Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2021)
44 slides from Community Trust Bancorp's investor presentation, Nov 12, 2021
Slide 1: Community Trust Bancorp, Inc. Investor Presentation
Za Community Trust Bancorp, Inc. 202 | INVESTOR PRESENTATION
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 $5.4 billionMarket Capitalization $751.0 millionCash Dividend Yield 3.80%P/E Ratio 8.9xPrice to Book Value 1.1xPrice to Tangible Book Value 1.2xTangible Common Equity Ratio 11.77%Competitive Position3rd largest Kentucky domiciled bank holding company 3rd in Kentucky in depos
Slide 4: Corporate History
Corporate History 1903 Pikeville National bank formed1987-2005 Acquired 14 banks and purchased 17 branch locations1997 Changed name to Community Trust Bancorp, Inc.2010 Acquired LaFollette First National CorporationPresently Two operational subsidiaries~ Community Trust Bank, Inc. and Community Trus
Slide 5: Our Banking Franchise
Our Banking Franchise Serving customers in 79 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee
Slide 6: Our Banking Franchise (Regions)
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $751 million Loans - $934 million Loans - $391 millionDeposits - $1.2 billion Deposits - $1.8 billion Deposits - $609 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 Sept ‘21 Revenue annualized
Slide 8: Executive Management Team
Executive Management Team Banking Yrs. w/Name Position Experience CTBIJean R. Hale Chairman and CEO 52 years 52Mark A. Gooch CTBI and CTB President 40 years 40Andy Waters CTIC President and CEO 34 years 17Kevin J. Stumbo EVP/Chief Financial Officer 34 years 26Steven E. Jameson EVP/Risk Manager 36 ye
Slide 9: Operational Philosophy
Operational Philosophy Traditional community banking business modelExecutive management and board of director commitment to strong corporate governanceDecentralized decision making and centralized operations and risk managementStrong loan portfolio risk management processSpecialized product offering
Slide 10: Consistent Financial Performance
Consistent Financial Performance YTD 2021 2020 2019 2018 2017 EPS $3.86 $3.35 $3.64 $3.35 $2.92ROAA 1.71% 1.23% 1.49% 1.41% 1.27%ROAE 13.55% 9.36% 10.84% 10.83% 9.93%Net Int. Margin 3.22% 3.33% 3.60% 3.66% 3.67%Efficiency Ratio 52.35% 58.30% 60.70% 60.17% 58.66%Nonperforming Loans 0.55% 0.75% 1.03%
Slide 11: Earnings Review
Earnings Review M]Gormunity Trust Bancorp, Inc.
Slide 12: Earnings Per Share
Earnings Per Share EPS increased 56.9% from September 2020 to September 20212021 EPS goal - $3.76 to $3.92 per share 12
Slide 13: Net Income
Net Income Net income increased 57.3% from September 2020 to September 20212021 goal for net income - $67.1 to $69.8 million (in millions) 13
Slide 14: Revenues
Revenues Revenues increased 10.6% from September 2020 to September 20212021 goal for revenues - $209.6 to $218.1 million (in millions) 14
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue Year-to-date noninterest income increased 15.7% from September 2020 to September 20212021 goal for noninterest revenue – 24.0% to 26.0% of total revenue (in millions) 15 Sept ’21 annualized
Slide 16: Net Interest Revenue
Net Interest Revenue YTD net interest revenue increased by 8.8% year over year for the nine months ended September 30Net interest margin decreased 15 basis pointsAverage earning assets increased $634.7 million, or 14.2% (in millions) 16 Sept ’21 annualized
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 9/30/21 – (13.74)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion. % of assets repricingWi
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 6/30/2021 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 6/30/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
Balance Sheet Review M]Gormunity Trust Bancorp, Inc.
Slide 21: Total Assets
Total Assets Total assets at 9/30/21 increased $246.4 million, or an annualized 6.4%, from 12/31/20Loans decreased $156.0 million or an annualized 5.9%Investment portfolio increased $528.5 million or an annualized 70.9%Deposits increased $216.3 million or an annualized 6.6%2021 goal for total assets
Slide 22: Total Loans
Total Loans Loans decreased $156.0 million, or an annualized 5.9%, from 12/31/20Loans excluding PPP loans were $3.30 million at 9/30/21, a $2.4 million decrease from 12/31/202021 goal for total loans - $3.48 to $3.63 billion (in billions) 22 Loan Portfolio Mix September 30, 2021 Loan Rate Mix
Slide 23: CARES Act Loan Deferral Status
CARES Act Loan Deferral Status 23 Deferrals (dollars in millions) Number Amount Commercial 6 $14.3 Residential 17 1.4 Consumer 4 0.1 Total 27 $15.8
Slide 24: PPP Loans
PPP Loans 24 As of September 30, 2021, we have closed 6,312 PPP loans totaling $401.3 million. Through September 30, 2021, we have had 4,730 PPP loans totaling $297.7 million forgiven by the SBA and repaid to CTB. (in thousands) AverageBalance Interest AverageEffective Rate PPP loans $210,297 $11,80
Slide 25: Concentrations of Credit
Concentrations of Creditas a % of Total Loans September 30, 2021 25 There were no net losses or nonperforming loans in any of these loan categories as of September 30, 2021.
Slide 26: Indirect Lending
Indirect Lending (in millions) 26 Sept ’21 annualized
Slide 27: Net Charge-offs and Nonperforming Loans
Net Charge-offsas a % of Average Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2021 for bank holding companies with consolidated assets of $3 billion to $10 billion. 27 Nonperforming Loansas a % of Total Loans Commercial loans were a net charge-
Slide 28: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets $4.3 million in other real estate owned 28 Loan Loss Reserveas a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2021 for bank holding companies with consolidated assets of $3 billion to $10 bill
Slide 29: Allowance for Credit Losses
29 Allowance for Credit Losses 4Q19 Probable Incurred Losses January 1, 2020 CECL Adoption March 31, 2020 CECL September 30, 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 al
Slide 30: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the nine months ended 9/30/21 totaled $3.6 millionNew bookings in the first nine months of 2021 totaled $0.9 millionProperties under contract to sell at September 30, 2021 totaled $0.4 million (in millions) 30
Slide 31: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 2021 goal for total deposits including repurchase agreements - $4.30 to $4.47 billion (in billions) 31 Total Depositsincluding Repurchase Agreements September 30, 2021
Slide 32: Hoops CD Product
Our Hoops CD product has been offered for over 21 years100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships$194 million in Hoops CDs as of 9/30/21 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted b
Slide 33: Shareholder Value
Shareholder Value M]Gormunity Trust Bancorp, Inc.
Slide 34: Dividends Per Share
Dividends Per Share Dividend payout ratio at September 30, 2021 was 30.3%Desired level between 40% and 50%September 30, 2021 cash dividend yield was 3.80%Cash dividend increased to $0.40 per share effective October 1, 2021, an increase of 3.9% 34 *2021 is projected DPS
Slide 35: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 28.6% during the past five years6.4% compound growth rate for the past five years2021 goal for shareholders’ equity - $682.6 to $710.5 million (in millions) 35 6.4%
Slide 36: Book Value Per Share / Tangible Common Equity to Assets
Book Value Per Share Tangible Common Equity/Assets 36
Slide 37: Total Market Capitalization and 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. 37 Price to Tangible Book Value 2016 2017 2018 2019 2020 9/30/21CTBI 2.01x 1.79x 1.41x 1.51x 1.12x 1.20xP
Slide 38: Five Year Cumulative Total Return
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. 38
Slide 39: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors 39 September 30, 2021
Slide 40: 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 4.7%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexCTBI shareholders
Slide 41: Key Strategic Initiatives
Key Strategic Initiatives
Slide 42: Operational Priorities
Operational Priorities Build core earnings capacityQuality loan growthLow cost deposit growthMaintain net interest margin Operational efficiencyExpense controlNoninterest revenue growthCompliance managementIncrease noninterest incomeWealth managementBrokerageLife insuranceContinuing focus on improvi
Slide 43: 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
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