Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Raymond James 2016 U.S. Bank Conference
40 slides from Community Trust Bancorp's conference presentation, Sep 7, 2016
Slide 1: Raymond James 2016 U.S. Bank Conference Presentation
Raymond James2016 U.S. Bank ConferencePresentation
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 $3.9 billionMarket Capitalization $649.0 millionCash Dividend Yield 3.58%P/E Ratio 13.1xPrice to Book Value 1.2xPrice to Tangible Book Value 1.4xTangible Common Equity Ratio 11.17%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
Central Region Eastern Region Northeastern RegionLoans - $638 million Loans - $900 million Loans - $347 millionDeposits - $745 million Deposits - $1.4 billion Deposits - $487 million• Danville • Floyd/Knott/Johnson • Advantage Valley• Lexington • Hazard • Ashland• Mt. Sterling • Pikeville • Flemings
Slide 7: Trust Assets Under Management & Trust Revenue
Assets in billionsRevenue in millions 7 Includes CTB portfolio Jun ‘16 annualized 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 47 years 47Mark A. Gooch CTB President and CEO 35 years 35Andy Waters CTIC President and CEO 29 years 12Kevin J. Stumbo EVP/Chief Financial Officer 29 years 21Steven E. Jameson EVP/Risk Manager 31 years 12James 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 YTD 2016 2015 2014 2013 2012 EPS $1.32 $2.66 $2.50 $2.63 $2.64ROAA 1.20% 1.23% 1.18% 1.24% 1.23%ROAE 9.54% 9.97% 9.94% 11.05% 11.52%Net Int. Margin 3.74% 3.81% 3.92% 4.03% 3.99%Efficiency Ratio 59.31% 58.20% 59.12% 59.33% 57.93%Nonperforming Loans 0.84% 1.00% 1.42% 1.67% 1.41%Net Charge-offs 0.28
Slide 11: Earnings Review
11 Earnings Review
Slide 12: Earnings Per Share
EPS decreased 1.5% from 2nd quarter 2015 to 2nd quarter 20162016 EPS goal - $2.72 to $2.82 per share 12 Earnings Per Share
Slide 13: Net Income
(in millions) Net income decreased 0.7% from 2nd quarter 2015 to 2nd quarter 20162016 goal for net income - $48.0 to $49.2 million 13 Net Income
Slide 14: Revenues
(in millions) Revenues increased 0.1% from 2nd quarter 2015 to 2nd quarter 20162016 goal for revenues - $183.0 to $189.6 million 14 Jun ‘16 annualized Revenues
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest income decreased 1.0% from 2nd quarter 2015 to 2nd quarter 2016Decreases in gains on sales of loans and loan related fees partially offset by increased deposit service charges and insurance commissions2016 goal for noninterest revenue – 26.0% to 26.5% of total revenue Noninterest Incomea
Slide 16: Net Interest Revenue
Net interest revenue increased by 0.4% from prior year 2nd quarterNet interest margin decreased 13 basis pointsAverage earning assets increased $130.4 million, or 3.7% (in millions) Net Interest Revenue 16 Jun ‘16 annualized
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin1-year cumulative gap position at 6/30/16 – (4.99)% % of assets repricingWithin 30 days 32.29%% of liabilities repricing Within 30 days 16.17%Within 90 days 25.81%Within 180 days 43.89% 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 3/31/2016 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 3/31/2016 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 6/30/16 decreased $8.6 million, or an annualized 0.4%, from 12/31/2015Loans increased $57.4 million or an annualized 4.0%Investment portfolio decreased $15.8 million or an annualized 5.3%Deposit growth $71.3 million or an annualized 4.4%2016 goal for total assets - $3.80 to $4.20 bil
Slide 22: Total Loans
(in billions) Total Loans Loans increased $57.4 million or 2.0% from 12/31/152016 goal for total loans - $2.90 to $3.1 billion June 30, 2016 Loan PortfolioMix 22
Slide 23: Concentrations of Credit
Concentrations of Creditas a % of Total Loans June 30, 2016 * 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 3/31/2016 for bank holding companies with consolidated assets of $3 billion to $10 billion. June 30, 2016 24
Slide 25: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assetsas a % of Total Assets Loan Loss Reserveas a % of Net Loans $37.7 million in other real estate owned Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2016 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 6/30/16 totaled $6.0 millionNew bookings in the first six months of 2016 totaled $3.3 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 2016 goal for total deposits including repurchase agreements - $3.20 to $3.40 billion Total Depositsincluding Repurchase Agreements June 30, 2016 27
Slide 28: Hoops CD
28 Our Hoops CD product has been offered for over 19 years100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships$182 million in Hoops CDs as of 6/30/16 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjuste
Slide 29: Shareholder Value
29 Shareholder Value
Slide 30: Dividends Per Share
Dividends Per Share 2015 cash dividends increased 3.3%Dividend payout ratio at June 30, 2016 was 46.90%Desired level between 40% and 50%June 30, 2016 cash dividend yield was 3.58%Cash dividend increased to $0.32 per share effective October 1, 2016 30 * 2016 is projected DPS
Slide 31: Shareholders' Equity
Shareholders’ Equity (in millions) Shareholders’ equity has increased 29.6% during the past five years7.0% compound growth rate for the past five years2016 goal for shareholders’ equity - $485 to $520 million 7.0% 31
Slide 32: Book Value Per Share; Tangible Common Equity/Assets
Book ValuePer Share Tangible Common Equity/Assets 32
Slide 33: Price to Tangible Book Value; Total Market Capitalization
Peer data not available as of June 30, 2016. Peer data obtained from SNL Financial; peer group consists of publicly traded regional bank holding companies with an average asset size of $3.9 billion, as defined in our Proxy Statement. (in millions) Price to Tangible Book Value 2011 2012 2013 2014 201
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, 2010 would have outperformed the NASDAQ Bank Stocks Index but not the NASDAQ Stock Market (U.S.) at December 31, 2015. 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 June 30, 2016 35
Slide 36: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends36 years of consecutive increases in cash dividends5-year compound growth rate of cash dividends 2.1%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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