Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2007)
40 slides from Community Trust Bancorp's investor presentation, Nov 13, 2007
Slide 1: Community Trust Bancorp, Inc. Investor Presentation
Community Trust Bancorp, Inc. . Community Banking... Our Franchise = Investor Presentation NASDAQ: CTBI wwwatbicom November 2007
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: Corporate Profile
SS eh Corporate Profile = Total Assets $2.9 billion = Total Loans $2.2 billion = Total Deposits* $2.5 billion = Total Equity $294.9 million = Dividend Yield 3.60% = Total Market Capitalization $451.1 million = 2006 EPS $2.59 = 2006P/E 16.0x * Total Deposits include repurchase agreements. ** Current
Slide 4: Our Banking Franchise
a Our Banking Franchise Headquartered in Pikeville, KY 74 banking locations throughout Eastern and Central KY 5 banking locations in Southern WV 5 trust offices across Kentucky MGommunity Trust Bancorp, Inc. 4
Slide 5: Market Analysis
SS Market Analysis Competitive Position = 2"4Jargest Kentucky domiciled bank holding company = 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 6: Organizational History
SS Organizational History “Overa Century of Service” 1903 The Pikeville National Bank founded 1936 Pikeville National Bank & Trust Co. incorporated 1981 Formed Pikeville National Corporation 1987- Acquired 14 banks and purchased 17 2005 branches 1997 Changed name to Community Trust Bancorp, Inc. 199
Slide 7: Organizational Structure
SS 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 8: Executive Management Team
Executive Management Team Banking Yrs. w, Name Experience CIBI Jean R. Hale Chairman, President and CEO —38 years 38 Mark A. Gooch CTB President and CEO 26 years 26 Tracy E. Little CTIC President and CEO 33 years 4 Kevin J. Stumbo EVP /Controiier 20 years 12 Steven E.Jameson EVP/Risk Manager 22 year
Slide 9: Years of Increasing Investment Return
SS 105 Years of Increasing Investment Return = Formation of bank holding company 1981 m 12 stock splits m 9stock dividends m= 27 years of consecutive increases in cash dividends © $0.02 per share increase effective December 15, 2007 m 5-year compound growth rate of cash dividends 11.1% m Stock selec
Slide 10: Operational Philosophy
SS 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 munity Trust’ p. Inc. 0
Slide 11: Growth Strategies
Sh Growth Strategies = Acquisitions = 14 Banks = 17 Branches * Last Acquisition in June 2005 Terminated Agreement to Acquire Eagle Fidelity, Inc. > Collected $1.2 million termination fee = De Novo Branches and Branch Expansion/Relocation 3 De Novo Branches Opened in 2005 2 Expansion/Relocations in 2
Slide 12: Managing Liquidity through Innovative Products
Managing Liquidity through Innovative Products It’s Back! c aD Certificate of Deposit Stop by your local branch for more information. Visit our website at www.ctbi.com to locate the branch nearest you. Somme. 800-422-1090 Ss Community \- y 4, Trust’ Bank . It on trust Nermat sae = Volume varies as n
Slide 13: Performance Summary
Performance Summary YTD 2007 2006 2005 Earnings Per Share (basic) $1.80 $2.59 $2.31 Return on Average Assets 1.22% 1.33% 1.22% Return on Average Equity 12.53% 14.51% 13.98% Net Interest Margin 3.86% 4.02% 4.02% Efficiency Ratio 58.30% 56.67% 56.83% Nonperfor ming Loans 1.41% 0.66% 1.02% Net Charge-o
Slide 14: Shareholder Value
Shareholder Value
Slide 15: Dividends Per Share
Dividends Per Share $1.05 $1.10 2002 2003 2004 2005 2006 2007* “2007 is projected DPS MGommunity Trust Bancorp, Inc. 45
Slide 16: Dividends Per Share
SSS Dividends Per Share m= 27 consecutive years of increased cash dividends = 11.1% compound growth rate for the past five years a Increased dividend by 2¢ (7.41%) effective with the January 2008 dividend = 4.8% increase in cash dividends for 2007 = December 31, 2006 cash dividend yield 2.53% a Sept
Slide 17: Shareholders' Equity
SS Shareholders’ Equity (in millions) $282.4 $294.9 2002 2003 2004 2005 2006 Sep-07 = Shareholders’ equity has increased 34.8% during the past five years = 8.1% compound growth rate for the past five years = 2007 projected shareholders’ equity between $298 and $300 million MAS ror ae 47
Slide 18: Total Market Capitalization
SS Total Market Capitalization (in millions) $629.5 2002 2003 2004 2005 2006 Sep- o7 All data is as of year-end except 2007 which is based upon stock price on September 30, 2007 Community Trust’ Bancorp. Inc. 18
Slide 19: Comparison of Year Cumulative Total Return
Sh Comparison of 5 Year Cumulative Total Return among CIBI, NASDAQStock Market (US), and NASDAQ Bank Stocks $300 $200 $100 2002 2003 anna 2005 2006 2007 Community Trust Bancorp, Ine. —S_ NASDAQ Stock Market (U8) a NASDAQ Bank Stocks = An investment in CTBI Stock on December 31, 2002 would have outpe
Slide 20: Comparison to Russell 2000 Index (Dec 2006)
Sh Comparison to Russell 2000 Index of small cap companies Return to Investors December 31, 2006 39.08% 22.09% 18.35% 18.27% 15.28% 12:65 11.39% "s_ Tl — 1-Year 3-Year 5-Year 10-Year ~ CTBI m@ Russell 2000 © 1-,3-,5-, and 10-year total returns annualized Community Trust’ Bancorp, Inc. 20
Slide 21: Comparison to Russell 2000 Index (Sep 2007)
Sh Comparison to Russell 2000 Index of small cap companies Return to Investors September 30, 2007 18.81% 13.45% 12.36% 11.64% 9.93% -17.69) 1-Year 3-Year 5-Year 10-Year ~~ CTBI m Russell 2000 © 1-,3-,5-, and 10-year total returns annualized Community Trust’ Bancorp, Inc. 24
Slide 22: Earnings Review
Earnings Review
Slide 23: Earnings Per Share
Earnings Per Share $2.59 $1.86 $1.80 Sep-07 = 2006 was 8th consecutive year of increased EPS m= 12.3% 5-year compound growth rate for EPS through 2006 = 2007 EPS projected between $2.44 and $2.57 Community Trust’ Mee ee 23
Slide 24: Net Income
Net Income = 2007 challenges a oooga Loan and deposit growth Continued pressure on NIM Noninterest income growth Noninterest expense control Asset quality $39.1 2007 projected net income $37 to $39 million Sep-06 sora Sep.o7 Community ‘Trust’ Bancorp, Inc. 24
Slide 25: Revenues
Revenues $140.3 $142.4 $136.7 2002 2003 2004 2005 2006 Sep-07* mTotal Revenue > 5-Year Compound Growth Rate = 5.6% Compound Growth Rate For Revenues For The Past Five Years OQ 2006 revenues increased 2.7% = 2007 Projected Revenues Between $141 and $143 million *Sep-07 annualized AA Coenity tase Banc
Slide 26: Noninterest Income as % of Total Revenue
Noninterest Income os 2% of Total Revenue (in millions) =e $36.6 $34.0 $33.6 a $32.7 $27.9 | ia 2002 2003 2004 2005 2006 Sep-o7~ [me Nonintorost Income —_%% of Total Revenuc = Y-O-Y increases in noninterest revenue through September © Loan related fees ($0.7 million) © Trust revenue ($1.0 million) O
Slide 27: Net Interest Margin
Net Interest Margin 4.08% 4.04% Sep-06 Dec-06 Mar-O7 Jun-O7 Sep-o7~* [ = CTS m= Peer a Pressure on the margin a % of assets repricing = 1-year cumulative gap position O Within 30 days 35.8% at 9/30/07 -7.55% a % of liabilities repricing O Within 30 days 20.0% O Within 90 days 32.4% O Within 180 days
Slide 28: Balance Sheet Review
Balance Sheet Review
Slide 29: Total Assets
SS Total Assets (in billions) See eas5 $2.85 : : $2.49 $2.48 *2-71 2002 2003 2004 2005 2006 Sep- o7 = Annualized 1.8% decline in assets through 3Q 2007 © Investment portfolio decline $79.3 million = Payoff of FHLB advance $40 million = Deposit decline $23.0 million © Loan growth $67.0 million = Tota
Slide 30: Total Loans
SS ee Total Loans (in billions) $2.23 2002 2003 2004 2005 2006 Sep- o7 = 2007 projected loan growth between $65 and $90 million Loan Portfolio Mix September 30, 2007 Consumer 20% Comm R/E 36% R/E Mortgage 29% Comm Other 15% Community Trust’ Bancorp, Inc. 30
Slide 31: Net Charge-offs
Lh Net Charge-offs asa Gol average loans 0.63% Loan Loss Reserve asa %ofnetloans 142% 1.42% 1.42% 1.40% 127% 1.25% 202 20032004 2006 Sep-07~ *Sep-07 annualized 2002 «2003 «2004 «= 2005 2006S Sep07 Community Trust’ MA 34
Slide 32: Nonperforming Loans
Nonperforming Loans as a % of Total Loans 1.41% Sept '06 Dec ‘06 Mar'0? Jun‘07 Sept ‘07 Nonperforming Loan Mix | September 30, 2007 | Consumer 1% R/E Mortgage 18% Comm R/E Comm' 56% Other 25% = Increase in nonperforming loans is driven primarily by three relationships related to residential developm
Slide 33: Concentrations of Credit
SS Concentrations of Credit 6.0% = Agricultural m Apartments & Rental Housing Coal Mining & Support Floorplans = Hotel/Motel Non-Residential Real Estate Rental Single Family Construction MA Srrcorp ae 33
Slide 34: Total Deposits
Total Deposits including Repurchase Agreements (im billions) — $2.50 $2.48 Total Deposits $2.18 g21g $223 including Repurchase Agreements | September 30, 2007 Repurchase Agreements 6% Noniaterest Bearing 17% Now 1% Other Time 2002 2003 2004 2005 2006 Sep- 5% o7 CDs <$100K = Total deposits including
Slide 35: 2007 Key Strategic Initiatives
2007 Key Strategic Initiatives
Slide 36: CTBI: 2007 Outlook
SS CTBI: 2007 Outlook Net Income Earnings Per Share Total Assets Loan Growth Total Deposits Efficiency Ratio Shareholders’ Equity $37 to $39 million $2.44 to $2.57 Stable or slight decline $65 to $90 million Stable to increasing (per funding needs) 57.25% to 58.00% $298 to $300 million Community Tru
Slide 37: 2007 Operational Initiatives
SS 2007 Operational Initiatives Attaining our 2007 corporate goals = Internal growth of core banking businesses = Expansion through new branches and acquisitions O New branch in Frankfort, KY to open in 4Q 2007 © Branch under construction in Huntington, WV to open in 1Q 2008 = Continued expansion of
Slide 38: 2007 Operational Challenges
SS 2007 Operational Challenges Major impacts on 2007 corporate goals = Loan growth a Asset quality = Net interest margin = Noninterest income = Profitable deposit growth driven by liquidity needs Community Trust’ Bancorp, Inc. 8
Slide 39: Why CTBI
SSS bi Samaiayy ... Why CIBI = = History of solid investor returns = Community banking strategy = Growth and good financial performance in slow growth markets = Growth strategies O Acquisitions 1 De novo branches O Trust subsidiary O Full service brokerage = Strong experienced management team and 1,
Slide 40: Community Trust Bancorp, Inc.
Community Trust Bancorp, Inc. “Building Communities... Built on Trast”
Community Trust Bancorp — Investor Presentation (November 2007) on 6ix