Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2003)
54 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 29, 2003
Slide 1: Community Trust Bancorp, Inc.
Exhibit 99.1 Community Trust _ Bancorp, Inc. April 29, 2003
Slide 2: A Century of Service
A Century of Service | Aen Te founded in 1903 Our beginning 100 years ago as The Pikeville National Bank Many long-time investors Shareholders value companies with a long history of earnings Stable and competitive return to investors
Slide 3: A Century of Service
A Century of Service | Aen Te founded in 1903 1903 The Pikeville National Bank founded 1936 Pikeville National Bank & Trust Company incorporated 1981 Formed Pikeville National Corporation 1987 Acquired First Security Bank & Trust Company, Whitesburg and Commercial Bank, West Liberty (sold 1997) 1988
Slide 4: A Century of Service
A Century of Service | Aen Te founded in 1903 1990 Acquired First American Bank, Ashland, and Farmers-Deposit Bank, Flemingsburg 1991 Acquired First Federal Savings Bank) Campbelisville, and United Federal, Prestonsburg 1993 Incorporated Trust Company of Kentucky, National Association 1995 Acquired
Slide 5: A Century of Service
A Century of Service | Aen Te founded in 1903 1997 Changed our name to Community Trust Bancorp, Inc. and merged-all banks into Community Trust Bank, N.A. 1998 Purchased our 5 offices in West Virginia from Banc One Corporation and 5 offices in central Kentucky from PNC Bank 2001 Purchased 5 offices o
Slide 6: Asset Growth over the past 100 years
A Century of Service | Aen Te founded in 1903 Asset Growth over the past 100 years 1903 $25,000 1930 $1,656,952 1960 $13,342,489 1990 $1,000,296,990 2002 $2,487,910,652 Total assets have grown 99,516% from $25 thousand in 1903 to $2.5 billion at December 31, 2002
Slide 7: Years of increasing return to investors
A Century of Service | Aen Te founded in 1903 100 years of increasing return to investors With the 12 stock splits and 7 stock dividends that have occurred throughout the history of Community Trust, a share of CTBI stock purchased in 1903 at $100 would be valued today at $649,885 based on the stock
Slide 8: 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
Slide 9: CTBI Meets the Challenges of 2002: What were the challenges?
CTBI Meets the | Agen | Challenges Of 2002 What were the challenges? Attaining our goal of a 20% increase in earnings Improving operational efficiency Increase in nonperforming loans Increasing noninterest income Merger of Citizens National Bank of Hazard
Slide 10: CTBI Meets the Challenges of 2002: What contributed?
CTBI Meets the | Agen | Challenges Of 2002 What contributed to the challenges? Weak economic conditions Historically low interest rates Pressure on net interest margin High level of liquidity Weak loan demand Limited investment options Increasingly competitive operating environment
Slide 11: CTBI Meets the Challenges of 2002: How did we meet them?
CTBI Méets the | Agen | Challenges Of 2002 How did we meet these challenges?. We achieved record earnings with a 23.9% increase in net income to $27.6 million Increased EPS to $2.21 from $1.76 17.5% increase in noninterest income Our stock repurchase program continued to be accretive to shareholder
Slide 12: CTBI Meets the Challenges of 2002
CTBI Méets the | Agen | Challenges Of 2002 Did not attain our goal for internal growth in assets, loans, and deposits We continued the implementation of our strategic plan focused on expansion of our “community bank” franchise On January 3, 2002, the Corporation acquired the remaining 24.72% of ens
Slide 13: CTBI Meets the Challenges of 2002
CTBI Meets the | Agen | Challenges Of 2002 January 1, 2003, converted the charters of our bank and trust subsidiaries to state charters Bank is a state chartered member of the Federal Reserve system Changed name of Trust Company of Kentucky to Community Trust and Investment Company
Slide 14: Shareholder Value
Shareholder Value
Slide 15: Dividends Per Share
Dividends Per Share EE $0.90 $0.84 $0.78 poe $0.74 $0.70 $0.65 $0.60 $0.60 $0.50 + 1998 1999 2000 2001 2002 2003 Cash dividends per share have increased on an average greater than 6% per year 2002 cash dividends were increased by 5.4% December 31, 2002 cash dividend yield was 3.34% 10% stock dividen
Slide 16: Shareholders' Equity
Shareholders’ Equity EEG (in Millions) aed $209.4 $200 $191.6 $181.9 $180 $172.4 $164.8 $160 $140 + 1998 1999 2000 2001 2002 2003 Shareholders’ equity has increased 27% since 1998, an average of 6.2% per year Our Corporate goal for growth in shareholders’ equity for 2003 is 7.5%...increasing equity
Slide 17: Total Market Capitalization
Total Market_ cl Capitalization ~~ $350 $310.4 $300 $271.4 » | $250 $236.4 $2209 $200 $174.4 $150 $100 + 1998 1999 2000 2001 2002 2003 © All data is as of year-end except 2003 which is based upon stock price of $27.40 at April 28, 2003
Slide 18: Stock performance versus NASDAQ indices
ci —e— Commnity Trt Bancorp. Ine NASDAQ Stock Market (U3) NASDAQ Bank Stoake
Slide 19: Comparison to Russell 2000 Index of small cap companies
Comparison to Russell al 2000 Index of sinatt cap companies 2002 return to CTBI investors 20.19%; Russell 2000 average declined 20.48% 3-year annualized CTBI return 19.51% compared to average Russell 2000 Index decline of 7.54% CTBI’s 5-year annualized return 5.25% versus a negative 1.36% for the Ru
Slide 20: Earnings Review
Earnings Review
Slide 21: Total Revenue
(in Millions) $120 surg 8194 $110 , $106.9 i 104.8 $103.8 #1009) ga6:4 soo + 1998 1999 2000 2001 2002 2003 © Total revenue increased an average of 5.4% per year during the last years © Total revenue increased 9.6% in 2002 2003 datais stated corporate goal
Slide 22: Net Income
n Milions) $30 $28.8 $25 go1g 92239228 $20 gis | $14.0 $10 $5 + 1998 1999 2000 2001 2002 2003 2003 datais stated corporate goal
Slide 23: Net Income: 2002 in review
Net Income | Masescen | 2002 in review Net income of $27.6 million was an increase of 23.9% over 2001 and was 3.0% higher than our goal for 2002 Major impacts on 2002 earnings: * Net interest margin increased 25 basis points * Noninterest expense for 2002 of $27.9 million was 17.5% more than the $23
Slide 24: Earnings Per Share
Earnings Per Share cl $2.40 $2.35 $2.00 $1.60 $1.20 $1.04 1998 1999 2000 2001 2002 2003 2003 datais stated corporate goal
Slide 25: Earnings Per Share
Earnings Per Share | Misco | Earnings per share increased 25.6% in.2002 Cumulative earnings per share growth is 8.22% during the last ten years CTBI repurchased 297,758 shares of stock during 2002 at an average price of $23.57 per share Impact on EPS was $0.03 per share, a 1.4% increase Our corporat
Slide 26: Slide 26
Slide 27: Total Assets
Total Assets | Masescen | (n Mitions) $2,600 $2,518 $2,504 $9 aga $2,400 $2,248 $2,264 $2,200 $2,176 $2,000 + - - - - - , 1998 1999 2000 2001 +2002 »= 2003 Our Corporate goal is to increase the total assets of the Company to $2.518 billion by year end 2003...a 1.2% internal rate of growth, not inclu
Slide 28: Average Loans
(n Mitions) $1,800 $1,600 $1,557 » | $1,465 $1,400 $1,200 + 1998 1999 2000 2001 2002 2003 Our loan growth goal for 2003 is to increase average loans to $1.705 billio! from $1.661 billion, a2.6% increase 2003 datais stated corporate goal
Slide 29: Net Charge-Offs
Net Charge-Offs cl as a % of average loans” 0.90% >» 0.78% 0.70% 0.65% 0.65% 0.51% 0.50% 0.30% + 1998 1999 2000 2001 © Slight decline in net charge-offs during 2002 © Continuing focus on asset quality during weak economic conditions
Slide 30: Nonperforming Loans
Nonperforming Loans =a as a% of totalloans ~~ 2.00% od 1.80% 1.60% “tee 1.39% 1.40% Aes 1.14% 1.00% + 1998 1999 2000 2001 2002
Slide 31: Nonperforming Loans
Nonperforming Loans === Nonperforming loans decreased 58 basis.points from year end 2001 to year end 2002 The significant decline in nonperforming loans is attributable to completion of the planned liquidation of one commercial problem loan totaling $3.7 million and the Company’s continuing focusion
Slide 32: Loan Loss Reserve
Loan Loss Reserve | Misco | as a % of net loans 2.00% 1.74% . 1.75% Tens 1.59% 1.42% 1.50% 1.38% 1.25% 1.00% + 1998 1999 2000 2001 2002 2003 © Loan loss reserve increased 4 basis points reflecting weak economic con © Specific reserves are maintained for loans where losses are anticipated 2003 datais
Slide 33: Average Deposits
Average Deposits | Misco | nitions) “Ss, $2,200 $2,124 000 4 $1982 $1,886 $1,800 $1,651 $1,600 $1,400 + 1998 1999 2000 2001 2002 2003 2003 datais stated corporate goal
Slide 34: Average Deposits
Average Deposits | Misco | Deposit growth minimal at less than 1%. Average deposits have grown 28% during the last five years. This five year growth is primarily attributable to acquisitions. Long-term minimum targeted internal growth in deposits is af average of 2.5% per year Our corporate goal is
Slide 35: 1st Quarter 2003 Review
ist Quarter 2003 Revi
Slide 36: Link to searchable text of slide
Link to searchable text of slide shown above
Slide 37: Net Income
Net Income | Masescen | Net income exceeds same quarter 2002 by $0.7 million Noninterest revenue increased $3.0 million from first quarter 2002 primarily due to increased deposit service charge revenue, increased gains on sales of residential real estate loans;and creased gains on sales of sec! ies.
Slide 38: Average Loans
Average Loans | Aiscaece | —— (tn Millions) = $1,689 Sree $1,669 ~N $1,650 $1,600 $1,550 $1,500 + Mar-02 Juno2 Sep-02 Deco2z Mar-03
Slide 39: Average Loans
Average Loans | Misco | Loan portfolio mix has changed slightly with more commercial, less mortgage and retail Mortgage demand remains strong in current rate environment Commercial loan demand continues to be soft Asset quality and quality loan growth continues to be ourmost significant priorities
Slide 40: Average Deposits
Average Deposits | Misco | ~ Se (in Millions) = $220) grap >< $2,117 $2,103 doen wos 2 aioe $2,000 $1,900 + Mar-02 Jun-02 Sep-02 Dec-02 Mar-03
Slide 41: Average Deposits
Average Deposits | Misco | Competition for deposits from banks and‘non-bank financial services providers continues to be fierce throughout our markets Retention of core deposits a focus for the future Goal is to maintain and grow deposit base while managing net interest margin
Slide 42: Noninterest Income
Noninterest Income | Mase | a dn Thousands) “Ss, $9,000 $8,687 sy $8,546 ° $8,205, $8,000 | $7,000 $6,000 $5,594 $5,442 $5,000 $4,000 + Mar-02 Jun-02 Sep-02 Dec-02 Mar-03
Slide 43: Noninterest Income
Noninterest Income | Masescen | Noninterest revenue increased $3.0 million, or 52.8%, from first quarter 2002 primarily due to increased deposit service charge revenue, increased gains on sales of residential real estate loans, and increased gains on sales of securities. Deposit related fees increas
Slide 44: Noninterest Expense
Noninterest Expense =a (in Thousands) $18,000 $17,611 $16,783 $17,000 $16,543 $16,164 $16,000 $15,000 + Mar-02 Jun-02 Sep02 Dec-02 Mar-03
Slide 45: Noninterest Expense
NoninterestExpense =i Noninterest expense increased 6.5% from-$16.5 million for the first quarter 2002 to $17.6 million for the first quarter 2003 Increase of $0.6 million in personnel expense from prionyear due to the filling of budgeted key positions within the Companyiand Decrease of $0.2 million
Slide 46: Nonperforming Loans
Nonperforming Loans ae .. = 220%, 2.12% 1.98% 2.00% y 17% 1.80% 1.60% 139% 1.40% 1.20% + Mar-02 Juno2 Sep02 Dec-02 Mar-03 Significant decrease to same period last year attributable to our continuing focus on asset quality during this weak period in the economi Increase from prior quarter primarily t
Slide 47: Efficiency ratio chart
62.00% ~ B18 1% 60.00% 58.01% 58.00% 87.43% 55.92% 56.00% 54.00% + Mar-02 Jun-02 Sep-02 Dec02 Mar-03
Slide 48: Efficiency Ratio
Efficiency Ratio | Misco | Net interest income $1.9 million below lastyear Increased noninterest income partially offset by increased noninterest expense associated with higher personnel expense Increased net interest income (based upon joan growth assumptions) and noninterest income along with flat
Slide 49: 2003 Goals
2003 Goals
Slide 50: 2003 Performance Goals
2003 Performance | Mase | Goals Net Income $ 28.8 million Earnings Per Share $ 2.35 Loan Growth Deposit Growth Total Asset Growth Efficiency 56.30% Our corporate goal for net income for 2003 is $28.8 million...a 4.3% increase in net income from 2002 Our corporate goal for earnings per share is $2.35
Slide 51: 2003 Performance: Major impacts on goals
2003 Performance | Mase | Goals Major impacts on 2003 goal: * Loan growth * Net interest margin * Noninterest income * Asset quality * Profitable balance sheet growth * Managing these major impact factors during weak economic conditions
Slide 52: 2003 Opportunities
2003 Opportunities | Mase | How we plan to meet 2003 corporate goals: Focus on loan growth Formation of a mortgage brokerage division Increased emphasis on SBA and USDA government guaranteed lending Increase full service brokerage fee income Focus on growth of our trust company Focus on improving as
Slide 53: 2003 Opportunities (cont.)
2003 Opportunities | Mase | How we plan to meet 2003 corporate goals (cont,): Internal growth and expansion 2003 branch expansion with opening of a new branch in Lexington in the 3rd quarter 2003 and a new branch in Frankfort in the 4th quarter 2003 Two new branch openings scheduled for the first qu
Slide 54: Searchable text section of graphics
Searchable text section of graphics shown above Exhibit 99.1 Community Trust Bancorp, Inc. 2003 Shareholders’ Meeting April 29, 2003 A Century of Service founded in 1903 [LOGO] • Our beginning 100 years ago as The Pikeville National Bank • Many long-time investors • Shareholders value companies with
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