- Loan growth will likely return to a normal level next year once the forgiveness of Paycheck Protection Program loans is over.
- Provisioning will likely increase next year due to loan growth. Further, CTBI’s exposure to hotels and motels creates credit risk.
- The loan portfolio is quite sensitive to interest rate changes because of the large proportion of variable-rate loans. Therefore, the margin will likely trend upwards in 2022.
- The December 2022 target price suggests a substantial upside from the current market price. Further, CTBI is offering a decent dividend yield.
For further details see:
Community Trust Bancorp: Undervalued With A Positive Loan Growth Outlook