Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (May 2011)
39 slides from Community Trust Bancorp's investor presentation, May 10, 2011
Slide 1: Community Trust Bancorp, Inc. 2011 Investor Presentation
7: Say Trust Bancorp, Inc. 2011 lnvestor Presentation NASDAQ: CIBI www.ctbi.com May 2011
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Information provided herein by CIBI contains “forward- looking,” information. CIBI 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
Slide 3: Corporate Profile
Corporate Profile Total Assets Total Loans Total Deposits, incmding Repurchase Agreements Total Equity Dividend Yield Total Market Capitalization 2010 EPS 2010 P/E Financial data as of March 31, 2011 unless otherwise noted. $3.5 billion $2.6 billion $3.0 billion $344.5 million 4.41% $426.0 million $
Slide 4: Corporate History
1903 1981 1987-2005 1997 2010 Presently Corporate History Pikeville National Bank founded Formed Pikeville National Corporation Acquired 14 banks and purchased 17 branch locations Changed name to Community Trust Bancorp, Inc. Acquired LaFollette First National Corporation Two operational subsidiarie
Slide 5: Serving customers in 80 branch locations
Pris ve pI I <meta gubanhabaaa Ad © Community Trust & Investment Office Serving customers in 80 branch locations in 35 counties throughout Kentucky, Tennessee, and West Virginia
Slide 6: Expanding Our Banking Franchise
Expanding Our Banking Franchise Completed the acquisition of LaFollette First National Corporation on November 17, 2010 = Assets acquired - $183.6 million = Loans acquired - $118.6 million = Deposits acquired - $164.1 million = Cost of acquisition - $17.3 million = 4 offices — LaFollette Main, LaFol
Slide 7: Our Banking Franchise
Our Banking Franchise Central Region Eastern Region Northeastern Region Loans - $547 million Loans - $849 million Loans - $328 million Deposits - $445 million Deposits - $1.1 billion Deposits - $511 million * Danville + Floyd/Knott/Johnson + Advantage Valley + Lexington + Hazard + Ashland + Mt Sterl
Slide 8: Market Analysis
Market Analysis = Competitive Position a Largest Kentucky domiciled bank holding company G #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions a 6 Jargest bank in Kentucky in terms of deposit market share of all FDIC insured institutions = Community Banking Mod
Slide 9: Executive Management Team
Executive Management Team Name Jean R. Hale Mark A. Gooch Andy Waters Kevin J. Stumbo Steven E. Jameson James J. Gartner James B. Draughn Larry W. Jones Richard W. Newsom Ricky Sparkman. D. Andrew Jones Banking Position Experience Chairman, President and CEO 42 years CTB President and CEO 30 years C
Slide 10: Operational Philosophy
Operational Philosophy Traditional community banking business model Executive management and board of director commitment to corporate governance Local market presidents Decentralized decision making Centralized operations and risk management Strong loan portfolio risk management process Specialized
Slide 11: Operational Challenges
Operational Challenges = Impact from National and Regional Economic Conditions Slow economic recovery Weak real estate market continuing National and regional unemployment rate remains high Increased regulation of the coal mining industry Decline in natural gas prices Deterioration in asset quality
Slide 12: Performance Summary
Performance Summary 2010 2009 2008 2007 2006 EPS $2.17 $1.66 $1.54 $2.42 $2.59 ROAA 1.03% 0.82% 0.79% 1.23% 1.33% ROAE 9.90% 7.89% 7A8% 12.45% 14.51% Net Int. Margin 4.07% 3.77% 3.88% 3.90% 4.02% Efficiency Ratio 59.45% 63.56% 58.39% 57.62% 56.67% Nonperf. Loans 2.38% 1.70% 2.22% 1.43% 0.65% Net Cha
Slide 13: Earnings Review
Earnings Review
Slide 14: Earnings Per Share
Earnings Per Share $2.59 $2.42 $2.17 $1.54 a ee $0.61 $0.45 7 PT == = — — = — — 2006 2007 2008 2009 2010 Mar 10 Mar 44 = EPS increased 30.7% = 2011 EPS goal — $2.56 to $2.65 per share ommunity Trust incorp, Inc
Slide 15: Net Income
Net Income 2006 2007 2008 2009 2010 Mar 10 Mar'11 = 2011 goal for net income — $39 to $41 million ommunity Trust incorp, Inc
Slide 16: Revenues
Revenues (in millions) $160.2 $175.7 $142.6 $146.9 ' J . J ' 2006 2007 2008 2009 2010 Mar '11 = 2010 revenues increased 9.0% = 2011 goal for revenues — $174 to $178 million = Interest income lost from nonperforming loans and OREO - $4.6 million *Mar ‘11 annualized Community Trust , Inc
Slide 17: Noninterest Income
Noninterest Income as a % of Total Revenue (in millions) $43.5 saa 2% 20% 20% | sac 2006 2007 2008 2009 2010 Mar‘11 [me Noninterest Income —% of Total Revenue = 2010 noninterest income a Decreased gains on sales of loans ca $0.8 million decline in the fair value of our mortgage servicing rights ca I
Slide 18: Net Interest Revenue
Net Interest Revenue Gin millions) $119.3 aguas $107.8 $106.0 ¢193.6 $105.5 ' ' —= = “D006 2007 2008 2009 2010) Mar‘'11 = 2010 increase in net interest revenue was $13.8 million a Net interest margin increased 30 basis points year over year a Average earning assets increased $131.3 million *Mar ‘11
Slide 19: Net Interest Margin
Net Interest Margin 4.27% 1g A.OT% 4.02 3 59%, EES 3.88% i 1 i 3.69% | Le ~ 2006 2007 2008 2009 2010 Mar‘11 [ = cCTBI m Peer ] = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 40.65% 3/31/11 — (5.93) % = % of liabilities repricing a Within 30 days
Slide 20: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expense as a % of Average Eaming Assets (in millions) $60.8 $64.1 _ 230% 2.10% 1.90% 1.70% + 1.50% 2006 2007 2008 2009 2010 Mar “11 [== Net Noninterest Expense ——% of Earning Assets | Noninterest Expense G Efficiency Ratio (in millions) eth $107.7 2006 2007 2008 2009 2010 Mar 11 we N
Slide 21: Return on Average Assets
Return on Average Assets 1.33% 1.23% 1.10% 1.11% 1.03% y 0.89% |, 0.82% 0.29%) 0.13% -0.18% Se 2006 2007 2008 2009 2010 Mar'11 mcCTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 12/31/2010 for bank holding companies with consolidated assets of $3
Slide 22: Balance Sheet Review
Balance Sheet Review
Slide 23: Total Assets
Total Assets in billions) $3.36 $3.46 $2.97 $2.90 $2.95 %3-09 ' ' 2006 2007 2008 2009 2010 Mar “a1 = Total assets increased 8.7% during 2010 to $3.36 billion a Loan growth $169.4 million, including $118.6 million from LaFollette a Deposit growth $243.9 million, including $164.1 million from LaFollet
Slide 24: Total Loans
Total Loans _— Loan Portfolio (in billions) $2.61 $2.59 2.44 s $2.35 * Mix $2.17 $2.23 March 31, 2011 Consumer 18% Comm R/E con ea a2 = = = 36% 2006 2007 2008 2009 2010 Mar 41 R/E = 2011 loan growth goal — $17 to $20 million Mortgage 1D" Comm Other mmunity Trust incorp, Inc
Slide 25: Concentrations of Credit
Concentrations of Credit as a % of Total Loans March 31, 2011 @ Agricultural 5.4% = Apartments & Rental Housing 4.4% mCoal Mining & Support Floorplans Hotel/Motel 2.1% WNon-Residential Real Estate Rental _ Bank: Holding Company Land Subdivision and Development Community ‘Trust Jancorp, Inc
Slide 26: Net Charge-offs
Net Charge-offs as a %of average loans cs Nonperfornming ret Loans |e neers 038% | as a % of total loans 029% 0.27% 94) 2006 2007 2008 2009-2010 Mar 11 rai z poon* 222% Loan Loss Reserve 143% ie as a %of net loans 085% oe ee 420% 5 99% 22B% sory, 1.53% 2006 «62007. «2008 §=2009 2010 Mar'11 127% 4.26
Slide 27: Nonperforming Assets
Nonperforming, Assets as a % of Total Assets 3.13% 3.04% 2006 2007 2008 2009 2010 Mar ‘11 Community Trust , Inc
Slide 28: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.99 $2.89 $250 45 $2.49 ' ! f ES ee 2006 42007 2008 2009 2010 Mar ‘11 2011 growth in total deposits including repurchase agreements goal — $70 to $80 million Total Deposits including Repurchase Agreements March 31, 2011 Repurchase Agreem
Slide 29: Shareholder Value
Shareholder Value
Slide 30: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.21 $1.22 — — ———a = — — — 2006 2007 2008 2009 2010 2011~ = 2010 cash dividends increased 0.8% = 4.3% compound growth rate for past five years = December 31, 2010 cash dividend yield was 4.21% *2011 is projected DPS ommunity Trust incorp, Inc
Slide 31: Shareholders' Equity
Shareholders’ Equity (in millions) $338.6 $344.5 $321.5 2006 2007 2008 2009 2010 Mar “11 = Shareholders’ equity has increased 19.9% during the past five years = 5.9% compound growth rate for the past five years = 2011 goal for shareholders’ equity — $358 to $361 million ommunity Trust incorp, Inc
Slide 32: Book Value Per Share
Book Value Per Share Tangible Common $22.38 saoag 821.17 $22.16 Q 4 s1s9 $2008 Equity /1I: angible Assets 27% 837% PATH grey, 6 19% 7.40% yl 7 ws a Fe Fe! , 2006 2007 2008 «20092010 Mar‘11 y AK jommunity Trust
Slide 33: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 $554.1 $414.2 $444.1 $426.0 if . | | 2006 2007 2008 20092010 2011 Price to Tangible Book Value 2006 2007 2008 2009 2010 2011 CTBI 2.93x 177K 2.29x 1.45x 1.63x 153x Peer 2.59x 1.85x 1.91x 1.03x 1.29x 1.25% All data is as of year-end except 2011 whi is
Slide 34: Comparison of Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CIBI, NASDAQ Stock Market (US), and NASDAQ Bank Stocks = An investment in CTBI stock on December 31, 2005 would have outperformed the NASDAQ Bank Stocks Index and the NASDAQ Composite at December 31, 2010 (Communit) Bancorp, Inc.
Slide 35: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index elemalleameon panics Return to Investors December 31, 2010 26.87% 23.85% 13.93% 6.12% 6.36% 4.48% 1-Year 3-Year 5-Year 10-Year = CTBI m@ Russell 2000 © 3-,5-, and 10-year total returns annualized
Slide 36: Core Value Long-Term Investment
Core Value Long-Term Investment 12 stock splits and 9 stock dividends 30 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 4.3% Stock included in the NASDAQ Global Select Market, NASDAQ Dividend Achievers Index, and NASDAQ Bank Stock Index CTBI shareholde
Slide 37: Analyst Comments
Analyst Comments = “This well managed institution is getting through the banking crisis in much better shape than many other banks.” - Hilliard Lyons Rating: Buy = “We continue to view Community Trust as a high-quality franchise that deserves an above-peer multiple.” --Keefe, Bruyette & Woods Rating
Slide 38: 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 oooda Full service brokerage. = Strong experienced management team and 1,000 dedic
Slide 39: Community Trust Bancorp, Inc.
Joommunity Trust’ Bancorp, Inc.
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