Above-Peer Profitability Profile w/ Limited N-T Catalysts; Assume at Neutral

研报英文原文证据摘录

Above-Peer Profitability Profile w/ Limited N-T Catalysts; Assume at Neutral

g above peers (PSCe ROA = 1.6%-1.7% in 2026 & 2027). 52-Week High / Low US$70.47 / US$49.61

Avg Daily Vol (000) 94

• Robust Capital Position for Potential M&A. Historically, CTBI had been an acquisitive Div Yield 3.02%

Total Assets ($mil) 6,669

bank and a natural consolidator of subscale banks across the state of Kentucky having ROTCE 13.37%

completed 14 bank acquisitions from 1987 to 2005. Post-GFC, CTBI has been almost Shares Out (mil) 18.1

entirely an organic growth story (last M&A deal closed in 2010) as long-standing Div (ann) US$2.12

regulatory restrictions related to deposit fees precluded CTBI from any M&A transactions Institutional Ownership 61.0%

up until late 2020. Despite the organic focus since the restrictions were lifted, we Insider Ownership 2.6%

understand mgmt. is interested in potential M&A to complement its attractive organic Fiscal Year End Dec

growth story and continue to build on its strong capital position (13.9% CBLR and 12.1%

Price Performance - 1 Year TCE ratio). We anticipate CTBI will be highly selective on any potential partner with a

preference toward banks that possess a low L/D ratio with an ideal target size between USD

~$0.5B-$2.5B in assets in existing / adjacent markets (i.e. OH, KY, & TN). 75

• Benign Credit Outlook. We favor CTBI's credit profile given its conservative 65

underwriting standards and long-tenured relationships, which drove its relative 60

outperformance during the GFC (cumulative NCOs from '08-'12 at 2.8% of '07 loans HFI

vs. peers at 4.7%). Going forward, we expect credit quality to remain benign with NCOs 55

of ~15 bps and a stable ACL near its 1Q level (of 1.23%; 296% of NPLs at 3/31). 50

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION 45