Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2015)
51 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 28, 2015
Slide 1: 2015 Annual Shareholders' Presentation
2015 Annual Shareholders’ 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
Market Capitalization $639.4 millionDividend Yield 3.28%P/E Ratio 14.6xCompetitive Position2nd largest Kentucky domiciled bank holding company#1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions 6th largest bank in Kentucky in terms of deposit market share of al
Slide 4: Our Banking Franchise
Our Banking Franchise Serving customers in 81 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee 4
Slide 5: Our Banking Franchise by Region
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $628 million Loans - $848 million Loans - $348 millionDeposits - $683 million Deposits - $1.2 billion Deposits - $505 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Lexington • Hazard • Ashland• Mt. Sterling
Slide 6: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management &Trust Revenue Assets in billionsRevenue in millions 6
Slide 7: 2014 Performance
2014 Performance 7
Slide 8: 2014 Performance Summary
2014 Performance Summary Budget ResultsEarnings $46.9 million $43.3 millionEPS $2.70 per share $2.50 per shareROAA 1.28% 1.18%ROAE 10.82% 9.94%Assets $3.71 billion $3.72 billionLoans $2.70 billion $2.73 billionDeposits $3.16 billion $3.11 billionShareholders’ equity $443.7 million $447.9 million 8
Slide 9: Shareholder Value
Shareholder Value 9
Slide 10: Dividends Per Share
Dividends Per Share *2015 is projected DPS 1.6% 2014 cash dividends increased 2.3%1.6% compound growth rate for past five yearsDecember 31, 2014 cash dividend yield was 3.28%Cash dividend increased to $0.30 per share effective October 1, 2014 10
Slide 11: 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% 11
Slide 12: Book Value Per Share, Tangible Common Equity/Assets
Book ValuePer Share Tangible Common Equity/Assets 12
Slide 13: Total Market Capitalization
Total Market Capitalization All data is as of year-end except 2015 which is as of March 31, 2015. Peer data not available as of March 31, 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
Slide 14: 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. 14
Slide 15: Comparison to Russell 2000 Index of Small Cap Companies
Comparison to Russell 2000 Indexof Small Cap Companies Return to Investors 3-, 5-, and 10-year total returns annualized December 31, 2014 15
Slide 16: 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 17: Earnings Review
Earnings Review 17
Slide 18: Earnings Per Share
EPS decreased 4.9% from 2013 to 20142015 EPS goal - $2.55 to $2.65 per share Earnings Per Share 18
Slide 19: Return on Average Assets
Return on Average Assets Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2014 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Net Income
(in millions) Net Income Net income decreased 4.3% from 2013 to 20142015 goal for net income - $44.0 to $47.0 million 20
Slide 21: Revenues
Revenues (in millions) 2014 revenues decreased 3.7% from 20132015 goal for revenues - $178.5 to $184.5 million 21
Slide 22: Noninterest Income
2014 noninterest income decreased 8.6% from 2013Decreases in gains on sales of loans, deposit service charges, loan related fees, and other noninterest income due to the prior year death benefits received in bank owned life insurance2015 goal for noninterest revenue – 22.0% to 26.0% of total revenue
Slide 23: Net Interest Revenue
2014 net interest revenue decreased by 1.9% from 2013Net interest margin decreased 11 basis pointsAverage earning assets increased $38.2 million, or 1.1% (in millions) Net Interest Revenue 23
Slide 24: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/14 – (5.81)% % of assets repricingWithin 30 days 33.02%% of liabilities repricing Within 30 days 16.25%Within 90 days 27.43%Within 180 days 38.32% Peer data obtained from the Federal Reserve Bank Holding Company Perfor
Slide 25: 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 12/31/2014 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 26: Balance Sheet Review
Balance Sheet Review 26
Slide 27: Total Assets
Total assets at 12/31/14 increased $142.0 million, or 4.0%, from 12/31/2013Loans increased $118.5 million or 4.5%Investment portfolio growth $30.8 million or 5.0%Deposits growth $46.3 million or 1.5%2015 goal for total assets - $3.70 to $3.90 billion (in billions) Total Assets 27
Slide 28: Total Loans
(in billions) Total Loans Total loans at 12/31/14 increased 4.5% from 12/31/13Loan production for the year totaled $0.7 billion2015 goal for total loans - $2.80 to $2.85 billion December 31, 2014 Loan PortfolioMix 28
Slide 29: Concentrations of Credit
Concentrations of Creditas a % of Total Loans December 31, 2014 * As a percentage of funded exposure 29
Slide 30: 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 12/31/2014 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2014 30
Slide 31: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets Loan Loss Reserveas a % of Net Loans $36.8 million in other real estate owned Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2014 for bank holding companies with consolidated assets of $3 billion to $10 billi
Slide 32: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/14 $12.9 millionNew bookings in 2014 $12.2 millionProperties under contract to sell $2.0 million (in millions) 32
Slide 33: 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 December 31, 2014 33
Slide 34: 1st Quarter 2015 Review
1st Quarter 2015 Review 34
Slide 35: Earnings Per Share
Earnings Per Share $0.70 Mar'14 Jun'14 Sept'14 Dec'14 Mar "15 35
Slide 36: Net Income
Net Income {in millions) $12.2 Mar'14 Jun‘'14 Sept'14 Dec'14 Mar'15 36
Slide 37: Net Income drivers
Net interest incomeIncreased $0.2 million year over yearDecreased $0.6 million quarter over quarterProvision for loan lossesIncreased $0.6 million year over yearDecreased $1.5 million quarter over quarterNoninterest incomeIncreased $0.7 million year over yearDecreased $1.3 million quarter over quart
Slide 38: Noninterest Income
(in millions) Noninterest Income Q-O-QDecreases in gains on sales of loans, deposit service charges, trust revenue, and loan related feesImpacted by fewer number of days and substantial inclement weather in 1st quarter 2015Y-O-YIncreases in gains on sales of loans, deposit service charges, trust rev
Slide 39: Noninterest Expense
(in millions) Noninterest Expense Q-O-Q$0.7 million decrease in personnel expense$0.5 million decrease in net other real estate owned expense$0.3 million decrease in repossession expenseDecrease in other direct expenses due to a $0.5 million accrual booked in the fourth quarter 2014 for anticipated
Slide 40: Total Loans
Loan portfolio increased at an annualized rate of 1.9% during the quarterCommercial loans increased $4.9 millionIndirect loans increased $17.0 millionResidential loans decreased $7.1 millionConsumer direct loans decreased $2.1 millionLoan increase from prior year first quarter 6.2% (in billions) Tot
Slide 41: Total Deposits including Repurchase Agreements
Deposits, including repurchase agreements, increased an annualized 9.7% from prior quarter and 1.3% from prior year first quarter (in billions) Total Depositsincluding Repurchase Agreements 41
Slide 42: Nonperforming Loans as a % of Total Loans
Nonperforming Loansas a % of Total Loans 42
Slide 43: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets 43
Slide 44: Net Charge-offs as a % of Average Loans
Net Charge-offsas a % of Average Loans (annualized) 44
Slide 45: Efficiency Ratio
Efficiency Ratio 62.00% 60.76% 56.96% 56.82% 58.66% Mar'14 Jun'14 Sept'14 Dec'14 Mar "15 45
Slide 46: Key Strategic Initiatives
Key Strategic Initiatives 46
Slide 47: 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 control 47
Slide 48: 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 48
Slide 49: 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 49
Slide 50: 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 51: Slide 51
Community Trust Bancorp — Shareholder Meeting (April 2015) on 6ix