Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (February 2021)
44 slides from Community Trust Bancorp's investor presentation, Feb 16, 2021
Slide 1: Investor Presentation February 2021
Investor Presentation February 2021
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 $5.1 billionMarket Capitalization $659.9 millionCash Dividend Yield 4.16%P/E Ratio 11.1xPrice to Book Value 1.0xPrice to Tangible Book Value 1.1xTangible Common Equity Ratio 11.62%Competitive Position2nd largest Kentucky domiciled bank holding company 2nd in Kentucky in depo
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
Our Banking Franchise Central Region Eastern Region Northeastern RegionLoans - $740 million Loans - $1.0 billion Loans - $427 millionDeposits - $1.1 billion Deposits - $1.8 billion Deposits - $576 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
Slide 8: Executive Management Team
Executive Management Team Banking Yrs. w/Name Position Experience CTBIJean R. Hale Chairman, President and CEO 51 years 51Mark A. Gooch CTB President and CEO 39 years 39Andy Waters CTIC President and CEO 34 years 17Kevin J. Stumbo EVP/Chief Financial Officer 34 years 26Steven E. Jameson EVP/Risk Man
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 2020 2019 2018 2017 2016 EPS $3.35 $3.64 $3.35 $2.92 $2.70ROAA 1.23% 1.49% 1.41% 1.27% 1.21%ROAE 9.36% 10.84% 10.83% 9.93% 9.58%Net Int. Margin 3.33% 3.60% 3.66% 3.67% 3.70%Efficiency Ratio 58.30% 60.70% 60.17% 58.66% 58.54%Nonperforming Loans 0.75% 1.03% 0.69% 0.91%
Slide 11: Earnings Review
Earnings Review
Slide 12: Earnings Per Share
Earnings Per Share EPS decreased 8.0% from 2019 to 20202021 EPS goal - $3.76 to $3.92 per share 12
Slide 13: Net Income
Net Income Net income decreased 7.8% from 2019 to 20202021 goal for net income - $67.1 to $69.8 million (in millions) 13
Slide 14: Revenues
Revenues Revenues increased 5.4% from 2019 to 20202021 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 Noninterest income increased 8.7% from 2019 to 20202021 goal for noninterest revenue – 24.0% to 26.0% of total revenue (in millions) 15
Slide 16: Net Interest Revenue
Net Interest Revenue Net interest revenue increased by 4.2% from 2019 to 2020Net interest margin decreased 27 basis pointsAverage earning assets increased $518.2 million, or 12.8% (in millions) 16
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 12/31/20 – (9.41)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 9/30/2020 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 9/30/2020 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 9/30/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
Balance Sheet Review
Slide 21: Total Assets
Total Assets Total assets at 12/31/20 increased $773.1 million, or 17.7%, from 12/31/19Loans increased $305.5 million or 9.4%Investment portfolio increased $397.4 million or 66.0%Deposits increased $739.5 million or 20.4%2021 goal for total assets - $5.04 to $5.35 billion (in billions) 21
Slide 22: Total Loans
Total Loans Loans increased $305.5 million, or 9.4%, from 12/31/192021 goal for total loans - $3.48 to $3.63 billion (in billions) 22 Loan Portfolio Mix December 31, 2020 Loan Rate Mix
Slide 23: CARES Act Loan Deferral Status
CARES Act Loan Deferral Status 23 Deferrals One Time Two Times Three Times Four Times Outstanding (dollars in millions) Number Amount Number Amount Number Amount Number Amount Number Amount Commercial 841 $571 153 $223 45 $83 5 $3 109 $118 Residential 552 63 100 10 15 2 1 0 108 9 Consumer 2,088 36 4
Slide 24: PPP Loans
PPP Loans 24 As of December 31, 2020, we have closed 2,962 PPP loans totaling $277.0 million 2,817 were under $350 thousand132 were between $350 thousand and $2.0 million13 were over $2.0 million (in thousands) AverageBalance Interest AverageEffective Rate PPP loans $182,008 $5,638 3.05%
Slide 25: Concentrations of Credit as a % of Total Loans
Concentrations of Creditas a % of Total Loans December 31, 2020 25 There were no nonperforming loans in any of these loan categories as of December 31, 2020.
Slide 26: Indirect Lending
Indirect Lending (in millions) 26
Slide 27: 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 9/30/2020 for bank holding companies with consolidated assets of $3 billion to $10 billion. December 31, 2020 27 Nonperforming Loansas a % of Total Loans
Slide 28: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets $7.7 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 9/30/2020 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 December 31, 2020 CECL (dollars in thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Allowance for loan and lease losses transitioned to all
Slide 30: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the year ended 12/31/20 totaled $14.8 millionNew bookings in 2020 totaled $4.4 millionProperties under contract to sell at December 31, 2020 totaled $1.2 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 December 31, 2020
Slide 32: Hoops CD
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$199 million in Hoops CDs as of 12/31/20 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted
Slide 33: Shareholder Value
Shareholder Value
Slide 34: Dividends Per Share
Dividends Per Share Dividend payout ratio at December 31, 2020 was 45.7%Desired level between 40% and 50%December 31, 2020 cash dividend yield was 4.16%Cash dividend increased to $0.385 per share effective October 1, 2020, an increase of 1.32% 34 *2020 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
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. (in millions) 37 Price to Tangible Book Value 2015 2016 2017 2018 2019 2020CTBI 1.50x 2.01x 1.79x 1.41x 1
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 December 31, 2020
Slide 40: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends40 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
Slide 44: North Mayo Trail, Pikeville, KY 41501
346 North Mayo Trail, Pikeville, KY 41501
Community Trust Bancorp — Investor Presentation (February 2021) on 6ix