Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (August 2006)
38 slides from Community Trust Bancorp's investor presentation, Aug 21, 2006
Slide 1: Community Trust Bancorp, Inc. – Community Banking ... Our Franchise
Community Trust Bancorp, Inc. “Community Banking ... Our Franchise” NASDAQ: CTBI August 2006
Slide 2: Cautionary Statement
aD ins 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
Slide 3: Corporate Profile
Corporate Profile Total Assets $3.0 billion Total Loans $2.1 billion Total Deposits* $2.5 billion Total Equity $265 million Market Price to Book Value 2.0x Market Price to Tangible Book Value 2.7x Dividend Yield 2.98% Total Market Capitalization on 8/1/2006 $552 million 2005 EPS $2.31 2006 EPS Conse
Slide 4: Community Trust Bank Branch and Loan Production Offices
2 Community Trust Bank Branch Office 2 Community Trust Bank Loan Production Office Headquartered in Pikeville, KY 74 banking locations throughout Eastem and Central KY 5 banking locations in Southern WV 1 loan production office in Kentucky 5 trust offices across Kentucky
Slide 5: Market Analysis
Market Analysis Competitive Position CTBI is the largest bank holding company domiciled in Kentucky CTBI is the 7 largest bank in Kentucky in terms of deposit market share for all FDIC insured insti tions = CTBI is #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institu
Slide 6: 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 7: 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 -
Slide 8: Executive Management Team
Executive Management Team Name ‘ Jean R. Hale d Mark A. Gooch PC Tracy E. Little é Kevin J. Stumbo Steven E. Jameson James J. Gartner James B. Draughn Michael §. Wasson Richard W. Newsom Ricky Sparkman Larry W. Jones Position Banking Chairman, President and CEO 37 years CTB President and CEO CTIC Pr
Slide 9: Years of Increasing Investment Return
_ ~ 102 Years of Increasing = Investment Return @ Initial public offering 1981 ® 12 stock splits ® 9stock dividends, most recent on December 15, 2004 @ 25 years of consecutive increases in cash dividends ® 5-year compound growth rate of cash dividends 11.8% @ Recognized by Mergent, Inc. as 2005 Divi
Slide 10: Our Operational Philosophy
Our Operational Philosophy Supports Our Mission @ Executive Management and Board of Director Commitment to Corporate Governance @ Local Market Presidents @ Decentralized decision making @ Centralized operations ® Specialized product offerings @ Maximized use of technology 10
Slide 11: 2005/2006 Growth of Our Franchise
2005/2006 Growth of Our Franchise Acquisition of Heritage Community Bank of Danville, KY on June 10, 2005 — Total assets $85 million ee. — Purchase price 1.3 X Book “ - Branches — Paintsville (Johnson County) — opened 1* quarter 2005 — Leestown Road (Lexington)— opened 3" quarter 2005 — Allen (Floyd
Slide 12: It's Back – Certificate of Deposit
It’s Back Certificate of Deposit - Stop by your local branch for you ll ha more information. Visit our Ve website at www.ctbi.com to 3 locate the branch nearest you. ‘A Community Trust Bank building communities...built on trust a $2,500.00 minimum deposit. HOOPS’ CO i avaiable through = Member FDIC
Slide 13: Financial Highlights
Financial Highlights 43
Slide 14: Performance Summary
Performance Summary YTD 2006 2005 2004 Earnings Per Share (basic) $1.31 $2.31 $2.09 Return on Average Assets 1.35% 1.22% 1.22% Net Interest Margin 4.02% 4.03% 4.05% Efficiency Ratio 56.95% 56.83% 58.25% Nonperfor ming Loans 0.80% 1.02% 1.06% Net Charge-offs 0.29% 0.37% 0.35% As a % of Average Assets
Slide 15: Earnings Per Share
Earnings Per Share $2.31 ail 2001 2002 2003 2004 2005 2006* sum Jun-06 7th consecutive year of increased EPS Earnings per share increased 10.5% in 2005 10.4% compound growth rate for earnings per share for the past five years *2006 is stated corporate goal; Mid- year 2006 forecast for EPS is $2.57 1
Slide 16: Net Income
Net Income {in millions} $36.4 $34.4 2001 2002-2003 2004 ©2005 «= 2006" Jun-05 Jun-06 Performance drivers Loan and deposit growth Increased net interest income Stable noninterest income Noninterest expense control *2006 is stated corporate goal; Improved asset qualit Mid-year 2006 forecast for net R
Slide 17: Revenues
Revenues {in millions) af ene $136.7 7 1 $121.0 117.2 $106.9 | | 2001 2002 2003 2004 2005 Jun-06* 2006 "Total Revenue > 5-Year Compound Growth Rate Total revenue increased an average of 6.4% per year for the past five years — 2005 revenues increased 7.6% *Jun-06 annualized *2006 is stated corporate
Slide 18: Noninterest Income
Noninterest Income and as a % of Total Revenue 32% {in millions) $36.4 26% 21% $ 15% 2001 2002 2003 2004 2005 Jun-06* 2006 "= Noninterest Income ——% of Total Revenue + Noninterest revenue as a percent of total revenue for the year ended 12/31/2005 was 24.2%, a decrease from prior year’s 26.0% — Incr
Slide 19: Net Interest Revenue
Net Interest Revenue {in millions) sae 2001 2002 2003 2004 2005 Jun-06* 2006* Net interest revenue increased 10.7% during 2005 — Interest income increased 22.8% - Interest expense increased 53.2% *Jun-06 annualized *2006 is stated corporate goal 19
Slide 20: Net Interest Margin
Net Interest Margin 4.05% 4.02% 4.02% Gsasha 8.959 " | a a} 2001 2002 2008 Jum 05 Jus 06 Net interest margin decreased only 2 basis points from prior year - Yield on interest eaming assets increased 57 basis points — Cost of interest bearing funds increased 74 basis points - Average interest bearing
Slide 21: Net Noninterest Expense
Net Noninterest Expense & as a % of Average Earning Assets {in millions) 848.5 7 1.00% 847.4 Se afer es Seren Noninterest Expense & Efficiency Ratio {in millions) e7d's! ) SBS ee Rie? 50% Lal so% } 54% 2001 2002 2003 2004 2008 Jun-os* 2006 [ReaNonisterest Epensa = EiibicacynRUS *Jun-06 annualized *2
Slide 22: Total Assets
Total Assets {in billions} s2.e5 %297 $2.92 iy 2001 2002 2003 2004 2005 Jun-06 2006" Total assets increased 5.2% during 2005 to $2.85 billion — Internal growth $51.2 million — Acquisition growth $88.9 million *2006 is stated corporate goal 22
Slide 23: Loan Portfolio Mix
Loan Total Loans Portfolio Mix June 30, 2006 (in billions} Consumer By Comm RIE 37% $1.71 $1.74 $1.63 R/E Mortgage 28% Comm Other 4 16% 2001 2002 2003 2004 2005 Jun-06 2006" *2006 is stated corporate goal ee
Slide 24: Total Deposits and Deposit Mix
i a * {in billions} Total Deposits fincluding Repurchase Agreements) gose 5248 $248 $221 $2.18 sig $2.23 a_l 2001 2002 2003 2004 2005 2006" Jun- 06 *2006 is stated corporate goal Deposit Mix June 30, 2006 Repurchase Agreements 8% Noninterest Bearing Other Time AY 5% CDs <$ 190K 26% Savings CDs >$ 10
Slide 25: Net Charge-offs, Loan Loss Reserve, Nonperforming Loans
Net Charge-offs as a % of average loans 055% gas, Wit 2001 «0027003 20042005 Jun.06* *Jun-06 annualized Loan Loss Reserve as a % of net loans 13e% 142% 1A2K AZ 1a shal zms Junos Nonperforming Loans as a % of total loans Nit 2001 022020042005) 06 as
Slide 26: Concentrations of Credit
Concentrations of Credit as a % of Total Loans June 30, 2006 » Agricultural Apartments & Rental Housing Coal Mining & Support Floorplans "Hotel Motel _ Non-Residential Real Estate Rental mSingle Family Construction 26
Slide 27: 2005 Scorecard
2005 Scorecard Net Income Earnings Per Share Return on Average Assets Return on Average Equity Loan Growth Deposit Growth Efficiency Ratio As a % of Average Assets: Noninterest Revenue Noninterest Expense 2005 Actuals 2005 Goals $34.4 million $2.31 1.22% 13.98% 10.77% 6.59% 56.83% 1.19% 2.79% $33.4
Slide 28: Investor Return
Investor Return
Slide 29: Dividends Per Share
Dividends Per Share $1.04 $0.98 2001 2002 2003 2004 2005 2006" Cash dividends per share increased an average 12.7% annually during the last 5 years 2005 cash dividends increased 12.6% December 31, 2005 cash dividend yield 3.38% *2006 is stated corporate goal ise
Slide 30: Comparison to Russell 2000
\ Comparison to Russell 2000 Index of small cap companies Return to Investors June 30, 2006 20.94% 18.69% 17.74% 14.79% 14.56% 9.05% 1-Year 3-Year 5-Year 10-Year @ Russell 2000 ~ CTBI ® 3-,5-, and 10-year total returns annualized oe
Slide 31: Comparison of Five-Year Cumulative Total Return
Comparison of 5 Year cam Cumulative Total Return e! ma among Community Trust Bancorp, Inc., NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks 2000 2001 2002 2003 2004 2005 —+—Commmity Trust Bancorp, Ine S_NASDAQ Stock Market (US) NASDAQ Bank Stocks An investment in CTBI stock on December 31, 2000 w
Slide 32: 2006 Key Strategic Initiatives
2006 Key Strategic Initiatives oe
Slide 33: 2006 Performance Goals
2006 Performance Goals Net Income Earnings Per Share Loan Growth Deposit Growth Total Asset Growth Efficiency Ratio $36.4 million $2.45 $208 million $83 million $71 million 56.44% oe
Slide 34: 2006 Operational Initiatives
2006 val Operational Initiatives Plans being executed to attain our 2006 corporate goals Internal growth of core banking businesses q - Continued expansion of trust and brokerage services Expansion through new branches and acquisitions Improve management and customer information Continued expansion
Slide 35: 2006 Operational Challenges
2006 Operational Challenges Major impacts on 2006 corporate goals Loan growth Asset quality Net interest margin Noninterest income Profitable deposit growth ao
Slide 36: 2006 Year-to-Date Scorecard
2006 Year-to-Date Scorecard Net Income Earnings Per Share ee Return on Average Assets | Return on Average Equity Loan Growth Deposit Growth Total Asset Growth Efficiency Ratio As a % of Average Assets: Noninterest Revenue Noninterest Expense YTD 2006 2006 Goals $19.7 million $36.4 million $1.31 $2.4
Slide 37: In Summary—Why CTBI
In Summary—Why CTBI History of Solid Investor Returns - Consistent growth in dividends Positive Financial Trends — 7 consecutive year of earnings growth Community Banking Strategy — Centralized processing with decentralized decision making Expansion into Faster Growing Markets Strong Experienced Man
Slide 38: Community Trust Bancorp, Inc. – Building Communities ... Built on Trust
Community Trust Bancorp, Inc. “Building Communities ... Built on T: is oo
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