Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2022)
42 slides from Community Trust Bancorp's investor presentation, Nov 9, 2022
Slide 1: Community Trust Bancorp, Inc.
Za Community Trust Bancorp, Inc.
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 $5.5 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 3rd in Kentucky i
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 78 locations in 35 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 - $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
Slide 7: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management & Trust Revenue Includes CTB portfolio Assets in billions Revenue in millions 7 Sept ‘22 Revenue annualized
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
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 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%
Slide 11: Earnings Review
Earnings Review
Slide 12: Earnings Per Share
Earnings Per Share EPS decreased 13.7% from September 2021 to September 2022 2022 EPS goal - $4.15 to $4.31 per share 12
Slide 13: Net Income
Net Income Net income decreased 13.6% from September 2021 to September 2022 2022 goal for net income - $74.1 to $77.1 million (in millions) 13
Slide 14: Revenues
Revenues Revenues increased 0.4% from September 2021 to September 2022 2022 goal for revenues - $216.0 to $224.8 million (in millions) 14
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue Year-to-date noninterest income decreased 2.9% from September 2021 to September 2022 2022 goal for noninterest revenue – 24.0% to 26.0% of total revenue (in millions) 15 Sept ’22 annualized
Slide 16: Net Interest Revenue
Net Interest Revenue 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 million, or 0.7% (in millions) 16 Sept ’22 annualized
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin 1-year cumulative gap position at 9/30/22 – (18.87)% 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 billion to $10 billion. % of assets repricing
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 6/30/2022 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 6/30/2022 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
Balance Sheet Review
Slide 21: Total Assets
Total Assets 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 annualized 14.4% Deposits increased $149.8 million or an annualized 4.3% 2022 goal for total ass
Slide 22: Total Loans
Total Loans Loans increased $221.8 million, or an annualized 8.7%, from 12/31/21 2022 goal for total loans - $3.41 to $3.55 billion (in billions) 22 Loan Portfolio Mix September 30, 2022 Loan Rate Mix
Slide 23: Concentrations of Credit as a % of Total Loans
Concentrations of Creditas a % of Total Loans September 30, 2022 23 There were no nonperforming loans in any of these loan categories as of September 30, 2022.
Slide 24: Indirect Lending
Indirect Lending (in millions) 24 Sept ’22 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 6/30/2022 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 $1.9 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 6/30/2022 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 27: Allowance for Credit Losses
27 Allowance for Credit Losses 4Q19 Probable Incurred Losses January 1, 2020 CECL Adoption March 31, 2020 CECL September 30, 2022 CECL (dollars in thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Allowance for loan and lease losses transitioned to al
Slide 28: Total Other Real Estate Owned
Total Other Real Estate Owned 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 contract to sell at September 30, 2022 totaled $0.4 million (in millions) 28
Slide 29: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 2022 goal for total deposits including repurchase agreements - $4.63 to $4.82 billion (in billions) 29 Total Depositsincluding Repurchase Agreements September 30, 2022
Slide 30: Hoops CD
Our Hoops CD product has been offered for over 22 years 100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships $228 million in Hoops CDs as of 9/30/22 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted
Slide 31: Shareholder Value
Shareholder Value
Slide 32: Dividends Per Share
Dividends Per Share 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% Cash dividend increased to $0.44 per share effective October 1, 2022, an increase of 10% 32 *2022 is projected DPS
Slide 33: Shareholders' Equity
Shareholders’ Equity 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 million (in millions) 33 6.7%
Slide 34: Book Value Per Share / Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 34
Slide 35: 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. 35 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
Slide 36: 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. 36
Slide 37: 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 37 September 30, 2022
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 sharehold
Slide 39: Key Strategic Initiatives
Key Strategic Initiatives
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 insurance Continuing focus
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 team and over 1
Slide 42: Community Trust Bancorp, Inc.
TU, Community Trust Bancorp, Inc.
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