Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2012)
39 slides from Community Trust Bancorp's investor presentation, Nov 15, 2012
Slide 1: 2012 Investor Presentation Community Trust Bancorp, Inc.
2012 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 $396.1 million = Dividend Yield 3.55% = Total Market Capitalization $554.4 million || = P/E Ratio 11.96x Financial data as of September 30, 2012 ee
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 Kentucky, Tennessee, and West Virginia
Serving customers in 81 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia 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 - $549 mil Deposits - $620 million Deposits - $1.3 billion Deposits - $545 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 25 years 8 Kevin J. Stumbo EVP/Controller 25 years 17 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 YTD 2012 2011 2010 2009 2008 EPS $2.22 $2.54 $2.17 $1.66 $1.54 ROAA 1.26% 1.11% 1.03% 0.82% 0.79% ROAE 11.89% 10.91% 9.90% 7.89% 7.48% Nonperforming Loans 1.33% 1.46% 2.38% 1.70% 2.22% Net Charge-offs 0.34% 0.58% 0.58% 0.66% 0.38% % of Average Assets: Noninterest Inc
Slide 12: Earnings Review
Slide 13: Earnings Per Share
Earnings PerShare 2.54 $2.42 . $2.22 $2.17 $1.89 $1.54 #165 2007 2008 2009 2010 2011 Sept '11 Sept'12 = YTD EPS increased 17.5% from 9/30/11 to 9/30/12 = 2012 EPS goal - $2.55 to $2.71 per share es eT
Slide 14: Net Income
Net Income (in millions) $38.8 $34.3 $28.9 2007 2008 2009 2010 2011 Sept '11 Sept 12 = 2012 YTD net income increased 18.6% from 9/30/11 = 2012 goal for net income - $39.5 to $42.0 million
Slide 15: Revenues
Reven ues (in millions) $160.2 $175.3 $176.8 142.6 $146.9 $ $125.4 = YTD 2012 revenues increased 1.2% from 9/30/11 = 2012 goal for revenues - $176 to $186 million *Sept ‘12 annualized 2007 2008 2009 2010 2011 Sept ‘12
Slide 16: Noninterest Income
Noninterest Income asa % of Total Revenue (in millions) $41.4 $40.9 $43.8 $45.4 32% $36.6 24% $21.8 16% 8% | 0% 2007 2008 2009 2010 2011 Sept '12 mm Noninterest Income ——% of Total Revenue = YTD 2012 noninterest income increased 5.4% from 9/30/11 > Increases in gains on sales of loans, trust revenue
Slide 17: Net Interest Revenue
Net Interest Revenue (in millions) $131.5 $131.4 $119.3 $106.0 493.6 $105.5 = YTD 2012 net interest revenue decreased by 0.2% from 9/30/11 > Netinterest margin declined 20 basis points > Average earning assets increased $160.4 million *Sept ‘12 annualized 2007 2008 2009 2010 2011 Sept'12
Slide 18: Net Interest Margin
Net Interest Margin 4.12% = Pressure on the margin = % of assets repricing = L-year cumulative gap position = Within 30 days 39.94% at 09/30/12 — (5.33)% = % of liabilities repricing = Within 30 days 22.26% = Within 90 days 35.77% = Within 180 days 49.20% Peer data obtained from the Federal Reserve
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% 2007 2008 2009 2010 2011 Sept 12 (meee no Noninterest Expense & Efficiency Ratio || forest Expense =~ % of Earning Assets | (in millions) 75% 70% es% eo% 55% —L sow 2007 2008 2009 2010 2014 Septe12 EENG
Slide 20: Return on Average Assets
Return on Average Assets 1.23% 1.26% . 1.11% 1.03% 1.01% 0.89% 0.79% 0.80% 0.25% 0.13%] -0.18% 2007 2008 2009 2010 2011 Sept'12 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
Slide 21: Balance Sheet Review
Balance Sheet Review
Slide 22: Total Assets
Total Assets (in billions) ss ae $3.59 $3.64 $2.90 $2.95 $3.09 2007 2008 2009 2010 2011 Sept “2 = Total assets at 9/30/12 increased 1.4% from 12/31/2011 > Loans declined $5.0 million or 0.2% > Investment portfolio growth $93.8 million or 17.7% > Deposit growth $34.8 million or 1.1% = 2012 goal for t
Slide 23: Total Loans
Total Loans (iv billions) $2.61 $2.56 go 55 12.44 . $: 7 2007 2008 2009 2010 2011 Sept 12 Total loans at 9/30/12 decreased 0.2% from 12/31/11 2012 goal for total loans - $2.6 to $2.8 billion Loan Portfolio Mix September 30, 2012 Consumer 17% Comm R/E 37% R/E Mortgage 31% Comm Other 15% Ee se
Slide 24: Concentrations of Credit
Concentrations of Credit asa % of Total Loans September 30, 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 2007 2008 2009 2010 2011 Sept 412 eTsI eer Consumer 20% 2007 2008-2008 20102011 Sept 12 Residential Go Peer 15% Commercial 65% Peer data obtained from the Federal Reserve Bank Holding Company Performance Report for
Slide 26: Nonperforming Assets
Nonperforming Assets asa% of Total Assets 3.13% 2007 «2008 «2009 2010 2011 Sept 42 = $56.1 million in other real estate owned Loan Loss Reserve asa % of NetLoans 2.27% 2.24% 2007 2008 2009 2010 2011 Sept 12 cTBI jeer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report
Slide 27: Total Other Real Estate Owned
Total Other Real Estate Owned (in millions) $56.96 $56.10 "12 = Sales of foreclosed properties for the nine months ended 9/30/12 $11.0 million = New bookings in first nine months of 2012 $10.7 million = Properties under contract to sell $7.3 million 2007 2008 2009 2010 2011 Sept
Slide 28: Total Deposits
Total Deposits including Repurchase Agreements T ot al D lep osits (in billions) including Repurchase Agreements $3.10 $3.13 September 30, 2012 Repurchase aeecgent Noninterest “ Bearing Other Time 19% 5% Now CDs <$100K 19 2007 «2008 «= 2009S 2010» 2014 Sept 12 20%, MMDA = 2012 goal for total deposit
Slide 29: Hoops Certificate of Deposit
Its Backi!l! = 12 Month Certificate of . can ie = Deposit: April Ist ey ws ») through maturity; rate SY paid is adjusted by 1 Certificate of Deposit Haste bse rosesek University of Kentucky win; bonus 100 basis <p with more p, . points added to rate for ne — BOLT National Championship Ws win, = Our
Slide 30: Shareholder Value
Shareholder Value
Slide 31: Dividend Payout
Dividend Payout Ratio 78.87% 79 9%, 55.76% 48.43% 45.45% 42.12% = September 30, 2012 cash dividend yield was 3.55% 2007 2008 2009 2010 2011 Sept = Cash dividend increased to $0.315 per share a effective October 1, 2012 *2012 is projected DPS 2007 2008 2009 2010 2011 2012* = 2012 cash dividend increa
Slide 32: Shareholders' Equity
$338.6 $366.9 $396.1 = Shareholders’ equity has increased 21.7% during the past five years = 5.4% compound growth rate for the past five years = 2012 goal for shareholders’ equity - $380 to $400 million 2007 2008 2009 2010 2011 Sept 12
Slide 33: Book Value Per Share
Book Value Per Share $25.38 Tangible Common Eguity a Tangible Assets $23.78 5 $22.08 $20.03 $20.44 S241 2007 «2008 )3= 2009S 2010» 2011 Sept'12 Se es asx, 9-22% 8.87% 3.27% 837% 8.26% 2007 = 2008 «= 2009S 2010-2041 Sept'12
Slide 34: Total Market Capitalization
Total Market Capitalization (in millions) $554.1 $554.4 2007 2008 2009 2010 2014 Sept ‘12 CTBI 1.77x 2.29 1.45x 1.63x 1.51x 1.68x Peer 1.85x 1.91x 1.03x 1.29x 1.19x 1.38x Alll data is as of year-end except Sept ‘12 which is as of September 30, 2012. Peer data obtained from SNL Financial; group consi
Slide 35: Comparison of Five Year Cumulative Total Return
Comparison of D Year Cumulative Total Return among CTBI,NASDAQStockMarket (US),and NASDAQBankStocks $200 $100 ro = = $0 + September.07 September.08 September09 September10 September! September-12 community Tat Bancarp, tne, a NASDAQ Sect MaterUS) Se NASDAQBark Stocks = An investment in CTBI stock on
Slide 36: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index Sid apscuvippaints Return to Investors September 30, 2012 58.51% 31.89% 15.66% 13.00% 9 gray 18% 7.88% 1-Year 3-Year 5-Year 10-Year mCTBI m Russell 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 3.2% = Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index = C
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 1,000 dedicated employees = Our shareholders
Slide 39: Community Trust Bancorp, Inc.
Z Community Trust Bancorp, Inc.
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