Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2013)
52 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 23, 2013
Slide 1: 2013 Annual Shareholders' Meeting
2013 Annual Shareholders’ Meeting 2 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 81 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee
Slide 4: Richmond Road Branch
Richmond Road Branch New location opened September 4, 2012
Slide 5: Columbia Branch
Columbia Branch Relocation opened October 29, 2012
Slide 6: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region ortheastern Region Loans - $568 million Loans - $837 million Loans - $341 million Deposits - $622 million Deposits - $1.3 billion Deposits - $539 million * Danville + Floyd/Knott/Johnson Advantage Valley + Lexington + Hazard + Ashland + Mt. Sterlin
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: 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 9: 2012 Performance
2012 Performance
Slide 10: 2012 Performance Summary
2012 Performance Summary Budget Results Earnings $40.7 million $44.9 million EPS $2.63 per share $2.90 per share ROAA 1.11% 1.23% ROAE 10.74% 11.52% Assets $3.7 billion $3.6 billion Loans $2.7 billion $2.6 billion Deposits $3.2 billion $3.1 billion Shareholders’ equity $388.2 million $400.3 million
Slide 11: Shareholder Value
Shareholder Value
Slide 12: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.21 $1.23 $1.25 $1.26 2008 2009 2010 2011 2012 2013* 2012 cash dividends increased 1.6% 2.6% compound growth rate for past five years December 31, 2012 cash dividend yield was 3.84% Cash dividend increased to $0.315 per share effective October 1, 2012 *2013 is proje
Slide 13: Shareholders' Equity
Shareholders’ Eguity (in millions) $400.3 = Shareholders’ equity has increased 29.9% during the past five years = 5.8% compound growth rate for the past five years = 2013 goal for shareholders’ equity - $425 to $431 million
Slide 14: Book Value Per Share
Book Value Per Share $25.64 $23.78 $22.08 Tangible Common Eguity a Tangible Assets $20.44 821-18 9.36% 2am 847% — ag ngy, 802% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
Slide 15: Total Market Capitalization
Total Market Capitalization (in millions) $554.4 = Price to TangibleBook Value 2008 2009 2010 2011 2012 CTBI 2.29x 1.45x 1.63x 1.51x 1.53x Peer 1.91x 1.03x 1.29x 1.19x 1.39x All data is as of year-end except 2013 which is as of March 31, 2013. Peer data obtained from SNL Financial; peer group consis
Slide 16: Comparison of Cumulative Total Return
Comparison of Year Cumulative Total Return among CITBI,NASDAQStock Market (US),and NASDAQBank Stocks $200 $100 so + 2007 2008 2009 2010 2011 2012 e Commnity Trt Bancarp, Ie EL NASDAQ Sect MaterUS) NASDAQ Hank Stocks = An investment in CTBI stock on December 31, 2007 would have outperformed the NASDA
Slide 17: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index ofsmall capcompanies Return to Investors December 31,2012 16.34% 303% 15.04% 12.23% 9.73% 8.00% piuk 4 | 4-Year 3-Year 5-Year 10-Year mCTBI mRussell 2000 3-, 5-, and 10-year total returns annualized
Slide 18: 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 shareholde
Slide 19: 2012 Earnings Review
2012 Earnings Review
Slide 20: Earnings Per Share
Earnings PerShare $2.90 2008 2009 2010 2011 2012 = EPS increased 14.2% from 2011 to 2012 = 2013 EPS goal - $2.90 to $3.06 per share
Slide 21: Return on Average Assets
Return on Average Assets 1.23% 1.11% 1.03% 0.98% 0.79% — 0.80% 0.25% 10.13% |-0.18% 2008 2009 2010 2011 2012 m@CTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2012 for bank holding companies with consolidated assets of $3 billion to $10 bil
Slide 22: Net Income
Net Income (in millions) $44.9 2008 2009 2010 2011 2012 = Net income increased 15.5% from 2011 to 2012 = 2013 goal for net income - $45.2 to $48.0 million
Slide 23: Revenues
Reven ues (in millions) $175.3 $178.1 2008 2009 2010 2011 2012 = 2012 revenues increased 1.6% from 2011 = 2013 goal for revenues - $180.6 to $190.6 million
Slide 24: Noninterest Income
Noninterest Income asa % of Total Revenue (in millions) $46.0 eaier $41.4 A; daehickiy $40.9 24% $21.8 16% B% + 0% 2008 2009 2010 2011 2012 [ma Noninterest Income — % of Total Revenue = 2012 noninterest income increased 4.8% from 2011 > Increases in gains on sales of loans, trust revenue, and loan r
Slide 25: Net Interest Revenue
Net Interest Revenue (in millions) 131.5 $132.1 $119.3 s $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%
Slide 26: Net Interest Margin
Net Interest Margin 4.13% 2008 2009 2010 2011 2012 [ moter m Poor = Pressure on the margin = % of assets repricing = 1-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
Slide 27: Net Noninterest Expense and Efficiency Ratio
Net Noninterest Expense asa % of AverageEaming Assets (in millions) 2.30% 2.10% 1.90% 1.70% + 4.50% 2008 2009 2010 2014 2012 [mG Noninirestiapense ——SlolBamiihg Asset | Noninterest Expense & Efficiency Ratio (in millions) 75% 70% 65% 60% 35% 2008 2009 2010 20114 2012 ~ S0% En Noninterest Expense > E
Slide 28: 2012 Balance Sheet Review
2012 Balance Sheet Review
Slide 29: 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 30: Total Loans
Total Loans Ga billions) Loan Portfolio $2.61 $2.56 M is 1x December 31,2012 $2.35 p248 Consumer 16% Comm R/E 36% 2008 2009 2010 2011 2012 R/E = Total loans at 12/31/12 decreased 0.2% Mortgage from 12/31/11 33% Cc omm = 2013 goal for total loans - $2.6 to $2.8 Other billion 15%
Slide 31: Concentrations of Credit
Concentrations of Credit asa % of Total Loans December 31,2012 2.50% 2.00% 1.50% 1.00% 0.50% + 0.00% Apartments & Rental Housing Hotel/Motel Non-Residential Real Estate Rental == Concentrations Nonperforming Loans* -»- Net Losses* * Asa percentage of funded exposure
Slide 32: Net Charge-offs and Nonperforming Loans
Net Charge-offs asa% of Average Loans 1.61% 0.70% 9.66% 0.38% 2008 2009 2010 2014 2012 TBI Peer Consumer 309% ‘Commercial 55% Residential 159% December 31, 2012 0.64% Nonperforming Loa ns asa % of Total Loans 420% 2008 2009 2010 2011 2012 Go Peer Peer data obtained from the Federal Reserve Bank Hold
Slide 33: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assets asa% of Total Assets 3.13% 2008 2009 2010 2011 2012 = $47.5 million in other real estate owned Loan Loss Reserve asa % of Net Loans 227% 2.24% 2008 2009 2010 2011 2012 cTBI Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2012
Slide 34: Total Other Real Estate Owned
Total Other Real Estate Owned (in millions) e56196 2008 2009 2010 2011 2012 = 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
Slide 35: Total Deposits
Total Deposits including Repurchase Agreements i Total Deposits (in billions) including Repurchase Agreements 310 $3.11 oy $2.89 December 31,2012 $2.49 pepuraiiass Agreements Noninst Other Time 5% 19% Now 1% CDs <8100K 20% 2008 2009 2010 2011 2012 MMDA 18% = 2013 goal for total deposits including re
Slide 36: 1st Quarter 2013 Review
1st Quarter 2013 Review
Slide 37: Earnings Per Share
Earnings PerShare $0.77 +=$0.79 $0.76 $0.66 $0-68 Mar'12 Jun'12 Sept'12 Dec'12 Mar ‘'13
Slide 38: Net Income
Net Income (in millions) $11.9 $12.2 $11.8 Mar'12 Jun‘'12 Sept'12 Dec'12 Mar'13
Slide 39: Net Income
Net Income Net interest income > Increased $0.2 million year over year > Decreased $0.6 million quarter over quarter Provision for loan losses > Increased $0.4 million year over year > Decreased $1.4 million quarter over quarter Noninterest income > Increased $0.7 million year over year > Remained r
Slide 40: Noninterest Income
Noninterest Income (in millions) $11.2 $12.0 $10.8 $11.9 $11.9 Mar'12 Jun'12 Sept"'12 Dec'12 Mar'13 Q0-Q = Increased gains on sales of loans and trust revenue Decreased loan related fees, deposit service charges, and securities gains Y-0-Y Increased gains on sales of loans and trust revenue Decrease
Slide 41: Noninterest Expense
Noninterest Expense (in millions) $27.8 $25.8 $24.1 $25.8 $26.3 Mar'12 Jun‘12 Sept'12 Dec'"12 Mar "13 Q0-Q $0.4 million decrease in personnel expense $0.8 million decrease in other real estate owned expense Y-O-Y $1.0 million increase in other real estate owned expense
Slide 42: Total Loans
Total Loans (in billions) $2.54 $2.55 $2.55 $2.55 $2.56 Mar'12 Jun‘'12 Sept'*12 Dec "12 Mar ‘13 = Loan portfolio increased at an annualized rate of 2.0% during the quarter > Commercial loans increased $23.2 million > Residential loans decreased $6.1 million >» Consumer loans decreased $4.4 million =
Slide 43: Total Deposits
Total Deposits including Repurchase Agreements (im billions) Sa-1% $3.14 $3.13 $3.11 $3.15 Mar'12 Jun'12 Sept'12 Dec'12 Mar ‘13 = Deposits, including repurchase agreements, increased an annualized 4.3% from prior quarter but decreased 0.8% from prior year first quarter
Slide 44: Nonperforming Loans
Nonperforming Loans asa% of Total Loans 1.399 1.41% 1.36% 4.33% Y 4.32% Mar ‘12 Jun 12 Sept '12 Dec '12 Mar ‘13
Slide 45: Nonperforming Assets
Nonperforming Assets asa % of Total Assets 2.54% 2.51% 2.46% 9 2.28% 2.15% Mar '12 Jun '12 Sept '12 Dec '12 Mar ‘13
Slide 46: Net Charge-offs
Net Charge-offs asa % of average loans 0.45% 0.45% Mar'12 Jun'12 Sept'12 Dec'12 Mar ‘'13
Slide 47: Efficiency Ratio
Efficiency Ratio 58.19% 60-75% 57.70% 57.72% 54.94% Mar'12 Jun'12 Sept'12 Dec'12 Mar ‘13
Slide 48: 2013 Key Strategic Initiatives
2013 Key Strategic Initiatives
Slide 49: CTBI: 2013 Outlook
CTBI: 2013 Outlook Net Income Earnings Per Share ROAA ROAE Assets Loans Deposits Shareholders’ Equity $45.2 - $48.0 million $2.90 - $3.06 per share 1.22% - 1.28% 11.15% - 11.21% $3.6 - $3.8 billion $2.6 - $2.8 billion $3.1- $3.3 billion $425 - $431 million
Slide 50: 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 51: 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 52: Community Trust Bancorp, Inc.
Z Community Trust Bancorp, Inc.
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