Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2010)
47 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 27, 2010
Slide 1: 2010 Annual Shareholders' Meeting
2010 Annual Shareholders’ Meeting April 27, 2010
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: Our Banking Franchise
Our Banking Franchise © Community Trust Bank Branch Office © Community Trust & Investment Office Serving 76 branch locations in 33 counties throughout Kentucky and West Virginia
Slide 4: Operational Challenges 2009
2009 Operational Challenges = Impact from National Economic Crisis Continued deterioration of the U.S. economy Federal government working to stabilize the U.S. economy World economy still in crisis FDIC special assessments Increasing regulatory changes Deterioration of real estate values 135 bank fa
Slide 5: Operational Challenges 2010
Operational Challenges 2010 = Economic conditions remain weak = Unemployment remains high = Regulatory changes a Deposit overdraft fees a FDIC insurance a Unknown results of proposed regulatory reform = Reduction of past due loans = Reduction of other real estate owned = Increasing fee revenue with
Slide 6: 2009 Performance
2009 Performance
Slide 7: Strategic Plan for 2009
Strategic Plan for 2009 What were our goals? Net income of $25 - $29 million Earnings per share of $1.66 - $1.90 per share Asset growth of $95 - $115 million Loan growth of $35 - $75 million Deposit growth of $50 - $70 million Efficiency ratio of 61% - 66% Shareholders’ equity of $314 -$335 million
Slide 8: 2009 Performance Summary
2009 Performance Summary What were the results of executing our plan? = Earnings of $25.1 million = EPS of $1.66 per share = Asset growth of $132.1 million = Loan growth of $87.1 million = Deposit growth of $130.4 million = Efficiency ratio of 63.56% = Shareholders’ equity of $321.5 million
Slide 9: Shareholder Value
Shareholder Value
Slide 10: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.20 2005 2006 2007 2008 2009 2010 = 2009 cash dividends increased 2.6% = 6.7% compound growth rate for past five years = December 31, 2009 cash dividend yield was 4.91% *2010 is projected DPS
Slide 11: Shareholders' Equity
Shareholders’ Equity = Shareholders’ equity has increased 26.6% during the past five years = 6.4% compound growth rate for the past five years = 2010 projected shareholders’ equity $331 - $337 million
Slide 12: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 $467.9 2005 2006 2007 2008 2009 2010 All data is as of year-end except 2010 which is based upon stock price on April 23, 2010
Slide 13: Comparison of Year 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, 2004 would have outperformed the NASDAQ Bank Stocks Index and the NASDAQ Composite at December 31, 2009
Slide 14: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index ofamral leasconinanies Return to Investors December 31, 2009 27.16% 1-Year 3-Year 5-Year 10-Year = CTBI m Russell 2000 ® 3-,5-, and 10-year total returns annualized
Slide 15: Historic Investment Returns
Historic Investment Returns Core value long-term investment Formation of bank holding company in 1981 12 stock splits 9 stock dividends 29 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 6.7% Stock included in the NASDAQ Global Select Market, NASDAQ Div
Slide 16: 2009 Earnings Review
2009 Earnings Review
Slide 17: Earnings Per Share
Earnings Per Share $2.59 $2.31 eas $1.54 Suse 2005 2006 2007 2008 2009 EPS increased 7.8% Pro forma EPS excluding the FDIC special assessment - $1.74 per share 2010 EPS projected at $1.98 - $2.04 per share
Slide 18: Return on Average Assets
Return on Average Assets 1.33% 1.23% 1.10% 9 es a | 0.28% | 0.16% 2005 2006 2007 2008 2009 m=cCTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2009 for bank holding companies with consolidated assets of $: n to $10 billion.
Slide 19: Net Income
Net Income (in millions) $39.1 $25.1 2009 = 2010 projected net income $30 - $31 million
Slide 20: Net Income
Net Income Increased provision for loan losses Increased FDIC insurance premiums and special assessment Increased noninterest income impacted by $14.6 million OTTI charge in 2008 Increased legal and repossession fees Lower net interest margin a 3.77% vs. 3.88% a §Syear historical average 3.92%
Slide 21: Revenues
Revenues (in millions) 140.3 $142.6 $146.9 $136.7 $ HOES 2005 2006 2007 2008 2009 = 2009 revenues increased 17.2% = 2010 projected revenues $159 - $161 million = Interest income lost from nonperforming loans and OREO - $3.6 million
Slide 22: Noninterest Income
Noninterest Income as a % of Total Revenue (in millions) 2% $21.4 $36.6 poe $32.6 26% 4 7 Pa ras $21.8 — 20% | sacs 2005 2006 2007 2008 2009 m= Noninterest Income % of Total Revenue = 2009 noninterest income a Increase due to OTTI charge in 2008 a Increased gains on sales of loans a Increased loan r
Slide 23: Net Interest Revenue
Net Interest Revenue (in millions) $103.2 $107.8 $106.0 $103.6 $105.5 2005 2006 2007 2008 2009 = 2009 increase in net interest revenue was $1.9 million a Netinterest margin decreased 11 basis points year over year a Average earning assets increased $127.6 million
Slide 24: Net Interest Margin
Net Interest Margin 2005 2006 2007 2008 2009 { = CTBI m Peer ] = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 37.18% 12/31/09 -4.74% = —% of liabilities repricing a Within 30 days 20.49% a Within 90 days 29.66% a Within 180 days 39.78% Peer data
Slide 25: Net Noninterest Expense and Efficiency Ratio
Net Noninterest Expense as a % of Average Eaming Assets Gn millions) $60.8 2.30% $52.4 2.10% $45.1 oer bea" : 1.90% ae : + 1.50% 2005 2006 2007 2008 2009 [w= Net Noninterest Expense __*% of Earning Assets | Noninterest Expense G Efficiency Ratio (in millions) ons pak 70% $78.6 Eon 0% 55% + 50% 2005
Slide 26: 2009 Balance Sheet Review
2009 Balance Sheet Review
Slide 27: Total Assets
Total Assets (in billions) $2.85 $2.97 $2.90 $2.95 eo, = Total assets increased 4.5% during 2009 to $3.09 billion a Loan growth $87.1 million a Deposit growth $130.4 million a Investment portfolio decline $8.4 million = Total assets are expected to increase $155 - $195 million in 2010
Slide 28: Total Loans
Total Loans (in billions) $2.44 $2.35 s21 $2.17 $228 2005 2006 2007 2008 2009 2010 projected loan growth $95 - $130 million Loan Portfolio Mix December 31, 2009 Consumer 22% Comm R/E 35% R/E Mortgage 27% Comm Other 16%
Slide 29: Net Charge-offs
Net Charge-offs as a %of average loans 158% Nonperfonning Loans as a % of total loans 4.20% A, CRE ae Loan Loss Reserve 0.66% as a % of net loans 052% 0.56% 2005 2006 2007 2008 2009 1.27% 1.26% 1.311 1.20% Moh Ph ace "CTBI mPeer Peer data obtained from the Federal Reserve Bank Holding Company Perfor
Slide 30: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.64 $250 945 $2.49 $2.38 2005 2006 2007 2008 2009. = Total deposits including repurchase agreements are expected to increase $100 - $135 million in 2010 Total Deposits including Repurchase Agreements December 31, 2009 Repurchase Agreemen
Slide 31: 1st Quarter 2010 Review
1st Quarter 2010 Review
Slide 32: Net Income
Net Income (in millions) Mar '0 Jun'0 Sept ‘09 Dec '0 Mar ‘10
Slide 33: Net Income
Net Income a Net interest income a Increased $4.9 million year over year a Increased $0.8 million quarter over quarter = Provision for loan losses a Increased $3.7 million year over year a Increased $0.5 million quarter over quarter = Noninterest income a Decreased $1.0 million year over year a Decr
Slide 34: Noninterest Income
Noninterest Income $11.0 $10.5 $9.2 | 1 . i ui ' sl i - Jun "OS Sept "09 Dec "09 Mar "10 $9.7 Q0-Q = Decreased service charge revenue and loan related fees Y¥-0-Y = Decreased gains on sales of loans = Decreased securities gains = Increased trust revenue, deposit service charges, and loan related fee
Slide 35: Noninterest Expense
Noninterest Expense (in millions) $22.4 $23:6 $22.6 aoe $23.4 Mar'og Jun'OS Sept'OoOSs Dec'O9 Mar'10 Q0-Q = Decreased other real estate owned expenses Y¥-0-Y = Decreased FDIC insurance premiums
Slide 36: Total Loans
Total Loans (in billions) $2.34 $2.38 $2.40 $2.44 $2.43 - il Mar'oSs Jun'OS9 Sept "09 Dec "09 Mar "10 = Loan portfolio decreased at an annualized rate of 1.1% during the quarter = Loan growth from prior year 4.0%
Slide 37: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.53 $2.55 $2.58 $2.64 $2.72 Mar '09 Jun'09 Sept'09 Dec 'O9 Mar '10 = Deposits, including repurchase agreements, increased an annualized 11.4% from prior quarter and 7.3% from prior year
Slide 38: Nonperforming Loans
Nonperforming Loans as a % of Total Loans 0, 2.23% 250% 2.28% Mar ‘09 Jun‘09 Sept'09 Dec '09 Mar ‘10
Slide 39: Net Charge-offs
Net Charge-offs asa % of average loans 0.87% Mar'O9 Jun'O9 Sept'09 Dec'09 Mar '10
Slide 40: Efficiency Ratio
Efficiency Ratio 67.99% 64.25% 61.67% 60.74% 59.45% Mar '0S Jun'OS Sept'09 Dec'09 Mar‘'10
Slide 41: 2010 Key Strategic Initiatives
2010 Key Strategic Initiatives
Slide 42: CTBI: 2010 Outlook
CTBI: 2010 Outlook Net Income Earnings Per Share Asset Growth Loan Growth Deposit Growth Efficiency Ratio Shareholders’ Equity $30 - $31 million $1.98 - $2.04 per share $155 - $195 million $95 - $130 million $100 - $135 million 60% - 61% $331 - $337 million
Slide 43: 2010 Operational Initiatives
2010 Operational Initiatives Attaining our 2010 corporate goals = Working through asset quality issues = Focus on core banking businesses = Management of our net interest margin = Continuing focus on expense control = Internal growth and expansion through new branches and acquisitions = Continued ex
Slide 44: 2010 Operational Challenges
2010 Operational Challenges Major impacts on 2010 corporate goals = Economic conditions within our markets = Actions by the U.S. Government to manage the current economic crisis = Asset quality = Loan growth = Net interest margin = Noninterest income = Profitable deposit growth driven by liquidity n
Slide 45: CTBI's Franchise Value
CTBI'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 Full service brokerage oagoada Strong experienced management team and 1,000 dedicated empl
Slide 46: 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 47: Community Trust Bancorp, Inc.
Za Community Trust Bancorp, Inc. Sowing Our Communitios for 106 Years!
Community Trust Bancorp — Shareholder Meeting (April 2010) on 6ix