Slide 1: Community Trust Bancorp, Inc. Investor Presentation
Z Community Trust Bancorp, Inc. Investor Presentation NASDAQ: CIBI oases August 2008
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
Corporate Profile Total Assets Total Loans Total Deposits* Total Equity Dividend Yield Total Market Capitalization as of 8/13/08 2007 EPS 2007 P/E * Total Deposits include repurchase agreements. Financial data is as of June 30, 2008 unless otherwise noted. $2.9 billion $2.3 billion $2.4 billion $306
Slide 4: Our Banking Franchise
Our Banking Franchise 2 Community Trust Bank Branch Office 2 Community Trust & Investment Office Serving 77 branch locations in 33 counties throughout Kentucky and West Virginia
Slide 5: 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 m@
Slide 6: Organizational History
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. 1997-
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 L | Community Trust and Investment Company
Slide 8: 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. Draugha Michael S. Wasson Richard W. Newsom Ricky Sparkman _ Larry W. Jones Chairman, President and CEO CTB President and CEO CTIC President and CEO EVP /Controiier E
Slide 9: Years of Increasing Investment Return
103 Years of Increasing Investment Return = Formation of bank holding company 1981 m 12 stock splits m 9stock dividends m 27years of consecutive increases in cash dividends $0.02 per share increase effective December 15, 2007 m 5-year compound growth rate of cash dividends 11.3% m Stock selected in
Slide 10: 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 410
Slide 11: Managing Liquidity through Innovative Products
Managing Liquidity through Innovative Products It’s Back! H SD yp PS ‘Deposit Aaril ist Certificate of Deposit through maturity, rate paid is adjusted by 1 basis point for each University of Kentucky Stop by your local branch for more information. Visit our website at www.ctbi.com to locate the bran
Slide 12: Performance Summary
Performance Summary YTD 2008 2007 2006 Earnings Per Share (basic) $1.14 $2.42 $2.59 Return on Average Assets 1.19% 1.23% 1.33% Return on Average Equity 11.21% 12.45% 14.51% Net Interest Margin 3.94% 3.90% 4.02% Efficiency Ratio 56.82% 37.62% 56.67% Nonperfor ming Loans 1.94% 1.43% 0.66% Net Charge-o
Slide 13: Shareholder Value
Shareholder Value
Slide 14: Dividends Per Share
Dividends Per Share 2003 2004 2005 2006 2007 2008* *2008 is projected DPS 14
Slide 15: Dividends Per Share
Dividends Per Share mu 27 consecutive years of increased cash dividends = 11.3% compound growth rate for past five years = Increased dividend by 2¢ (7.41%) effective with the January 2008 dividend mu 2007 cash dividends increased 4.8% mu December 31, 2007 cash dividend yield 4.21% a June 30, 2008 ca
Slide 16: Shareholders' Equity
Shareholders’ Eguity in millions; @ ) Sao gis 301 40g S30G @ Shareholders’ equity has increased 36.1% during the past five years ™ 7.6% compound growth rate for the past five years @ 2008 shareholders’ equity projected at $317 - $319 million 416
Slide 17: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 2003 2004 2005 2006 2007 2008 All data is as of year-end except 2008 which is based upon stock price on August 13, 2008 AT
Slide 18: Comparison of Cumulative Total Return
Comparison of 5 Year Cumulative Total Returm among CIBI, NASDAQ Stock Market (US), and NASDAQ Bank Stocks $200 $100 == $04 2003 2004 2005 2006 2007 2008 —+—Community Trust Bancorp, Inc S_NASDAQ Stock Market (U.S) A NASDAQ Bak Stocks @ An investment in CTBI stock on June 30, 2003 would have outperfor
Slide 19: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index Piemallican companies Return to Investors June 30, 2008 10.32% 7.35% 6.12% 5 58% —s a “15.28% 16.10% =SCTBI Russell 2000 © 3-,5-, and 10-year total returns annualized 49
Slide 20: Earnings Review
Earnings Review 20
Slide 21: Earnings Per Share
Earnings Per Share 2.59 ? $2.42 $2.31 2003 2004 2005 2006 2007 Earnings per share decreased 6.6% in 2007 §.7% 5-year compound growth rate for EPS 2008 EPS projected at $2.25 to $2.45 per share $1.11 Jun ‘07 $1.14 Jun ‘08 24
Slide 22: Net Income
Net Income (in millions) $39.1 2003 2004 2005 2006 2007 2008 projected net income $34 million to $36 million $16.9 Jun 07 $172 Jun ‘08 22
Slide 23: Revenues
Revenues 2003 2004 2005 2006 2007 2008 * H 4.0% compound growth rate for revenues for the past five years 2007 revenues increased 1.6% @ 2008 projected revenues of $144 million to $148 million *Jun 08 annualized 23
Slide 24: Noninterest Income
Noninterest Income con God Al Rages 2003 2005 2006 Jun ‘Os [=Neninterest Income —% of Total Revenue] @ 2007 noninterest income Increase in deposit fees Change in mortgage loan activity _ Stable brokerage revenue Increase in trust revenue H 2008 projected noninterest revenue from 25% to 27% of total
Slide 25: Net Interest Margin
Net Interest Margin 4.02% 4.00% s.a6% 3.86% 3.B8% 73% a Se 3.59% ge un "OF Sep ‘07 Dec ‘O07 Mar "O08 Jun "OS [ =cTeI —_ Peer ] m= Pressure on the margin a % of assets repricing mg 1-year cumulative gap _ Within 30 days 38.12% position at 6/30/08 -4.13% a % of liabilities repricing Within 30 days 17.
Slide 26: Balance Sheet Review
Balance Sheet Review
Slide 27: Total Assets
Total Assets (im billions) 2.71 $2.85 %7°°7 $2.90 $2.58 $2.48 a 2003 2004 2005 2006 2007 Jun = Total assets decreased 2.3% during 2007 to $2.90 billion Loan growth $60.4 million Deposit decline $50.7 million _ Investment portfolio decline $109.2 million = Total assets are expected to increase — $40
Slide 28: Total Loans
Total Loans Gn billions) supe (ae) $2.11 2003 2004 2005 2006 2007 Jun "08 @ 2008 projected loan growth $165 to $185 million Loan Portfolio Mix June 30, 2008 Consumer 20% Comm R/E 35% R/E Mortgage 29% Comm Other 16% 28
Slide 29: Net Charge-offs
Net Charge-offs as a %of average loans 0.48% Loan Loss Reserve asa %olnetloans 142% 142% 1.40% 127% 1.26% 1.28% 2003 m0 2005 2006. 2007) Jun ‘08 *Jun'08 annualized 2003 2008 «= 2005) 2006. «2007 Jun 0B 29
Slide 30: Nonperforming Loans
Nonperforming Loans as a % of Total Loans 2003 «42004 2005 2006 2007 1.94% Jun "08 Nonperforming Loan Mix June 30, 2008 Consumer 1% R/E Mortgage 18% Comm R/E Comm! 56% Other 25% Increase in nonperforming loans is driven primarily by the weak housing market in Central Kentucky. Our loan portfolio man
Slide 31: Concentrations of Credit
Concentrations of Credit 2.19% 4.2% June 30, 2008 5.596 Agricultural Apartments & Rental Housing _ Coal Mining & Support Floorplans _ Hotel/Motel _ Non-Residential Real Estate Rental Single Family Construction 34
Slide 32: Total Deposits
Total Deposits including Repurchase Agreements Gn billions) $250 $2.45 §9.49 $2.38 $2.16 $2.23 2003 2004 2005 2006 2007 Jun 08 ™@ Total deposits including repurchase agreements are expected to increase $72 to $78 million in 2008 Total Deposits including Repurchase Agreements June 30, 2008 Repurchase
Slide 33: 2008 Key Strategic Initiatives
2008 Key Strategic Initiatives 33
Slide 34: CTBI: 2008 Outlook
CTBI: 2008 Outlook Net Income Earnings Per Share Asset Growth Loan Growth Deposit Growth Efficiency Ratio Shareholders’ Equity $34 - $36 million $2.25 - $2.45 per share $40 - $45 million $165 - $185 million $72 - $78 million 56% - 58% $317 - $319 million 34
Slide 35: 2008 Operational Initiatives
2008 Operational Initiatives Attaining our 2008 corporate goals m= Working through our asset quality issues m= Focus on core banking business = Internal growth and expansion through new branches and acquisitions m= Continued expansion of trust and brokerage services = Improved management and custome
Slide 36: 2008 Operational Challenges
2008 Operational Challenges Major impacts on 2008 corporate goals The U.S. economy Action by the U.S. Government to manage current economic issues Loan growth Asset quality Net interest margin Noninterest income Profitable deposit growth driven by liquidity needs 36
Slide 37: CTBI's Franchise Value
CTBI's Franchise Value History of solid investor returns Community banking strategy Historical ability to grow and have good financial performance in slow growth markets Growth strategies Acquisitions _ De nova branches Trust subsidiary _ Fullservice brokerage Strong experienced management team and
Slide 38: Building Communities... Built on Trust
“Building Communities... Built on Trust” & F Dommunity Trust | f Bancorp, Inc. * pe