Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2009)
47 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 28, 2009
Slide 1: Community Trust Bancorp 2009 Annual Shareholders' Meeting
Za Community Trust Bancorp, Inc. 2009 Annual Shareholders * Meeting April 28,2009
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Information provided herein by CIBI contains “forward looking” information. CTBI cautions that any forward~ looking statements made are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Please refer t
Slide 3: Our Banking Franchise
Our Banking Franchise Serving 77 branch locations in 33 counties throughout Kentucky and West Virginia
Slide 4: Operational Challenges 2008
Operational Challenges = 2008 a Economic Crisis > Worldwide historic recession Greed, leverage, fraud Volatile gas prices Failed investment banks Treasury places GSE in receivership Mortgage giants fail “Too big to fail” theory Retail icons failed ‘Unemployment levels increased Consumer confidence p
Slide 5: Operational Challenges 2009
Operational Challenges =a 2009 a Continued deterioration of the U.S. economy a Federal government working to stabilize the U.S. economy a World economy still in crisis :
Slide 6: 2008 Performance
2008 Performance
Slide 7: Strategic Plan for 2008
Strategic Plan for 2008 What were our goals? Net income of $34 - $36 million Earnings per share of $2.25 - $2.45 per share Asset growth of $40 - $45 million Loan growth of $165 - $185 million Deposit growth of $72 - $78 million Efficiency ratio of 56% - 58% Shareholders’ equity of $317 -$319 million
Slide 8: 2008 Performance Summary
2008 Performance Summary What were the results of executing our plan? = Earnings of $23.1 million = EPS of $1.54 per share = Asset growth of $51.8 million = Loan growth of $120.8 million = Deposit growth of $38.7 million = Efficiency ratio of 58.39% = Shareholders’ equity of $308.2 million
Slide 9: Shareholder Value
Shareholder Value
Slide 10: Dividends Per Share
Dividends Per Share $1.17 $1.20 2004 2005 2006 2007 2008 2009~ = 2008 cash dividends increased 6.4% = 9.4% compound growth rate for past five years = December 31, 2008 cash dividend yield was 3.27% *2009 is projected DPS
Slide 11: Shareholders' Equity
Shareholders’ Equity (in millions) $301.4 $308.2 2006 2007 2008 Shareholders’ equity has increased 30.5% during the past five years = 6.8% compound growth rate for the past five years = 2009 projected shareholders’ equity $314 - $335 million
Slide 12: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 2004 2005 2006 2007 2008 2009 All data is as of year-end except 2009 which is based upon stock price on March 31 , 2009
Slide 13: Comparison of Year Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CIBI, NASDAQ Stock Market (US), and NASDAQ Bank Stocks $200 $100 $04 2003 2004 2005 2006 2007 2008 —+—Commumity Trt Bancorp, Ine S_NASDAQ Stock Market (U.S) A NASDAQ Baik Stocks = An investment in CTBI stock on December 31, 2003 would have outperfor
Slide 14: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index aQedllageates Return to Investors December 31, 2008 on.srm ae bs aso ee Pe 1 0.89% 20% -sa.n0% 1-Year 3-Year 5-Year 10-Year =CTBI Russell 2000 © 3-,5-, and 10-year total returns annualized
Slide 15: Historic Investment Returns
Historic Investment Returns Core value long-term investment Formation of bank holding company in 1981 12 stock splits 9 stock dividends 28 years of consecutive increases in cash dividends a $0.01 per share increase effective December 15, 2008 §-year compound growth rate of cash dividends 9.4% Stock
Slide 16: 2008 Earnings Review
2008 Earnings Review
Slide 17: Earnings Per Share
Earnings Per Share $2.59 $2.42 $2.31 2004 2005 2006 2007 2008 a EPS decreased 36.4% = 2009 EPS projected at $1.66 - $1.90 per share
Slide 18: Return on Average Assets
Return on Average Assets 1.33% .22% 224 1.23% 1.22% 1 22 5y 0.28% 2004 2005 2006 2007 2008 m@CTBI |_JPeer
Slide 19: Net Income
Net Income (in millions) $39.1 $36.6 $34.4 = 2009 projected net income $25 - $29 million
Slide 20: Net Income
Net Income At June 30, 2008, CTBI held $14.9 million in Freddie Mac and Fannie Mae pass-through auction rate securities which had an unrealized loss of $0.5 million. As a result of the U.S. Treasury placing Freddie Mac and Fannie Mae into conservatorship on September 7, 2008, the value of these inve
Slide 21: Revenues
Revenues (in millions) $142.6 $127.1 $136.7 $140.3 $125.4 2004. 2005 2006 2007 2008 = 2008 revenues decreased 12.1% = 2009 projected revenues $143 - $145 million
Slide 22: Noninterest Income
Noninterest Income fee Joculcralibecenaa (in millions) eS: S $23.5 $22.0 = 2004 2005 2006 2007 2008 (= Neninterest Income —% of Total Revenue] = 2008 noninterest income a OTTI charges Decline in fair value of mortgage servicing Increased gains on sales of loans ; Increased deposit service charges fo
Slide 23: Net Interest Revenue
Net Interest Revenue (in millions) $107.8 $106.0 $93.2 $103.2 $103.6 2004 2005 2006 2007 2008 = 2008 decrease in net interest revenue was $2.4 million a Net interest margin decreased 2 basis points year over year a Average earning assets decreased $57.0 million
Slide 24: Net Interest Margin
Net Interest Margin 4.02% 4.00% 3.97% 78% 3.59% Dec 07 Mar 08 [ m= cCTBI = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 38.32% 12/31/08 -3.40% = % of liabilities repricing a Within 30 days 17.16% a Within 90 days 25.79% a Within 180 days 36.62%
Slide 25: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expense as a % of Average Eaming Assets (in millions) $60.8 2.30% 2.10% $47.8 $45.1 1.90% ee a aie aa |. 2004 2005 2006 2007 z008 —Net Noninterest Expense ——% of Earning Assets Noninterest Expense & Efficiency Ratio ‘(in millions) $80.4 $83.1 $82.5 $74.6
Slide 26: 2008 Balance Sheet Review
2008 Balance Sheet Review
Slide 27: Total Assets
Total Assets (in billions) ted $2.85 $2.97 $2.90 $2.95 2004 2005 2006 2007 2008 = Total assets increased 1.8% during 2008 to $2.95 billion a Loan growth $120.8 million a Deposit growth $37.1 million a Investment portfolio decline $64.1 million = Total assets are expected to increase $95 - $115 milli
Slide 28: Total Loans
Total Loans (in billions) $2.35 $2.23 $2.11 $2.17 2004 2005 2006 2007 2008 2009 projected loan growth $35 - $75 million Loan Portfolio Mix December 31, 2008 Consumer 21% Comm R/E 35% R/E Mortgage 23% Comm Other 16%
Slide 29: Net Charge-offs
Net Charge-offs as a %of average loans Nonperforming, Loans as a % of total loans 0.66% 2.40% 2005 2006 2007 =cTBI "Peer Loan Loss Reserve asa %of net loans 1.42% 140% a o7y tzey tat no 2004 = 2005 «= 2006 «= 2007-2008 he 121 130% ay 1.22 1.16% 0% acral _ Peer 2004 = 2005 «= 2006») 2007 = 2008 mCTal
Slide 30: Total Deposits
Total Deposits including Repurchase Agreements (in billions) sza 8250 sas 82.49 $2.23 2004 2005 2006 2007 2008 - Total deposits including repurchase agreements are expected to increase $50 - $70 million in 2009 Total Deposits including Repurchase Agreements December 31, 2008 Repurchase inated Nonint
Slide 31: 1st Quarter 2009 Review
1st Quarter 2009 Review
Slide 32: Net Income (in millions)
(in millions) $8.5 Mar '08 Net Income $8.6 $6.5 — -$0.6 Jun '08 Sept ‘08 Dec ‘08 $7.4 Mar '09
Slide 33: Net Income
Net Income a Net interest income a Decreased $1.8 million year over year a Decreased $0.7 million quarter over quarter = Provision for loan losses a Decreased $0.4 million year over year a Decreased $1.6 million quarter over quarter a Noninterest income Q Increased $2.0 million year over year a Incr
Slide 34: Noninterest Income
Noninterest Income (in millions) $10.8 $9.7 al wl J al -$4.0 Mar "08 Jun ‘OB Sept "0S Dec "08 Mar "os = $0.5 million securities gain = Increased gains on sales of loans = Increased loan related fees a Positive variance in fair value of mortgage servicing rights
Slide 35: Noninterest Expense
Noninterest Expense (in millions) Mar'os JunN'OS Sept'OS8 Dec'OS Mar'og9s = Increases in legal, other real estate owned, insurance, and repossession expenses from increased collection activity = Increased personnel expense
Slide 36: Total Loans
Total Loans (in billions) $2.25 $2.27 $2.32 $2.35 $2.34 Mar'osS Jun'OS Sept "0S Dec "08 Mar "09 = Loan portfolio decreased at an annualized rate of 2.3% during the quarter = Loan growth from prior year 3.7%
Slide 37: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.45 $2.42 $2.43 $2.49 $2.53 Mar '08 Jun'O0&S Sept'0S Dec '08 Mar ‘03 = Deposits, including repurchase agreements, increased an annualized 7.0% from prior quarter and 3.2% from prior year
Slide 38: Nonperforming Loans
Nonperfonning Loans as a % of Total Loans 2.13% 2.22% 2.23% Mar'08 Jun'O8 Sept'08 Dec'08 Mar '09
Slide 39: Net Charge-offs
Net Charge-offs asa % of average loans 0.45% Mar'08 Jun'O8 Sept'08 Dec'08 Mar '09
Slide 40: Efficiency Ratio
Efficiency Ratio 61.45% 64.06% 56.39% 57.25% 58-63% Mar'08 Jun'OS Sept'08 Dec'08 Mar ‘09
Slide 41: 2009 Key Strategic Initiatives
2009 Key Strategic Initiatives
Slide 42: CTBI: 2009 Outlook
CIBI: 2009 Outlook Net Income Earnings Per Share Asset Growth Loan Growth Deposit Growth Efficiency Ratio Shareholders’ Equity $25 - $29 million $1.66 - $1.90 per share $95 - $115 million $35 - $75 million $50 - $70 million 61% — 66% $314 - $335 million
Slide 43: 2009 Operational Initiatives
2009 Operational Initiatives Attaining our 2009 corporate goals = Working through asset quality issues = Focus on core banking businesses = Management of our net interest margin = Continuing focus on expense control = Internal growth and expansion through new branches and acquisitions = Continued ex
Slide 44: 2009 Operational Challenges
2009 Operational Challenges Major impacts on 2009 corporate goals = Economic conditions within our markets = Actions by the U.S. Government to manage the current economic crisis a Asset quality = Loan growth = Net interest margin = Noninterest income = Profitable deposit growth driven by liquidity n
Slide 45: CTBI's Franchise Value
CIBI's Franchise Value History of solid investor returns Community banking strategy Growth and good financial performance in slow growth markets Growth strategies Acquisitions De nova branches Trust subsidiary Full service brokerage (oh fohfefiesta} Strong experienced management team and 1,000 dedic
Slide 46: Shareholders
Shareholders: Your management has a Strategic Plan for the performance and operations of your company. Success will be attained by the execution of this plan, not just by management, but by approximately 1000 employees. The continuing support by you, our shareholders, by referring your friends, neig
Slide 47: Community Trust Bancorp, Inc.
y 4 Community Trust Bancorp, Inc. for 105 Years
Community Trust Bancorp — Shareholder Meeting (April 2009) on 6ix