Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2011)
38 slides from Community Trust Bancorp's investor presentation, Nov 9, 2011
Slide 1: Community Trust Bancorp 2011 Investor Presentation
Aoommunity Trust Bancorp, Inc. 2011 Investor Presentation NASDAQ: CIBI www.ctbi.com November 2011
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 $361.3 million = Dividend Yield 5.32% = Total Market Capitalization $359.0 million Financial data as of September 30, 2011 unless otherwise noted.
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 footprint across 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- $556 million Loans - $830 million Loans - $332 million Deposits - $542 million Deposits - $1.3 billion Deposits - $530 million * Danville + Floyd/Knott/Johnson + Advantage Valley + Lexington + Hazard + Ashland + Mt Sterli
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 24years q Kevin J. Stumbo EVP/Controller 24years 16 Steven E. Jameson EVP/Risk Manager 26 years 7 James J. Gartner
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 $1.89 $2.17 $1.66 $1.54 $2.42 ROAA 1.11% 1.03% 0.82% 0.79% 1.23% ROAE 10.99% 9.90% 7.89% TA8B% 12.45% Net Int. Margin 4.18% 4.07% 3.77% 3.88% 3.90% Efficiency Ratio 60.25% 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 $2.59 $2.42 2.7 : $1.89 ag KD J $1.56 ' aan a a) a a —_ -_ a a 2006 2007 2008 2009 2010 Sept'10 —_Sept'11 = EPSincreased 30.7% = 2011 EPS goal — $2.56 to $2.65 per share
Slide 14: Net Income
Net Income (in millions) $39.1 $36.6 $28.9 $33.0 $23.8 $25.1 $23.1 ' ! -: mz a a am a az, yt v4 2006 2007 2008 2009 2010 Sept 10 Sept '11 = 2011 goal for net income — $39 to $41 million
Slide 15: Revenues
Revenues (in millions) $160.2 $174.9 $140.3 $142.6 $146.9 J J ' | ' a a ae a a a —_ 2006 2007 2008 2009 2010 Sept'11 = 2010 revenues increased 9.0% = Interest income lost from nonperforming loans and OREO - $4.6 million = 2011 goal for revenues — $174 to $178 million *Sept ‘11 annualized Sommunity T
Slide 16: Noninterest Income
Noninterest Income ee Getler Revere (in millions) $41.4 $40.9 Case ko oace 26% 20% | ace 2006 2007 2008 2009 2010 Sept'11 [me Noninterest Income — % of Total Revenue = YTD September 2011 noninterest income a Increases in deposit service charges and trust revenue a Decreased gains on sales of loans a
Slide 17: Net Interest Revenue
Net Interest Revenue (i millions) $131.8 $119.3 $107.8 $106.0 e036 $105.5 ' ' an Te a Te a a —_ 2006 2007 2008 2009 2010 = Sept 11 = YTD 2011 increase in net interest revenue 12.0% ao Netinterest margin improved 13 basis points year over year a Average earning assets increased $247.7 million, includ
Slide 18: Net Interest Margin
Net Interest Margin 4.18% 4.02%. 4.07% "3.99% 3.90% 3.88% fl hh | -69% Le “zooe 2007 2008 2009 2010 Sept “41 [ = CTBI m Peer ] = Pressure on the margin = % ofassets repricing = 1-year cumulative gap position at a Within 30 days 39.45% 9/30/11 — (5.67) % = % ofliabilities repricing a Within 30 days 2
Slide 19: Net Noninterest Expense and Efficiency Ratio
Net Noninterest Expense asa % of AverageEaming Assets (in millions) 2.30% $90.8 $63.2 2.10% 1.90% 1.70% + 1.50% 2006 2007 2008 2009 2010 Sept'11 [eR Net Noninterest Expense ——% of Earning Assets | Noninterest Expense & Efficiency Ratio (in millions) 2808 = $106.3 TO0% 65% 60% 55% + 50% 2006 2007 200
Slide 20: Return on Average Assets
Return on Average Assets 1.33% 2006 2007 2008 2009 2010 Sept = 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. Sept’11 compared to Jun "11 peer data. Jommunity Trust neor
Slide 21: Balance Sheet Review
Balance Sheet Review
Slide 22: Total Assets
Total Assets (in billions) $3.36 23-56 $2.97 $2.90 $2.95 %3-09 ' J 2006 2007 2008 2009 2010 Sept “44 = Total assets have increased an annualized 8.0% from 12/31/2010 oO Loans declined $31.6 million or an annualized 1.6% a Investment portfolio growth $124.9 million or an annualized 49.1% a Deposit gr
Slide 23: Total Loans
Total Loans apm Loan Portfolio (i billions) $261 g57 $2.35 sau Mix e247 3223 September 30, 2011 Consumer 19% Comm R/E “a Fm! ret a, yam a, a 36% 2006 2007 2008 2009 2010 Sept 11 R/E = 2011 loan growth goal — $25 to $40 million Mortgage 30% Comm Other 15%
Slide 24: Concentrations of Credit
Concentrations of Credit asa % of Total Loans September 30, 2011 7 3.00% + 2.50% + 2.00% + 1.50% S119 $108 M + 1.00% 4.6% 4.2% ‘ + 0.50% ~ 0.00% Apartments & Rental Housing Hotel/Motel Non-Residential Real Estate Rental "=" Concentrations © ——Nonperforming Loans* _. Net Losses* * As a percentage of
Slide 25: Net Charge-offs and Nonperforming Loans
Net Charge-offs asa % of averageloans “2006 2007 2008 2009 +2010 Sept 44 CTBI Peer Consumer 19% Residential 15% ‘Commercial 66% September 30, 2011 Nonperforming Loans asa % of totalloans 420% 403% ant 1.70%6| =“ 8% 085% 2008 2010 Sept 11 CTBI Peer Peer data obtained from the Federal Reserve Bank Hol
Slide 26: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assets asa % of Total Assets 2006 2007 2008 2009 2010 Sept 41 $58.0 million in other real estate owned Loan Loss Reserve asa % ofnetloans 226% ZO THR 152% 1.27% 1.26% 131% 1.34% BT 349 36% 1.17% Li 2006 2007 2008 2009 2010 Sept 14 CTBI Peer Jommunity Trust neorp, Inc
Slide 27: Total Deposits
Total Deposits including Repurchase Agreements $2.89 (in billions) $3.04 $2.64 $2.50 go 45 $2.49 ! 4__ 4 464 ae 2006 «2007 =2008 2009 =2010 Sept'11 = 2011 growth in total deposits including repurchase agreements goal — $30 to $50 million Total Deposits including Repurchase Agreements September 30, 2
Slide 28: Shareholder Value
Shareholder Value
Slide 29: Dividends Per Share
DividendsPer Share $1.17 $1.20 $1.21 $1.23 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% Cash dividend increased to $0.31 per share effective October 1, 2011 *2011 is projected DPS
Slide 30: Shareholders' Equity
Shareholders’ Eguity (in millions) $361.3 $338.6 $321.5 = Shareholders’ equity has increased 19.9% during the past five years = 5.9% compound growth rate for the past five years = 2011 goal for shareholders’ equity — $358 to $361 million
Slide 31: Book Value Per Share
Book Value Per Share Tangible Common $20.46 $21.17 . 4 s1a.63 $2009 Eguity/Tangible Assets , 8.47% 827% 837% 3.26% 944% 7.40% 44a ae 2006 2007 +2008 ©2009-2010 Sept 11 2006 2007 «2008 «= 2009-2010 Sept ‘11 nmunity Trust
Slide 32: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 $554.1 $414.2 pied ' $371.7 | $359.0 2006 2007 2008 2009 2010 2011 Price to Tangible Book Value 2006 2007 2008 2009 2010 2011 CTBI 2.93x 1.77x 2.29x 1.45x 1.63x 1.22x Peer 2.59x 1.85x 1.91x 1.03x 1.29x 1.44x All data is as of year-end except 2011 whic
Slide 33: Five Year Cumulative Total Return
Comparison of D Year Cumulative Total Return among CIBI, NASDAQStock Market (US),and NASDAQBank 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
Slide 34: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index ofsmall capcompanies Return to Investors September 30, 2011 1-Year 3-Year 5-Year 10-Year [= CTBI m 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 4.3% = 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 = “Hilliard Lyons recommends the purchase of CTBI for investors seeking current income and capital appreciation.” —Hilliard Lyons, October 2011 Rating: Buy = “All said, we believe the stock is a strong core holding in the SMI-cap universe for investors looking for a bank with low vo
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 nova 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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