Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Sandler O'Neill Conference 2008
36 slides from Community Trust Bancorp's conference presentation, Nov 13, 2008
Slide 1: Community Trust Bancorp Investor Presentation
Z Community Trust Bancorp, Inc. Investor Presentation NASDAQ: CIBI Sandler O'Neill Conference November 13,2008 wwwatbicom
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Information provided herein by the Corporation contains “forward-looking” information. The Corporation cautions that any forward-looking statements made by the Corporation are not guarantees of future performance and that actual results may differ materially from those in the fo
Slide 3: Organizational History
Organizational History “Overa Century of Service” 1903 The Pikeville National Bank founded 1936 Pikeville National Bank & Trust Co. incorporated 1981 Formed Pikeville National Corporation 1987- Acquired 14 banks and purchased 17 2005 branches 1997 Changed name to Community Trust Bancorp, Inc. 1997-
Slide 4: Organizational Structure
Organizational Structure Community Trust Bancorp, Inc. Pikeville, Kentucky Community Trust and Investment Company Lexington, Kentucky Community Trust Bank, Inc. Pikeville, Kentucky @ Community Trust Bank, Inc. _ Regional market structure provides synergies iy Community Trust and Investment Company _
Slide 5: Our Banking Franchise
Our Banking Franchise 2 Community Trust Bank Branch Office 2 Community Trust & Investment Office 77 branch locations serving 33 counties throughout Kentucky and West Virginia
Slide 6: Market Analysis
Market Analysis Competitive Position @ 2"Jargest Kentucky domiciled bank holding company m 7 Jargest bank in Kentucky in terms of deposit market share for all FDIC insured institutions @ #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions Economic Diversity m@
Slide 7: Operational Philosophy
Operational Philosophy @ Executive Management and Board of Director Commitment to Corporate Governance @ Local Market Presidents @ Decentralized decision making @ Centralized operations and risk management @ Specialized product offerings @ Maximized use of technology
Slide 8: Traditional Community Banking
Traditional Community Banking Focused on Retail and Commercial Products & Services Retail @ Traditional Home Mortgages Portfolio _ Service Retained _-$3.154m Mortgage Servicing Rights Personal Loans Indirect Auto Loans Equity Lines of Credit Deposit Products & Services Internet Banking Brokerage and
Slide 9: Executive Management Team
Executive Management Team Name Jean R. Hale Mark A. Gooch Tracy E. Little Kevin J. Stumbo Steven E. Jameson James J. Gartner James B. Draugha Michael S. Wasson Richard W. Newsom Ricky Sparkman _ Larry W. Jones Chairman, President and CEO CTB President and CEO CTIC President and CEO EVP /Controiier E
Slide 10: Challenges are Opportunities
Challenges are Opportunities = Unprecedented market disruption: less impact for traditional community banking model = Government involvement/investment in banking industry = Opportunities for “healthy” and well managed banks = TARP capital is cheap and provides increased growth/ acquisition capabili
Slide 11: Performance Summary
Performance Summary EPS ROAA ROAE Net Int. Margin Efficiency Ratio Nonperf. Loans Net Charge-offs As a % of Average Assets: Nonint. Income Nonint. Expense YTD 2008 information annualized as of 9/30/2008 except EPS Normalized 2008 adjusted for other than temporary impairment charges for auction rate
Slide 12: Earnings Review
Earnings Review 42
Slide 13: Earnings Per Share
Earnings Per Share $2.59 $2.31 $2.42 1.80 2 $1.73 $1.11 2003 2004 2005 2006 2007 Sep'07 Sep'08 Sep ‘08 Norm* Earnings per share decreased 6.6% in 2007 §.7% 5-year compound growth rate for EPS Normalized EPS as of 9/30/08 1.73% 2008 EPS projected at $1.66 to $1.69 per share 2008 normalized EPS projec
Slide 14: Net Income
Net Income (in millions) $27.4 $260 $16.6 Sep ‘07 Sep '08 Sep ‘08 2003 2004 2005 2006 2007 Norm." = Normalized net income as of 9/30/08 $26.0 million = 2008 projected net income $24 million to $26 million = 2008 projected normalized net income $33 to $35 million *Adjisted jor other than temporary im
Slide 15: Freddie Mac/Fannie Mae Impact on CTBI
Freddie Mac/Fannie Mae Impact on CIBI m At June 30, 2008, CTBI held $14.9 million in Freddie Mac and Fannie Mae pass-through auction rate securities which had an unrealized loss of $0.5 million. m As a result of the U.S. Treasury placing Freddie Mac and Fannie Mae into conservatorship on September 7
Slide 16: Revenues
Revenues 2003 2004 2005 2006 2007 2008* @ 4.0% compound growth rate for revenues for the past five years 2007 revenues increased 1.6% @ 2008 projected revenues of $128 million to $130 million @ Normalized annualized revenues as of 9/30/08 $142.7 million +Sep 08 annualized 416
Slide 17: Noninterest Income
Noninterest Income Peep onlorlnevstne 2003 2004 2005 2006 2007 Sep ‘0S Sep ‘os Worm. [“‘Noninterest Income ——% of Total Revenue] @ 2007 noninterest income Increase in deposit fees __ Change in mortgage loan activity Stable brokerage revenue Increase in trust revenue H 2008 projected noninterest reve
Slide 18: Net Interest Margin
Net Interest Margin 4.02% 4.00% 3.97% 3.86% s.se% -B1% a.7e% 3.59% 3.32%) - Seis ‘OF Dec 'O7 Mar "O08 Jun "O38 Sep "03 [ =CTBeI Peer | m= Pressure on the margin a % of assets repricing mg 1-year cumulative gap _ Within 30 days 38.55% position at 9/30/08 -2.50% a % of liabilities repricing Within 30
Slide 19: Balance Sheet Review
Balance Sheet Review
Slide 20: Total Assets
Total Assets (in billions) eo. S285 $2.97 s2.90 $2.92 $2.48 2003 2004 2005 2006 2007 Sep "os = Total assets decreased 2.3% during 2007 to $2.90 billion Loan growth $60.4 million Deposit decline $50.7 million _ Investment portfolio decline $109.2 million = Total assets are expected to increase — $30
Slide 21: Total Loans
Total Loans (in billions) $2.32 2003 2004 2005 2006 2007 Sep "08 @ 2008 projected loan growth $110 to $120 million Loan Portfolio Mix September 30, 2008 Consumer 20% Comm R/E 35% R/E Mortgage 29% Comm Other 16% 24
Slide 22: Net Charge-offs
Net Charge-offs as a %of average loans 0.48% 2003 2004 2005 2006 m=CTBI Peer Net Charge~offs by Loan Category Sep ‘08 annualized 08 Peer Data as of 6/30/2008 15% 11% 22
Slide 23: Nonperforming Loans
Nonperforming Loans as a %of Total Loans 213% Loan Loss Reserve asa %oltnetloans 1.08% 4 92% 0.97% A2% 1.40% 2003 2004 2005 2006 2007 Sep 08 ieee Meee ae Nonperforming Loan Mix September 30, 2008 Consumer 1% 2004 2005 «2006 «2007 «Sep 08 R/B Mortgage 18% mCTBI Peer ‘08 Peer Data as of 6/30/2008. \Co
Slide 24: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $250 5745 g9.43 $2.38 $2.23 $2.16 ll 2003 «2004 «2005 +«2006 2007 Sep ‘08 @ Total deposits including repurchase agreements are expected to remain relatively stable for 2008 Total Deposits including Repurchase Agreements September 30, 2008
Slide 25: Managing Liquidity through Innovative Products
Managing Liquidity through Innovative Products its Backll! HH “sD ap ga = 12 Month Certificate of ee |e H Volume varies as needs vary: 2003 $ 92,856,000 2004 $ 134,985,000 2005 $ 196,788,000 jcate of Deposit paid is adjusted by 1 basis point for each University of Kentucky win; bonus 100 basis point
Slide 26: Shareholder Value
Shareholder Value
Slide 27: Years of Increasing Investment Return
103 Years of Increasing Investment Return = Formation of bank holding company 1981 m 12 stock splits m 9stock dividends m 28 years of consecutive increases in cash dividends $0.01 per share increase effective December 15, 2008 m 5-year compound growth rate of cash dividends 11.3% m Stock selected in
Slide 28: Dividends Per Share
Dividends Per Share —™ Cash dividend payout ratio 40% to 50% ™ September 30, 2008 cash dividend yield 3.57% 2007 2008" *2008 is projected DPS 28
Slide 29: Shareholders' Equity
Shareholders’ Eguity (in millions) $282.4 $301.4 $305.0 @ Shareholders’ equity has increased 36.1% during the past five years ™ 7.6% compound growth rate for the past five years @ 2008 shareholders’ equity projected at $308 - $310 million 29
Slide 30: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 2003 2004 2005 2006 2007 2008 All data is as of year-end except 2008 which is based upon stock price on October 31, 2008 30
Slide 31: Comparable Group Analysis
Comparable Group Analysis Selected Regional Commercial Banks CTBI Peer LTM ROAA 0.89% 0.38% LTM ROAE 8.42% 4.20% Efficiency Ratio 56.25% 63.53% NPAs/Assets 1.39% 1.39% Total Equity/Total Assets 8.39% 6.88% Tier 1 Leverage 10.45% 8.54% Total Risk Based Capital 14.36% 12.13% Current Dividend Yield 3.5
Slide 32: 2008 Key Strategic Initiatives
2008 Key Strategic Initiatives 32
Slide 33: 2008 Operational Initiatives
2008 Operational Initiatives Attaining our 2008 corporate goals m= Working through our asset quality issues m= Focus on core banking business = Internal growth and expansion through new branches and acquisitions m= Continued expansion of trust and brokerage services = Improved management and custome
Slide 34: 2008 Operational Challenges
2008 Operational Challenges Major impacts on 2008 corporate goals m The U.S. economy mu Action by the U.S. Government to manage current economic issues = Loan growth ma Asset quality mu Net interest margin = Noninterest income = Profitable deposit growth driven by liquidity needs m= Management of no
Slide 35: CTBI's Franchise Value
CTBI's Franchise Value History of solid investor returns Community banking strategy Historical ability to grow and have good financial performance in slow growth markets Growth strategies Acquisitions _ De nova branches Trust subsidiary _ Fullservice brokerage Strong experienced management team and
Slide 36: Building Communities... Built on Trust
“Building Communities... Built on Trust” & F Dommunity Trust | f Bancorp, Inc. * pe
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