Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (February 2018)
40 slides from Community Trust Bancorp's investor presentation, Feb 27, 2018
Slide 1: Investor Presentation February 2018
Investor PresentationFebruary 2018
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 $4.1 billionMarket Capitalization $833.3 millionCash Dividend Yield 2.80%P/E Ratio 16.1xPrice to Book Value 1.6xPrice to Tangible Book Value 1.8xTangible Common Equity Ratio 11.43%Competitive Position2nd largest Kentucky domiciled bank holding company #1 in Kentucky in deposit market sh
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
Serving customers in 80 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee 5 Our Banking Franchise
Slide 6: Our Banking Franchise by Region
Financial data as of December 31, 2017 6 Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $678 million Loans - $949 million Loans - $365 millionDeposits - $822 million Deposits - $1.3 billion Deposits - $527 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Le
Slide 7: Trust Assets Under Management & Trust Revenue
Assets in billionsRevenue in millions 7 Includes CTB portfolio Trust Assets Under Management &Trust Revenue
Slide 8: Executive Management Team
8 Banking Yrs. w/Name Position Experience CTBIJean R. Hale Chairman, President and CEO 48 years 48Mark A. Gooch CTB President and CEO 36 years 36Andy Waters CTIC President and CEO 31 years 14Kevin J. Stumbo EVP/Chief Financial Officer 31 years 23Steven E. Jameson EVP/Risk Manager 32 years 13James J.
Slide 9: Operational Philosophy
9 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 offeringsMaintain a strong tangible
Slide 10: Consistent Financial Performance
10 2017 2016 2015 2014 2013 EPS $2.92 $2.70 $2.66 $2.50 $2.63ROAA 1.27% 1.21% 1.23% 1.18% 1.24%ROAE 9.93% 9.58% 9.97% 9.94% 11.05%Net Int. Margin 3.67% 3.70% 3.81% 3.92% 4.03%Efficiency Ratio 58.66% 58.54% 58.20% 59.12% 59.33%Nonperforming Loans 0.91% 0.93% 1.00% 1.42% 1.67%Net Charge-offs 0.24% 0.2
Slide 11: Earnings Review
11 Earnings Review
Slide 12: Earnings Per Share
EPS increased 8.1% from 2016 to 20172018 EPS goal - $3.32 to $3.40 per share 12 Earnings Per Share
Slide 13: Net Income
(in millions) Net income increased 8.8% from 2016 to 20172018 goal for net income - $58.8 to $60.2 million 13 Net Income
Slide 14: Revenues
(in millions) Revenues increased 2.5% from 2016 to 20172018 goal for revenues - $188.9 to $194.6 million 14 Revenues
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest income increased 0.1% from 2016 to 2017Increases in trust revenue and deposit service chargesDecreases in loan related fees and securities gains2018 goal for noninterest revenue – 25.0% to 27.0% of total revenue Noninterest Incomeas a % of Total Revenue (in millions) 15
Slide 16: Net Interest Revenue
Net interest revenue increased by 3.3% from 2016Net interest margin decreased 3 basis pointsAverage earning assets increased $146.4 million, or 4.0% (in millions) Net Interest Revenue 16
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/17 – (5.90)% % of assets repricingWithin 30 days 30.67%% of liabilities repricing Within 30 days 10.17%Within 90 days 21.56%Within 180 days 32.47% Peer data obtained from the Federal Reserve Bank Holding Company Perfor
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 9/30/2017 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 9/30/2017 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
20 Balance Sheet Review
Slide 21: Total Assets
Total assets at 12/31/17 increased $204.1 million, or 5.2%, from 12/31/2016Loans increased $184.6 million or 6.3%Investment portfolio decreased $19.8 million or 3.3%Deposit growth $175.3 million or 5.3%2018 goal for total assets - $4.15 to $4.32 billion (in billions) Total Assets 21
Slide 22: Total Loans
(in billions) Total Loans Loans increased $184.6 million or 6.3% from 12/31/162018 goal for total loans - $3.15 to $3.35 billion December 31, 2017 Loan PortfolioMix 22
Slide 23: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2017 * 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 9/30/2017 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2017 24
Slide 25: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets Loan Loss Reserveas a % of Net Loans $32.0 million in other real estate owned Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 9/30/2017 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 year ended 12/31/17 totaled $6.1 millionNew bookings in 2017 totaled $5.4 millionProperties under contract to sell were $2.2 million (in millions) 26
Slide 27: Total Deposits including Repurchase Agreements
(in billions) Total Depositsincluding Repurchase Agreements 2018 goal for total deposits including repurchase agreements - $3.47 to $3.61 billion Total Depositsincluding Repurchase Agreements December 31, 2017 27
Slide 28: Hoops CD
28 Our Hoops CD product has been offered for over 20 years100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships$207 million in Hoops CDs as of 12/31/17 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjust
Slide 29: Shareholder Value
29 Shareholder Value
Slide 30: Dividends Per Share
Dividends Per Share 2017 cash dividends increased 3.2%Dividend payout ratio at December 31, 2017 was 44.52%Desired level between 40% and 50%December 31, 2017 cash dividend yield was 2.80%Cash dividend increased to $0.33 per share effective October 1, 2017 30 * 2018 is projected DPS
Slide 31: Shareholders' Equity
Shareholders’ Equity (in millions) Shareholders’ equity has increased 28.7% during the past five years5.8% compound growth rate for the past five years2018 goal for shareholders’ equity - $552.6 to $575.2 million 5.8% 31
Slide 32: Book Value Per Share / Tangible Common Equity to Assets
Book ValuePer Share Tangible Common Equity/Assets 32
Slide 33: Price to Tangible Book Value and Market Capitalization
Peer data obtained from SNL Financial; peer group consists of publicly traded regional bank holding companies with comparative asset size, as defined in our Proxy Statement. (in millions) Price to Tangible Book Value 2012 2013 2014 2015 2016 2017 CTBI 1.53x 2.06x 1.67x 1.50x 2.01x 1.79x Peer 1.39x 1
Slide 34: 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, 2012 would have underperformed the NASDAQ Stock Market (U.S.) and the NASDAQ Bank Stocks Index at December 31, 2017. 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, 2017 35
Slide 36: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends37 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 2.7%Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock IndexRecognized as one
Slide 37: Key Strategic Initiatives
37 Key Strategic Initiatives
Slide 38: 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 39: 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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