Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (August 2007)
45 slides from Community Trust Bancorp's investor presentation, Aug 27, 2007
Slide 1: Community Trust Bancorp, Inc. Investor Presentation
Community Trust Bancorp, Inc. . Community Banking... Our Franchise = Investor Presentation NASDAQ: CTBI wwwatbicom August 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 $3.0 billion = Total Loans $2.2 billion = Total Deposits* $2.5 billion = Total Equity $291.7 million = Dividend Yield 3.34% = Total Market Capitalization as of 8/20/07 $478.9 million = 2006 EPS $2.59 = 2006P/E 16.0x * Total Deposits include repurchase agreement
Slide 4: Our Banking Franchise
SS te Our Banking Franchise 2 Community Trust Bank Branch Office 2 Community Trust & Investment Office Headquartered in Pikeville, KY 74 banking locations throughout Eastern and Central KY 5 banking locations in Southem WV 5 trust offices across Kentucky 2"4 Jargest Kentucky domiciled bank holding c
Slide 5: Market Analysis
SS Market Analysis Competitive Position = 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 = Eastern Kentucky Region Energy - coal and natural
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
Sh 105 Years of Increasing Investment Return a Initial public offering 1981 m 12 stock splits m 9stock dividends m= 26 years of consecutive increases in cash dividends a 5-year compound growth rate of cash dividends 11.5% a Stock selected in 2006 for listing in the new NASDAQ Global Select Market an
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 2006 2 New
Slide 12: Managing Liquidity through Innovative Products
Managing Liquidity through Innovative Products It’s Back! = 12 Month Certificate of Deposit: April Ist through maturity, rate Certificate of Deposit paid is adjusted by 1 hasis point for each University of Kentucky win; bonus 100 basis 800-422-1090 points added to rate for National Championship win.
Slide 13: Performance Summary
Performance Summary 2006 2005 2004 Earnings Per Share (basic) $2.59 $2.31 $2.09 Return on Average Assets 1.33% 1.22% 1.22% Return on Average Equity 14.51% 13.98% 13.48% Net Interest Margin 4.02% 4.02% 4.06% Efficiency Ratio 56.67% 56.83% 58.25% Nonperfor ming Loans 0.66% 1.02% 1.06% Net Charge-offs
Slide 14: Shareholder Value
Shareholder Value
Slide 15: Dividends Per Share
SS J Dividends Per Share $1.05 $1.08 2002 2003 2004 2005 2006 2007* *2007 is projected DPS Community Trust’ Re 46
Slide 16: Dividends Per Share
SSS Dividends Per Share m= 26 consecutive years of increased cash dividends = 11.5% compound growth rate for past five years a Increased dividend by 1¢ (3.85%) effective with the January 2007 dividend m 2006 cash dividends increased 7.1% = December 31, 2006 cash dividend yield 2.53% a June 30, 2007
Slide 17: Shareholders' Equity
SS Shareholders’ Equity = 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 $300 and $302 million MGommunity Trust Bancorp, Inc. 47
Slide 18: Total Market Capitalization
SS Total Market Capitalization (in millions) $629.5 2002 2003 2004 2005 2006 2007 All data is as of year-end except 2007 which is based upon stock price on June 30, 2007 Community Trust’ Re 48
Slide 19: Comparison of Cumulative Total Return
2 Comparison of 5 Year Cumulative Total Return among CIBI, NASDAQ Stock Market (US), and NASDAQ Bank Stocks $300 $200 $100 2002 2003, ann 2005 2006 2007 —+—Community Trust Bancorp, Ine. —S_NASDAQ Stock Market (U'S.) —4—NASDAQ Bank Stocks = An investment in CTBI Stock on December 31, 2002 would have
Slide 20: Comparison to Russell 2000 Index of small cap companies
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 of small cap companies
SS Comparison to Russell 2000 Index of small cap companies Return to Investors June 30, 2007 16.49% 13.52% 13.91% 12.23% 10.50% : -§ "Ew 5 4. 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. 4
Slide 22: 2006 Earnings Review
2006 Earnings Review
Slide 23: Earnings Per Share
Earnings Per Share $2.59 m 8th consecutive year of increased EPS m Earnings per share increased 12.1% in 2006 m@ 12.3% 5-year compound growth rate for EPS = 2007 EPS projected between $2.45 and $2.57 MA Srrorp ae 23
Slide 24: Net Income
Net Income 2002 2003 2004 2005 2006 = 2006 performance drivers © Loan and deposit growth Increased net interest income Stable noninterest income Noninterest expense control Improved asset quality = 2007 projected net income between $37 and $39 million Mi Gommunity Trust Bancorp, Inc. 24
Slide 25: Noninterest Income as a % of Total Revenue
Noninterest Income as. a%of Total Revenue (in millions) $36.4 $34.0 $33.6 * $32.7 Ea ge 9 2002 2003 2004 2005 2006 [== Noninterest Income ——% of Total Revenue = 2006 noninterest income © Increase in deposit fees © Change in mortgage loan activity O Stable brokerage revenue © Increase in trust revenu
Slide 26: Net Interest Margin
Net Interest Margin 4.12% 4.07% 4.07% Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 = cCcTBI = Peer a Pressure on the margin a % of assets repricing m= 1-year cumulative gap position O Within 30 days 38.4% at 12/31/06 -5.99% a % of liabilities repricing O Within 30 days 15.0% O Within 90 days 23.1% OQ Within 1
Slide 27: 2006 Balance Sheet Review
2006 Balance Sheet Review
Slide 28: Total Assets
SS ee Total Assets (in billions) $2.97 $2.85 = $2.71 $2.49 $2.48 2002 2003 2004 2005 2006 = Total assets increased 4.2% during 2006 to $2.97 billion © Loan growth $60.1 million © Deposit growth $127.1 million a Total assets are expected to remain stable or decline slightly in 2007 Community Trust’ M
Slide 29: Total Loans
SS Total Loans (in billions) $2.44 $2.17 2002 2003 2004 2005 2006 = 2007 projected loan growth between $140 and $150 million Loan Portfolio Mix December 31, 2006 Consumer 20% Comm R/E 35% R/E Mortgage 29% Comm Other 16% Community Trust’ Bancorp. Inc. 29
Slide 30: Net Charge-offs
Net Charge-offs asa %ol average loans 0.63% o.48% a.37% O.35% iseie 2002 2003 2004 2005 2006 Loan Loss Reserve asa %of net loans 1.42% 1.42% 1.42% 9, 1.40% 1.27% 2002 2003 2004 2005 2006 Nonperforming Loans asa %of total loans 1.39% 0.97% 71-96% 4.02% 0.66% 2002 2003 2004 2005 2006 Community Trust’
Slide 31: Concentrations of Credit
SS Concentrations of Credit December 31, 2006 6.1% m Agricultural m Apartments & Rental Housing | Coal Mining & Support Floorplans = Hotel/Motel Non-Residential Real Estate Rental Single Family Construction MASrorp ae 34
Slide 32: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.50 $2.38 $2.23 $2.18 $2.16 2002 2003 2004 2005 2006 Total deposits including repurchase agreements are expected to remain stable to increasing per funding needs. Total Deposits including Repurchase Agreements | December 31, 2006 Repurch
Slide 33: 2nd Quarter 2007 Review
a Quarter 2007 Review
Slide 34: Net Income
Net Income (in millions) June ‘0G Sept'0G Dec'0G Mar'O7 = Jun ‘07 = Redemption of trust preferred securities in Q1 © $1.9 million pre-tax charge from unamortized debt issuance costs = Continuing pressure on net interest margin = Normal changes in loan loss provision as reserve adequacy is reviewed o
Slide 35: Noninterest Income
a Noninterest Income (in millions) $8.0 $8.2 ae 22:6 peu Jun ‘OG Sept'OG Dec 'OG Mar'O7 Jun "O7 Increased loan related fees Increased trust revenue Increased deposit service charges Increased nonrecurring revenue items MGommunity Trust Bancorp, Inc. 35
Slide 36: Noninterest Expense
a Noninterest Expense (in millions) $22.5 $19.9 $20.0 $20.5 S20? Jun'06 Sept'06 Dec'06 Mar'O?7 Jun 'O7 mw Q-O-Q decrease resulted from unamortized debt issuance costs on trust preferred redemption MASrrorp ae 36
Slide 37: Total Loans
2S Total Loans (in billions) $2.14 $2.15 $2.17 $2.17 $2.21 Jun'OG Sept'O6G Dec'OG Mar'O7 Jun 'O7 = Loan portfolio grew at an annualized rate of 8.0% during the quarter and 3.6% year over year. Community Trust’ Re 97
Slide 38: Total Deposits including Repurchase Agreements
a Total Deposits including Repurchase Agreements (in billions) $2.48 $2.44 $2.50 $2.56 $2.52 Jun'0OG Sep '0G Dec'06 Mar'O7 Jun '07 mu Deposits, including repurchase agreements, declined $42.0 million, an annualized 6.6%, during the quarter. O Managing deposit growth and pricing controls due to liqui
Slide 39: Nonperforming Loans as a % of Total Loans
SW Nonperforming, Loans asa %of Total Loans 1.08% Jun'06 Sept'06 Dec'06 Mar'07 Jun '07 Community Trust’ MAS 39
Slide 40: 2007 Key Strategic Initiatives
2007 Key Strategic Initiatives
Slide 41: 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 $2.45 to $2.57 Stable or slight decline $140 to $150 million Stable to increasing (per funding needs) 57.25% to 58.00% $300 to $302 million Community T
Slide 42: 2007 Operational Initiatives
Sh 2007 Operational Initiatives Attaining our 2007: corporate goals = Internal growth of core banking businesses = Expansion through new branches and acquisitions © 2007 new branches in Huntington, WV and Frankfort, KY = Continued expansion of trust and brokerage services = Improved management and c
Slide 43: 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. 3
Slide 44: Summary ... 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 45: Community Trust Bancorp, Inc.
Community Trust Bancorp, Inc. “Building Communities... Built on Trast”
Community Trust Bancorp — Investor Presentation (August 2007) on 6ix