Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2012)
50 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 24, 2012
Slide 1: 2012 Annual Shareholders' Meeting
2012 Annual Shareholders’ Meeting Community Trust’ Bancorp, Inc.
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Information provided herein by CIBI 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
Slide 3: Our Banking Franchise
Our Banking Franchise 2 Community Trust Bank Branch Office © Community Trust & Investment Office Serving customers in 80 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia | jane u | aa
Slide 4: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $553 mil Deposits - $560 million Deposits - $1.3 billion Deposits - $548 million * Danville + Floyd/Knott/Johnson + Advantage Valley + Lexington + Hazard + Ashland + Mt. Sterling + Pikeville + Flemingsburg ion Loans - $8
Slide 5: Columbia Branch
Columbia Branch New location scheduled for completion in the 4 Quarter 2012
Slide 6: Market Analysis
Market Analysis = Competitive Position > Largest Kentucky domiciled bank holding company > #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions > 6* largest bank in Kentucky in terms of deposit market share of | all FDIC insured institutions > 13 of our 20 marke
Slide 7: Operational Priorities
Operational Priorities Continuing focus on improving asset quality Liquidation of other real estate owned Increase noninterest income > Wealth management > Brokerage Maintain net interest margin Expense control Build core earnings capacity
Slide 8: 2011 Performance
. 9011 Performance L| J
Slide 9: 2011 Performance Summary
2011 Pe rformance Summary Budget Results | | Earnings $39.1 million $38.8 million EPS $2.56 per share $2.54 per share ROAA 1.16% 1.11% ROAE 11.11% 10.91% Assets $3.4 billion $3.6 billion Loans $2.7 billion $2.6 billion U J Deposits $2.9 billion $3.1 billion Shareholders’ equity $361 million $367 mil
Slide 10: Shareholder Value
Shareholder Value
Slide 11: Dividends Per Share
DividendsPer Share $1.20 $1.21 $1.23 $1.24 2011 cash dividends increased 1.7% 3.2% compound growth rate for past five years December 31, 2011 cash dividend yield was 4.21% Cash dividend increased to $0.31 per share effective October 1, 2011 *2012 is projected DPS 2007 2008 2009 2010 2011 2012*
Slide 12: Shareholders' Equity
$338.6 $366.9 = 5.4% compound growth rate for the past five years = 2012 goal for shareholders’ equity - $380 to $400 million = Shareholders’ equity has increased 21.7% during the past five years
Slide 13: Book Value Per Share
Book Value Per Share Tangible Common Eguity a Tangible Assets | 8.47% 8.52% 8.27% 8.37% 8.26% 2007 = 2008S 2009S 2040» 2011 2007 2008 2009 2010 2011
Slide 14: Total Market Capitalization
Total Market Capitalization (in millions) $554.1 2007 2008 2009 2010 2011 2012 CTBI 1.77x 2.29 1.45x 1.63x 1.51x 1.61x Peer 1.85x 1.91x 1.03x 1.29x 1.19x 1.31x All data is as of year-end except 2012 which is as of March 31, 2012. Peer data obtained from SNL Financial; group consists of 14 publicly t
Slide 15: Comparison of Five Year Cumulative Total Return
Comparison of D Year Cumulative Total Return among CTBI,NASDAQStockMarket (US),and NASDAQBankStocks $200 ee —————————_ $100 —tk = $0 + 2006 2007 2008 2009 2010 2011 amas TAMDAQERMAN) a NADAQRLRI = An investment in CTBI stock on December 31, 2006 would have outperformed the NASDAQ Bank Stocks Index b
Slide 16: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index Sid apscuvippaints Return to Investors December 31,2011 15.64% 8.99% S53%: 5.64% -2.84% 2.68% 1-Year 3-Year 5-Year 10-Year = CTBI m Russell 2000 3-, 5-, and 10-year total returns annualized
Slide 17: Core Value Long-Term Investment
Core Value Long-Term Investment = 12 stock splits and 9 stock dividends = 31 years of consecutive increases in cash dividends = 5-year compound growth rate of cash dividends 3.2% = Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index = CTBI
Slide 18: Analyst Comments
Analyst Comments “In spite of the Neutral recommendation, these shares may still be an appropriate holding for income oriented investors. The stock offers an above average yield which Hilliard Lyons believes to be secure.” -- Hilliard Lyons, April 2012 Rating: Neutral “March Madness, CTBI Beats Stre
Slide 19: Slide 19
Slide 20: Earnings Per Share
Earnings PerShare $2.42 +254 $2.17 $1.66 $1.54 2007 2008 2009 2010 2011 = EPS increased 17.1% = 2012 EPS goal - $2.55 to $2.71 per share
Slide 21: Return on Average Assets
Return on Average Assets 1.23% 1.11% 1.03% 0.89% a7eu 0.82% 0.80% 0.25% 0.13% 0.18% 2007 2008 2009 2010 2011 mCTBI m@ Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2011 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 22: Net Income
Net Income (in millions) $36.6 $38.8 = 2012 goal for net income - $39.5 to $42.0 million 2007 2008 2009 2010 2011
Slide 23: Revenues
Reven ues (in millions) $175.3 $160.2 2007 2008 2009 2010 2011 = 2011 revenues increased 9.4% = Interest income lost from nonperforming loans and OREO - $4.5 million = 2012 goal for revenues - $176 to $186 million
Slide 24: Noninterest Income
Noninterest Income asa % of Total Revenue (in millions) $41.4 $40.9 $43.8 S220 $36.6 24% $21.8 162% ie L ove 2007 2008 2009 2010 2011 (ma NaiUatercsedRGGme ——sslGrToe Ravenue = 2011 noninterest income > Increases in gains on sales of loans, deposit service charges, trust revenue, and securities gain
Slide 25: Net Interest Revenue
Net Interest Revenue (in millions) > Netinterest margin improved 6 basis points year over year > Average earning assets increased $259.7 million 2007 2008 2009 2010 2011 = 2011 increase in net interest revenue 10.2% ||
Slide 26: Net Interest Margin
Net Interest Margin 4.13% 2007 2008 2009 2010 2011 [ mcTBI mi Peer ] = Pressure on the margin = % of assets repricing = L-year cumulative gap position = Within 30 days 38.90% at 12/31/11— (4.85)% = % of liabilities repricing = Within 30 days 18.23% = Within 90 days 27.68% = Within 180 days 40.67% Pe
Slide 27: Net Noninterest Expense and Efficiency Ratio
Net Noninterest Expense asa % of AverageEaming Assets (in millions) sem 2.10% 4.90% 1.70% + 1.50% 2007 2008 2009 2010 2011 [mine Honinderest Eiqvenas’ Stel Gaming Assets | Noninterest Expense & Efficiency Ratio || (in millions) 75% 70% es% eo% 55% L so%w 2007 2008 2009 2010 20114 ma Noninterest Expe
Slide 28: 2011 Balance Sheet Review
2011 Balance Sheet Review UJ J
Slide 29: Total Assets
Total Assets (in billions) $3.59 = Total assets have increased 7.0% from 12/31/2010 > Loans declined $48.6 million or 1.9% > Investment portfolio growth $188.7 million or 55.5% > Deposit growth $201.1 million or 6.9% = 2012 goal for total assets - $3.65 to $3.85 billion 2007 2008 2009 2010 2011
Slide 30: Total Loans
Total Loans Ga biions) Loan Portfolio $2.61 ¢0.56 . $2.36 $2.44 Mix $2.23 December 31,2011 Consumer 18% Comm R/E 36% 2007 2008 2009 2010 2011 R/E 2012 goal for total loans - $2.6 to $2.8 Mortgage billion 31%
Slide 31: Net Charge-offs
Net Charge-offs asa% of AverageLoans Nonperforming 1.61% Loans i asa % of Total Loans 0.70% 9.66% 0.38% 0.27% 9.24% = 2007 2008 2009 2010 2014 Residential 13% Go Peer ‘Commercial Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2011 December 31, 2011 fo
Slide 32: Nonperforming Assets
Nonperforming Assets asa% of Total Assets 3.13% 2007 2008 2009 2010 2011 = $57.0 million in other real estate owned Loan Loss Reserve asa % of NetLoans 227% 2.24% 2007 2008 2009 2010 2011 cTBI jeer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2011 f
Slide 33: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $3.10 2007 2008 2009 2010 2011 2012 goal for total deposits including repurchase agreements - $3.1 to $3.3 billion Total Deposits including Repurchase Agreements December 31,2011 Repurchase Rarecmonts: Noninterest 7 Bearing Other Time 19%
Slide 34: 1st Quarter 2012 Review
| Ist Quarter 2012 Review U J
Slide 35: Earnings Per Share
Earnings PerShare $0.77 $0.70 Mar'11 Jun'11 Sept'11 Dec'11 Mar ‘12 ||
Slide 36: Net Income
Net Income (in millions) $11.9 Mar'11 Jun'11 Sept'11 Dec'11 Mar ‘12 ||
Slide 37: Net Income
Net Income = Net interest income > Increased $0.4 million year over year > Increased $0.1 million quarter over quarter = Provision for loan losses > Decreased $3.2 million year over year > Decreased $1.9 million quarter over quarter = Noninterest income > Increased $0.4 million year over year > Decr
Slide 38: Noninterest Income
Noninterest Income (in millions) $10.7 $10.6 $10.9 SAS: $11.2 Mar'11 Jun‘11 Sept'11 Dec'11 Mar ‘12 Q0-Q = Increased gains on sales of loans = Variance in fair value adjustments to mortgage servicing rights = Decreased deposit service charges Y-0-Y = Increased gains on sales of loans = Variance in fa
Slide 39: Noninterest Expense
Noninterest Expense (in millions) 27.4 $26.5 = $25.8 $26.9 $25.8 Mar'11 Jun‘11 Sept'11 Dec'11 Mar‘12 Q0-Q = $3.3 million decrease in other real estate owned expense = Increased personnel costs Y-0O-Y = Decreases in FDIC insurance premiums, legal and professional fees, and repossession expense = $0.5
Slide 40: Total Loans
Total Loans (im billions) $2.59 $2.58 $2.57 $2.56 $2.54 Mar ‘11 Jun'11 Sept'11 Dec'11 Mar '12 = Loan portfolio decreased at an annualized rate of 2.3% during the quarter >» Commercial loans increased $7.5 million > Residential loans decreased $4.1 million >» Consumer loans decreased $17.8 million =
Slide 41: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $299 $299 $3.04 $310 $3.17 Mar ‘11 Jun'11 Sept'11 Dec'11 Mar '12 || = Deposits, including repurchase agreements, increased an annualized 10.0% from prior quarter and 6.2% from prior year first quarter
Slide 42: Nonperforming Loans
Nonperforming Loans asa% of Total Loans 2.31% 2.22% 1.46% 1.46% Mar '11 Jun '11 Sept '11 Dec '11 Mar '12
Slide 43: Nonperforming Assets
Nonperforming Assets asa% of Total Assets 3.04% 3.05% Mar '11 Jun ‘11 Sept'11 Dec '11 Mar "12
Slide 44: Net Charge-offs
Net Charge-offs asa % of averageloans 0.75% Mar'11 Jun‘'11 Sept'i1 Dec'11 Mar'12 ||
Slide 45: Efficiency Ratio
Efficiency Ratio 61.91% 60.78% ” 58.10% 60.15% 57.70% Mar'11 Jun'11 Sept'11 Dec'11 Mar 12 ||
Slide 46: 2012 Key Strategic Initiatives
2012 Key Strategic Initiatives a J
Slide 47: CTBI 2012 Outlook
CTBI 2012 Outlook Net Income $39.5 - $42 million Earnings Per Share $2.55 -$2.71 per share ROAA 1.08% - 1.15% ROAE 10.50% - 11.00% || Assets $3.65 -$3.85 billion Loans $2.6 - $2.8 billion Deposits $3.1— $3.3 billion Shareholders’ Equity $380 - $400 million
Slide 48: CTBI's Franchise Value
CTBI’s Franchise Value = History of solid investor returns = Community banking strategy = Growth and good financial performance in slow growth markets = Growth strategies = Acquisitions = De novo branches = Trust subsidiary = Full service brokerage = Strong experienced management team and 1,000 dedi
Slide 49: Shareholders
Shareholders: Your management has a Strategic Plan for the performance and operations of your company. Success will be attained by the execution of this plan, not just by management, but by approximately 1000 employees. The continuing support by you, our shareholders, by referring your friends, neig
Slide 50: Community Trust Bancorp, Inc.
Z Community Trust Bancorp, Inc.
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