Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (July 2014)
39 slides from Community Trust Bancorp's investor presentation, Jul 29, 2014
Slide 1: Community Trust Bancorp, Inc. Investor Presentation 2014
4 | | lle FINANCIA,” 2 0 1 4 COMPANIES ; Qnuiecton Community Trust ame, Prosentation NASDAG Bi 47jCommunity Trust’ 4a Bancorp, Inc.
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: Key Figures as of June 30, 2014
= Total Assets ‘$3.7 billion = Shareholders’ Equity $433.9 million = Dividend Yield 3.39% = Total Market Capitalization $596.2 million = P/E Ratio 13.15x Financial data as of June 30, 2014
Slide 4: Corporate History
Corporate History 1903 Pikeville National Bank founded 1987-2005 Acquired 14 banks and purchased 17 branch locations 1997 Changed name to Community Trust Bancorp, Inc. 2010 Acquired LaFollette First National Corporation Presently Two operational subsidiaries~ Community Trust Bank, Inc. and Community
Slide 5: Serving customers in 81 branch locations in 35 counties
© Community Trust Bank Branch Office © Community Trust & Investment Office Serving customers in 81 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 Loans - $612 million Deposits - $659 million * Danville + Lexington + Mt. Sterling + Richmond + Versailles + Winchester South Central Region Loans - $547 million Deposits - $661 million + Campbellsville + LaFollette Mliddlesboro Mit. Vernon + Williamsburg Eastern
Slide 7: Market Analysis
Market Analysis Competitive Position > Largest Kentucky domiciled bank holding company > #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions > 6* largest bank in Kentucky in terms of deposit market share of all FDIC insured institutions Community Banking Model
Slide 8: Executive Management Team
Executive Management Team Banking Yrs. w/ Name Position Experience CTBI Jean R. Hale Chairman, President and CEO 45 years 45 Mark A. Gooch CTB President and CEO 33 years 33 Andy Waters CTIC President and CEO 27years 10 Kevin J. Stumbo EVP/Chief Financial Officer 27years 19 Steven E. Jameson EVP/Risk
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 capacity > Quality loan growth > Low cost deposit growth Increase noninterest income > Wealth management > Brokerage Maintain net interest margin Expense control 10
Slide 11: Consistent Financial Performance
Consistent Financial Performance EPS ROAA ROAE Net Int. Margin Efficiency Ratio Nonperforming Loans Net Charge-offs % of Average Assets: Noninterest Income Noninterest Expense YTD 2014 2013 2012 2011 2010 $1.29 $2.64 $2.64 $2.31 $1.97 1.23% 1.24% 1.23% 1.11% 1.03% 10.53% 11.05% 11.52% 10.91% 9.90% 3
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Slide 13: Earnings Per Share
Earnings Per Share $2.64 $2.64 $1.39 2010 2011 2012 Jun 13 YTD EPS decreased 7.2% from 6/30/13 to 6/30/14 2014 EPS goal - $2.58 to $2.73 per share $1.29 Jun 44 13
Slide 14: Net Income
Net Income (im millions) $44.9 $45.2 $38.8 $33.0 $25.1 2009 2010 2011 2012 2013 Net income decreased 6.0% from 6/30/13 2014 goal for net income - $44.6 to $47.4 million $23.8 Jun 13 $22.3 Jun 44 14
Slide 15: Revenues
Revenues (in millions) $175.3 $178.1 $1840 gi747 $160.2 $146.9 2009 2010 2011 2012 2013) Jun 14 = YTD 2014 revenues decreased 5.6% from 6/30/13 = 2014 goal for revenues - $179.3 to $189.3 million June ’14 annualized 15
Slide 16: Noninterest Income
Noninterest Income as a % of Total Revenue (in millions) 49.3 $46.0 s 32% $4 24% 16% B% + 0% 2009 2010 2011 2012 2013 Jun '14 [ma Noninterest Income — % of Total Revenue | = YTD 2014 noninterest income decreased 16.5% from 6/30/13 > Decreases in gains on sales of loans, deposit service charges, loan
Slide 17: Net Interest Revenue
Net Interest Revenue (in millions) g119.3 9434.5 $132.1 $134.7 $132.3 $105.5 i 2009 2010 2011 2012 2013) Jun'14 = YTD 2014 net interest revenue decreased by 1.4% from 6/30/13 > Netinterest margin decreased 7 basis points > Average earning assets increased $8.0 million, or 0.2% June ’14 annualized 17
Slide 18: Net Interest Margin
Net Interest Margin 4.13% 2009 2010 2011 2012 2013) Jun'14 [ moTBI m Poor ] = Pressure on the margin = % of assets repricing = 1-year cumulative gap position = Within 30 days 34.21% at 6/30/14 — (8.33)% = % of liabilities repricing = Within 30 days 14.74% = Within 90 days 23.84% = Within 180 days 44
Slide 19: Net Noninterest Expense
Net Noninterest Expense asa% of. Average Earning Assets (in millions) 2.30% E $62.7 $62.6 m esis 57.6 2.10% $52.4 Seb: 1.90% 4.70% } 4.50% 2009 2010 2011 2012 2013 Jun44 [[metNeot Noninterest Expense —% of Earning Assets Noninterest Expense & Efficiency Ratio (in millions) $110.3 75% 106.4 B $105.4
Slide 20: Return on Average Assets
Return on Average Assets 1.23% 1.24% 1.23% 1.03% pal’ 1.05% 0.98% 0.91% 0.82% 0.80% 0.25% 0.18% 2009 2010 2011 2012 2013 Jun 14 m=CTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2014 for bank holding companies with consolidated assets of $3
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Slide 22: Total Assets
Total Assets (in billions) 3.59 $3.64 $3.65 Zaau © $3.58 $3.09 2009 2010 2011 2012 2013 Jun'14 Total assets at 6/30/14increased 2.0% from 12/31/2013 > Loans increased $17.3 million or 0.7% > Investment portfolio growth $38.1 million or 6.2% > Deposits growth $42.0 million or 1.4% 2014 goal for total
Slide 23: Total Loans
Total Loans (im billions) 2.63 $2.61 $2.56 $2.55 $2.62 : $2.44 2009 2010 2011 2012 2013 Jun 14 = Total loans at 6/30/14 increased 0.7% from 12/31/13 = 2014 goal for total loans - $2.60 to $2.75 billion Loan Portfolio Mix June 30, 2014 Consumer 15% Comm R/E 39% R/E Mortgage 32% Comm Other 14% 23
Slide 24: Concentrations of Credit
Concentrations of Credit as a % of Total Loans Apartments & Rental Housing June 30, 2014 mm Concentrations 7 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Hotel/Motel eee Estate Nonperforming Loans* -»- Net Losses* * Asa percentage of funded exposure 24
Slide 25: Net Charge-offs
Net Charge-offs as a % of Average Loans 1.61% 0.19% 0.16% 2009 ©2010 «2011-2012, 2013 Jun 14 TBI Consumer 36% Commercial 42% Residential 22% June 30, 2014 Nonperforming Loans as a % of Total Loans zoo 20102011 2122013 Junta Go Peer data obtained from the Federal Reserve Bank Holding Company Performa
Slide 26: Nonperforming Assets and Loan Loss Reserve
Nonperforming Assets as a % of Total Assets 3.13% 2.56% 2.61% 2.28% 2.31% 2009 «2010, 2011 | 2012, 2013) Jun ‘14 = $33.1 million in other real estate owned Loan Loss Reserve as a % of Net Loans 227% 224% 2009 «2010 «2011-2012, 2013 Jun "14 TBI mPeer Peer data obtained from the Federal Reserve Bank H
Slide 27: Total Other Real Estate Owned
Total Other Real Estate Owned (in millions) $56.96 2009 2010 2011 2012 2013 Jun 14 = Sales of foreclosed properties for the six months ended 6/30/14 - $8.4 million = New bookings in the first six months of 2014 - $3.5 million = Properties under contract to sell - $2.6 million 27
Slide 28: Total Deposits
Total Deposits including Repurchase Agreements (in billions) s3.t0 $311 gg $3.11 $2.89 $2.64 2009-2010 2011 2012, 2013) Jun ‘14 = 2014 goal for total deposits including repurchase agreements - $3.10 to $3.20 billion Total Deposits including Repurchase Agreements June 30, 2014 Repurchase Agreements:
Slide 29: Hoops CD
= 12 Month Certificate of Deposit: April 10th through maturity, rate paid is adjusted by 1 basis point for each University of Kentucky win; bonus 100 basis points added to rate for National Championship win, y 4 Community Trust Ban Our Hoops CD product has been offered for over 17 years 100 basis po
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Slide 31: Dividends Per Share
Dividends Per Share $1.09 $1.10 tii 2009 2010 2011 2012 2013 2014 = 2013 cash dividends increased 1.6% = 1.7% compound growth rate for past five years = June 30, 2014 cash dividend yield was 3.39% *2014 is projected DPS 31
Slide 32: Shareholders' Equity
Shareholders’ Equity (in millions) $400.3 $412.5 $433.9 = Shareholders’ equity has increased 28.3% during the past five years = 6.0% compound growth rate for the past five years = 2014 goal for shareholders’ equity - $440 to $446 million 32
Slide 33: Book Value Per Share
Book Value Per Share $25.64 $26.07 go499 $23.78 $24.15 $22.08 2009 «2010 2011 2012, 2013 Jun'14 Tangible Common Equity/ Assets 10.26% 9.85% 9.36% °/ 8.52% BAT% 8 06% 2009 = 2010 2011-2012, 2013 Jun 44 33
Slide 34: Total Market Capitalization
Total Market Capitalization (in millions) $714.5 oe ee Price to TangibleBook Value 2009 2010 2011 2012 2013 6/30/14 CTBI 1.45x 1.63x 1.51x 1.53x 2.06x 1.62x Peer 1.03x 1.29x 1.19x 1.39x 1.72x NIA All data is as of year-end except 2014 which is as of June 30, 2014. Peer data not available as of June
Slide 35: Comparison of Year Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CTBI, NASD.AQ Stock Market (U.S.), and NASDAQ Bank Stocks 3300 5200 =_—— = _ $100 so 2008 2009 2010 2011 2012 2013 oe conesaiy Pas Bancry te a NasDaQsmci Maer US) Te ANASDAQBank Stocks = An investment in CTBI stock on December 31, 2008 would have pr
Slide 36: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index of small cap companies Return to Investors December 31, 2013 42.38% 39 900, 20.53% 20.08% 18.87% 8.60% ae, 9.07% 1-Year 3-Year 5-Year 10-Year @CTBI mRussell 2000 3-, 5-, and 10-year total returns annualized 36
Slide 37: Core Value Long-Term Investment
Core Value Long-Term Investment = 12 stock splits and 9 stock dividends = 33 years of consecutive increases in cash dividends = 5-year compound growth rate of cash dividends 1.7% = Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index = Recog
Slide 38: CTBI's Franchise Value
CTBI’s 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 over 1,000 dedicated employees Our shareholders 38
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