Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2014)
50 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 29, 2014
Slide 1: 2014 Shareholder Meeting
2014 Shareho bel lca MeHing Community Trust Bancorp, Inc. NASDAQ 47jCommunity Trust’ 4a 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: Branch and trust office locations
© 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: Our Banking Franchise
Our Banking Franchise Central Region Loans - $601 million Deposits - $645 million * Danville + Lexington + Mt. Sterling + Richmond + Versailles + Winchester South Central Region Loans - $525 million Deposits - $648 million + Campbellsville + LaFollette Mliddlesboro Mit. Vernon + Williamsburg Eastern
Slide 5: 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 6: 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 7: 2013 Performance
Slide 8: 2013 Performance Summary
2013 Performance Summary Budget Results Earnings $46.6 million $45.2 million EPS $2.98 per share $2.90 per share ROAA 1.25% 1.24% ROAE 11.18% 11.05% Assets $3.75 billion $3.58 billion Loans $2.66 billion $2.62 billion Deposits $3.20 billion $3.06 billion Shareholders’ equity $428.3 million $412.5 mi
Slide 9: Shareholder Value
Slide 10: Dividends Per Share
Dividends Per Share $1.25 $1.27 $1.28 2009 2010 2011 2012 2013 2014 2013 cash dividends increased 1.6% 1.7% compound growth rate for past five years December 31, 2013 cash dividend yield was 2.83% Cash dividend increased to $0.320 per share effective October 1, 2013 *2014 is projected DPS
Slide 11: Shareholders' Equity
Shareholders’ Equity (in millions) 2009 2010 2011 2012 = Shareholders’ equity has increased 28.3% during the past five years = 6.0% compound growth rate for the past five years = 2014 goal for shareholders’ equity - $440 to $446 million
Slide 12: Book Value Per Share
Book Value Per Share au wn Langible Common soins $2208 Equity/ Assets 9.85% 9.36% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Slide 13: Total Market Capitalization
Total Market Capitalization (in millions) $714.5 oe ee Price to TangibleBook Value 2009 2010 2011 2012 2013 3/34/14 CTBI 1.45x 1.63x 1.51x 1.53x 2.06x 1.83x Peer 1.03x 1.29x 1.19x 1.39x 1.72x NIA All data is as of year-end except 2014 which is as of March 31, 2014. Peer data not available as of Marc
Slide 14: Comparison of Five Year Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CTBI, NASD.AQ Stock Market (U.S.), and NASDAQ Bank Stocks 5200 =_—— = _ $100 so 2008 2009 2010 2011 2012 2013 oe conesaiy Pas Bancry te a NasDaQsmci Maer US) Te ANASDAQBank Stocks = An investment in CTBI stock on December 31, 2008 would have provide
Slide 15: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index 42.38% 39 900, 1-Year of small cap companies Return to Investors December 31, 2013 20.53% 20.08% 18.87% 8.60% ae, 9.07% 3-Year 5-Year 10-Year @CTBI mRussell 2000 3-, 5-, and 10-year total returns annualized
Slide 16: Core Value Long-Term Investment
Core Value Long-Term Investment = 12 stock splits and 9 stock dividends = 33 years of consecutive increases in cash dividends = 5-year compound growth rate of cash dividends 1.7% = Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index = Recog
Slide 17: Earnings Review
Slide 18: Earnings Per Share
Earnings Per Share $2.90 $2.90 $2.54 $2.17 $1.66 2009 2010 2011 2012 2013 = EPS remained flat from 2012 to 2013 = 2014 EPS goal - $2.84 to $3.00 per share
Slide 19: Return on Average Assets
Return on Average Assets 1.23% 1.24% 1.11% 1.03% “ 1.05% 0.98% 0.82% 0.80% 2009 2010 2011 2012 2013 m=CTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2013 for bank holding companies with consolidated assets of $3 billion to $10 billion.
Slide 20: Net Income
Net Income (im millions) $44.9 $45.2 $38.8 $33.0 $25.1 2009 2010 2011 2012 2013 = Net income increased 0.7% from 2012 to 2013 = 2014 goal for net income - $44.6 to $47.4 million
Slide 21: Revenues
Revenues (im millions) $175.3 $178.1 $184.0 $146.9 $160.2 2009 2010 2011 2012 2013 2013 revenues increased 3.3% from 2012 2014 goal for revenues - $179.3 to $189.3 million
Slide 22: Noninterest Income
Noninterest Income as a % of Total Revenue (in millions) 49.3 $46.0 s 32% $4 24% 16% B% + 0% 2009 2010 2011 2012 2013 [ma Noninterest Income — % of Total Revenue = 2013 noninterest income increased 7.3% from 2012 > Increases in gains on sales of loans, deposit service charges, trust revenue, loan re
Slide 23: Net Interest Revenue
Net Interest Revenue (in millions) : $132.1 $134.7 $119.3 pp cas $105.5 2009 2010 2011 2012 2013 = 2013 net interest revenue increased by 1.9% from 2012 > Netinterest margin increased 4 basis points > Average earning assets increased $27.1 million, or 0.8%
Slide 24: Net Interest Margin
Net Interest Margin 4.13% 2009 2010 2011 2012 2013 [ moter m Poor = Pressure on the margin = % of assets repricing = 1-year cumulative gap position = Within 30 days 34.29% at 12/31/13 — (6.66)% = % of liabilities repricing = Within 30 days 17.38% = Within 90 days 26.54% = Within 180 days 37.74% Peer
Slide 25: Net Noninterest Expense
Net Noninterest Expense asa% of. Average Earning Assets (in millions) some 2.30% ~ $60.9 $52.4 SEN SECS. 2.10% 1.90% 4.70% 4.50% 2009 2010 2014 2012 2013 [[metNet Noninterest Expense % of Earning Assets Noninterest Expense & Efficiency Ratio (in millions) $110.3 75% $106.4 70% 65% 60% 55% + 50% 2009
Slide 26: Balance Sheet Review
Slide 27: Total Assets
Total Assets (in billions) er $3.59 $3.64 $3.58 $3.09 2009 2010 2011 2012 2013 = Total assets at 12/31/13 decreased 1.5% from 12/31/2012 > Loans increased $64.8 million or 2.5% > Investment portfolio growth $6.1 million or 1.0% > Deposits declined $50.8 million or 1.6% = 2014 goal for total assets -
Slide 28: Total Loans
Total Loans (im billions) $2.62 $2.61 $2.56 $2.55 $2.44 2009 2010 2011 2012 2013 = Total loans at 12/31/13 increased 2.5% from 12/31/12 = 2014 goal for total loans - $2.60 to $2.75 billion Loan Portfolio Mix December 31,2013 Consumer 16% Comm R/E 37% R/E Mortgage 32% Comm Other 15%
Slide 29: Concentrations of Credit
Concentrations of Credit as a % of Total Loans December 31, 2013 + 2.50% + 2.00% 5.4% r 1.50% r 1.00% + 0.50% 0.00% Apartments & Rental Housing Hotel/Motel Non-Residential Real Estate Rental mm Concentrations Nonperforming Loans* -»- Net Losses” * Asa percentage of funded exposure
Slide 30: Net Charge-offs
Net Charge-offs as a % of Average Loans 1.61% 0.66% 0.30% 0.20% 2009 2010 2011 2012 2013 TBI Consumer 36% Commercial 51% Residential 13% December 31, 2013 Nonperforming Loans as a % of Total Loans 422% 401% 2009 2010 2011 2012 2013 TBI Peer Peer data obtained from the Federal Reserve Bank Holding Co
Slide 31: Nonperforming Assets
Nonperforming Assets as a % of Total Assets 3.13% 2009 2010 2011 2012 2013 = $39.2 million in other real estate owned Loan Loss Reserve as a % of Net Loans 2.27% 2.24% 2009 2010 2011 2012 2013 TBI mPeer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2
Slide 32: Total Other Real Estate Owned
Total Other Real Estate Owned (in millions) $56.96 2009 2010 2011 2012 2013 = Sales of foreclosed properties for the year ended 12/31/13 $12.7 million = New bookings in 2013 $7.4 million = Properties under contract to sell $6.8 million
Slide 33: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $3.06 $2.89 $2.64 2009 2010 2011 2012 2013 = 2014 goal for total deposits including repurchase agreements - $3.10 to $3.20 billion Total Deposits including Repurchase Agreements December 31,2013 Repurchase Agreements. 1% Noniaterest Bearin
Slide 34: 1st Quarter 2014 Review
Slide 35: Earnings Per Share
Earnings Per Share $0.76 $0.77 $0.81 Mar'13 Jun'13 Sept'13 Dec'13 Mar‘'14
Slide 36: Net Income
Net Income (in millions) $12.7 $11.8 $11.9 Mar'13 Jun‘'13 Sept'13 Dec'13 Mar'14
Slide 37: Net Income
Net Income Net interest income > Decreased $0.4 million year over year > Decreased $1.2 million quarter over quarter Provision for loan losses > Decreased $0.2 million year over year > Increased $0.1 million quarter over quarter Noninterest income > Decreased $1.9 million year over year > Decreased
Slide 38: Noninterest Income
Noninterest Income (in millions) $13.3 $11.9 $12.1 $12.0 Mar'13 Jun'13 Sept'13 Dec'13 Mar'14 Decreased gains on sales of loans due to decline in secondary market residential real estate mortgage activity Decreased deposit service charges due to change in overdraft processing and seasonality Decrease
Slide 39: Noninterest Expense
Noninterest Expense (in millions) $32.4 Mar'13 Jun‘'13 Sept'13 Dec'13 Mar "14 Q0-Q = Decrease primarily due to the $6.2 million accrued expenses related to the Federal Reserve determination Y-0-Y = $0.4 million increase in personnel expense = $0.2 million increase in occupancy and equipment expense
Slide 40: Total Loans
Total Loans (in billions) $2.56 $2.58 $%2-62 Bares $2.59 Mar'13 Jun'13 Sept'13 Dec '13 Mar'14 = Loan portfolio decreased at an annualized rate of 4.6% during the quarter > Commercial loans decreased $21.6 million >» Consumer loans decreased $9.7 million > Residential loans increased $1.4 million = L
Slide 41: Total Deposits
Total Deposits including Repurchase Agreements (im billions) $3.15 $3.13 $3.09 $3.06 eat Mar'13) Jun'13 Sept'13 Dec'13 Mar ‘14 = Deposits, including repurchase agreements, increased an annualized 10.4% from prior quarter but decreased 0.2% from prior year first quarter
Slide 42: Nonperforming Loans
Nonperforming Loans as a % of TotalLoans 1.61% 1.62% 1.67% 1.64% 1.32% Mar ‘13 Jun 13 Sept '13 Dec '13 Mar ‘14
Slide 43: Nonperforming Assets
Nonperforming Assets as a % of Total Assets 2.33% 2.33% 2.31% 2.15% 2.15% Mar ‘13 Jun ‘13 Sept '13 Dec '13 Mar ‘14
Slide 44: Net Charge-offs
Net Charge-offs as a % of average loans 0.54% Mar'13 Jun'13 Sept'13 Dec'13 Mar‘'14
Slide 45: Efficiency Ratio
Efficiency Ratio 69.62% 62.00% 57.72% 554% 54.80% Mar'13 Jun'13 Sept'13 Dec '13 Mar‘'14
Slide 46: Key Strategic Initiatives
Slide 47: CTBI: 2014 Outlook
CTBI: Net Income Earnings Per Share ROAA ROAE Assets Loans Deposits Shareholders’ Equity 2014 Outlook $44.6 - $47.4 million $2.84 - $3.00 per share 1.22% - 1.38% 10.35% - 11.41% $3.65 - $3.75 billion $2.60 - $2.75 billion $3.10 - $3.20 billion $440 - $446 million
Slide 48: 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 49: To Our Shareholders
To Our 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
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