Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2006)
37 slides from Community Trust Bancorp's investor presentation, Nov 15, 2006
Slide 1: Community Banking... Our Franchise
Community Trust Bancorp, Inc. “Community Banking... Our Franchise” NASDAQ: CTBI www.ctbi.c November 2006 . ‘a = ~~ i F#a
Slide 2: Forward-looking information
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 forward-looking stateme
Slide 3: Total Assets $2.9 billion
Total Assets $2.9 billion Total Loans $2.2 billion Total Deposits* $2.4 billion Total Equity $274.9 million Total Market Capitalization on 10/31/2006 $581.1 million Dividend Yield 2.76% 2006 EPS Consensus Forecast $2.56 P/E 9/30/2006 14.4x P/E 12/06 Consensus Forecast 15.0x include repurcha: : 1s as
Slide 4: Community Trust Bank Branch Office
Community Trust Bank Branch Office * Community Trust & Investment Office Headquartered in Pikeville, KY 74 banking locations throughout Eastern and Central KY 5 banking locations in Southern WV ‘5 trust offices across Kentucky eo &
Slide 5: Competitive Position
Competitive Position + Largest bank holding company domiciled in Kentucky + 7 largest 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 + Eastern Kentucky
Slide 6: Company history timeline
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- Merged all banks into lead bank-- 2002 Community T
Slide 7: Community Trust Bancorp, Inc. 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 > Assets under it $1.0 bill
Slide 8: Management names, positions and experience
Name Position Experience CTBI Jean R. Hale Chairman, President and CEO 37 years 37 Mark A. Gooch CTE President and CEO 25 years 25 Tracy E. Little CTIC President and CEO 32 years 3 Kevin J. Stumbo EVP /Controller 19 years 1 Steven E. Jameson EVP /Risk Manager 21 years 2 James J. Gartner EVP /Chief C
Slide 9: Initial public offering 1981, stock splits, stock dividends
Initial public offering 1981 12 stock splits 9 stock dividends 26 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 11.5% Recognized by Mergent, Inc. as 2005 Dividend Achiever Stock selected in 2006 for listing in the new NASDAQ Global Select Market ‘of 5
Slide 10: Executive Management and Board of Director Commitment to Corporate Governance
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 11: Acquisitions, de novo branches and trust investment
* Acquisitions > 14 Banks > 17 Branches >» Last acquisition in June 2005 ~ De Nova Branches and Branch Expansion/Relocation >» 3 De Nova Branches opened in 2005 > 2 Expansion/Relocations in 2006 ‘+ Investment in Trust Subsidiary > Increase in Assets Under Management of $168.1 million > Investment in
Slide 12: It's Back! Certificate of Deposit
It’s Back! HOOPS Certificate of Deposit Stop by your local branch for more inform: our website at www.ctbi.com to locate the branch nearest you. ee Community y 4, Trust’ Bank building communities...built on trust $2,500.00 minimum doposit. H Nevembor'4, 2006, Substantial 2002 $146,828,000 2003 2004
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Slide 14: Earnings Per Share, ROA, ROE and key ratios
Earnings Per Share (basic) Return on Average Assets Return on Average Equity Net Interest Margin Efficiency Ratio Nonperforming Loans Net Charge-offs a % of Average Assets: 2006 2005 2004 $1.96 $2.31 $2.09 1.34% 1.22% 1.22% 14.89% 13.98% 13.48%. 4.03% 4.03% 4.05% 56.41% 56.83% 58.25% 0.73% 1.02% 1.0
Slide 15: Earnings per share
$2.34 pas $2.09 $1.96 $1.71 2001 2002 2003 2004 2005 2006* Sep-05 Sep-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 forecast for is $2.57, an 11% increase from *2006 is stated
Slide 16: Net income
in milli 36.4 {in millions} Pe © soa S810 $27.6 2001 2002 2003 2004 ©2005 «= 2006* Performance drivers * Loan and deposit growth * Increased net interest income * Stable noninterest income Noninterest expense control ved asset quality $29.5 $25.5 corporate goal; for net income is $38.6 million
Slide 17: Total revenue
tin millions} 5.7% $147.9 $136.7 $140.4 $127.1 $121.0 i ai : 2001 2002 2003 2004 2005 Sep-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% | 2006 annualized revenues is a 2.7% increase
Slide 18: Noninterest income
{in millions} part $36.4 26% 21% | ise 2001 2002 2003 2004 2005 Sep-06* 2006* [mat Noninterest Income —% of Total Revenue * YTD 2006 annualized noninterest income is stable 4 > Increases in both deposit and loan fees > Mortgage loan activity changes > Stable brokerage revenue > Increase in trust rev
Slide 19: Net interest revenue
{in millions} $113.0 $106.6 $103.2 $93.2 $89.3 $83.1 . $84.6 2001 2002 2003 2004 2005 = Sep-06* 2006 * YTD 2006 increase in net interest revenue is 3.3% annualized > Interest income increased > Interest expense increased *Sep-06 annualized is stated corporate goal
Slide 20: Pressure on the margin
Pressure on the margin * 1-year cumulative gap position at 9/30/06 -6.04% * % of assets repricing > Within 30 days 37.76% * % of liabilities > Within 30 days > Within 90 days » Within 180 days 42. 2
Slide 21: Net noninterest expense and efficiency ratio
{in millions} nie ga12 1.70% + 1.50% 2001 2002 2003 2004 2005 Sepos« 2006* mm Net Noninterest Expense ——% of Farning Assets {in millions} 62% 60% 5B% 56% | sax 2005 Sep-06* 2006~ ency Ratio | *Sep-06 annualized *2006 is stated corporate goal
Slide 22: Total assets
iin billions} $2.89 $2.92 e271 ee $2.50 $2.49 $2.47 | | I 2001 2002 2003 2004 2005 SSea 2006~ * Total assets have increased an annualized 2.0% from 12/31/05 to 9/30/06 to $2.89 billion > Loan growth $46.8 million > Deposit growth $62.1 million, 2006 is stated corporate goal
Slide 23: Total loans
{in billions} $2.11 $1.90 $1.71 $1.74 j $1.63 | 1 2001 2002 2003 2004 2005 *2006 is stated corporate goal ‘ $2.15 Sep- 06 $2.32 2006" September 30, 2006 Consumer 19% Comm RYE 26% R/E Mortgage 29%
Slide 24: Total deposits
Ep Grits: iin billions} $2.44 $2.46 fr 22) ie exe September 30, 2006 Repurchase Agreements Noninterest Th Bearing Other Time ha 5% | W Now 2001 2002 2003 2004 2005 ar 2006" q 06 CDs <$100K MMDA *2006 is stated coporate goal Ey "a Savings CDs >$ 100K ho 7%
Slide 25: Asset quality trends
2002 2003 ©—-2004 2004 0.48% 0.35% 0.37% i ] i 2003 2004 2005 + Sep.06* *Sep-06 annualized
Slide 26: Loan portfolio composition
@ Agricultural M Apartments & Rental Housing mCoal Mining & Support m Floorplans m Hotel/Motel m Noo-Resideatial Real Estate Rental ~ Single Family Construction
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Slide 28: Cash dividends per share
$1.05 $0.98 $0.87 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% September 30, 2006 cash dividend yield 2.76% a 3.85% increase in the cash dividend effective 15, 2006 6 is stated corporate goal
Slide 29: Return to Investors
Return to Investors September 30, 2006 20.67% 19.70% 19.58% 15.48% 15.39% 13.77% I Es 1 | ‘ 1-Year 3-Year srveany 10-Year m= CTBI Russell 2000 1-, 3-, 5, and 10-year total retums annualized
Slide 30: Price comparison
Compatisoim OV Cosco Community Tat Bacar eS NASDAQSIock Maiko (US) a= NASDAQB uk Soke |
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Slide 32: 2006 corporate 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%
Slide 33: Attaining our 2006 corporate goals
Attaining our 2006 corporate goals * Internal growth of core banking businesses Continued expansion of trust and brokerage services Expansion through new branches and acquisitions Improved management and customer information Continued expansion of profitable product lines
Slide 34: Major impacts on 2006 corporate goals
Major impacts on 2006 corporate goals ~* Loan growth + Asset quality + Net interest margin * Noninterest income ~ Profitable deposit growth
Slide 35: Net income, EPS and ratios versus goals
Net Income EPS ROAA ROAE Loan Growth Deposit Growth Total Asset Growth Efficiency Ratio $29.5 million $1.96 1.34% 14.89% $46.8 million $62.1 million $43.3 million 56.41% 13.73% $208 million $83 million $71 million 56.44% 1.21% 2.90%
Slide 36: History of Solid Investor Returns
* 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 * Growth and Good Financial Performance in Slow Growth Markets “+ Investme
Slide 37: Community Trust Bancorp, Inc.
Community Trust Bancorp, Inc. “Building Communities ... Built on Trust”
Community Trust Bancorp — Investor Presentation (November 2006) on 6ix