Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2011)
48 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 26, 2011
Slide 1: 2011 Annual Shareholders' Meeting
7: Say Trust Bancorp, Inc. 2011 Annual Shareholders’ Meeting April 26 2011
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Information provided herein by CIBI contains “forward- looking,” information. CIBI 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: Community Trust franchise: 80 branches in three states
Pris ve pI I <meta gubanhabaaa Ad © Community Trust & Investment Office Serving customers in 80 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia
Slide 4: Expanding Our Banking Franchise
Expanding Our Banking Franchise Completed the acquisition of LaFollette First National Corporation on November 17, 2010 = Assets acquired - $183.6 million = Loans acquired - $118.6 million = Deposits acquired - $164.1 million = Cost of acquisition - $17.3 million = 4 offices — LaFollette Main, LaFol
Slide 5: Our Banking Franchise
Our Banking Franchise Central Region Loans - $547 million Deposits - $445 million * Danville + Lexington + Mt Sterling + Richmond + Versailles + Winchester South Central Region Loans - $498 million Deposits - $610 million + Campbellsville + LaFollette + Middleshoro + Mt. Vernon + Williamsburg Easter
Slide 6: Operational Challenges
Operational Challenges = Impact from National and Regional Economic Conditions Slow economic recovery Weak real estate market continuing National and regional unemployment rate remains high Increased regulation of the coal mining industry Decline in natural gas prices ooaoaaaa Deterioration in asset
Slide 7: 2010 Performance
2010 Performance
Slide 8: 2010 Performance Summary
2010 Performance Summary Goals Earnings $30 - $31 million EPS $1.98 - $2.04 per share Asset growth $155 - $195 million Loan growth $95 - $130 million Deposit growth $100 - $135 million Efficiency ratio 60% - 61% Shareholders’ equity $331 - $337 million Results $33.0 million $2.17 per share $269.2 mi
Slide 9: Shareholder Value
Shareholder Value
Slide 10: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.21 $1.22 — — ———a = — — — 2006 2007 2008 2009 2010 2011~ = 2010 cash dividends increased 0.8% = 4.3% compound growth rate for past five years = December 31, 2010 cash dividend yield was 4.21% *2011 is projected DPS ommunity Trust incorp, Inc
Slide 11: Shareholders' Equity
Shareholders’ Equity Gin millions) $338.6 = Shareholders’ equity has increased 19.9% during the past five years = 5.9% compound growth rate for the past five years = 2011 projected shareholders’ equity $360.8 million ommunity Trust incorp, Inc
Slide 12: Book Value Per Share
Book Value Per Share Tangible Common Equity /1. angible Assets 20.03 $20.46 $21.17 $22.16 $18.63 827% g37y%, 8.47% 8.26% 7.40% 44 62 a y 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 y AK jommunity Trust
Slide 13: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 $554.1 $414.2 $444.1 $426.0 if . | | 2006 2007 2008 20092010 2011 Price to Tangible Book Value 2006 2007 2008 2009 2010 2011 CTBI 2.93x 177K 2.29x 1.45x 1.63x 153x Peer 2.59x 1.85x 1.91x 1.03x 1.29x 1.25% All data is as of year-end except 2011 whi is
Slide 14: Comparison of Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CIBI, NASDAQ Stock Market (US), and NASDAQ Bank Stocks = An investment in CTBI stock on December 31, 2005 would have outperformed the NASDAQ Bank Stocks Index and the NASDAQ Composite at December 31, 2010 (Communit) Bancorp, Inc.
Slide 15: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index elemalleameon panics Return to Investors December 31, 2010 26.87% 23.85% 13.93% 6.12% 6.36% 4.48% 1-Year 3-Year 5-Year 10-Year = CTBI m@ Russell 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 30 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 4.3% Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index CTBI shareholde
Slide 17: Analyst Comments
Analyst Comments = “This well managed institution is getting through the banking crisis in much better shape than many other banks.” - Hilliard Lyons Rating: Buy = “We continue to view Community Trust as a high-quality franchise that deserves an above-peer multiple.” --Keefe, Bruyette & Woods Rating
Slide 18: 2010 Earnings Review
2010 Earnings Review
Slide 19: Earnings Per Share
Earnings Per Share $2.59 $2.42 $2.17 J 7 . | . —_ ——s — —— —————a — 2006 2007 2008 2009 2010 = EPS increased 30.7% = 2011 EPS projected at $2.58 per share ommunity Trust incorp, Inc
Slide 20: Return on Average Assets
Return on Average Assets 1.33% 1.23% 1.10% 1.03% 9 0.89% | en eo ' 0.29% oO. ri -0. ff 8 Ff a oe 2007 2008 2009 2010 mcCTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2010 for bank holding companies with consolidated assets of $3 billion to
Slide 21: Net Income
Net Income (in millions) 39.1 : $36.6 $33.0 $25.1 J J J | Zz ——— zn zm ——— m 2006 2007 2008 2009 2010 = 2011 projected net income $39.1 million ommunity Trust incorp, Inc
Slide 22: Revenues
Revenues (i millions) 160.2 $140.3 $142.6 sco |S J J | ' ' a] ms ms | x TE 2007 2008 2009 2010 = 2010 revenues increased 9.0% = 2011 projected revenues $173.8 million = Interest income lost from nonperforming loans and OREO - $4.6 million Community Trust , Inc
Slide 23: Noninterest Income
Noninterest Income as a % of Total Revenue (in millions) S414 $40.9 2% $36.6 $32.6 26% 24. 20% | race 2006 2007 2008 2009 2010 [me Noninterest Income —% of Total Revenue = 2010 noninterest income a Decreased gains on sales of loans ca $0.8 million decline in the fair value of our mortgage servicing
Slide 24: Net Interest Revenue
Net Interest Revenue Gin millions) $119.3 $107.8 406.0 $103.6 $105.5 ' _ — rn mn —_ Es 2007 2008 2009 2010 = 2010 increase in net interest revenue was $13.8 million a Net interest margin increased 30 basis points year over year a Average earning assets increased $131.3 million
Slide 25: Net Interest Margin
Net Interest Margin 4.02% arSGse 4.07% 2207 3.88% 3.78% 3.77% 3.69% 3.59% 3.57% 2006 2007 2008 2009 2010 [ = CTBI m Peer ] = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 39.51% 12/31/10 — (2.82)% = % of liabilities repricing a Within 30 days 21.
Slide 26: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expense as a % of Average Eaming Assets (in millions) $60.8 [== Net Noninterest Expense ——% of Earning Assets | Noninterest Expense G Efficiency Ratio in milli 5" in millions) CHAR $96.1 75% $80.4 2006 2007 2008 2009 2010 nterest Expense ——Efficiency Ratio __ Peer Peer data obtained
Slide 27: 2010 Balance Sheet Review
2010 Balance Sheet Review
Slide 28: Total Assets
Total Assets (in billions) $3.36 $2.97 $2.90 $2.95 2209. | 2006 2007 2008 2009 2010. = Total assets increased 8.7% during 2010 to $3.36 billion a Loan growth $169.4 million, including $118.6 million from LaFollette a Deposit growth $243.9 million, including $164.1 million from LaFollette a Investmen
Slide 29: Total Loans
Total Loans Loan Portfolio (in billions) $2.61 2. 5 $2.35 : Mix $2.17 $2.23 December 31, 2010 Consumer 19% Comm R/E 36% ee ee ae 2007 2008 2009 2010 R/E = 2011 projected loan growth $59.5 million Mortgage 29% ° Comm Other mmunity Trust incorp, Inc
Slide 30: Net Charge-offs
Net Charge-offs as a %of average loans 1.61% 1.45% 2006 2007 2008 2009 2010 CTBI Peer Loan Loss Reserve asa %of netloans 2.28% eer 2006 «©2007, «= 2008 «= 2009S 2010 Go eer Nonperfornming Loans as a % of total loans 2006 2007 2008 2009 2010 TBI eer Peer data obtained from the Federal Reserve Bank Ho
Slide 31: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.89 $2.64 $2.50 $2.45 $2.49 ee re an 2007 2008 2009 2010 an Total deposits including repurchase agreements are expected to increase $53.7 million in 2011 Total Deposits including Repurchase Agreements December 31, 2010 Repurchase Agreeme
Slide 32: 1st Quarter 2011 Review
1st Quarter 2011 Review
Slide 33: Net Income
Net Income (in millions) $9.2 $9.3 $8.6 $8.5 ; J J Mar '10 Jun ‘10 Sept ‘10 Dec '10 Mar ‘11 Community Trust
Slide 34: Net Income
Net Income a Net interest income a Increased $3.2 million year over year a Increased $1.3 million quarter over quarter = Provision for loan losses a Decreased $1.3 million year over year a Increased $0.4 million quarter over quarter = Noninterest income a Increased $1.0 million year over year a Decr
Slide 35: Noninterest Income
Noninterest Income Gin millions) $10.6 e130 $10.7 | .] J | J Mar "10 Jun ‘*10 Sept"10 Dec '10 Mar ‘*11 Q0-Q = Variance in fair value adjustments to mortgage servicing rights = Decreased deposit service charges = Increased trust revenue and gains on sales of loans Y-0-Y = Increased deposit service ch
Slide 36: Noninterest Expense
Noninterest Expense (in millions) oats $23.4 $23.7 $24.0 ' ' i cc ccc Mar'10 Jun'10 Sept'10 Dec'10 Mar'11 = $0.5 million loss in investments in limited partnerships that were offset by tax credits = Increases in legal and professional fees and repossession expense Community ‘Trust Bancorp, Inc
Slide 37: Total Loans
Total Loans (in billions) $2.61 $2.43 $2.44 $2.45 $2.59 = —— ———— —— <a — Mar'10 Jun'10 Sept"10 Dec "10 Mar "11 = Loan portfolio decreased at an annualized rate of 3.0% during the quarter = Loan growth from prior year 6.5% Community ‘Trust Bancorp, Inc
Slide 38: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.99 $2.72 $2.75 $2.76 $2.89 oo a a y «4 Tene 10 Jun'10 Sept'10 Dec ‘'10 Mar '11 = Deposits, including repurchase agreements, increased an annualized 12.9% from prior quarter and 9.9% from prior year
Slide 39: Nonperforming Loans
Nonperforming Loans as a % of Total Loans 2.55% 2.26% 2.31% 2.38% 920% P| y 7 y y _— Mar ‘10 Jun'10 Sept'10 Dec'10 Mar ‘11 MAormunity Trust
Slide 40: Nonperforming Assets
Nonperforming, Assets as a % of Total Asset 3.20% 2.96% 3.03% 3.13% 3.04% I) zz ye - mz: a Mar '10 Jun ‘10 Sept ‘10 Dec ‘10 Mar ‘11 Community Trust
Slide 41: Net Charge-offs
Net Charge-offs asa % of average loans 0.91% 0.63% 9 0.58% 0.54% a a - ] “Mar: 10 Jun‘'10 Sept'10 Dec'10 Mar'11 Community ‘Trust Bancorp, Inc
Slide 42: Efficiency Ratio
Efficiency Ratio 60.78% 59.45% 69-41% 59.52% 55 50% " a — a nn — —_ Mar'10 Jun‘'10 Sept'10 Dec'10 Mar‘'11 Community ‘Trust Bancorp, Inc
Slide 43: 2011 Key Strategic Initiatives
2011 Key Strategic Initiatives
Slide 44: CTBI 2011 Outlook
CIBE 2011 Outlook Net Income Earnings Per Share Asset Growth Loan Growth Deposit Growth Efficiency Ratio Shareholders’ Equity $39.1 million $2.58 per share $72.8 million $59.5 million $53.7 million 58.33% $360.8 million Community Trust
Slide 45: 2011 Initiatives and Challenges
QOI0 Initiatives and Challenges Working through asset quality issues during weak economics conditions Actions by the U.S. Government to manage the current economic crisis Focus on core banking businesses a Quality loan growth a Profitable deposit growth Management of our net interest margin Continui
Slide 46: CTBI's Franchise Value
CIBI's Franchise Value = History of solid investor returns = Community banking strategy = Growth and good financial performance in slow growth markets = Growth strategies Acquisitions De nova branches Trust subsidiary oooda Full service brokerage. = Strong experienced management team and 1,000 dedic
Slide 47: Shareholders
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, neig
Slide 48: Community Trust Bancorp, Inc.
Joommunity Trust’ Bancorp, Inc.
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