Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (August 2023)
41 slides from Community Trust Bancorp's investor presentation, Aug 23, 2023
Slide 1: Community Trust Bancorp, Inc. August 2023
Za Community Trust Bancorp, Inc. August 2023
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 $5.5 billion Market Capitalization $639.7 million Cash Dividend Yield 4.95% P/E Ratio 8.1x Price to Book Value 1.0x Price to Tangible Book Value 1.1x Tangible Common Equity Ratio 10.90% Competitive Position 3rd largest Kentucky domiciled bank holding company 2nd in Kentucky
Slide 4: Corporate History
Corporate History 1903 Pikeville National bank formed 1987-2005 Acquired 14 banks and purchased 17 branch locations 1997 Changed name to Community Trust Bancorp, Inc. 2010 Acquired LaFollette First National Corporation Presently Two operational subsidiaries~ Community Trust Bank, Inc. and Community
Slide 5: Our Banking Franchise
Our Banking Franchise Serving customers in 79 locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee
Slide 6: Our Banking Franchise by Region
Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $885 million Loans - $956 million Loans - $438 million Deposits - $1.1 billion Deposits - $1.9 billion Deposits - $633 million • Danville • Floyd/Knott/Johnson • Advantage Valley • Lexington • Hazard • Ashland • Mt. Ster
Slide 7: Trust Assets Under Management & Trust Revenue
Trust Assets Under Management & Trust Revenue Includes CTB portfolio Assets in billions Revenue in millions 7 Jun ‘23 Revenue annualized
Slide 8: Executive Management Team
Executive Management Team Banking Yrs. w/ Name Position Experience CTBI Mark A. Gooch Vice Chairman, President, and CEO 42 years 42 Richard W. Newsom CTB President 40 years 40 Andy Waters CTIC President and CEO 36 years 19 Kevin J. Stumbo EVP/Chief Financial Officer 36 years 28 D. Andrew Jones EVP/N
Slide 9: Operational Philosophy
Operational Philosophy Traditional community banking business model Executive management and board of director commitment to strong corporate governance Decentralized decision making and centralized operations and risk management Strong loan portfolio risk management process Specialized product offe
Slide 10: Consistent Financial Performance
Consistent Financial Performance YTD 2023 2022 2021 2020 2019 EPS $2.17 $4.59 $4.94 $3.35 $3.64 ROAA 1.42% 1.50% 1.63% 1.23% 1.49% ROAE 11.87% 12.74% 12.88% 9.36% 10.84% Net Int. Margin 3.42% 3.32% 3.21% 3.33% 3.60% Efficiency Ratio 54.40% 53.07% 53.11% 58.30% 60.70% Nonperforming Loans 0.30% 0.41%
Slide 11: Earnings Review
Earnings Review
Slide 12: Earnings Per Share
Earnings Per Share EPS decreased 3.1% from June 2022 to June 2023 2023 EPS goal - $4.57 to $4.75 per share 12
Slide 13: Net Income
Net Income Net income decreased 3.2% from June 2022 to June 2023 2023 goal for net income - $82.0 to $85.4 million (in millions) 13
Slide 14: Revenues
Revenues Revenues increased 4.7% from June 2022 to June 2023 2023 goal for revenues - $227.0 to $247.6 million (in millions) 14
Slide 15: Noninterest Income as a % of Total Revenue
Noninterest Incomeas a % of Total Revenue Year-to-date noninterest income decreased 3.5% from June 2022 to June 2023 2023 goal for noninterest revenue – 24.0% to 26.0% of total revenue (in millions) 15 Jun ’23 annualized
Slide 16: Net Interest Revenue
Net Interest Revenue YTD net interest revenue increased by 7.6% year over year for the six months ended June 30 Net interest margin increased 23 basis points Average earning assets increased $23.3 million, or 0.5% (in millions) 16 Jun ’23 annualized
Slide 17: Net Interest Margin
Net Interest Margin Pressure on the margin 1-year cumulative gap position at 6/30/23 – (21.22)% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2023 for bank holding companies with consolidated assets of $3 billion to $10 billion. % of assets repricing
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 3/31/2022 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 3/31/2022 for bank holding companies with consolidated assets of $3 billion to $10 billion. 19
Slide 20: Balance Sheet Review
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Slide 21: Total Assets
Total Assets Total assets at 6/30/23 increased $140.5 million, or an annualized 5.3%, from 12/31/22 Loans increased $220.4 million or an annualized 12.0% Investment portfolio decreased $55.0 million or an annualized 8.8% Deposits increased $104.1 million or an annualized 4.5% 2023 goal for total ass
Slide 22: Total Loans
Total Loans Loans increased $220.4 million, or an annualized 12.0%, from 12/31/22 2023 goal for total loans - $3.77 to $3.92 billion (in billions) 22 Loan Portfolio Mix June 30, 2023 Loan Rate Mix
Slide 23: Concentrations of Credit as a % of Total Loans
Concentrations of Creditas a % of Total Loans June 30, 2023 23 There were no nonperforming loans in any of these loan categories as of June 30, 2023.
Slide 24: Indirect Lending
Indirect Lending (in millions) 24 Jun ’23 annualized
Slide 25: 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 3/31/2023 for bank holding companies with consolidated assets of $3 billion to $10 billion. 25 Nonperforming Loansas a % of Total Loans Commercial loans were a net charge-
Slide 26: Nonperforming Assets as a % of Total Assets
Nonperforming Assetsas a % of Total Assets $2.0 million in other real estate owned 26 Loan Loss Reserve as a % of Net Loans Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2023 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 27: Total Other Real Estate Owned
Total Other Real Estate Owned Sales of foreclosed properties for the six months ended 6/30/23 totaled $1.7 million New bookings in the first six months of 2023 totaled $0.2 million Properties under contract to sell at June 30, 2023 totaled $0.7 million (in millions) 27
Slide 28: Total Deposits including Repurchase Agreements
Total Depositsincluding Repurchase Agreements 2023 goal for total deposits including repurchase agreements - $4.64 to $4.83 billion (in billions) 28 Total Depositsincluding Repurchase Agreements June 30, 2023
Slide 29: Hoops CD
Our Hoops CD product has been offered for over 23 years 100 basis point increase in rate in 1996, 1998, and 2012 with the University of Kentucky’s NCAA Basketball Championships $169 million in Hoops CDs as of 6/30/23 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted
Slide 30: Shareholder Value
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Slide 31: Dividends Per Share
Dividends Per Share Dividend payout ratio at June 30, 2023 was 40.6% Desired level between 40% and 50% June 30, 2023 cash dividend yield was 4.95% Cash dividend increased to $0.46 per share effective October 1, 2023, an increase of 4.5% 31 *2023 is projected DPS
Slide 32: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity has increased 11.3% during the past five years 3.4% compound growth rate for the past five years 2023 goal for shareholders’ equity - $686.5 to $714.5 million (in millions) 32 3.4%
Slide 33: Book Value Per Share; Tangible Common Equity/Assets
Book Value Per Share Tangible Common Equity/Assets 33
Slide 34: 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. 34 Price to Tangible Book Value 2018 2019 2020 2021 2022 6/30/23 CTBI 1.41x 1.51x 1.12x 1.23x 1.46x 1.08x
Slide 35: 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, 2017 would have outperformed the NASDAQ Bank Stocks Index but not the Stock Market (U.S.) at December 31, 2022. 35
Slide 36: Comparison to Russell 2000 Index of Small Cap Companies
Comparison to Russell 2000 Indexof Small Cap Companies 3-, 5-, and 10-year total returns annualized Return to Investors 36 June 30, 2023
Slide 37: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 10 stock dividends 43 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 5.5% Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index CTBI sharehold
Slide 38: Key Strategic Initiatives
Key Strategic Initiatives
Slide 39: Operational Priorities
Operational Priorities Build core earnings capacity Quality loan growth Low cost deposit growth Branch expansion in growth markets Maintain net interest margin Operational efficiency Expense control Noninterest revenue growth Compliance management Increase noninterest income Wealth management Broker
Slide 40: CTBI's Franchise Value
CTBI’s Franchise Value History of solid investor returns Historically strong capital position Investor focused dividend policy Dividend Achievers Index Consistent financial performance Community banking strategy Economic diversity in the markets we serve Strong experienced management team and nearly
Slide 41: 2023
2023
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