Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (July 2010)
44 slides from Community Trust Bancorp's investor presentation, Jul 28, 2010
Slide 1: 2010 Investor Presentation
2010 Investor Presentation NASDAQ: CIBI www.cthicom July 2010
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: Organizational History
Organizational History “Overa Century of Service i 1903 Pikeville National Bank founded 1936 Pikeville National Bank & Trust Company incorporated 1981 Formed Pikeville National Corporation 1987- Acquired 14 banks and purchased 17 branch 2005 locations 1997 Changed name to Community Trust Bancorp, In
Slide 4: Operational Structure
Operational Structure Community Trust Bancorp, Inc. Pikeville, Kentucky Community Trust and Investment Company Lexington, Kentucky Community Trust Bank, Inc, Pikeville, Kentucky = Community Trust Bank, Inc. a Regional market structure provides synergies = Community Trust and Investment Company a Ass
Slide 5: Our Banking Franchise
Our Banking Franchise © Community Trust Bank Branch Office © Community Trust & Investment Office © Pending First National Bank of LaFollette Acquisition Locations Serving 76 branch locations in 33 counties throughout Kentucky and West Virginia ~ 4 additional locations in Tennessee pending acquisitio
Slide 6: Growth of our Franchise
Growth of our Franchise Pending Acguisition = LaFollette First National Corporation, Tennessee ooaqaoaaqoaa.a First National Bank of LaFollette Share exchange for $650 per share Approximately 110% of Tangible Book Value Cash transaction - $16.1 million Expansion into state of Tennessee Increase of a
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 = 7 Jargest bank in Kentucky in terms of deposit market share of all FDIC insured institutions Economic Diversity = East
Slide 8: Operational Philosophy
Operational Philosophy Traditional Community Banking Business Model Executive Management and Board of Director commitment to Corporate Governance Local market presidents Decentralized decision making Centralized operations and risk management Strong Loan Portfolio Risk Management process Specialized
Slide 9: Traditional Community Banking
Traditional Community Banking Focused on Retail and Commercial Products and Services Retail Commercial = Traditional Home Mortgages = Small Business Loans a Portfolio = USDA Loans a Service Retained = SBA Loans a $2.7m Mortgage Servicing Rights x = Personal Loans . = Indirect Auto Loans . = Equity L
Slide 10: Executive Management Team
Executive Management Team Name Jean R. Hale Mark A. Gooch Tracy E. Little Kevin J. Stumbo Steven E. Jameson James J. Gartner James B. Draughn Michael S. Wasson Richard W. Newsom Ricky Sparkman Larry W. Jones Banking Position Experience Chairman, President and CEO 41 years CTB President and CEO 29 ye
Slide 11: Operational Challenges
Operational Challenges = Impact from National and Regional Economic Conditions ooooaooaa a Continuing weak national and global economy Unstable real estate market National and regional unemployment rate Increased regulation of the coal mining industry Decline in natural gas prices Deterioration in a
Slide 12: Performance Summary
EPS ROAA ROAE Net Int. Margin Efficiency Ratio Nonperf. Loans Net Charge-offs Performance Summary As a % of Average Assets: Nonint. Income Nonint. Expense YTD 2010 info annualized as of June 30, 2010 except EPS YTD 2010 2009 2008 2007 2006 $1.01 $1.66 $1.54 $2.42 $2.59 0.98% 0.82% 0.79% 1.23% 1.33%
Slide 13: Earnings Review
Earnings Review
Slide 14: Earnings Per Share
Earnings Per Share 32.59. : $2.42 $2.31 1.66 $1.54 $ $1.01 $0.83 2005 2006 2007 2008 2009 Jun 09 Jun'10 EPS increased 7.8% 2009 pro forma EPS excluding the FDIC special assessment - $1.74 per share 2010 EPS projected at $1.98 - $2.04 per share 14
Slide 15: Net Income
Net Income (in millions) $39.1 $36.6 $34.4 $23.1 $25.1 2005 2006 2007 2008 2009 2010 projected net income $30 - $31 million $12.5 Jun ‘09 $153 Jun 10 15
Slide 16: Net Income
Net Income 2009 Major Impacts Increased provision for loan losses Increased FDIC insurance premiums and special assessment Increased noninterest income impacted by $14.6 million OTTI charge in 2008 Increased legal and repossession fees Lower net interest margin a 3.77% vs. 3.88% a Syear historical a
Slide 17: Revenues
Revenues $146.9 $157.1 $140.3 $142.6 2005 2006 2007 2008 2009 Jun‘'10 = 2009 revenues increased 17.2% Interest income lost from nonperforming loans and OREO during 2009 - $3.6 million = 2010 projected revenues $159 - $161 million ‘Jun JO annualized 17
Slide 18: Noninterest Income
Noninterest Income as a %of Total Revenue (in millions) eaia set es8.9 es6.6 gs abt 832.6 zee ean. 2oce 2005 2006 2007 2008 2009 zun'10 [me Noninterest Income _% of Total Revenue = 2009 noninterest income a Increase due to OTTI charge in 2003 a Increased gains on sales of loans a Increased loan rela
Slide 19: Net Interest Revenue
Net Interest Revenue (in millions) $118.2 $103.2 $107.8 $106.0 $103.6 $105.5 2005 2006 2007 2008 2009 Jun‘"10 = 2009 increase in net interest revenue was $1.9 million a Net interest margin decreased 11 basis points year over year a Average earning assets increased $127.6 million = 2010 annualized in
Slide 20: Net Interest Margin
Net Interest Margin 4.07% 4.10% 2005 2006 2007 2008 2009 2010 { = CTBI m Peer | = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 40.35% 6/30/10 -4.74% = © % of liabilities repricing a Within 30 days 22.27% a Within 90 days 29.63% a Within 180 days
Slide 21: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expense as a % of Average Eaming Assets (in millions) SG0.8 2.30% $56.1 $52.4 2.10% $47.8 46.4 $45.1 6s 7 aah 1.70% + 1.50% 2005 2006 2007 2008 2009 Jun “10 [w= Net Noninterest Expense __*% of Earning Assets | Noninterest Expense G Efficiency Ratio (in millions) $93.8 $95.0 75% $78.6
Slide 22: Return on Average Assets
Return on Average Assets 1.33% 1.22% i 1.23% 15% 10% 0.98% 0.19% 0.18% 2005 2006 2007 2008 2009 Jun‘'10 =cCTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3/31/2010 for bank holding companies with consolidated assets of $3 billion to $10 billion.
Slide 23: Balance Sheet Review
Balance Sheet Review
Slide 24: Total Assets
Total Assets (in billions) $3.21 $2.85 $2.97 $2.90 $2.95 %3-09 2005 2006 2007 2008 2009 Jun = Total assets increased 4.5% during 2009 = Total assets increased an annualized 8.0% YTD 2010 a Loan growth $5.5 million a Deposit decline $5.4 million a Investment portfolio growth $69.7 million = Total ass
Slide 25: Total Loans
Total Loans (in billions) 2.44 $2.44 sass * = g211 $2.17 $2.23 2005 2006 2007 2008 2009 Jun 40 2010 projected loan growth $95 - $130 million Loan Portfolio Mix June 30, 2010 Consumer 21% Comm R/E 37% R/E Mortgage 27% Comm Other 15% 25
Slide 26: Concentrations of Credit
Concentrations of Credit June 30, 2010 5.8% m= Agricultural lm Apartments & Rental Housing mCoal Mining & Support Floorplans Hotel/Motel Non-Residential Real Estate Rental » Bank Holding Company Land Subdivision and Development 26
Slide 27: Net Charge-offs
Net Charge-offs as a %of average loans 159% 156% 2005 2006 2007 2008 2009 Jun'10 mcCTBI Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 3312010 for bank holding companies with consolidated assets of $3 billion to $10 billion. Net Charge-Offs By Loan Cat
Slide 28: Nonperforming Loans
Nonperforming Loans as a % of total loans 4.20% 437% Loan Loss Reserve as a %of net loans 2005 2006 2007 2008 2009 Jun“10 eer 1.50% 1.40% "1 zee en CTBI Nonperfonning Loan Mix June 30, 2010 2005 2006 2007 2008 2009 Jun “10 cae, [sera seer] R/E Fes cTBI Peer sree 1a Peer data obtained from the Federa
Slide 29: Nonperforming Assets
Nonperforming Assets as a %of Total Assets 3.20% 2005 2006 2007 2008 2009 Jun‘'10 Nonperforming assets increased $23.7 million from year-end 2009 to June 30, 2010 a OREO increased from $37.3 million to $40.1 million at June 30, 2010 29
Slide 30: Total Deposits including Repurchase Agreements
(in billions) Total Deposits including Repurchase Agreements $2.75 $2.64 $2.50 $2.49 $2.38 $2.45 2005 2006 2007 2008 2009 Jun ‘10 Total deposits including repurchase agreements are expected to increase $100 - $135 million in 2010 Deposit Mix including Repurchase Agreements June 30, 2010 Repurchase A
Slide 31: Managing Liquidity Through Innovative Products
Managing Liquidity Through Innovative Products = 12 Month Certificate of Deposit: April 1st 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, = Volume varies as needs vary: a 2003 $ 92,856
Slide 32: Shareholder Value
Shareholder Value
Slide 33: Historic Investment Returns
Historic Investment Returns Core value long-term investment Formation of bank holding company in 1981 12 stock splits 9 stock dividends 29 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 6.7% Stock included in the NASDAQ Global Select Market, NASDAQ Div
Slide 34: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.20 2005 2006 2007 2008 2009 2010 = 2009 cash dividends increased 2.6% = 6.7% compound growth rate for past five years a June 30, 2010 cash dividend yield was 4.78% *2010 is projected DPS
Slide 35: Shareholders' Equity
Shareholders’ Equity $308.2 $321.5 $330.3 Shareholders’ equity has increased 26.6% during the past five years 6.4% compound growth rate for the past five years 2010 projected shareholders’ equity $331 - $337 million 35:
Slide 36: Book Value Per Share
Book Value Per Share Tangible Common s2on3 $2046 S217 S788 Equity /Tangible Assets $18.63 $16.93 827% 8.37% 8:47% 8.43% 7.40% 6.72% 2005 «62006 §=6.2007) Ss 2008 )39= 2009S Jun 10 2005 =2006 «= 2007. 2 2008 = 2009S Jun “10 36
Slide 37: Total Market Capitalization
(in millions) Total Market Capitalization $629.5 2006 2007 2008 2009 2010 All data is as of year-end except 2010 which is based upon stock price on July 16, 2010 37
Slide 38: Comparison of Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CIBI, NASDAQ Stock Market (US), and NASDAQ Bank Stocks = An investment in CTBI stock on December 31, 2004 would have outperformed the NASDAQ Bank Stocks Index and the NASDAQ Composite at December 31, 2009 38
Slide 39: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index ofamral leasconinanies Return to Investors June 30, 2010 21.50% 10.44% 3.04% 0.38% , 1.70% 1.58% -B.59% 1-Year 3-Year 5-Year 10-Year ™ CTBI @ Russell 2000 ® 3-,5-, and 10-year total returns annualized 39
Slide 40: 2010 Key Strategic Initiatives
2010 Key Strategic Initiatives
Slide 41: 2010 Operational Initiatives
2010 Operational Initiatives Attaining our 2010 corporate goals = Working through asset quality issues = Focus on core banking businesses = Management of our net interest margin = Continuing focus on expense control = Internal growth and expansion through new branches and acquisitions = Continued ex
Slide 42: 2010 Operational Challenges
2010 Operational Challenges Major impacts on 2010 corporate goals = Economic conditions within our markets = Actions by the U.S. Government to manage the current economic crisis = Asset quality = Loan growth = Net interest margin = Noninterest income = Profitable deposit growth driven by liquidity n
Slide 43: CTBI's Franchise Value
CTBI's 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 Trust subsidiary Full service brokerage oagoada Strong experienced management team and 1,000 dedicated empl
Slide 44: Community Trust Bancorp, Inc.
Za Community Trust Bancorp, Inc. Sowing Our Communitios for 106 Years!
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