Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (2004)
38 slides from Community Trust Bancorp's investor presentation, 2004
Slide 1: Community Trust Bancorp, Inc. 2004 Analyst Presentation
Community Trust Bancorp, Inc. “A Century of Service” 2004 Analyst Presentation
Slide 2: Cautionary Statement
CAUTIONARY 2 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 th
Slide 3: Corporate Profile
3 Corporate Profile ¥ Total Assets of $2.5 billion ¥ Total Loans of $1.8 billion ¥ Total Deposits of $2.1 billion ¥ Total Equity of $226 million ¥ Total Market Capitalization of $391 million at 4/30/04 ¥ Market Price to Book Value 1.7x at 4/30/04 ¥ Dividend Yield of 2.8% ¥ EPS Consensus FY 12/04 $2.
Slide 4: Corporate Profile
4 Corporate Profile ¥ Headquarters Pikeville, KY ¥ 70 banking locations throughout eastern and central Kentucky ¥ 5 banking locations in southern WV
Slide 5: Executive Management Team
5 Executive Management Team ¥ Jean R. Hale 35 years Community Trust Bancorp, Inc. Vice Chairman, President and CEO ¥ Mark A. Gooch 23 years Community Trust Bank, Inc. President and CEO ¥ Tracy E. Little 30 years Community Trust and Investment Company President and CEO
Slide 6: Executive Management Team
6 Executive Management Team ¥ William Hickman III 17 years Executive Vice President/Staff Attorney ¥ Kevin J. Stumbo, CPA 17 years Executive Vice President/Controller ¥ James J. Gartner 19 years Executive Vice President/Chief Credit Officer 17 w/ OCC ¥ James B. Draughn 10 years Executive Vice Presid
Slide 7: Executive Management Team
7 Executive Management Team ¥ Michael S. Wasson 33 years EVP/Central KY Region President ¥ Richard W. Newsom 26 years EVP/Eastern Region President ¥ Ricky S. Sparkman 19 years EVP/South Central Region President ¥ Larry W. Jones 36 years EVP/Northern Region President Over 300 years of banking experie
Slide 8: Organizational History
8 Organizational History “A Century of Service” 1903 The Pikeville National Bank founded 1936 Pikeville National Bank & Trust Co. incorporated 1981 Formed Pikeville National Corporation 1987- Acquired 13 banks and purchased 17 branches 2002 1997 Changed name to Community Trust Bancorp, Inc. 1997- Me
Slide 9: Organizational Structure
9 Organizational Structure Community Trust Bancorp, Inc. Pikeville, KY Community Trust Bank, Inc. Community Trust and Investment Company Pikeville, KY Lexington, KY ¥ Community Trust Bank, Inc. Regional structure provides synergies ¥ Community Trust and Investment Company Assets under Management $84
Slide 10: A Century of Service
10 A Century of Service founded in 1903 100 years of increasing return to investors ¥ Initial public offering 1981 ¥ 12 stock splits ¥ 8 stock dividends, most recent on December 15, 2003 ¥ 23 years of consecutive increases in cash dividends ¥ 5-year Compound Growth Rate of cash dividend 8.3% ¥ Recog
Slide 11: Strategic Direction Operational Philosophy
11 Strategic Direction Operational Philosophy Mission Statement ¥ Offer industry competitive and profitable financial products ¥ Deliver “community bank” customer service ¥ Provide a productive work environment ¥ Remain a good corporate citizen CTBI’s operational philosophy supports our mission ¥ De
Slide 12: Financial Highlights
12 Financial Highlights
Slide 13: Performance Summary
13 Performance Summary 1st Qtr 2004 2003 2002 Earnings Per Share $0.54 $2.14 $2.01 Return on Average Assets* 1.18% 1.16% 1.12% Net Interest Margin* 4.09% 3.76% 4.02% Efficiency Ratio 58.53% 59.17% 57.29% Nonperforming Loans 1.01% 0.97% 1.39% Net Charge-offs* 0.38% 0.48% 0.63% As a % of Average Asset
Slide 14: Quarterly Net Income
14 Quarterly Net Income (in millions) $ 7 .5 $ 7 .3 $ 7 .0 $ 6 .5 $ 6 .3 $ 5 .5 $ 5 .1 $ 5 .2 $ 4 .5 $ 3 .5 M a r-0 0 M a r-0 1 M a r-0 2 M a r-0 3 M a r-0 4 ¥ Net interest income increased $2.2 million ¥ Noninterest revenue decreased $0.5 million ¥ Noninterest expense increased $0.6 million ¥ Provi
Slide 15: Earnings Per Share
15 Earnings Per Share $ 2 .4 0 $ 2 .2 7 $ 2 .1 4 $ 2 .0 1 $ 1 .5 5 $ 1 .6 0 $ 1 .4 8 $ 1 .6 0 $ 0 .8 0 $ 0 .5 4 $ 0 .0 0 1999 2000 2001 2002 2003 M a r-0 4 2004* ¥ Earnings per share increased 6.5% in 2003 ¥ Cumulative earnings per share growth is 15.4% during the last ten years ¥ Repurchased 214,24
Slide 16: Total Assets
16 Total Assets (in billions) $ 2 .6 0 $ 2 .5 7 $ 2 .5 0 $ 2 .4 9 $ 2 .4 7 $ 2 .4 6 $ 2 .4 0 $ 2 .2 6 $ 2 .1 8 $ 2 .2 0 $ 2 .0 0 1999 2000 2001 2002 2003 M a r-0 4 2004* ¥ All data is as of YE except 2004 which is as of 3/31/04 *2004 data is stated corporate goal
Slide 17: Total Loans
17 Total Loans (in billions) $ 2 .0 0 $ 1 .9 1 $ 1 .7 7 $ 1 .8 0 $ 1 .7 1 $ 1 .7 4 $ 1 .6 9 $ 1 .6 2 $ 1 .6 4 $ 1 .6 0 $ 1 .4 0 $ 1 .2 0 1999 2000 2001 2002 2003 M a r-0 4 2004* ¥ All data is as of YE except 2004 which is as of 3/31/04 *2004 data is stated corporate goal
Slide 18: Loan Portfolio Mix
18 Loan Portfolio Mix March 31, 2004 December 31, 1999 C onsu m er C onsu m er C om m R/E 2 6% 2 6% 30% C om m R/E 38% R/E R/E C om m M o rtg a g e Com m M o rtg a g e O th e r 22% O th e r 2 6% 18% 14%
Slide 19: Concentrations of Credit
Concentrations of Credit 19 >20% of Subsidiary Bank Capital March 31, 2004 50% A g r i c u lt u r a l 39% 41% 37% A p a rtm e n ts & R e n ta l 40% H o u sin g 27% C o al M in in g & 30% 24% 24% S u p p o rt H o t e l/ M o t e l 20% N o n -R e sid e n tia l R e a l E sta te R e n ta l 10% S i n g le
Slide 20: Net Charge-Offs
20 Net Charge-Offs as a % of Average Loans 0 .7 0 % 0 .6 5 % 0 .6 5 % 0 .6 3 % 0 .6 0 % 0 .5 1 % 0 .5 0 % 0 .4 8 % 0 .4 0 % 0 .3 8 % 0 .3 0 % 1999 2000 2001 2002 2003 M a r-0 4 ¥ 2004 data annualized ¥ Net charge-offs declined 24% during 2003 ¥ Continuing focus on asset quality
Slide 21: Nonperforming Loans
21 Nonperforming Loans as a % of Total Loans 2 .2 0 % 1 .9 7 % 1 .8 0 % 1 .5 4 % 1 .3 9 % 1 .4 0 % 1 .1 4 % 0 .9 7 % 1 .0 1 % 1 .0 0 % 0 .6 0 % 1999 2000 2001 2002 2003 M a r-0 4 ¥ All data is as of YE except 2004 which is as of 3/31/04 ¥ Nonperforming loans declined 25.7% during 2003
Slide 22: Loan Loss Reserve
22 Loan Loss Reserve as a % of Total Loans 1 .7 5 % 1 .5 5 % 1 .5 3 % 1 .5 0 % 1 .4 2 % 1 .4 2 % 1 .4 2 % 1 .4 2 % 1 .3 8 % 1 .2 5 % 1 .0 0 % 1999 2000 2001 2002 2003 M a r-0 4 2004* ¥ All data is as of YE except 2004 which is as of 3/31/04 *2004 data is stated corporate goal
Slide 23: Total Deposits
23 Total Deposits (including Repurchase Agreements) (in billions) $ 2 .3 0 $ 2 .2 4 $ 2 .2 1 $ 2 .1 8 $ 2 .1 6 $ 2 .1 4 $ 2 .1 0 $ 1 .9 8 $ 1 .9 1 $ 1 .9 0 $ 1 .7 0 1999 2000 2001 2002 2003 M a r-0 4 2004* ¥ All data is as of YE except 2004 which is as of 3/31/04 ¥ 17% growth during past 5 years ¥ S
Slide 24: Deposit Mix
24 Deposit Mix March 31, 2004 December 31, 1999 Repu rchase Repu rchase A greem en ts A greem en ts N o n in teres t 2% N o n in teres t 4% B earin g B earin g O ther Tim e 17% O ther Tim e 14% 6% NOW 6% 1% NOW C D s <$100K 13% C D s <$100K 28% M M DA 34% M M DA 18% 7% S av in gs S av in gs C D s >$
Slide 25: Total Revenue
25 Total Revenue (in millions) N o n in te re st R e v e n u e N e t In te rest R e ven u e $150 $ 1 3 1 .7 $ 1 2 1 .0 $ 1 1 7 .2 $120 $ 1 0 4 .8 $ 1 0 6 .9 $ 1 0 3 .8 $90 $60 $ 3 0 .7 $30 $ 3 6 .4 $ 3 6 .6 $ 2 7 .9 $ 2 1 .0 $ 2 3 .8 $ 1 9 .5 $0 $ 8 .0 1999 2000 2001 2002 2003 M a r-0 4 2004* ¥ All
Slide 26: Net Noninterest Expense
26 Net Noninterest Expense & as a % of Average Earning Assets $45 $ 4 3 .4 2 .3 0 % $ 4 2 .4 $ 4 1 .2 $ 4 0 .9 2 .2 % 2 .1 0 % $ 3 9 .4 $ 3 9 .2 $40 2 .1 % 1 .8 % 1 .8 % 1 .9 0 % 1 .7 % $ 3 4 .4 1 .7 % $35 1 .7 0 % 1 .5 % $30 1 .5 0 % 1999 2000 2001 2002 2003 M a r-0 4 * 2 0 0 4 ** N e t N o n in te
Slide 27: Noninterest Expense
Noninterest Expense 27 $78 $ 7 5 .8 $ 7 3 .2 $72 $ 7 0 .7 $ 6 7 .3 $66 $ 6 4 .4 $ 6 4 .9 $ 6 1 .9 $60 $54 1999 2000 2001 2002 2003 M a r-0 4 * 2 0 0 4 ** *Mar-04 Annualized **2004 data is stated corporate goal
Slide 28: Efficiency Ratio
Efficiency Ratio 28 62% 6 0 .1 % 6 0 .1 % 60% 5 9 .2 % 5 8 .5 % 5 8 .5 % 58% 5 7 .5 % 5 7 .3 % 56% 54% 1999 2000 2001 2002 2003 M a r-0 4 * 2 0 0 4 ** *As of 3/31/04 **2004 data is stated corporate goal
Slide 29: 2004 Corporate Goals
29 2004 Corporate Goals
Slide 30: 2004 Performance Goals
30 2004 Performance Goals Net Income $ 30.5 million Earnings Per Share $ 2.27 Loan Growth $ 173 million Deposit Growth $ 68 million Total Asset Growth $ 96 million Efficiency 57.54% ¥ Our corporate goal for net income for 2004 is $30.5 million…a 5.6% increase in net income from 2003 ¥ Our corporate
Slide 31: 2004 Performance Goals: Major Challenges
31 2004 Performance Goals Major challenges to achieving 2004 goals: ¥ Loan growth ¥ Net interest margin ¥ Noninterest income ¥ Asset quality ¥ Profitable deposit growth ¥ Sarbanes-Oxley 404 implementation
Slide 32: 2004 Opportunities
32 2004 Opportunities How we plan to meet 2004 corporate goals: ¥ Loan growth ¥ Mortgage brokerage division ¥ SBA and USDA government guaranteed lending ¥ Full service brokerage fee income ¥ Trust company ¥ Asset quality
Slide 33: 2004 Opportunities
33 2004 Opportunities ¥ Operational efficiencies ¥ Internal growth and expansion ¥ 2004 branch expansion u Frankfort branch opened in 1st quarter u London and Lexington branches scheduled to open in 4th quarter ¥ Stock repurchase program
Slide 34: CTBI's Return to Shareholders and Performance Compared to Other Stocks
34 CTBI’s Return to Shareholders and Performance Compared to Other Stocks
Slide 35: Dividends Per Share
35 Dividends Per Share $ 1 .0 0 $ 0 .9 2 $ 0 .9 0 $ 0 .8 2 $ 0 .8 0 $ 0 .7 1 $ 0 .7 0 $ 0 .6 7 $ 0 .6 2 $ 0 .5 9 $ 0 .6 0 $ 0 .5 0 1999 2000 2001 2002 2003 2004 ¥ Recognized by Mergent, Inc. as 2003 Dividend Achiever ¥ Cash dividends per share have increased on average greater than 8% per year durin
Slide 36: Comparison of 5 Year Cumulative Total Return
Comparison of 5 Year 36 Cumulative Total Return among Community Trust Bancorp, Inc., NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks $300 $200 $100 $0 1998 1999 2000 2001 2002 2003 C o m m u n it y T r u st B a n c o r p , I n c . N A SD A Q St o c k M a r k e t ( U .S.) N A SD A Q B a n k St o c
Slide 37: Comparison to Russell 2000 Index of small cap companies
Comparison to Russell 2000 37 Index of small cap companies Return to Investors March 31, 2004 9 .8 2 % 1 0 -Y e a r 1 0 .4 4 % 2 0 .1 8 % 5 -Y e a r 9 .6 6 % 4 0 .3 2 % 3 -Y e a r 1 0 .9 0 % 4 8 .2 0 % 1 -Y e a r 6 3 .8 2 % 1 0 .0 3 % Q tr 6 .2 6 % 0% 10% 20% 30% 40% 50 % 60 % 70% R u ssel l 2 0 0 0
Slide 38: Community Trust Bancorp, Inc.
38 Community Trust Bancorp, Inc. “Building Communities . . . Built on Trust”
Community Trust Bancorp — Investor Presentation (2004) on 6ix