Community Trust Bancorp, Inc. · NASDAQ:CTBI

Community Trust Bancorp — Shareholder Meeting (April 2024)

54 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 23, 2024

1. Slide 1: 2024 Annual Shareholders' Presentation

2. Slide 2: Directors

   Directors CTBI Directors CTB Directors CTIC Directors Mark A Gooch, Chairman Mark A. Gooch, Chairman Mark A. Gooch, Chairman Eugenia “Crit” Luallen, Vice Chairman Franklin H. Farris, Jr. Charles Baird Charles J. Baird Ina Michelle Matthews Franklin H. Farris, Jr. Franklin H. Farris, Jr. James E. McG

3. Slide 3: Executive Officers

   Executive Officers Mark A. Gooch 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 Mark Smith EVP/Chief Credit Officer James B. Draughn EVP/Operations

4. 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

5. Slide 5: 2023 Key Metrics

   2023 Key Metrics  Total Assets $5.8 billion  Market Capitalization $789.5 million  Cash Dividend Yield 4.20%  P/E Ratio 10.6x  Price to Book Value 1.1x  Price to Tangible Book Value 1.2x  Tangible Common Equity Ratio 11.16%  Competitive Position  3rd largest Kentucky domiciled bank holding

6. Slide 6: Our Banking Franchise

   Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $926 million Loans - $987 million Loans - $443 million Deposits - $1.2 billion Deposits - $1.9 billion Deposits - $654 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 $20 $3.6 $3.4 $3.2 $2.8 $16 $2.2 $12 $8 2019 2020 2021 2022 2023 Managed Assets Revenue Includes CTB portfolio 7

8. Slide 8: 2023 Performance

   2023 Performance Community Trust Bancorp, Inc.

9. Slide 9: 2023 Performance Summary

   2023 Performance Summary Goals Results  Earnings $82.0 - $85.4 million $78.0 million  EPS $4.57 - $4.75 per share $4.36 per share  ROAA 1.50% - 1.56% 1.40%  ROAE 12.26% - 12.76% 11.75%  Assets $5.38 - $5.72 billion $5.77 billion  Loans $3.77 - $3.92 billion $4.05 billion  Deposits $4.64 - $4.

10. Slide 10: Shareholder Value

    Za Community Trust Bancorp, Inc. Shareholder Value

11. Slide 11: Dividends Per Share

    Dividends Per Share $1.80 60% $1.68 $1.53 $1.57 55% $1.48 50% 45% 40% 35% 30% 2019 2020 2021 2022 2023 Dividends Per Share Dividend Payout Ratio  2023 cash dividends increased 7.1%  Dividend payout ratio for 2023 was 41.3%  Desired level between 40% and 50%  December 31, 2023 cash dividend yield

12. Slide 12: Shareholders' Equity

    Shareholders’ Equity (in millions) $702.2 $698.2 $654.9 $628.0 $614.9 4.5% 2019 2020 2021 2022 2023  Shareholders’ equity has increased 14.2% during the past five years  4.5% compound growth rate for the past five years 12

13. Slide 13: Book Value Per Share / Tangible Common Equity to Assets

    Book Value Per Share Tangible Common Equity/Assets $39.13 $39.01 12.78% 11.62% 11.82% 11.16% 10.58% $36.77 $35.05 $34.56 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 13

14. Slide 14: Total Market Capitalization

    Total Market Capitalization (in millions) $829.9 $823.0 $778.1 $789.5 $659.9 2019 2020 2021 2022 2023 Price to Tangible Book Value 2019 2020 2021 2022 2023 CTBI 1.51x 1.12x 1.23x 1.46x 1.24x Peer 1.85x 1.73x 1.81x 1.89x 1.94x Peer data obtained from S&P Global; peer group consists of publicly traded

15. Slide 15: 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 2018 2019 2020 2021 2022 2023 Community Trust Bancorp, Inc. NASDAQ Stock Market (U.S.) NASDAQ Bank Stocks  An investment in CTBI stock on December 31, 2018 would have underperform

16. Slide 16: Comparison to Russell 2000 Index of Small Cap Companies

    Comparison to Russell 2000 Index of Small Cap Companies Return to Investors December 31, 2023 16.93% 9.70% 9.97% 7.16% 5.56% 3.56% 2.22% -0.59% 1-Year 3-Year 5-Year 10-Year CTBI Russell 2000 3-, 5-, and 10-year total returns annualized 16

17. Slide 17: Core Value Long-Term Investment

    Core Value Long-Term Investment  12 stock splits and 10 stock dividends  43 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

18. 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

19. Slide 19: Earnings Review

    Earnings Review Community Trust Bancorp, Inc.

20. Slide 20: Earnings Per Share

    Earnings Per Share $4.94 $4.59 $4.36 $3.64 $3.35 2019 2020 2021 2022 2023  EPS decreased 5.0% from 2022 to 2023 20

21. Slide 21: Return on Average Assets

    Return on Average Assets 1.63% 1.49% 1.50% 1.40% 1.23% 1.25% 1.19% 1.17% 0.97% 0.95% 2019 2020 2021 2022 2023 CTBI Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2023 for bank holding companies with consolidated assets of $3 billion to $10 billio

22. Slide 22: Net Income

    Net Income (in millions) $87.9 $81.8 $78.0 $64.5 $59.5 2019 2020 2021 2022 2023  Net income decreased 4.7% from 2022 to 2023 22

23. Slide 23: Revenues

    Revenues (in millions) $227.0 $230.8 $223.5 $205.6 $195.1 2019 2020 2021 2022 2023  2023 revenues increased 1.7% from 2022 23

24. Slide 24: Noninterest Income

    Noninterest Income as a % of Total Revenue (in millions) $60.5 32% $57.9 $57.7 $54.6 $50.2 24% 16% 8% 0% 2019 2020 2021 2022 2023 Noninterest Income % of Total Revenue  2023 noninterest income decreased 0.4% from 2022  Decreases in loan related fees, gains on sales of loans and brokerage revenue 2

25. Slide 25: Net Interest Revenue

    Net Interest Revenue (in millions) $163.1 $169.1 $173.1 $151.0 $144.9 2019 2020 2021 2022 2023  2023 net interest revenue increased by 2.4% from 2022  Net interest margin remained at 3.32% from 2022  Average earning assets increased $114.8 million, or 2.2% 25

26. Slide 26: Net Interest Margin

    Net Interest Margin 3.60% 3.45% 3.39% 3.33% 3.32% 3.32% 3.32% 3.21% 3.17% 3.05% 2017 2018 2019 2022 2023 CTBI Peer  Pressure on the margin  % of assets repricing  1-year cumulative gap position  Within 30 days 19.35% at 12/31/23 – (21.22)%  % of liabilities repricing  Within 30 days 49.21%  W

27. Slide 27: Net Noninterest Expense

    Net Noninterest Expense as a % of Average Earning Assets (in millions) $68.1 $64.7 $63.2 $67.7 2.30% $58.8 2.00% 1.70% 1.40% 1.10% 2019 2020 2021 2022 2023 Net Noninterest Expense % of Earning Assets Noninterest Expense & Efficiency Ratio (in millions) 70% $119.3 $121.1 $125.4 $118.3 $119.2 65% 60%

28. Slide 28: Balance Sheet Review

    Za Community Trust Bancorp, Inc. Balance Sheet Review

29. Slide 29: Total Assets

    Total Assets (in billions) $5.77 $5.42 $5.38 $5.14 $4.37 2019 2020 2021 2022 2023  Total assets at 12/31/23 increased $389.4 million, or 7.2%, from 12/31/22  Loans increased $341.6 million or 9.2%  Investment portfolio decreased $91.5 million or 7.3%  Deposits increased $308.3 million or 6.6% 29

30. Slide 30: Total Loans and Loan Portfolio Mix

    Total Loans (in billions) $3.55 $3.71 $4.05 Loan Portfolio Mix $3.41 $3.25 December 31, 2023 Consumer Indirect 20% Consumer Comm 2019 2020 2021 2022 2023 Direct R/E 4% 39%  Total loans at 12/31/23 increased 9.2% from 12/31/22  Loan and line of credit production for the R/E year totaled $1.0 billio

31. Slide 31: Concentrations of Credit

    Concentrations of Credit as a % of Total Loans December 31, 2023 9.72% 7.54% 6.43% 0.00% 0.10% -0.05% Apartments & Rental Housing Hotel/Motel Non-Residential Real Estate Rental Concentrations Net Losses  There were no nonperforming loans in any of these loan categories as of December 31, 2023. 31

32. Slide 32: Net Charge-offs and Nonperforming Loans

    Net Charge-offs as a % of Average Loans 0.18% 0.18% Nonperforming Loans as a % of Total Loans 0.11% 0.11% 1.03% 0.09% 0.08% 0.75% 0.06% 0.05% 0.67% 0.54% 0.49% 0.48% 0.47% 0.02% 0.41% 0.37% 0.00% 0.34% 2019 2020 2021 2022 2023 CTBI Peer 2019 2020 2021 2022 2023 CTBI Peer Peer data obtained from the

33. Slide 33: Nonperforming Assets and Loan Loss Reserve

    Nonperforming Assets Loan Loss Reserve as a % of Total Assets as a % of Net Loans 1.22% 1.35% 1.35% 1.26% 1.24% 1.22% 1.22% 1.08% 1.17% 1.17% 0.94% 0.67% 0.37% 0.35% 0.27% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 CTBI Peer  $1.6 million in other real estate owned Peer data obtained from th

34. Slide 34: Total Other Real Estate Owned

    Total Other Real Estate Owned (in millions) $19.48 $7.69 $3.49 $3.67 $1.62 2019 2020 2021 2022 2023 34

35. Slide 35: Total Deposits

    Total Deposits including Repurchase Agreements (in billions) December 31, 2023 $4.95 $4.64 Repurchase $4.62 $4.37 Agreements 5% Other Time Noninterest $3.63 3% Bearing CDs <$100K 25% 9% CDs >$100K 13% NOW 3% Savings 11% MMDA 2019 2020 2021 2022 2023 31% 35

36. Slide 36: 1st Quarter 2024 Review

    1st Quarter 2024 Review Za Community Trust Bancorp, Inc.

37. Slide 37: Key Metrics – 1st Quarter 2024

    Key Metrics – 1st Quarter 2024  Total Assets $5.9 billion  Market Capitalization $768.5 million  Cash Dividend Yield 4.31%  P/E Ratio 10.2x  Price to Book Value 1.1x  Price to Tangible Book Value 1.2x  Tangible Common Equity Ratio 11.10% Financial data as of March 31, 2024 37

38. Slide 38: Earnings Per Share

    Earnings Per Share $1.15 $1.09 $1.08 $1.04 $1.04 Mar '23 Jun '23 Sept '23 Dec '23 Mar '24 38

39. Slide 39: Net Income

    Net Income (in millions) $20.6 $19.4 $19.3 $18.7 $18.7 Mar '23 Jun '23 Sept '23 Dec '23 Mar '24 39

40. Slide 40: Earnings

    Earnings  Net interest income for the quarter of $43.6 million was $0.6 million, or 1.4%, above prior quarter but $0.3 million, or 0.7%, below first quarter 2023.  Provision for loan losses for the quarter of $2.7 million was $0.8 million above prior quarter and $1.5 million above first quarter 20

41. Slide 41: Noninterest Income

    Noninterest Income (in millions) $15.5 $14.8 $15.1 $13.7 $13.7 Mar '23 Jun '23 Sept '23 Dec '23 Mar '24  Q-O-Q increases in loan related fees, bank owned life insurance revenue, trust revenue, and brokerage revenue, partially offset by a decrease in deposit related fees  Y-O-Y increases in loan re

42. Slide 42: Noninterest Expense

    Noninterest Expense (in millions) $31.9 $32.2 $31.0 $30.8 $31.6 Mar '23 Jun '23 Sept '23 Dec '23 Mar '24  Q-O-Q increase in personnel expense, partially offset by decreases in other direct expenses and advertising expense  Personnel expense increases included bonuses and incentives and group medic

43. Slide 43: Total Assets

    Total Assets (in millions) $5.77 $5.85 $5.53 $5.63 $5.52 Mar '23 Jun '23 Sept '23 Dec '23 Mar '24  Total assets at 3/31/24 increased $80.6 million, or an annualized 5.6%, during the first quarter  Loans increased $110.3 million  Investment portfolio decreased $51.8 million  Deposits in other ban

44. Slide 44: Total Loans

    Total Loans (in millions) $3.99 $4.05 $4.16 $3.93 $3.78 Mar '23 Jun '23 Sept '23 Dec '23 Mar '24  Increased at an annualized rate of 10.9% during the quarter  Increased from prior year first quarter 10.2% 44

45. Slide 45: Nonperforming Loans

    Nonperforming Loans as a % of Total Loans 0.38% 0.34% 0.33% 0.32% 0.30% Mar '23 Jun '23 Sept '23 Dec '23 Mar '24 45

46. Slide 46: Nonperforming Assets

    Nonperforming Assets as a % of Total Assets 0.29% 0.27% 0.27% 0.27% 0.25% Mar '23 Jun '23 Sept '23 Dec '23 Mar '24 46

47. Slide 47: Net Charge-offs

    Net Charge-offs as a % of Average Loans (annualized) 0.16% 0.12% 0.10% 0.07% 0.04% Mar '23 Jun '23 Sept '23 Dec '23 Mar '24 47

48. Slide 48: Allowance for Credit Losses

    Allowance for Credit Losses  Provision for loan losses for the quarter was $2.7 million, compared to $1.8 million for the quarter ended December 31, 2023 and $1.1 million for the first quarter 2023.  Our reserve coverage (allowance for credit losses to nonperforming loans) at March 31, 2024 was 31

49. Slide 49: Total Deposits

    Total Deposits including Repurchase Agreements (in billions) $4.95 $5.02 $4.75 $4.75 $4.86 Mar '23 Jun '23 Sept '23 Dec '23 Mar '24  Increased an annualized 5.6% from prior quarter  Increased 5.6% from prior year first quarter 49

50. Slide 50: Efficiency Ratio

    Efficiency Ratio 55.29% 55.74% 54.94% 53.52% 52.66% Mar '23 Jun '23 Sept '23 Dec '23 Mar '24 50

51. Slide 51: Key Strategic Initiatives

    Za Community Trust Bancorp, Inc. Key Strategic Initiatives

52. Slide 52: Operational Priorities

    Operational Priorities  Build core earnings capacity  Quality loan growth  Low cost deposit growth  Branch expansion in growth markets  Manage net interest margin  Operational efficiency  Expense control  Noninterest revenue growth  Compliance management  Increase noninterest income  Trus

53. 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

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