Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (February 2012)
38 slides from Community Trust Bancorp's investor presentation, Feb 27, 2012
Slide 1: Community Trust Bancorp, Inc. Investor Presentation
Aoommunity Trust Bancorp, Inc. 202 Investor Presentation NASDAQ: CIBI www.ctbi.com February 2012
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 $366.9 million = Dividend Yield 4.21% = Total Market Capitalization $454.0 million = P/E Ratio 11.58x Financial data as of December 31, 2011
Slide 4: Corporate History
1903 1987-2005 1997 2010 Presently Corporate History Pikeville National Bank founded Acquired 14 banks and purchased 17 branch locations Changed name to Community Trust Bancorp, Inc. Acquired LaFollette First National Corporation Two operational subsidiaries~ Community Trust Bank, Inc. and Community
Slide 5: Branch locations in Kentucky, Tennessee and West Virginia
awatanineCane: Subanithaasésn Serving customers in 80 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia, including 5 trust offices in Kentucky and Tennessee
Slide 6: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $553 million Loans - $837 million Loans - $328 million Deposits - $560 million Deposits - $1.3 billion Deposits - $548 million * Danville + Floyd/Knott/Johnson + Advantage Valley + Lexington + Hazard + Ashland + Mt Sterl
Slide 7: Market Analysis
Market Analysis Competitive Position a Largest Kentucky domiciled bank holding company Q #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions a 6 largest bank in Kentucky in terms of deposit market share of all FDIC insured institutions Community Banking Model E
Slide 8: Executive Management Team
Executive ManagementTeam Name Position Experience Jean R. Hale Chairman, President and CEO 42 years 42 Mark A. Gooch CTB President and CEO 30 years 30 Andy Waters CTIC President and CEO 25 years 8 Kevin J. Stumbo EVP/Controller 25 years 17 Steven E. Jameson EVP/Risk Manager 26 years 7 James J. Gartn
Slide 9: Operational Philosophy
Operational Philosophy Traditional community banking business model Executive management and board of director commitment to corporate governance Decentralized decision making and centralized operations and risk management Strong loan portfolio risk management process Specialized product offerings M
Slide 10: Operational Priorities
Operational Priorities Continuing focus on improving asset quality Liquidation of other real estate owned Increase noninterest income a Wealth management a Brokerage Maintain net interest margin Expense control Build core earnings capacity
Slide 11: Performance Summary
Performance Summary 2011 2010 2009 2008 2007 EPS $2.54 $2.17 $1.66 $1.54 $2.42 ROAA 1.11% 1.03% 0.82% 0.79% 1.23% ROAE 10.91% 9.90% 7.89% TA8B% 12.45% Net Int. Margin 4.13% 4.07% 3.77% 3.88% 3.90% Efficiency Ratio 60.23% 59.45% 63.56% 58.39% 57.62% Nonperf. Loans 1.46% 2.38% 1.70% 2.22% 1.43% Net Ch
Slide 12: Earnings Review
Earnings Review
Slide 13: Earnings Per Share
Earnings PerShare $2.42 $2.54 $2.17 1.66 J J - J aa a ee! a a — 2007 2008 2009 2010 2011 = EPSincreased 17.1% = 2012 EPS goal — $2.55 to $2.71 per share
Slide 14: Net Income
Net Income (in millions) 38.8 $36.6 . $33.0 J ' ' <a a SSS Ts re m= 2007 2008 2009 2010 2011 = 2012 goal for net income — $39.5 to $42.0 million
Slide 15: Revenues
Revenues (in millions) $175.3 $160.2 $142.6 $146.9 J J J ' ae | | az a a 2007 2008 2009 2010 2011 = 2011 revenues increased 9.4% = Interest income lost from nonperforming loans and OREO - $4.5 million = 2012 goal for revenues — $176 to $186 million
Slide 16: Noninterest Income
Noninterest Income ee Getler Revere 41. $43.8 < $40.9 32% 26% 20% | sae 2007 2008 2009 2010 2011 [me Noninterest Income — % of Total Revenue = 2011 noninterest income a Increases in gains on sales of loans, deposit service charges, trust revenue, and securities gains a Decreased loan related fees =
Slide 17: Net Interest Revenue
Net Interest Revenue (a millions) $131.5 $119.3 $106.0 $103.6 $105.5 ' ' a a —— a —_ rae 2008 2009 2010 2011 = 2011 increase in net interest revenue 10.2% ao Netinterest margin improved 6 basis points year over year a Average earning assets increased $259.7 million, including acquisition Jommunity T
Slide 18: Net Interest Margin
Net Interest Margin 4.13% A.OT% 3.90% 3.88% AgHRDS 3.78% cy a Ge 3.69% aces Oe) 3.57% 2007 2008 2009 2010 2011 [ = CTBI m Peer ] = Pressure on the margin = % ofassets repricing = 1-year cumulative gap position at a Within 30 days 38.90% 12/31/11 — (4.85)% = % ofliabilities repricing a Within 30 days
Slide 19: Net Noninterest Expense and Efficiency Ratio
Net Noninterest Expense asa % of AverageEaming Assets (in millions) 2.30% 2.10% 1.90% 1.70% + 1.50% 2007 2008 2009 2010 2011 [=e Net Noninterest Expense —— % of Earning Assets | Noninterest Expense & Efficiency Ratio (in millions) 2808 +. $106.4 2007 2008 2009 2010 2011 w= Noninterest Expense — Effi
Slide 20: Return on Average Assets
Return on Average Assets 1.23% 1.11% 1.03% 0.89% 0.79% pees 0.79% | 0.25% 0.13% 0.18% 2007 2008 2009 2010 2011 = CTBI 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 billion. Dec ‘11
Slide 21: Balance Sheet Review
Balance Sheet Review
Slide 22: Total Assets
Total Assets (in billions) St.59: $3.36 $2.90 $2.95 ' I) J 2007 2008 2009 2010 2011 = Total assets have increased 7.0% from 12/31/2010 O Loans declined $48.6 million or 1.9% a Investment portfolio growth $188.7 million or 55.5% a Deposit growth $201.1 million or 6.9% = 2012 goal for total assets — $
Slide 23: Total Loans
Total Loans apm Loan Portfolio (i billions) $2.61 $0.56 Mi $2.35 $204 1x $2.23 December 31, 2011 Consumer 18% Comm R/E 36% re ee ee 2007 «2008 «= 2009S «2010S 2011 R/E = 2012 goal for total loans — $2.6 to $2.8 Mortgage million 31% Comm Other 15%
Slide 24: Concentrations of Credit
Concentrations of Credit asa % of Total Loans December 31, 2011 7 3.00% a + 2.50% + 2.00% + 1.50% S119 $104M + 1.00% 4.6% 4.0% : + 0.50% — 0.00% Apartments & Rental Housing Hotel/Motel Non-Residential Real Estate Rental "=" Concentrations ——Nonperforming Loans* _. Net Losses* * As a percentage of fu
Slide 25: Net Charge-offs
Net Charge-offs asa % of averageloans 1.61% 1.46% 0.94% 0.70% 0.66% —E 0.53% ME 0.58%! 0.27%, 2-28% 29 24% 2007 2008 2009 2010 2011 CTBI Peer Consumer 20% Residential! 13% ‘Commercial 67% December 31, 2011 Nonperforming Loans asa % of totalloans 420% 2009 2010 2014 TBI Peer Peer data obtained from t
Slide 26: Nonperforming Assets
Nonperforming Assets asa% of Total Assets ee 2007 2008 2009 2010 2011 ee 3 1.34 1.34%) 13 12% = $57.0 million in other real estate owned i Loan Loss Reserve 1.26% 2007 asa % ofnetloans 227% 924% 2008 2009 2010 mCTBI mPeer 2.08% i 2011
Slide 27: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $3.10 $2.89 $2.64 $2.45 $2.49 J 4_ 4. 4. lu 2007 2008 2009 2010 2011 = 2012 goal for total deposits including repurchase agreements — $3.1 to $3.3 million Total Deposits including Repurchase Agreements December 31, 2011 Repurchase Agreemen
Slide 28: Shareholder Value
Shareholder Value
Slide 29: Dividends Per Share
DividendsPer Share $1.17 $1.20 $1.21 $1.23 $1.24 2007 2008 2009 2010 2011 2012~ = 2011 cash dividends increased 1.7% = 3.2% compound growth rate for past five years December 31, 2011 cash dividend yield was 4.21% Cash dividend increased to $0.31 per share effective October 1, 2011 *2012is projectedD
Slide 30: Shareholders' Equity
Shareholders’ Eguity (in millions) $366.9 = 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
Slide 31: Book Value Per Share
Book Value Per Share Tangible Common 123.78 $22.08 ; $21.15 . : oe Eg uity/T. angible Assets LULL ! ! ! 8.27% 8.37% 8.47% 8.26% 8.52% in saa ona a 2008 2009 2010 2011 l 2007 2008 2009 2010 2011 nmunity Trust
Slide 32: Total Market Capitalization
Total Market Capitalization (in millions) $554.1 $454.0 $414.2 $444.1 ) 7 a J — —— — —= —= — 2007 2008 2009 2010 2011 Price to Tangible Book Value 2007 2008 2009 2010 2014 cTBI 1.17x 2.29x 1.45 1.63x 1.51x Peer 1.85x 1.91x 1.03x 1.29x 1.19x All data is as of year-end. Peer data obtained from SNL Fin
Slide 33: Five-Year Cumulative Total Return Comparison
Comparison of D Year Cumulative Total Return among CIBI, NASDAQStock Market (US),and NASDAQBank Stocks 2010 = An investment in CTBI stock on December 31, 2006 would have outperformed the NASDAQ Bank Stocks Index but not the NASDAQ Composite at December 31, 2011
Slide 34: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index ofsmall capcompanies Return to Investors December 31,2011 15.64% 8.99% ee 5.64% = 0.15% i — ee -2.84% -2.68% ~4.19% 1-Year 3-Year 5-Year 10-Year ™ CTBI = Russell 2000 © 3-,5-, and 10-year total returns annualized
Slide 35: Core Value Long-Term Investment
Core Value Long-Term Investment = 12stock splits and 9 stock dividends = 31 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 = CTBI s
Slide 36: Analyst Comments
Analyst Comments = “Since CTBI’s fundamentals have been better than most of the group’s averages we believe the stock deserves to trade at a better than historical valuation.” — Hilliard Lyons, January 2012 Rating: Neutral = “CTBI finishes 2011 as Premier Kentucky Bank...We believe investors sought
Slide 37: CTBI's Franchise Value
CIBIs Franchise Value = History of solid investor returns = Community banking strategy = Growth and good financial performance in slow growth markets = Growth strategies Acquisitions De novo branches oog Trust subsidiary a Full service brokerage = Strong experienced management team and 1,000 dedicat
Slide 38: Community Trust Bancorp, Inc.
Z Community Trust’ Bancorp, Inc.
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