Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (July 2012)
39 slides from Community Trust Bancorp's investor presentation, Jul 31, 2012
Slide 1: Community Trust Bancorp, Inc. Investor Presentation
Aoommunity Trust Bancorp, Inc. 202 Investor Presentation NASDAQ: CIBI www.ctbi.com July 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 $387.3 million = Dividend Yield 3.70% = Total Market Capitalization $521.4 million = P/E Ratio 10.67x Financial data as of June 30, 2012
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: Regional Economic Diversity
Regional Economic Diversity Central Region Loans - $549 million Deposits - $606 million * Danville + Lexington + Mt Sterling + Richmond + Versailles + Winchester South Central Region Loans - $491 million Deposits - $669 million + Campbellsville + LaFollette + Middleshoro + Mt. Vernon + Williamsburg
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 43 years 43 Mark A. Gooch CTB President and CEO 3iyears 31 Andy Waters CTIC President and CEO 25 years 8 Kevin J. Stumbo EVP/Controller 25 years 17 Steven E. Jameson EVP/Risk Manager 27years 8 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 Build core earnings a Quality loan growth a Low cost deposit growth Increase noninterest income a Wealth management a Brokerage Maintain net interest margin Expense control
Slide 11: Consistent Financial Performance
Consistent Financial Performance YTD 2012 2011 2010 2009 2008 EPS $1.56 $2.54 $2.17 $1.66 $1.54 ROAA 1.34% 1.11% 1.03% 0.82% 0.79% ROAE 12.75% 10.91% 9.90% 7.89% TA8% Net Int. Margin 3.99% 4.13% 4.07% 3.77% 3.88% Efficiency Ratio 56.33% 60.23% 59.45% 63.56% 58.39% Nonperf. Loans 1.39% 1.46% 2.38% 1.
Slide 12: Earnings Review
Earnings Review
Slide 13: Earnings Per Share
Earnings PerShare $2.42 $2.54 $2.17 $1.66 $1.56 $1.54 J J : f a. a i a —_— — — 2007 2008 2009 2010 2011 Jun'41 Jun 12 = YTD EPS increased 31.1% from 6/30/11 to 6/30/12 = EPSincreased 17.1% from 2010 to 2011 = 2012 EPS goal — $2.55 to $2.71 per share
Slide 14: Net Income
Net Income (in millions) $38.8 $36.6 $33.0 $24.1 $23.1 pa ! $18.3 J am —Z a am a 7 “2007 2008 2009 2010 2011 at aT = 2012 YTD net income increased 31.9% from 6/30/11 = 2012 goal for net income — $39.5 to $42.0 million
Slide 15: Revenues
Revenues (in millions) $175.3 $178.0 $160.2 $142.6 $146.9 $125.4 J J —_ a — ——=a ——s — —_ 2007 2008 2009 2010 2011 Jun ‘12 = YTD 2012 revenues increased 1.7% from 6/30/11 = 2011 revenues increased 9.4% from 2010 = Interest income lost from nonperforming loans and OREO - $4.5 million = 2012 goal for
Slide 16: Noninterest Income
Noninterest Income ee Getler Revere (in millions) 32% 26% 20% | sa%e 2007 2008 2009 2010 2011 Jun'12 (mEINGHInesrSeennconisy=——osinereatSwerel| = 2012 noninterest income increased 10.0% from 6/30/11 a Increases in gains on sales of loans, trust revenue, and loan related fees = 2011 noninterest incre
Slide 17: Net Interest Revenue
Net Interest Revenue (in millions) $131.5 $131.4 $119.3 $106.0 $103.6 $105.5 | J J Py _———___} PT — Py a Sap 2008 2009 2010 2011 Jun ‘12 = 2012 net interest revenue decreased by 0.2% from 6/30/11 a Netinterest margin declined 23 basis points a Average earning assets increased $171.3 million = 2011 i
Slide 18: Net Interest Margin
Net Interest Margin = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 38.10% 06/30/12 — (4.27)% = % ofliabilities repricing Q Within 30 days 18.11% a Within 90 days 26.82% Q Within 180 days 47.28% Peer data obtained from the Federal Reserve Bank Ho
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 Jun "12 [=e Net Noninterest Expense —— % of Earning Assets | Noninterest Expense & Efficiency Ratio (in millions) 2808 $106.4 Z oe $100.3 + 70% 2007 2008 2009 2010 2011 Jun "1
Slide 20: Return on Average Assets
Return on Average Assets 1.34% 1.23% 1.11% 1.03% 0.93% 0.89% , 0.79% DEES 0.79% A 0.25% 0.13% Ss "se *- 18% ae a 2008 2009 2010 2011. Jun'12 mCTBI m Peer Peer data obtained from the Federal Reserve Bank Hol companies with consolidated assets of $3 billion to $10 bil Company Performance Report for ba
Slide 21: Balance Sheet Review
Balance Sheet Review
Slide 22: Total Assets
Total Assets (in billions) $3.59 $3.64 $3.36 ' ' ) ' ' 2007 2008 2009 2010 20114 Jun-“12 = Total assets at 6/30/12 have increased 1.2% from 12/31/11 oO Loans declined $9.1 million or 0.4% a Investment portfolio growth $101.8 million or 19.2% a Deposit growth $47.0 million or 1.5% = Total assets have
Slide 23: Total Loans
Total Loans $2.61 $2.56 ¢9.55 $2.35 S244 $2.23 | ! ee 2007 2008 2009 2010 2011 Jun 12 (in billions) = Total loans at 6/30/12 have decreased 0.4% from 12/31/11 = 2012 goal for total loans — $2.6 to $2.8 billion Loan Portfolio Mix June 30,2012 Consumer 17% Comm R/E 37% R/E Mortgage 31% Comm Other 15%
Slide 24: Concentrations of Credit
Concentrations of Credit asa % of Total Loans June 30, 2012 7 2.00% + 1.50% + 1.00% + 0.50% 0.00% Apartments & Rental Housing HoteVMotel Non-Residential Real Estate Rental ™™" Concentrations | ——NonperformingLoans* _-_ Net Losses* * As a percentage of funded exposure mmunity ncorp, Inc
Slide 25: Net Charge-offs
Net Charge-offs asa % ofaverageloans 1.61% 1.46% 0.94% 0.70% 0.70% 0.66% Im 0.58% 0.38% 0.27% oe ad 2007 2008 + 2009 «2010» 2011 Jun 12 CTBI Net Charge-offs by loantype Consumer 20% Residential! 16% June 30, 2012 2a1% " 22%, os ai 1.39% 108% 207 2008 Nonperforming Loans cotodliecallens 401% zeit Jun
Slide 26: Nonperforming Assets
Nonperforming Assets asa% of Total Assets 3.13% 2.56% 261% 261% 213% Loan Loss Reserve Pe asa % of netloans ' 22Te 224% 2.08% 1.90% eS ye on 2007 2008 + ©2009 +2010 «2011: Jun 12 1.204 ° = $56.4 million in other real estate owned 1 2007 ©2008 «62009-2010 2011 Jun 12 mCTBI mPeer
Slide 27: Total Other Real Estate Owned
Total Other Real Estate Owned (im billions) SEG 96 t56.44 $42.94 $37.33 ' $7.a6 $10-43 TT —_— 2007 2008 2009 2010. 2011. Jun “12 = Sales of foreclosed properties for the six months ended 6/30/12 $7.8 million = New bookings in first six months of 2012 $7.5 million = Properties under contract to sell
Slide 28: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.45 $2.49 4__ 4 46 la ea ee 2007 «2008 §=—.2009 2010 «2011 Jun'12 = 2012 goal for total deposits including repurchase agreements — $3.1 to $3.3 billion Total Deposits including Repurchase Agreements June 30,2012 Repurchase Agreements 6%
Slide 29: Hoops Certificate of Deposit
= 12 Month Certificate of Deposit: April Ist through maturity, rate paid is adjusted by 1 basis point for each University of Kentucky win; bonus 100 basis Hcy with more py, points added to rate for ANS National Championship win. = Our Hoops CD product has been offered for over 16 years = 100 basis p
Slide 30: Shareholder Value
Shareholder Value
Slide 31: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.21 $1.23 $1.10 : 3.24 2007 +2008 + ©2009 2010 ©2011 2012" = 2012 cash dividend increase 1.6% = 3.2% compound growth rate for past five years = December 31,2011 cash dividend yield was 4.21% = Cash dividend increased to $0.315 per share effective October 1, 2012 Div
Slide 32: Shareholders' Equity
Shareholders’ Eguity (in millions) $387.3 $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 33: Book Value Per Share
Book Value Per Share 523.78 $24.88 Tangible Common $22.08 a a Eguity/Tangible Assets ! ! ! ! amy 837% BAT pogo, 8.62% Guth 44 46. U4 hee 2007 «2008 )39= 2009 2010 2011 Jun12 nmunity Trust
Slide 34: Total Market Capitalization
Total Market Capitalization (in millions) $554.1 $521.4 $454.0 $414.2 $444.1 | . ) J) 2007 2008 2009 2010 2011 Jun “12 Price to Tangible Book Value 2007 2008 2009 2010 2014 Jun 42 cTBI 1.17x 2.29x 1.45 1.63x 1.51x 1.62x Peer 1.85x 1.91x 1.03x 1.29x 1.19x 1.32x All data is as of year-end. Peer data o
Slide 35: Five-Year Cumulative Total Return Comparison
Comparison of D Year Cumulative Total Return among CIBI, NASDAQStock Market (US),and NASDAQBank Stocks so Tune-07 June-08 = An investment in CTBI stock on June 30, 2007 would have outperformed the NASDAQ Bank Stocks Index and the NASDAQ Composite at June 30, 2012
Slide 36: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index of small capcompanies Return to Investors June 30,2012 26.07% . 12.65% —* -2.08% 17.79% 1-Year 3-Year 5-Year 10-Year ™ CTBI = Russell 2000 © 3-,5-, and 10-year total returns annualized
Slide 37: Core Value Long-Term Investment
Core Value Long-Term Investment = 12stock splits and 9 stock dividends = 32 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 38: CTBI's Franchise Value
CIBIs Franchise Value = History of solid investor returns = Historically strong capital position = Community banking strategy = Growth and good financial performance in slow growth markets = Growth strategies = Strong experienced management team and 1,000 dedicated employees = Our shareholders = Did
Slide 39: Community Trust Bancorp, Inc.
Z Community Trust’ Bancorp, Inc.
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