Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — 2015 KBW Community Bank Investor Conference
41 slides from Community Trust Bancorp's conference presentation, Jul 28, 2015
Slide 1: 2015 KBW Community Bank Investor Presentation
2015 KBW Community Bank 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
Total Assets $3.8 billionMarket Capitalization $609.8 millionCash Dividend Yield 3.44%P/E Ratio 12.2xPrice to Book Value 1.3xPrice to Tangible Book Value 1.5xTangible Common Equity Ratio 10.68%Competitive Position#1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured instituti
Slide 4: Corporate History
4 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 Trust and Investment
Slide 5: Our Banking Franchise
Our Banking Franchise Serving customers in 80 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee 5
Slide 6: Our Banking Franchise by Region
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $627 million Loans - $867 million Loans - $347 millionDeposits - $689 million Deposits - $1.3 billion Deposits - $504 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 Assets in billionsRevenue in millions 7 Jun ‘15 annualized Includes CTB portfolio
Slide 8: Executive Management Team
8 Banking Yrs. w/Name Position Experience CTBIJean R. Hale Chairman, President and CEO 46 years 46Mark A. Gooch CTB President and CEO 34 years 34Andy Waters CTIC President and CEO 28 years 11Kevin J. Stumbo EVP/Chief Financial Officer 28 years 20Steven E. Jameson EVP/Risk Manager 30 years 11James J.
Slide 9: Operational Philosophy
9 Operational Philosophy Traditional community banking business modelExecutive management and board of director commitment to corporate governanceDecentralized decision making and centralized operations and risk managementStrong loan portfolio risk management processSpecialized product offeringsMain
Slide 10: Consistent Financial Performance
10 Consistent Financial Performance YTD 2015 2014 2013 2012 2011 EPS $1.34 $2.50 $2.64 $2.64 $2.31ROAA 1.25% 1.18% 1.24% 1.23% 1.11%ROAE 10.25% 9.94% 11.05% 11.52% 10.91%Net Int. Margin 3.87% 3.92% 4.03% 3.99% 4.13%Efficiency Ratio 57.96% 59.12% 59.33% 57.93% 60.23%Nonperforming Loans 1.20% 1.42% 1.
Slide 11: Earnings Review
Earnings Review 11
Slide 12: Earnings Per Share
EPS increased 3.9% from 2nd quarter 2014 to 2nd quarter 20152015 EPS goal - $2.55 to $2.65 per share Earnings Per Share 12
Slide 13: Net Income
(in millions) Net Income Net income increased 4.5% from 2nd quarter 2014 to 2nd quarter 20152015 goal for net income - $44.0 to $47.0 million 13
Slide 14: Revenues
Revenues (in millions) Revenues increased 2.8% from 2nd quarter 2014 to 2nd quarter 20152015 goal for revenues - $178.5 to $184.5 million 14 Jun ‘15 annualized
Slide 15: Noninterest Income
Noninterest income increased 9.2% from 2nd quarter 2014 to 2nd quarter 2015Increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees2015 goal for noninterest revenue – 22.0% to 26.0% of total revenue Noninterest Incomeas a % of Total Revenue (in millions) 15
Slide 16: Net Interest Revenue
Net interest revenue increased by 0.8% from prior year 2nd quarterNet interest margin decreased 7 basis pointsAverage earning assets increased $95.7 million, or 2.8% (in millions) Net Interest Revenue 16 Jun ‘15 annualized
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 6/30/15 – (5.19)% % of assets repricingWithin 30 days 35.64%% of liabilities repricing Within 30 days 15.92%Within 90 days 26.22%Within 180 days 44.82% Peer data obtained from the Federal Reserve Bank Holding Company Perform
Slide 18: Noninterest Expense & Efficiency Ratio
Net Noninterest Expenseas a % of Average Earning Assets Noninterest Expense & Efficiency Ratio (in millions) (in millions) Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 bill
Slide 19: Return on Average Assets
Return on Average Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
Balance Sheet Review 20
Slide 21: Total Assets
Total assets at 6/30/15 increased $46.3 million, or an annualized 2.5%, from 12/31/2014Loans increased $59.0 million or an annualized 4.4%Investment portfolio decreased $59.0 million or an annualized 18.5%Deposit growth $45.4 million or an annualized 2.9%2015 goal for total assets - $3.70 to $3.90 b
Slide 22: Total Loans
(in billions) Total Loans Increases in the commercial, consumer direct, and indirect loan portfolios during the quarterLoan production for the year 2014 totaled $0.7 billion2015 goal for total loans - $2.80 to $2.85 billion June 30, 2015 Loan PortfolioMix 22
Slide 23: Concentrations of Credit
Concentrations of Creditas a % of Total Loans June 30, 2015 * As a percentage of funded exposure 23
Slide 24: Net Charge-offs and Nonperforming Loans
Net Charge-offsas a % of Average Loans NonperformingLoansas a % of Total Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 billion. June 30, 2015 24
Slide 25: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets Loan Loss Reserveas a % of Net Loans $36.7 million in other real estate owned Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2015 for bank holding companies with consolidated assets of $3 billion to $10 billio
Slide 26: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the six months ended 6/30/15 totaled $6.1 millionNew bookings in first six months of 2015 totaled $6.0 millionProperties under contract to sell were $2.3 million (in millions) 26
Slide 27: Total Deposits including Repurchase Agreements
(in billions) Total Depositsincluding Repurchase Agreements 2015 goal for total deposits including repurchase agreements - $3.10 to $3.16 billion Total Depositsincluding Repurchase Agreements June 30, 2015 27
Slide 28: Hoops CD
28 Our Hoops CD product has been offered for over 18 years100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships$172 million in Hoops CDs as of 6/30/15 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjuste
Slide 29: Shareholder Value
Shareholder Value 29
Slide 30: Dividends Per Share
Dividends Per Share 2014 cash dividends increased 2.3%Dividend payout ratio at June 30, 2015 was 44.77%Desired level between 40% and 50%June 30, 2015 cash dividend yield was 3.44% 30 * 2015 is projected DPS
Slide 31: Shareholders' Equity
Shareholders’ Equity (in millions) Shareholders’ equity has increased 32.3% during the past five years6.9% compound growth rate for the past five years2015 goal for shareholders’ equity - $467 to $475 million 6.9% 31
Slide 32: Book Value Per Share / Tangible Common Equity to Assets
Book ValuePer Share Tangible Common Equity/Assets 32
Slide 33: Total Market Capitalization and Price to Tangible Book Value
Total Market Capitalization All data is as of year-end except 2015 which is as of June 30, 2015. Peer data not available as of June 30, 2015.Peer data obtained from SNL Financial; peer group consists of publicly traded regional bank holding companies with an average asset size of $3.7 billion, as de
Slide 34: 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, 2009 would have outperformed the NASDAQ Bank Stocks Index but not the NASDAQ Stock Market (U.S.) at December 31, 2014. 34
Slide 35: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies Return to Investors 3-, 5-, and 10-year total returns annualized December 31, 2014 35
Slide 36: Core Value: Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends34 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 1.6%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexRecognized by Forb
Slide 37: Key Strategic Initiatives
Key Strategic Initiatives 37
Slide 38: Operational Priorities
Operational Priorities Continuing focus on improving asset qualityLiquidation of other real estate ownedBuild core earnings capacityQuality loan growthLow cost deposit growthIncrease noninterest incomeWealth managementBrokerageLife insuranceMaintain net interest marginExpense controlCompliance Manag
Slide 39: CTBI: 2015 Outlook
CTBI: 2015 Outlook Net Income $44 - $47 millionEarnings Per Share $2.55 - $2.65 per shareROAA 1.18% - 1.24% ROAE 9.30% - 10.30% Assets $3.70 - $3.90 billionLoans $2.80 - $2.85 billionDeposits $3.10 - $3.16 billionShareholders’ Equity $467 - $475 million 39
Slide 40: CTBI's Franchise Value
CTBI’s Franchise Value History of solid investor returnsHistorically strong capital positionCommunity banking strategyGrowth and good financial performance in slow growth marketsGrowth strategiesStrong experienced management team and over 1,000 dedicated employeesOur shareholders 40
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