Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (June 2013)
39 slides from Community Trust Bancorp's investor presentation, Jun 5, 2013
Slide 1: Community Trust Bancorp, Inc.
Z 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 = Shareholders’ Equity = Dividend Yield = Total Market Capitalization = P/E Ratio Financial data as of March 31, 2013 $3.7 billion $406.6 million 3.70% $532.7 million 11.04x
Slide 4: Corporate History
1903 1987-2005 1997 2010 Presently Corporate History Pikeville National Bank founded Acquired 14 banks and purchased 17 branch locations Changed name to Community Trust Bancorp, Inc. Acquired LaFollette First National Corporation Two operational subsidiaries~ Communit Trust Bank, Inc. and Community
Slide 5: 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 6: Our Banking Franchise
Our Banking Franchise Central Region Loans - $580 million Deposits - $647 million * Danville + Lexington + Mt. Sterling + Richmond + Versailles + Winchester South Central Region Loans - $515 million Deposits - $661 million + Campbellsville + LaFollette + Middleshoro ut. + Williamsburg ernon Eastern
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 32 years 32 Andy Waters CTIC President and CEO 26 years 9 Kevin J. Stumbo EVP/Chief Financial Officer 26 years 18 Steven E. Jameson EVP/Risk
Slide 9: Operational Philosophy
Operational Philosophy Traditional community banking business model Executive management and board of director commitment to corporate governance Decentralized decision making and centralized operations and risk management Strong loan portfolio risk management process Specialized product offerings M
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 YTD 2013 2012 2011 2010 2009 EPS $0.76 $2.90 $2.54 $2.17 $1.66 ROAA 1.31% 1.23% 1.11% 1.03% 0.82% ROAE 11.82% 11.52% 10.91% 9.90% 7.89% Net Int. Margin 4.02% 3.99% 4.13% 4.07% 3.77% Efficiency Ratio 57.72% 57.93% 60.23% 59.45% 63.56% Nonperforming Loans 1.32% 1.41% 1
Slide 12: Earnings Review
Earnings Review
Slide 13: Earnings Per Share
Earnings PerShare $2.90 $0.77 $0.76 2008 2009 2010 2011 2012 Mar 12 Mar 13 = YTD EPS decreased 1.3% from 3/31/12 to 3/31/13 = 2013 EPS goal - $2.90 to $3.06 per share
Slide 14: Net Income
Net Income (in millions) $44.9 $11.9 $11.8 2008 2009 2010 2011 2012 Mar 42 Mar ‘13 = 2013 YTD net income decreased 0.4% from 3/31/12 = 2013 goal for net income - $45.2 to $48.0 million
Slide 15: Revenues
Reven ues (in millions) $175.3 $178.1 $183.0 $146.9 $160.2 $125.4 2008 2009 2010 2011 2012 Mar ‘13 = YTD 2013 revenues increased 2.1% from 3/31/12 = 2013 goal for revenues - $180.6 to $190.6 million *Mar ‘13 annualized
Slide 16: Noninterest Income
Noninterest Income asa % of Total Revenue (in millions) $46.0 $48.3 eee $43.8 24% 16% B% + 0% 2008 2009 2010 2011 2012 Mar '13 [ma Noninterest Income —% of Total Revenue | = YTD 2013 noninterest income increased 6.6% from 3/31/12 > Increases in gains on sales of loans and trust revenue = 2013 goal f
Slide 17: Net Interest Revenue
Net Interest Revenue (in millions) $119.3 $131.5 $132.1 $134.6 $103.6 $105.5 2008 2009 2010 2011 2012 Mar ‘13 = YTD 2013 net interest revenue increased by 0.6% from 3/31/12 > Netinterest margin declined 3 basis points > Average earning assets increased $74.3 million, or 2.2% *Mar ‘13 annualized
Slide 18: Net Interest Margin
Net Interest Margin 4.13% 2008 2009 2010 2011 2012 Mar13 [ =cTsI m Peer = Pressure on the margin = % of assets repricing = 1-year cumulative gap position = Within 30 days 38.31% at 3/31/13 — (5.96)% = % of liabilities repricing = Within 30 days 15.89% = Within 90 days 24.95% = Within 180 days 38.08%
Slide 19: 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 2011 2012 Mar "43. [maiict Nonivibvest Gapense = Wal Ganlihg Rawat | Noninterest Expense & Efficiency Ratio (in millions) 75% 70% 65% 60% 55% 2008 2009 2010 2014 2012 mariaz 70% man Non
Slide 20: Return on Average Assets
Return on Average Assets 1.31% 1.23% 1.11% 0.98% 0.98% 0.80% 2008 2009 2010 2011 2012 Mar '13. 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 billion.
Slide 21: Balance Sheet Review
Balance Sheet Review
Slide 22: Total Assets
Total Assets (in billions) $3.59 $3.64 $3.67 $3.36 $2.95 $3.09 2008 2009 2010 2011 2012 Mar "13 = Total assets at 3/31/13 increased 1.0% from 12/31/2012 > Loans increased $12.7 million or 0.5% > Investment portfolio growth $74.2 million or 12.3% > Deposit growth $33.2 million or 1.1% = 2013 goal for
Slide 23: Total Loans
Total Loans (in billions) $2.61 §2.56 g955 $2.56 $2.35 vung 2008 2009 2010 2011 2012 Mar 43 = Total loans at 3/31/13 increased 0.5% from 12/31/12 = 2013 goal for total loans - $2.6 to $2.8 billion Loan Portfolio Mix March 31, 2013 Consumer 16% Comm R/E 37% R/E Mortgage 32% Comm Other
Slide 24: Concentrations of Credit
Concentrations of Credit asa % of Total Loans March 31, 2013 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 25: Net Charge-offs
Net Charge-offs asa% of AverageLoans Nonperforming 1.61% Loan Ss asa % of Total Loans 10% 0.64% 0.64% 420% 0.38% 2008 2009 «2010-2011» 2012 Mar13. TBI Peer Commercial 35% 2008 = 2009 201020412012, Mar 43 Consumer: ane Go Peer Residential Peer data obtained from the Federal Reserve Bank 12% Holding C
Slide 26: Nonperforming Assets
Nonperforming Assets asa% of Total Assets 3.13% 2.56% 2.61% 228% 46% 2008 «62009 «= 20102011 2012, Mar 13 = $45.7 million in other real estate owned Loan Loss Reserve asa % of Net Loans 227% 2.24% 1.70% 1.70% 2008 «©2009 «20102011 2012 Mar'43 cTBI Peer Peer data obtained from the Federal Reserve Ban
Slide 27: Total Other Real Estate Owned
Total Other Real Estate Owned $56.96 (in millions) 2008 2009 2010 2011 2012 Mar "13 = Sales of foreclosed properties for the three months ended 3/31/13 $2.7 million = New bookings in the first three months of 2013 $2.0 million = Properties under contract to sell $5.5 million
Slide 28: Total Deposits
Total Deposits including Repurchase Agreements Te t al Deposi 45 (in billions) including Repurchase Agreements $310 $341 $3.15 ou $299 March 31,2013 $2.49 Repuruitaes Agcoments Noniaterest Bearing Other Time 5% 20% Now 1% CDs <8100K 19% 2008 2009 2010 2011 2012) Mar'13 MMDA = 2013 goal for total dep
Slide 29: Hoops CD
= 12 Month Certificate of Deposit: April 1st through maturit paid is adjusted by basis point for each University of Kentucky win; bonus 100 basis points added to rate for National Championship win, Community Trust Bank = Our Hoops CD product has been offered for over 17 years = 100 basis point incre
Slide 30: Shareholder Value
Shareholder Value
Slide 31: 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 = March 31, 2013 cash dividend yield was 3.70% = Cash dividend increased to $0.315 per share effective October 1, 2012 *2013 is
Slide 32: Shareholders' Equity
Shareholders’ Eguity (in millions) $400.3 $406.6 2008 2009 2010 2011 2012 Mar "13. = 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 33: Book Value Per Share
Book Value Per Share $25.64 $26.98 $23.78 Tangible Common Eguity a Tangible Assets $22.08 $20.44 821-15 9.36% 9.44% 837% 8.47% grey, 8:52% 2008 =62009 2010. 2011S 2012, Mar'13 2008 = 2008-2010 2011.) 2012, Mar13.
Slide 34: Total Market Capitalization
Total Market Capitalization (in millions) $554.4 a Panes 2008 2009 2010 2044 Zor Mar 43 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
Slide 35: Cumulative Total Return Comparison
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 36: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index ofsmall capcompanies Return to Investors December 31,2012 16.34% 18.64% 15.04% 12.23% 4, 273% 8.00% 8.57%, | a 1-Year 3-Year 5-Year 10-Year @CTBI mRussell 2000 3-, 5-, and 10-year total returns annualized
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 shareholde
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 over 1,000 dedicated employees Our shareholders
Slide 39: Community Trust Bancorp, Inc.
Z Community Trust Bancorp, Inc.
Community Trust Bancorp — Investor Presentation (June 2013) on 6ix