Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2020)
57 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 28, 2020
Slide 1: Annual Shareholders' Presentation
2020 Annual Shareholders’ Presentation Za Community Trust Bancorp, Inc.
Slide 2: Directors
Directors CTBI DirectorsJean R. Hale, ChairmanCharles J. BairdNick CarterFranklin H. Farris, Jr.James E. McGhee IIM. Lynn ParrishAnthony St. Charles 2 CTB DirectorsJean R. Hale, ChairmanMark A. GoochDavid E. CollinsEugenia “Crit” Luallen *Michelle MatthewsFranky Minnifield *Chad C. Street CTIC Direc
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: COVID-19 message to shareholders
“We are all finding ourselves living and operating in unprecedented times as the COVID-19 pandemic is causing personal and financial hardship to our customers, employees, and communities. During these challenging times, the directors, officers, and employees of Community Trust Bancorp, Inc. have rem
Slide 5: 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 6: 2019 Key Metrics
2019 Key Metrics Total Assets $4.4 billionMarket Capitalization $829.9 millionCash Dividend Yield 3.26%P/E Ratio 12.8xPrice to Book Value 1.3xPrice to Tangible Book Value 1.5xTangible Common Equity Ratio 12.78%Competitive Position2nd largest Kentucky domiciled bank holding company 2nd in Kentucky in
Slide 7: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $676 million Loans - $969 million Loans - $381 millionDeposits - $872 million Deposits - $1.4 billion Deposits - $516 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Lexington • Hazard • Ashland• Mt. Sterling
Slide 8: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management & Trust Revenue Includes CTB portfolio Assets in billionsRevenue in millions 8
Slide 9: 2019 Performance
2019 Performance
Slide 10: 2019 Performance Summary
2019 Performance Summary Goals ResultsEarnings $61.3 - $62.6 million $64.5 millionEPS $3.45 - $3.52 per share $3.64 per shareROAA 1.44% - 1.47% 1.49%ROAE 10.57% - 10.79% 10.84%Assets $4.20 - $4.46 billion $4.37 billionLoans $3.31 - $3.45 billion $3.25 billionDeposits $3.56 - $3.71 billion $3.63 bill
Slide 11: Shareholder Value
Shareholder Value
Slide 12: Dividends Per Share
Dividends Per Share 2019 cash dividends increased 7.2%Dividend payout ratio for 2019 was 40.65%Desired level between 40% and 50%December 31, 2019 cash dividend yield was 3.26%Cash dividend increased to $0.38 per share effective October 1, 2019 12
Slide 13: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 27.8% during the past five years6.5% compound growth rate for the past five years (in millions) 13 6.5%
Slide 14: Book Value Per Share / Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 14
Slide 15: Total Market Capitalization
Total Market Capitalization Peer data obtained from SNL Financial; peer group consists of publicly traded regional bank holding companies with comparative assets, as defined in our Proxy Statement. (in millions) 15 Price to Tangible Book Value 2015 2016 2017 2018 2019 CTBI 1.50x 2.01x 1.79x 1.41x 1.
Slide 16: 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, 2014 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2019. 16
Slide 17: Comparison to Russell 2000 Index
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors 17 December 31, 2019
Slide 18: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends39 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 4.6%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexCTBI shareholders
Slide 19: 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 20: Earnings Review
Earnings Review
Slide 21: Earnings Per Share
Earnings Per Share EPS increased 8.7% from 2018 to 2019 21
Slide 22: Return on Average Assets
Return on Average Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 billion. 22
Slide 23: Net Income
Net Income Net income increased 9.0% from 2018 to 2019 (in millions) 23
Slide 24: Revenues
Revenues 2019 revenues increased 0.5% from 2018 (in millions) 24
Slide 25: Noninterest Income
Noninterest Incomeas a % of Total Revenue 2019 noninterest income decreased 3.4% from 2018Decreases in trust revenue, insurance commissions, loan related fees, net gains on other real estate owned, and bank owned life insurance proceeds (in millions) 25
Slide 26: Net Interest Revenue
Net Interest Revenue 2019 net interest revenue increased by 1.9% from 2018Net interest margin decreased 6 basis pointsAverage earning assets increased $130.4 million, or 3.3% (in millions) 26
Slide 27: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/19 – (6.76)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 billion. % of assets repricingW
Slide 28: Net Noninterest Expense
Net Noninterest Expenseas a % of Average Earning Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 billion. (in millions) 28 Noninterest Expense & Efficiency Ratio (in m
Slide 29: Balance Sheet Review
Balance Sheet Review
Slide 30: Total Assets
Total Assets Total assets at 12/31/19 increased $164.4 million, or 3.9%, from 12/31/18Loans increased $40.0 million or 1.2%Investment portfolio increased $6.7 million or 1.1%Deposits increased $93.8 million or 2.7% (in billions) 30
Slide 31: Total Loans
Total Loans Total loans at 12/31/19 increased 1.2% from 12/31/18Loan production for the year totaled $0.8 billion (in billions) 31 Loan Portfolio Mix December 31, 2019
Slide 32: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2019 * As a percentage of funded exposure 32
Slide 33: 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 12/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2019 33 Nonperforming Loansas a % of Total Loans
Slide 34: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets $19.5 million in other real estate owned 34 Loan Loss Reserveas a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2019 for bank holding companies with consolidated assets of $3 billion to $10 bi
Slide 35: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/19 $6.9 millionNew bookings in 2019 $3.4 millionProperties under contract to sell $3.1 million (in millions) 35
Slide 36: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements (in billions) 36 Total Depositsincluding Repurchase Agreements December 31, 2019
Slide 37: 1st Quarter 2020 Review
1st Quarter 2020 Review
Slide 38: Pandemic Response
Pandemic Response 38 Pandemic Response TeamActivated in MarchRepresentation from all areas of the companyDaily conference calls to discuss the current situation, safety, and needs of our customers and employeesEmployee and Customer ProtectionTemporarily adjusting branch operationsDecreasing lobby us
Slide 39: Key Metrics – 1st Quarter 2020
Key Metrics – 1st Quarter 2020 Total Assets $4.4 billionMarket Capitalization $565.5 millionCash Dividend Yield 4.78%P/E Ratio 21.4xPrice to Book Value 0.9xPrice to Tangible Book Value 1.0xTangible Common Equity Ratio 12.77% Financial data as of March 31, 2019 39
Slide 40: Earnings Per Share
Earnings Per Share $1.03 Mar 19 Jun ‘19 Sept 19 Dec 19 Mar '20 40
Slide 41: Net Income
Net Income (in millions) $18.3 Mar 19 Jun'19 Sept 19 Dec 19 Mar '20 41
Slide 42: Earnings
Earnings $12.7 million charge to earnings for the provision for credit losses as a result of the COVID-19 pandemicDecrease in noninterest income as a the result of a 30-day waiver of overdraft charges beginning March 23, 2020 in response to the COVID-19 pandemic discussed above and a decline in the
Slide 43: Noninterest Income
Noninterest Income 30-day waiver of processing overdraft charges beginning March 23, 2020, resulted in an estimated $0.3 million loss in revenue in the first quarter of 2020 (with an anticipated $0.7 million additional loss in revenue in April)Decline of $0.8 million in the fair market value of our
Slide 44: Noninterest Expense
Noninterest Expense Q-O-QDecrease in personnel expenseDecreases in cost of group medical and life insurance and bonuses and incentivesY-O-YDecrease in personnel expenseDecreases in cost of group medical and life insurance and bonuses and incentivesIncrease in salaries (in millions) 44
Slide 45: Total Assets
Total Assets Total assets at 3/31/20 decreased $13.4 million, or an annualized 1.2%, during the first quarterLoans increased $38.9 millionInvestment portfolio increased $32.9 millionDeposits, including repurchase agreements, decreased $0.5 million (in billions) 45
Slide 46: Total Loans
Total Loans Loan portfolio increased at an annualized rate of 4.8% during the quarterLoans increase from prior year first quarter 3.1% (in billions) 46
Slide 47: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements Deposits, including repurchase agreements, decreased an annualized 0.1% from prior quarter but increased 0.3% from prior year first quarter (in billions) 47
Slide 48: Nonperforming Loans as a % of Total Loans
Nonperforming Loansas a % of Total Loans 48
Slide 49: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets 49
Slide 50: Net Charge-offs as a % of Average Loans
Net Charge-offsas a % of Average Loans (annualized) 50
Slide 51: Allowance for Credit Losses
Allowance for Credit Losses $12.7 million increase in provision for credit losses during the quarter was directly attributable to the current COVID-19 pandemic and its expected impact on future net charge-offs.Specifically, increases in the allowance for credit losses were recognized in allocations
Slide 52: Allowance for Credit Losses
52 Allowance for Credit Losses 4Q19 Probable Incurred Losses January 1, 2020 CECL Adoption March 31, 2020 CECL (dollars in thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Allowance for loan and lease losses transitioned to allowance for credit losses: Commercial $21,683
Slide 53: Efficiency Ratio
Efficiency Ratio 60.57% 62.22% 61.16% Mar 19 Jun'19 Sept 19 Dec 19 Mar '20 53
Slide 54: Key Strategic Initiatives
Key Strategic Initiatives
Slide 55: 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 56: 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
Slide 57: Pikeville, KY address
346 North Mayo Trail, Pikeville, KY 41501
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