Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — INVESTKentucky 2007
35 slides from Community Trust Bancorp's conference presentation, Jun 7, 2007
Slide 1: Community Banking ... Our Franchise
‘Community Trust Bancorp, Inc. “Community Banking ... Our Franchise” INVESTKentucky Presentation NASDAQ: CTBI wwwictbicom June 2007 4
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 Corporate Profile = Total Assets $3.1 billion = Total Loans $2.2 billion m= Total Deposits* $2.6 billion = Total Equity $287.8 million m= Total Market Capitalization $550.8 million a Dividend Yield 2.98% = 2006 EPS $2.59 m 2006 P/E 16.0x *Total Deposits include repurchase agreements. Financial Da
Slide 4: Our Banking Franchise
Our Banking Franchise 2Community Trust Bank Branch Office Community Trust & Investment Office Pending Northern Kentucky Acquisition = Largest Kentucky domiciled bank holding company = Headquartered in Pikeville, KY = 74 banking locations throughout Eastern, Central, South Central and Northeastern KY
Slide 5: Eagle Fidelity acquisition announcement (May 31, 2007)
May 31, 2007 = Eagle Fidelity, Inc. and Eagle Bank of Williamstown, KY = Total Assets - $157 million = Five locations 1 Williamstown @ locations) Oo Dry Ridge O Corinth 0 Crittenden = Merger Consideration $18.5 million in cash 0 344,137 shares of CTBI stock = Deal Value — Approximately $37 million (
Slide 6: 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 = Northeastern Region Ener
Slide 7: Organizational History
a 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 8: 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 Market Presidents deliver community bank
Slide 9: Executive Management Team
Executive Management Team a Name Position Jean R. Hale Chairman, President and CEO Mark A. Gooch CTB President and CEO Tracy E. Little CTIC President and CEO Kevin J. Stumbo EVP /Controiler Steven E.Jameson EVP/Risk Manager James J. Gartner EVP /Chief Credit Officer James B. Draughn EVP /Operations
Slide 10: Years of Increasing Investment Return
105 Years of Increasing Investment Return a 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% Stock selected in 2006 as charter member of the new NASDAQ Global Select Market and one o
Slide 11: Operational Philosophy
a Operational Philosophy Supports Our Mission m= Executive Management and Board of Directors commitment to corporate governance = Local Market Presidents a Decentralized decision making = Centralized operations and risk management a Specialized product offerings a Maximized use of technology Communi
Slide 12: Growth Strategies
SS . Growth Strategies Acquisitions 14 banks 17 branches = Last acquisition in June 2005 * Eagle Fidelity, Inc. acquisition agreement announced May 31, 2007 De Nova Branches and Branch Expansion/Relocation 3 de nova branches opened in 2005 2 expansion/relocations in 2006 2 new branches scheduled for
Slide 13: Financial Highlights
Financial Highlights
Slide 14: Performance Summary
a Performance Summary Earnings Per Share (basic) Return on Average Assets Return on Average Equity Net Interest Margin Efficiency Ratio Nonperfor ming Loans Net Charge-offs As a % of Average Assets: Noninterest Income Noninterest Expense Community Trust Bancorp, Inc. 2006 2005 2004 $2.59 $2.31 $2.09
Slide 15: Quarterly Net Income
Quarterly Net Income (in millions) $9.8 $9.9 $9.9 $9.5 $8.0 Mar'06 June'OG Sept'06 Dec'OG Mar '07 m Q1-07 Redemption Of Trust Preferred Securities 2 $19 million pre-tax charge from unamortized debt issuance costs m Continuing Pressure On Net Interest Margin As Time Deposits Reprice In The Current St
Slide 16: Earnings Per Share
a Earnings Per Share 2002 $2.59 12.3% 2003 2004 2005 2006 8th Consecutive Year Of Increased EPS Earnings Per Share Increased 12.1% In 2006 12.3% 5-Year Compound Growth Rate For EPS 2007 EPS Projected Between $2.49 And $257 Community Trust Bancorp, Inc. Qi o7 416
Slide 17: Net Income
a Net Income 2002 2003 2004 2005 2006 mw Performance Drivers © Loan and deposit growth Increased net interest income Stable noninterest income Noninterest expense control oooag Iuproved asset quality m 2007 Projected Net Income Between $37 And $39 million Community Trust Bancorp, Inc. @Q1 O07 47
Slide 18: Noninterest Income as % of Total Revenue
Noninterest Income as 4% of Total Revenue (in millions) $36.4 33.6 $34.0 $: eae $27.9 ~ in = 2002 2003 2004 2005 2006 Q1 07 [== Noninterest Income ——% of Total Revenue | m 2006 Noninterest Income © Increase in deposit fees © Change in mortgage loan activity O Sisblebrokemgerevenne Q Increase in trus
Slide 19: Revenues
Revenues (in millions) $136.7 $140.3 $117.2 $121.0 $127.1 Li 2002 2003 2004 2005 2006 Q1 O07 = 5.6% Compound Growth Rate For Revenues For The Past Five Years DO 2006 revenues increased 27% m 2007 Projected Revenues Between $145 and $147 million Za Community Trust Bancorp, Inc. 49
Slide 20: Net Interest Revenue
Net Interest Revenue (in millions) $103.0 $107.6 2002 2003 2004 2005 2006 Ql O7 m = 2006 Increase in Net Interest Revenue was 4.4% Interest income increased Interest expense increased Za Community Trust ve Bancorp, Inc.
Slide 21: Net Interest Margin
a Net Interest Margin Dec O5 MaroOG JunOG Sep OG Dec O6 *Mar 07 = CTBI = Peer *March 31, 2007 peer data mnavailable m Pressure on the margin B % of assets repricing m 1-year cumulative gap position at O Within 30 days 386% 3/3/07 529% = % ofliabilities repricing 0 Within 30 days 15.5% 1 Within 90 da
Slide 22: Noninterest Expense and Efficiency Ratio
SS eh " Net Noninterest Expense Baca Weck Average Earutag Assets ite ea7.7 $39.4 S332 B.00%6 z asose i wae [Lee ° |__ ees 2002 2003 2004 2005 2o0Ee e107 _ [me Net Noninterest Bxpense —_% of Earning Assets] Noninterest Expense & Efficiency Ratio 874.6 8738.6 $30.4 ow $67.3 64% e2% ao% sar e $22.5 wie
Slide 23: Total Assets
SS Total Assets (in billions) $2.85 %2-97 Sai, $2.71 : $2.49 $2.48 2002 2003 2004 2005 2006 @Q107 @ Total Assets Increased 4.2% During 2006 To $2.97 Billion 1 Loan growth $601 million 1 Deposit growth $127.1 million @ Total Assets Are Expected To Remain Stable Or Decline Slightly In 2007 Za Communit
Slide 24: Total Loans
SS ee Total Loans (in billions) g2.11 S217 $2.17 2002 «2003 «2004 2005 2006 Q107 m 2007 Projected Loan Growth Between $178 And $197 million Za Community Trust Bancorp, Inc. Loan Portfolio Mix March 31, 2007 Consumer 20% Comm R/E 36% R/E Mortgage 29% Comm Other 15% 24
Slide 25: Total Deposits
SS 1] Total Deposits (idling Repurchase Agreements) (in billions) $2.56 $2.50 $2.38 $248 s94g $2.23 2002 «20032004 2005 «= 2006 3/91/2007 m Total Deposits Including Repurchase Agreements Are Expected To Remain Stable To Increasing Per Funding Needs. Za Community Trust Bancorp, Inc. Deposits Mix Marc
Slide 26: Net Charge-Offs, Nonperforming Loans, Loan Loss Reserve
2S eh 1] Net Charge-Offs Nonperforming Loans (as. a % of average loans) (as. a % of total loans) 0.63% 1.39% 0.48% 0.97% 1-06%1.02% 0.35% 9.37% 0.66% 0.83% 0.29% — aT zooz 2003-2004 = 2005006 31/2007 Loan Loss Reserve (as. a % of net loans) 1.42% 1.42% 1.42% 4 40% 1.27% 1.25% 2003-2004.) 2005 2005.
Slide 27: Concentrations of Credit
a Concentrations of Credit a Community Trust Bancorp, Inc. March 31, 2007 6.1% m Agricultural m Apartments & Rental Housing - Coal Mining & Support Floorplans = Hotel/Motel “Non-Residential Real Estate Rental mSingle Family Construction 27
Slide 28: Investor Return
Investor Return 28
Slide 29: Dividends Per Share
Dividends Per Share 2002 2003 2004 2005 2006 2007~ m 26 Consecutive Years Of Increased Cash Dividends = 115% Compound Growth Rate For Past Five Years m Increased Dividend By 1* (3.85%) Effective With The January 2007 Dividend 2006 Cash Dividends Increased 71% m March 31, 2007 Cash Dividend Yield 298
Slide 30: Shareholders' Equity
SS Shareholders’ Equity 2002 2003 2004 2005 2006 @ Shareholders’ Equity Has Increased 34.8% During The Past Five Years m 81% Compound Growth Rate For The Past Five Years m 2007 Projected Shareholders’ Equity Between $300 And $302 million Za Community Trust a0 Bancorp, Inc.
Slide 31: Total Market Capitalization
— Total Market Capitalization (in millions) $629.5 $550.8 2002 2003 2004 2005 2006 2007 Alll data is as of year-end except 2007 which is based upon stock price on March 51,2007 Za Community Trust T Bancorp, Inc.
Slide 32: Cumulative Total Return Comparison
Comparison of 5 Year Cumulative Total Return among CIBI, NASDAQ Stock Market (US), and NASDAQ Bank Stocks 2001 2002 2003 2004 2005 2006 —+—Community Trust Bancorp, Ine. —S—NASDAQ Stock Market (U'S.) 2 NASDAQ Bank Stocks m An Investment In CTBI Stock on December 31, 2001 Would Have Outperformed The N
Slide 33: Comparison to Russell 2000 Index
SS Comparison to Russell 2000 Index of small cap companies Return to Investors December 31, 2006 39.08% 22.09% 18.35% 18.27% Sars | castes 15.28% np a 7 J 1-Year 3-Year 5-Year 10-Year CTBI m@ Russell 2000 © 5-,5-,and 10-year total returns annualized Mi Gommanity Trust Bancorp, Inc.
Slide 34: In Summary ... Why CTBI
Sete In Summary ... Why CIBI = = History of solid investor returns = Community banking strategy = = Growth and good financial performance in slow growth markets = Growth strategies O Acquisitions © Denova branches O Trust subsidiary O Full service brokerage = Strong experienced management team and 1
Slide 35: Community Banking ... Our Franchise
Community Trust Bancorp, Inc. “Community Banking ... Our Franchise” June 2007 35