share / Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 13
Slide 14: Total Market Capitalization / Price to Tangible Book Value
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 2017 2018 2019 2020 2021 CTBI 1.79x 1.41x 1.51x 1.12x 1.23x
Slide 15: 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, 2016 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2021. 15
Slide 16: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors December 31, 2021 16
Slide 17: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends41 years of consecutive increases in cash dividends5-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 IndexCTBI shareholders
Slide 18: 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 nearly 1,000
Slide 19: Earnings Review
Earnings Review
Slide 20: Earnings Per Share
Earnings Per Share EPS increased 47.5% from 2020 to 2021 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 12/31/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion. 21
Slide 22: Net Income
Net Income Net income increased 47.8% from 2020 to 2021 (in millions) 22
Slide 23: Revenues
Revenues 2021 revenues increased 8.8% from 2020 (in millions) 23
Slide 24: Noninterest Income
Noninterest Incomeas a % of Total Revenue 2021 noninterest income increased 10.8% from 2020Increases in deposit service charges, trust revenue, loan related fees, brokerage revenue, bank owned life insurance revenue, and net gains on other real estate owned (in millions) 24
Slide 25: Net Interest Revenue
Net Interest Revenue 2021 net interest revenue increased by 8.0% from 2020Net interest margin decreased 12 basis pointsAverage earning assets increased $553.8 million, or 12.1%PPP impact was an 18 basis point increase to the net interest margin (in millions) 25
Slide 26: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/21 – (13.51)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion. % of assets repricing
Slide 27: Net Noninterest Expense
Net Noninterest Expenseas a % of Average Earning Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion. (in millions) Noninterest Expense & Efficiency Ratio (in mill
Slide 28: Balance Sheet Review
Balance Sheet Review
Slide 29: Total Assets
Total Assets Total assets at 12/31/21 increased $279.1 million, or 5.4%, from 12/31/20Loans decreased $145.4 million or 4.1%Investment portfolio increased $457.9 million or 45.8%Deposits increased $243.4 million or 5.6% (in billions) 29
Slide 30: Total Loans
Total Loans Total loans at 12/31/21 decreased 4.1% from 12/31/20Loan and line of credit production for the year totaled $1.4 billion (in billions) 30 Loan Portfolio Mix December 31, 2021
Slide 31: PPP Loans
PPP Loans As of December 31, 2021, we have closed 6,312 PPP loans totaling $401.3 million 3,352 loans totaling $124.3 million stemming from the Consolidated Appropriations Act 2021 (second round)Through December 31, 2021, we have had 5,543 of our PPP loans totaling $351.8 million forgiven by the SBA
Slide 32: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2021 There were no nonperforming loans in any of these loan categories as of December 31, 2021. 32
Slide 33: Net Charge-offs / Nonperforming Loans
Net Charge-offsas a % of Average Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion. Nonperforming Loansas a % of Total Loans 33
Slide 34: Nonperforming Assets / Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets $3.5 million in other real estate owned Loan Loss Reserveas a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion
Slide 35: Allowance for Credit Losses
Allowance for Credit Losses 4Q19 Probable Incurred Losses January 1, 2020 CECL Adoption March 31, 2020 CECL December 31, 2021 CECL (dollars in thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Allowance for loan and lease losses transitioned to allowa
Slide 36: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/21 - $4.5 millionNew bookings in 2021 - $1.2 millionProperties under contract to sell at 12/31/21 - $0.3 million (in millions) 36
Slide 37: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements (in billions) December 31, 2021 37
Slide 38: 1st Quarter 2022 Review
1st Quarter 2022 Review
Slide 39: Key Metrics – 1st Quarter 2022
Key Metrics – 1st Quarter 2022 Total Assets $5.4 billionMarket Capitalization $736.8 millionCash Dividend Yield 3.88%P/E Ratio 9.15xPrice to Book Value 1.1xPrice to Tangible Book Value 1.3xTangible Common Equity Ratio 10.93% Financial data as of March 31, 2022 39
Slide 40: Earnings Per Share
Earnings Per Share $1.33 $1.35 Mar ‘21 Jun ‘21 Sept '21 Dec ‘21 Mar ‘22 40
Slide 41: Net Income
Net Income (in millions) $23.6 Mar ‘21 $23.9 Jun ‘21 $21.41 Sept '21 Dec '21 Mar ‘22 4
Slide 42: Earnings
Earnings Net interest income for the quarter of $40.0 million was $0.8 million, or 1.9%, below prior quarter and $0.2 million, or 0.5%, below first quarter 2021. Provision for loan losses for the quarter was $0.9 million, compared to provision of $0.5 million for the quarter ended December 31, 2021
Slide 43: Noninterest Income
Noninterest Income Q-O-Q decreases in gains on sales of loans and deposit related fees, offset by increases in loan related fees and securities gainsY-O-Y decreases in gains on sales of loans and loan related fees, partially offset by increases in deposit related fees, trust revenue and securities g
Slide 44: Noninterest Expense
Noninterest Expense Q-O-Q decrease in personnel expense, which was primarily due to a lower accrual for bonuses and incentivesY-O-Y increases in personnel expense and loan related expensesPersonnel expense included increases in salaries, group medical and life insurance expense, and other employee b
Slide 45: Total Assets
Total Assets Total assets at 3/31/22 increased $24.9 million, or an annualized 1.9%, during the first quarterLoans increased $106.7 millionInvestment portfolio increased $47.8 millionDeposits in other banks decreased $159.1 million to fund loan growth and additional investments in available-for-sale
Slide 46: Total Loans
Total Loans Loan portfolio increased at an annualized rate of 12.7% during the quarterLoans decrease from prior year first quarter 0.7% 46 (in millions)
Slide 47: Nonperforming Loans as a % of Total Loans
Nonperforming Loansas a % of Total Loans 47
Slide 48: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets 48
Slide 49: Net Charge-offs as a % of Average Loans
Net Charge-offsas a % of Average Loans (annualized) 49
Slide 50: Allowance for Credit Losses
Allowance for Credit Losses Provision for loan losses for the quarter was $0.9 million, compared to provision of $0.5 million for the quarter ended December 31, 2021 and a recovery of provision of $2.5 million for the first quarter 2021.Our reserve coverage (allowance for credit losses to nonperform
Slide 51: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements Deposits, including repurchase agreements, increased an annualized 5.9% from prior quarter and 2.1% from prior year first quarter 51 (in billions)
Slide 52: Efficiency Ratio
Efficiency Ratio 53.17% 50.37% Mar ‘21 Jun ‘21 53.50% Sept '21 55.40% Dec '21 53.25% Mar ‘22 52
Slide 53: Key Strategic Initiatives
Key Strategic Initiatives
Slide 54: Operational Priorities
Operational Priorities Build core earnings capacityQuality loan growthLow cost deposit growthExpansion and growth through acquisitions and new branchesManage net interest margin Operational efficiencyExpense controlNoninterest revenue growthCompliance managementIncrease noninterest incomeTrust and w
Slide 55: 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 56: Community Trust Bancorp, Inc.
a Community Trust Bancorp, Inc.
Community Trust Bancorp — Shareholder Meeting (April 2022) on 6ix