Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2009)
42 slides from Community Trust Bancorp's investor presentation, Nov 12, 2009
Slide 1: Community Trust Bancorp, Inc. Investor Presentation
Za Community Trust Bancorp, Inc. Investor Presentation NASDAQ: CTBI November 2009 www.ctbi.com
Slide 2: Cautionary Statement
CAUTIONARY 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 the fo
Slide 3: Organizational History
Organizational History “Over a Century of Service” 1903 1936 1981 1987- 2005 1997 1997- 2002 Presently The Pikeville National Bank founded Pikeville National Bank & Trust Co. incorporated Formed Pikeville National Corporation Acquired 14 banks and purchased 17 branches Changed name to Community Trus
Slide 4: Organizational Structure
Organizational Structure Community Trust Bancorp, Inc. Pikeville, Kentucky Community Trust and Investment Company Lexington, Kentucky Community Trust Bank, Inc. Pikeville, Kentucky @ Community Trust Bank, Inc. Regional market structure provides synergies @ Community Trust and Investment Company __ A
Slide 5: Our Banking Franchise
Our Banking Franchise 2 Community Trust Bank Branch Office 2 Community Trust & Investment Office 76 branch locations serving 33 counties throughout Kentucky and West Virginia
Slide 6: Market Analysis
Market Analysis Competitive Position @ 2" jargest Kentucky domiciled bank holding company m 7 Jargest bank in Kentucky in terms of deposit market share for all FDIC insured institutions @ #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions Economic Diversity @
Slide 7: Operational Philosophy
Operational Philosophy Executive Management and Board of Director Commitment to Corporate Governance Local Market Presidents Decentralized decision making Centralized operations and risk management Specialized product offerings Maximized use of technology
Slide 8: Traditional Community Banking
Traditional Community Banking Focused on Retail and Commercial Products & Services Retail Traditional Home Mortgages Portfolio Service Retained _ $3.1m Mortgage Servicing Rights Personal Loans Indirect Auto Loans Equity Lines of Credit Deposit Products & Services Internet Banking Brokerage and Perso
Slide 9: 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 $. Wasson Richard W. Newsom Ricky Sparkman Larry W. Jones Chairman, President and CEO CTB President and CEO CTIC President and CEO EVP /Controlier EVP
Slide 10: Operational Challenges
Operational Challenges Hm 2008 O Economic Crisis ‘Worldwide historic recession Greed, leverage, fraud Volatile gas prices Failed investment banks Treasury places GSE in receivership Mortgage giants fail “Too big to fail” theory Retail icons failed ‘Unemployment levels increased Consumer confidence p
Slide 11: Performance Summary
Performance Summary YTD 2009 2008 2007 2006 2005 EPS $1.20 $1.54 $2.42 $2.59 $2.31 ROAA 0.80% 0.79% 1.23% 1.33% 1.22% ROAE 7.65% 7.48% 12.45% 14.51% 13.98% Net Int. Margin 3.68% 3.88% 3.90% 4.02% 4.03% Efficiency Ratio 64.59% 58.39% 37.62% 56.67% 56.83% Nonperf. Loans 1.88% 2.22% 1.43% 0.66% 1.02% N
Slide 12: Earnings Review
Earnings Review 42
Slide 13: Earnings Per Share
Earnings Per Share $2.59 $2.42 $2.31 2004 2006, 2006 2007 2008 EPS decreased 36.4% from 2007 to 2008 2009 EPS projected at $1.55 - $1.65 per share $1.11 Sept '08 Sept 09 ‘Year. to- date as of Septersber 20th, 43
Slide 14: Net Income
Net Income (in millions) $39.1 $36.6 $34.4 2004 2005 2006 2007 2008 2009 projected net income $23 - $24 million $16.6 $18.1 Sept 08 Sept 09 ‘Year-to-date as of Septerdber 30th, 14
Slide 15: Net Income
Net Income = 2008 Major Impacts o At June 30, 2008, CTBI held $14.9 million in Freddie Mac and Fannie Mae pass-through auction rate securities which had an unrealized loss of $0.5 million. As a result of the U.S. Treasury placing Freddie Mac and Fannie Mae into conservatorship on September 7, 2008,
Slide 16: Revenues
Revenues (in millions) $136.7 $140.3 $142.6 $127.1 $125.4 $144.2 2004 2005 2006 2007 = 2008 revenues decreased 12.1% a 2009 projected revenues $143 - $145 million *Sept ‘09 annualized 2008 Sept '09 16
Slide 17: Noninterest Income
Noninterest Income a % of Total Revenue (in millions) Sara 2004 2005 2006 2007 2008 Sept ‘09 [= -Noninterest Income ——o% of Total Revenue] @ 2008 noninterest income O OTTI charges 1 Decline in fair value of mortgage servicing O Increased gains on sales of loans, deposit service charges and trust rev
Slide 18: Net Interest Revenue
Net Interest Revenue (in millions) ayn SS tae $106.0 $103.6 gigag 2004 2005 2006 2007 2008 Sept ‘09 @ 2008 decrease in net interest revenue was $2.4 million @ 2009 annualized decrease in net interest revenue of $0.7 million 1 Net interest margin decreased 27 basis points YTD 2009 compared to YTD 200
Slide 19: Net Interest Margin
Net Interest Margin 4.00% yee 3.68% 3.45% Dec ‘07 Mar ‘08 Jun ‘08 Sept ‘08 Dec ‘08 Sept 09 mCTBI _ Peer @ Pressure on the margin @ % of assets repricing @ 1-year cumulative gap position at Within 30 days 38.08% 09/30/09 -4.16% @ °% of liabilities repricing | Within 30 days 25.0296 Within 90 days 36.
Slide 20: Net Noninterest Expense
Net Noninterest Expense as a % of Average Earning Assets (in millions) $60.8 2004 2005 2006 2007 2008 Sept ‘09 [Net Noninterest Expense _—% of Eaming Assets | Noninterest Expense & Efficiency Ratio (in millions) es 2.30% 2.10% 4.90% 41.70% 1.50% a0% 75% 70% 65% 60% 55% 50% 2004 2005 2006 2007 2008 [
Slide 21: Balance Sheet Review
Balance Sheet Review
Slide 22: Total Assets
Total Assets (in billions) $2.71 $2.85 %2-37 $2.90 $2.95 $3.04 2004 2005 2006 2007 2008 Sept ‘os = Total assets increased 1.8% during 2008 to $2.95 billion m= Total assets increased an annualized 3.7% YTD 2009 to $3.04 billion O Loan growth $54.0 million O Deposit and repurchase agreement growth $95
Slide 23: Total Loans
Total Loans (in billions) 92.35 $2.40 $2.23 $2.11 $2.17 2004 2005 2006 2007 2008 Sept ‘09 2009 projected loan growth $65 - $75 million Loan Portfolio Mix September 30, 2009 Consumer 22% Comm R/E 35% R/E Mortgage 27% Comm Other 16% 23
Slide 24: Concentrations of Credit
Concentrations of Credit as a % of Total Loans 2.5%, September 30, 2009 6.2% Agricultural Apartments & Rental Housing "Coal Mining & Support Floorplans _ Hotel/Motel _ Non-Residential Real Estate Rental m Bank Holding Company Land Subdivision and Development 24
Slide 25: Net Charge-offs
Net Charge-offs as a % of average loans 1.43% 0.66% 63%| 035% 0.37% 0.28% 0.29% 0.27%, 0.24 a. i ia 18 0.13" T11 2004 2005 mE if 2008 Sept ‘09 =CTBI Peer *Sept ‘09 annualized June ‘09 peer data used for Sept 09 comparison Net Charge-offs by Loan Category September 30, 2009 17% 75% [BCommerial GMbrig
Slide 26: Nonperforming Loans
Nonperforming Loans as a % of Total Loans 2004 2005 2006 2007 2008 Sept ‘09 =CTBI _ Peer Nonperforming Loan Mix September 30, 2009 Consumer 2% R/E Mortgage 20% Loan Loss Reserve as a % of net loans 204% 150 14%, j ee 127k 126% 1.31% 133 . 12K a tgy 120% 1 2004 «2005 «= 2006 «= 2007 «= 2008 = Sept 09
Slide 27: Nonperforming Assets
Nonperforming Assets a Percentage of Total Assets 2.70% 0.92% 0.94% 0.63% 2004 2005 2006 2007 2008 Sept "09 = Nonperforming assets increased from $62.6 million at year-end 2008 to $81.9 million at September 30, 2009 OREO increased from $10.4 million to $36.6 million at September 30, 2009 27
Slide 28: Total Deposits
Total Deposits including Repurchase Agreements (in billions) 2004 2005 2006 2007 2008 Sept ‘09 Total deposits including repurchase agreements are expected to increase $95 - $110 million in 2009 Deposit Mix (including Repurchase Agreements) September 30, 2009 Repurchase Agreements Noninterest 1% Bear
Slide 29: Managing Liquidity through Innovative Products
Managing Liquidity through Innovative Products it’s Backtltllt Certifica rator apes _ Desc cues aul iate 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. Cormarmunrity — Volume varies as
Slide 30: Shareholder Value
Shareholder Value
Slide 31: Historic Investment Returns
Historic Investment Returns = Core value long-term investment. = Formation of bank holding company in 1981 = 12 stock splits m= 9stock dividends = 28 years of consecutive increases in cash dividends = 5-year compound growth rate of cash dividends 9.4% = Stock included in the NASDAQ Global Select Mar
Slide 32: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.05 $1.10 $0.98 2004 2005 2006 2007 2008 200s* 2008 cash dividends increased 6.4% 9.4% compound growth rate for past five years September 30, 2009 cash dividend yield was 4.59% *2009 is projected DPS 32
Slide 33: Shareholders' Equity
Shareholders’ Equity Gin millions) $301.4 $308.2 %318-6 2004 2005 2006 2007 2008 Sept ‘09 m= Shareholders’ equity has increased 30.5% during the past five years = 6.8% compound growth rate for the past five years = 2009 projected shareholders’ equity $318 - $321 million 33
Slide 34: Book Value Per Share
Book Value Per Share soo 8205 S210 Tangible Common Equity/ Tangible Assets 27% (8.37% 8.51% 6.539% 6.72% 2004 2005 2006 207 2008 = Sept 09 2004 4= «20052006 «= «2007 «= 2008 «= Sept ‘09 34
Slide 35: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 2004 2005 2006 2007 2008 2009 All data is as of year-end except 2009 which is based upon stock price on September 30, 2009 35
Slide 36: Comparison of Year Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CTBI, NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks $200 $100 $0 + 2003 2004 2005 2006 2007 2008 —+— Community T rust Bancorp, Ine —S_NASDAQ Sock Market (U.S) A NAD AQ Bank Stocks = An investment in CTBI stock on December 31, 2003 would have ou
Slide 37: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index of small cap companies Return to Investors For the Periods Ending September 30, 2009 9.65% 4.94% 1.95% 244% a od p S_?. |-9.58% eolee -20.67% 1-Year 3-Year 5-Year 10-Year gCTBI Russell 2000 © 3-,5-, and 10-year total returns annualized 37
Slide 38: 2009 Key Strategic Initiatives
2009 Key Strategic Initiatives
Slide 39: 2009 Operational Initiatives
2009 Operational Initiatives Attaining our 2009 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 expansion of t
Slide 40: 2009 Operational Challenges
2009 Operational Challenges Major impacts on 2009 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 needs 40
Slide 41: 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 O Acquisitions O De nova branches O Trust subsidiary O Full service brokerage ™@ Strong experienced management team and 1,000 dedicated e
Slide 42: Community Trust Bancorp, Inc.
y 4 Community Trust Bancorp, Inc. for 105 Years
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