Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (March 2013)
39 slides from Community Trust Bancorp's investor presentation, Mar 25, 2013
Slide 1: 2013 Investor Presentation
2013 Investor Presentation 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: Corporate Profile
Corporate Profile Total Assets $3.6 billion Shareholders’ Equity $400.3 million Dividend Yield 3.84% Total Market Capitalization $511.8 million P/E Ratio 11.30x
Slide 4: Corporate History
Corporate History 1903 Pikeville National Bank founded 1987-2005 Acquired 14 banks and purchased 17 branch locations 2010 Acquired LaFollette First National Corporation Presently Two operational subsidiaries~ Communit Trust Bank, Inc. and Community Trust and Investment Company 1997 Changed name to C
Slide 5: Serving customers in branch locations in counties throughout Kentucky, Tennessee, and West Virginia
Serving customers in 81 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee : ) 7 va < : +O 2 Community Trust Bank Branch Office © Community Trust & Investment Office
Slide 6: Regional Economic Diversity
Regional Economic Diversity Central Region Eastern Region Northeastern Region Loans - $568 mil Deposits - $622 million Deposits - $1.3 billion Deposits - $539 million * Danville + Floyd/Knott/Johnson + Advantage Valley + Lexington + Hazard + Ashland + Mt. Sterling + Pikeville + Flemingsburg ion Loan
Slide 7: 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 Community Banking Model
Slide 8: Executive Management Team
Executive ManagementTeam Banking Yrs. w/ Name Position Experience CTBI Jean R. Hale Chairman, President and CEO 43 years 43 Mark A. Gooch CTB President and CEO 3iyears 31 Andy Waters CTIC President and CEO 26 years s Kevin J. Stumbo EVP/Controller 26 years 18 Steven E. Jameson EVP/Risk Manager 27yea
Slide 9: Operational Philosophy
Operational Philosophy = Traditional community banking business model = Executive management and board of director commitment to corporate governance management = Strong loan portfolio risk management process = Specialized product offerings = Maintain a strong tangible equity position = Growth throu
Slide 10: Operational Priorities
Operational Priorities Continuing focus on improving asset quality Liquidation of other real estate owned Build core earnings capacity > Quality loan growth > Low cost deposit growth Increase noninterest income > Wealth management > Brokerage Maintain net interest margin Expense control
Slide 11: Consistent Financial Performance
Consistent Financial Performance 2012 2011 2010 2009 2008 | | EPS $2.90 $2.54 $2.17 $1.66 $1.54 ROAA 1.23% 1.11% 1.03% 0.82% 0.79% ROAE 11.52% 10.91% 9.90% 7.89% 7.48% Net Int. Margin 3.99% 4.13% 4.07% 3.77% 3.88% Efficiency Ratio 57.93% 60.23% 59.45% 63.56% 58.39% Nonperforming Loans 1.41% 1.46% 2.
Slide 12: Earnings Review
Slide 13: Earnings Per Share
Earnings PerShare $2.90 $2.54 = 2013 EPS goal - $2.90 to $3.06 per share 2008 2009 2010 2011 2012 = EPS increased 14.2% from 2011 to 2012
Slide 14: Net Income
Net Income (in millions) $44.9 = Net income increased 15.5% from 2011 to 2012 = 2013 goal for net income - $45.2 to $48.0 million 2008 2009 2010 2011 2012
Slide 15: Revenues
Reven ues (in millions) $175.3 $178.1 = 2013 goal for revenues - $180.6 to $190.6 million 2008 2009 2010 2011 2012 = 2012 revenues increased 1.6% from 2011
Slide 16: Noninterest Income
Noninterest Income asa % of Total Revenue (in millions) $46.0 $41.4 $43.8 32% $40.9 24% $21.8 16% 8% + 0% 2008 2009 2010 2011 2012 mm Noninterest Income ——% of Total Revenue = 2012 noninterest income increased 4.8% from 2011 > Increases in gains on sales of loans, trust revenue, and loan related fee
Slide 17: Net Interest Revenue
Net Interest Revenue (in millions) $119.3 $131.5 $132.1 $103.6 $105.5 2008 2009 2010 2011 2012 = 2012 net interest revenue increased by 0.5% from 2011 > Netinterest margin declined 14 basis points > Average earning assets increased $135.5 million, or 4.2% | | | | -7s8]
Slide 18: Net Interest Margin
Net Interest Margin A12% = L-year cumulative gap position = Within 30 days 37.47% at 12/31/12—(5.42)% = % of liabilities repricing = Within 30 days 17.86% = Within 90 days 27.27% = Within 180 days 38.20% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report for bank hol
Slide 19: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expense asa % of AverageEaming Assets (in millions) sem 2.10% 4.90% 1.70% + 1.50% 2008 2009 2010 2014 2012 (meee no Noninterest Expense & Efficiency Ratio || forest Expense =~ % of Earning Assets | (in millions) $106.4 75% 70% es% eo% 55% L so%w 2008 2009 2010 2014 2012 mE Noninteres
Slide 20: Return on Average Assets
Return on Average Assets 1.23% 1.11% 1.03% 1.05% 0.79% 0.82% 0.80% 0.25% 0.13% -0.18% 2008 2009 2010 2011 2012 mCTBI m@ Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report for bank holding ‘companies with consolidated assets of $3 billion to $10 billion. Dec ‘12
Slide 21: Balance Sheet Review
Balance Sheet Review
Slide 22: Total Assets
Total Assets (in billions) $3.59 $3.64 3.36 $2.95 $3.09 = 2008 2009 2010 2011 2012 = Total assets at 12/31/12 increased 1.2% from 12/31/2011 > Loans declined $6.0 million or 0.2% > Investment portfolio growth $75.9 million or 14.4% > Deposit growth $18.4 million or 0.6% = 2013 goal for total assets
Slide 23: Total Loans
Total Loans (iv billions) $2.61 $2.56 $2.35 $248 2008 2009 2010 2011 2012 Total loans at 12/31/12 decreased 0.2% from 12/31/11 2013 goal for total loans - $2.6 to $2.8 billion Loan Portfolio Mix December 31,2012 Consumer 16% Comm R/E 36% R/E Mortgage 33% Comm Other 15% Ee se
Slide 24: Concentrations of Credit
Concentrations of Credit asa % of Total Loans December 31,2012 Apartments & Rental Housing Hotel/Motel Non-Residential Real Estate 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Rental =m Concentrations Nonperforming Loans* + Net Losses” * Asa percentage of funded exposure
Slide 25: Net Charge-offs
Net Charge-offs asa% of AverageLoans Nonperforming 1.61% Loa ns asa % of Total Loans 420% 401% Consumer 30% 2008 2009 2010 2011 2012 ‘Commercial Go Peer Residential 15% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report for bank holding December 31, 2012 ‘companies w
Slide 26: Nonperforming Assets
Nonperforming Assets 2008 2009 2010 2011 2012 $47.5 million in other real estate owned asa % of Total Assets 3.13% Loan Loss Reserve asa % of NetLoans 227% 9.24% 2008 2009 cTBI Peer 2010 2011 2012 Peer data obtained from the Federal Reserve Bank Holding Company Performance Report for bank holding co
Slide 27: Total Other Real Estate Owned
Total Other Real Estate Owned (in millions) $56.96 = Sales of foreclosed properties for the year ended 12/31/12 $19.3 million = New bookings in 2012 $12.0 million = Properties under contract to sell $3.3 million 2008 2009 2010 2011 2012
Slide 28: Total Deposits
Total Deposits including Repurchase Agreements T ot al D lep osits (in billions) including Repurchase Agreements ga1o 83-11 $2.89 December 31,2012 I Repurchase Agioonents Noninterest ° Bearing Other Time 19% 3% Now CDs <$100K 19 2008 2009 2010 2011 2012 20% MMDA 2013 goal for total deposits includin
Slide 29: Hoops CD Product
= 12 Month Certificate of Deposit: April 1st through maturity, rate paid is adjusted by 1 basis point for each University of Kentucky win; bonus 100 basis = a e. — = points added to rate for National Championship win, y 4 Community Trust’ Bank = Our Hoops CD product has been offered for over 16 year
Slide 30: Shareholder Value
Shareholder Value
Slide 31: Dividends Per Share
Dividends Per Share $1.25 $1.26 $1.17 $1.20 $1.21 2008 2009 2010 2011 2012 2013* = 2012 cash dividend increase 1.6% = 2.6% compound growth rate for past five years Dividend Payout Ratio 75.97% 72.29% 55.76% ASK 13.40% = December 31, 2012 cash dividend yield was 3.84% 2008 2009 2010 2011 2012 = Cash
Slide 32: Shareholders' Equity
$366.9 $400.3 = 5.8% compound growth rate for the past five years = 2013 goal for shareholders’ equity - $425 to $431 million 2008 2009 2010 2011 2012 = Shareholders’ equity has increased 29.9% during the past five years
Slide 33: Book Value Per Share
Book Value Per Share $25.64 Tangible Common Eguity a Tangible Assets $23.78 $22.08 $20.44 $21.15 9.36% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Se es
Slide 34: 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 1.53x Peer 1.85x 1.91x 1.03x 1.29x 1.19x 1.39x All data is as of year-end. Peer data obtained from SNL Financial; peer group consists of publicly traded regional bank holding companies wi
Slide 35: Comparison of 5 Year Cumulative Total Return
Comparison of D Year Cumulative Total Return among CTBI,NASDAQStockMarket (US),and NASDAQBankStocks $200 $100 sot 2007 2008 2009 2010 2011 2012 — Commsity Tent Bancrp,c. EE NASDAQSucE Mase U.S) a easpagnack sets = An investment in CTBI stock on December 31, 2007 would have outperformed the NASDAQ Ba
Slide 36: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index Sid apscuvippaints Return to Investors December 31,2012 1-Year 3-Year 5-Year 10-Year m=CTBI m Russell 2000 3-, 5-, and 10-year total returns annualized 97,16.34% 15.64% 15.08% 19 99% 8.00% 8.57% 9.73%
Slide 37: Core Value Long-Term Investment
Core Value Long-Term Investment = 12 stock splits and 9 stock dividends = 32 years of consecutive increases in cash dividends = 5-year compound growth rate of cash dividends 2.6% = Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index = CTBI
Slide 38: CTBI's Franchise Value
CTBI’s Franchise Value = History of solid investor returns = Historically strong capital position = Community banking strategy = Growth and good financial performance in slow growth || markets = Growth strategies = Strong experienced management team and 1,035 dedicated employees = Our shareholders
Slide 39: Community Trust Bancorp, Inc.
Z Community Trust Bancorp, Inc.
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