Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2021)
59 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 27, 2021
Slide 1: 2021 Annual Shareholders' Presentation
Za Community Trust Bancorp, Inc. 2021 ANNUAL SHAREHOLDERS’ PRESENTATION
Slide 2: Directors
Directors CTBI DirectorsJean R. Hale, ChairmanCharles J. BairdNick Carter*Franklin H. Farris, Jr.Eugenia “Crit” LuallenJames E. McGhee IIFranky MinnifieldM. Lynn ParrishAnthony St. Charles 2 CTB DirectorsJean R. Hale, ChairmanMark A. GoochDavid E. Collins**Eugenia “Crit” Luallen Ina Michelle Matthew
Slide 3: Executive Officers
Executive Officers 3 Jean R. Hale Chairman, President and CEOMark A. Gooch CTB President and CEOAndy 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/Operat
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: 2020 Key Metrics
2020 Key Metrics Total Assets $5.1 billionMarket Capitalization $659.9 millionCash Dividend Yield 4.16%P/E Ratio 11.1xPrice to Book Value 1.0xPrice to Tangible Book Value 1.1xTangible Common Equity Ratio 11.62%Competitive Position2nd largest Kentucky domiciled bank holding company 2nd in Kentucky in
Slide 6: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $740 million Loans - $1.0 billion Loans - $427 millionDeposits - $1.1 billion Deposits - $1.8 billion Deposits - $576 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: 2020 Performance
2020 Performance M]Gormunity Trust Bancorp, Inc.
Slide 9: 2020 Performance Summary
2020 Performance Summary Goals ResultsEarnings $57.5 - $58.6 million $59.5 millionEPS $3.23 - $3.29 per share $3.35 per shareROAA 1.29% - 1.32% 1.23%ROAE 9.09% - 9.28% 9.36%Assets $4.39 - $4.66 billion $5.14 billionLoans $3.33 - $3.47 billion $3.55 billionDeposits $3.69 - $3.84 billion $4.37 billion
Slide 10: Shareholder Value
Shareholder Value M]Gormunity Trust Bancorp, Inc.
Slide 11: Dividends Per Share
Dividends Per Share 2020 cash dividends increased 3.4%Dividend payout ratio for 2020 was 45.7%Desired level between 40% and 50%December 31, 2020 cash dividend yield was 4.16%Cash dividend increased to $0.385 per share effective October 1, 2020 11
Slide 12: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 28.6% during the past five years6.4% compound growth rate for the past five years (in millions) 12 6.4%
Slide 13: Book Value Per Share; Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 13
Slide 14: 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. (in millions) 14 Price to Tangible Book Value 2015 2016 2017 2018 2019 2020CTBI 1.50x 2.01x 1.79x 1.41x 1
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, 2015 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2020. 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 16 December 31, 2020
Slide 17: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends40 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 4.7%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 over 1,000 de
Slide 19: Earnings Review
Earnings Review M]Gormunity Trust Bancorp, Inc.
Slide 20: Earnings Per Share
Earnings Per Share EPS decreased 8.0% from 2019 to 2020 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 12/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. 21
Slide 22: Net Income
Net Income Net income decreased 7.8% from 2019 to 2020 (in millions) 22
Slide 23: Revenues
Revenues 2020 revenues increased 5.4% from 2019 (in millions) 23
Slide 24: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue 2020 noninterest income increased 8.7% from 2019Increases in gains on sales of loans, securities gains, and loan related fees (in millions) 24
Slide 25: Net Interest Revenue
Net Interest Revenue 2020 net interest revenue increased by 4.2% from 2019Net interest margin decreased 27 basis pointsAverage earning assets increased $518.2 million, or 12.8% (in millions) 25
Slide 26: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/20 – (9.41)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. % of assets repricingW
Slide 27: Net Noninterest Expense; Efficiency Ratio
Net Noninterest Expenseas a % of Average Earning Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. (in millions) 27 Noninterest Expense & Efficiency Ratio (in m
Slide 28: Balance Sheet Review
Balance Sheet Review M]Gormunity Trust Bancorp, Inc.
Slide 29: Total Assets
Total Assets Total assets at 12/31/20 increased $773.1 million, or 17.7%, from 12/31/19Loans increased $305.5 million or 9.4%Investment portfolio increased $397.4 million or 66.0%Deposits increased $739.5 million or 20.4% (in billions) 29
Slide 30: Total Loans
Total Loans Total loans at 12/31/20 increased 9.4% from 12/31/19Loan production for the year totaled $1.5 billion (in billions) 30 Loan Portfolio Mix December 31, 2020
Slide 31: CARES Act Loan Deferral Status
CARES Act Loan Deferral Status 31 Deferrals One Time Two Times Three Times Four Times Outstanding (dollars in millions) Number Amount Number Amount Number Amount Number Amount Number Amount Commercial 841 $571 153 $223 45 $83 5 $3 109 $118 Residential 552 63 100 10 15 2 1 0 108 9 Consumer 2,088 36 4
Slide 32: PPP Loans
PPP Loans 32 As of December 31, 2020, we have closed 2,962 PPP loans totaling $277.0 million 2,817 were under $350 thousand132 were between $350 thousand and $2.0 million13 were over $2.0 million
Slide 33: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2020 There were no nonperforming loans in any of these loan categories as of December 31, 2020. 33
Slide 34: 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 12/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2020 34 Nonperforming Loansas a % of Total Loans
Slide 35: Nonperforming Assets; Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets $7.7 million in other real estate owned 35 Loan Loss Reserveas a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2020 for bank holding companies with consolidated assets of $3 billion to $10 bill
Slide 36: Allowance for Credit Losses
Allowance for Credit Losses 36 4Q19 Probable Incurred Losses January 1, 2020 CECL Adoption March 31, 2020 CECL December 31, 2020 CECL (dollars in thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Allowance for loan and lease losses transitioned to all
Slide 37: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/20 $14.8 millionNew bookings in 2020 $4.4 millionProperties under contract to sell at 12/31/20 $1.2 million (in millions) 37
Slide 38: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 38 Total Depositsincluding Repurchase Agreements December 31, 2020 (in billions)
Slide 39: 1st Quarter 2021 Review
1st Quarter 2021 Review M]Gormunity Trust Bancorp, Inc.
Slide 40: Key Metrics – 1st Quarter 2021
Key Metrics – 1st Quarter 2021 Total Assets $5.4 billionMarket Capitalization $784.9 millionCash Dividend Yield 3.50%P/E Ratio 8.16xPrice to Book Value 1.2xPrice to Tangible Book Value 1.3xTangible Common Equity Ratio 11.27% Financial data as of March 31, 2021 40
Slide 41: Earnings Per Share
Earnings Per Share $0.98 $0.89 f J Mar '20 Sept '20 Dec '20 $1.33 Mar'21 41
Slide 42: Net Income
Net Income {in millions) Sept ‘20 Dec '20 42
Slide 43: Earnings
Earnings Net interest income for the quarter of $40.2 million was $1.6 million, or 4.2%, above prior quarter and $4.0 million, or 11.0%, above first quarter 2020. We recovered $2.5 million of our provision for credit losses during the quarter ended March 31, 2021, as a result of improvement in our n
Slide 44: Noninterest Income
Noninterest Income Q-O-Q increases in loan related fees, net gains on other real estate owned, and trust revenue, partially offset by declines in securities gains and deposit related feesY-O-Y increases in loan related fees and net gains on loans, partially offset by a decline in securities gains (i
Slide 45: Noninterest Expense
Noninterest Expense Q-O-Q decreases in personnel expense, taxes other than property and payroll, and net other real estate owned expenseY-O-Y increases in personnel expense and data processing expense, offset by decreases in taxes other than property and payroll and net other real estate owned expen
Slide 46: Total Assets
Total Assets Total assets at 3/31/21 increased $221.0 million, or an annualized 17.4%, during the first quarterLoans decreased $15.4 millionInvestment portfolio increased $157.7 millionDeposits, including repurchase agreements, increased $216.1 million (in billions) 46
Slide 47: Total Loans
Total Loans Loan portfolio decreased at an annualized rate of 1.8% during the quarterLoans increase from prior year first quarter 7.6% (in billions) 47
Slide 48: CARES Act Loan Deferral Status
CARES Act Loan Deferral Status 48 At March 31, 2021, the number of customers with CARES Act deferrals reduced to 226 for a total outstanding amount of $81.8 million73 commercial with a total outstanding amount of $73.8 million83 residential with a total outstanding amount of $6.5 million70 consumer
Slide 49: PPP Loans
49 PPP Loans As of March 31, 2021, we had closed 4,819 Paycheck Protection Program (PPP) loans totaling $376.1 million2,962 loans totaling $277.0 million stemming from the CARES Act1,857 loans totaling $99.1 million in new PPP loans stemming from the Consolidated Appropriations Act 2021Through March
Slide 50: Nonperforming Loans as a % of Total Loans
Nonperforming Loansas a % of Total Loans 50
Slide 51: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets 51
Slide 52: Net Charge-offs as a % of Average Loans
Net Charge-offsas a % of Average Loans (annualized) 52
Slide 53: Allowance for Credit Losses
Allowance for Credit Losses We recognized a recapture of allowance for credit losses with a credit to provision for credit losses of $2.5 million for the first quarter of 2021, compared to a provision for credit losses of $1.0 million for the prior quarter and $12.7 million for the first quarter of
Slide 54: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements Deposits, including repurchase agreements, increased an annualized 20.0% from prior quarter and 26.3% from prior year first quarter (in billions) 54
Slide 55: Efficiency Ratio
Efficiency Ratio 59.18% 55.17% 55.99% Mar '20 Jun '20 Sept '20 62.75% Dec '20 50.37% Mar'21 55
Slide 56: Key Strategic Initiatives
Key Strategic Initiatives
Slide 57: 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 58: 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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