Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Shareholder Meeting (April 2007)
44 slides from Community Trust Bancorp's shareholder meeting presentation, Apr 24, 2007
Slide 1: 2007 Annual Shareholders' Meeting Presentation
Community Trust Bancorp, Inc. “Building Communities... Built on Trast” 2007 Annual Shareholders’ Meeting Presentation Apuil 24,2007
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: Our Banking Franchise
See Our Banking Franchise Headquartered in Pikeville, KY 74 banking locations throughout Eastern and Central KY 5 banking locations in Southem WV 5 trust offices across Kentucky Largest Kentucky domiciled bank holding company 7 largest bank in Kentucky in terms of market share of all FDIC insured in
Slide 4: 2006 Performance to Plan
2006 Performance to Plan
Slide 5: Strategic Plan for 2006
Strategic Plan for 2006 What were our goals? A 6% increase in earnings and EPS Loan and deposit growth of 10% and 3% A2% growth in total assets Improving asset quality Improving operational efficiency to 56.44% Increasing shareholder value Expanding our banking franchise
Slide 6: CTBI Executes its 2006 Strategic Plan
CTBI Executes its 2006 Strategic Plan = What were the results of executing our plan? = Record earnings of $39.1 million, a 13.5% increase a Increased EPS to $2.59, a 12.1% increase = Loan growth of 2.9% and deposit growth of 5.3% a Increased total assets to $3.0 billion, a 4.2% increase = Nonperform
Slide 7: CTBI Executes its 2006 Strategic Plan
CIBI Executes its 2006 Strategic Plan = Efficiency ratio increased to 56.67% = 10.0% increase in book value per share while shareholders’ equity increased 11.2% m= 2 expansion/relocations during the year = Investment in trust subsidiary O Increase in assets under management of $214.8 million = Inves
Slide 8: Shareholder Value
Shareholder Value
Slide 9: Dividends Per Share
SS J Dividends Per Share $1.05 $1.08 2002 2003 2004 2005 2006 2007* *2007 is projected DPS
Slide 10: Dividends Per Share
SSS Dividends Per Share = 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%
Slide 11: 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
Slide 12: Total Market Capitalization
SS Total Market Capitalization (in millions) $629.5 $550.8 2002 2003 2004 2005 2006 2007 All data is as of year-end except 2007 which is based upon stock price on March 31, 2007
Slide 13: Comparison of Five Year Cumulative Total Return
Sete 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 = An investment in CTBI stock on December 31, 2001 would have outperformed
Slide 14: Comparison to Russell 2000 Index of small cap companies
Comparison to Russell 2000 Index of small cap companies Return to Investors December 31, 2006 39.08% 22.09% 18.35% 18.27% H arsace castes 15.28% np a 7 | 1-Year 3-Year 5-Year 10-Year CTBI m@ Russell 2000 ® 3-, 5-, and 10-year total returns annualized.
Slide 15: Years of Increasing Investment Return
Sh 105 Years of Increasing Investment Return 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 for listing in the new NASDAQ Global Select Market and included i
Slide 16: 2006 Earnings Review
2006 Earnings Review
Slide 17: 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
Slide 18: 2002 2003 2004 2005 2006
2002 2003 2004 2005 2006
Slide 19: Net Income
SS te Net Income = 2006 performance drivers © Loan and deposit growth © Increased net interest income O Stable noninterest income O Noninterest expense control O Improved asset quality u 2007 projected net income between $37 and $39 million
Slide 20: Revenues
SS 1] Revenues (in millions) $136.7 $140.3 2002 2003 2004 2005 2006 m= 5.6% compound growth rate for revenues for the past five years © 2006 revenues increased 2.7% = 2007 projected revenues between $145 and $147 million
Slide 21: Noninterest Income as a % of Total Revenue
Noninterest Income as. a%of Total Revenue (in millions) $36.4 $34.0 $33.6 #270 ° $32.7 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 revenue =
Slide 22: Net Interest Revenue
Net Interest Revenue (in millions) $ $103.0 $107.6 93.1 69:3 $84.6 2002 2003 2004 2005 2006 = 2006 increase in net interest revenue was 4.4% © Interest income increased © Interest expense increased
Slide 23: 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% O Within 18
Slide 24: Net Noninterest Expense and Efficiency Ratio
EE v : Net Noninterest Expense asa % of Average Faming Assets $47.7 1.90% (in millions) 1.70% | as0% 2002 2003 zo04 2005 2006 =e KO ee = Noninterest Expense & Ffficiency Ratio $78.6 $80.4 62% in millions) $74.6 60% $67.3 58% 56% 54% 2002 2003 2004 2005 2006 = Noninterest Expense — Efficiency Ratio =
Slide 25: 2006 Balance Sheet Review
2006 Balance Sheet Review
Slide 26: 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
Slide 27: Total Loans
SS Total Loans (in billions) $2.44 $2.17 2002 2003 2004 2005 2006 = 2007 projected loan growth between $178 and $197 million Loan Portfolio Mix December 31, 2006 Consumer 20% Comm R/E 35% RIE Mortgage 29% Comm Other 16%
Slide 28: Net Charge-offs, Loan Loss Reserve, Nonperforming Loans
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
Slide 29: Total Deposits including Repurchase Agreements
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 30: 1st Quarter 2007 Review
1* Quarter 2007 Review
Slide 31: Net Income
SS ete Net Income (in millions) $9.8 $9.9 $9.9 $9.5 $8.0 Mar '0G6 June'0G Sept'06 Dec'0G Mar'07
Slide 32: Net Income
SSS Net Income = Redemption of trust preferred securities O $1.9 million pre-tax charge from unamortized debt issuance costs = Continuing pressure on net interest margin as_ time deposits reprice in the current stable rate environment = Normal changes in loan loss provision as reserve adequacy is re
Slide 33: Noninterest Income
Noninterest Income (in millions) $7.7 $8.0 $8.2 2S. $8.5 Mar'oG Jun ‘OG Sept'OG Dec'OG Mar ‘O07 = Increased loan related fees = Increased trust revenue mu Decreased deposit service charges = Decreased nonrecurring revenue items
Slide 34: Noninterest Expense
a Noninterest Expense (in millions) $22.5 $20.1 $19.9 $20.0 $20.5 Mar'06 Jun'O6 Sept'06 Dec'O06 Mar '07 mu Increase resulted from unamortized debt issuance costs on trust preferred redemption
Slide 35: Total Loans
— Total Loans (in billions) $2.10 $2.14 $2.15 $2.17 $2.17 Mar'OG Jun'OG Sept'OG Dec'OG Mar'07 = Loan portfolio grew at an annualized rate of 0.8% during the quarter and 3.3% from March 31, 2006.
Slide 36: Total Deposits including Repurchase Agreements
a Total Deposits including Repurchase Agreements (in billions) $2.47 $2.48 ¢2.44 $2.50 $2.56 Mar'OG Jun'OG Sep'06 Dec'OG Mar '07 mu Deposits, including repurchase agreements, increased $58.7 million, an annualized 9.5%, during the quarter. O $5.0 million growth in noninterest bearing O $53.7 million
Slide 37: Nonperforming Loans as a % of Total Loans
Nonperforming, Loans asa %of Total Loans 0.76% 09-80% ova 0.83% 0.668% Mar'06 Jun'06 Sept'06 Dec'06 Mar'07
Slide 38: Efficiency Ratio
SS eh Efficiency Ratio 64.68% 58.21% " 55.73% 55.35% 37-43% Mar'0G Jun'OG Sept'0OG6 Dec'0G Mar'07
Slide 39: 2007 Key Strategic Initiatives
2007 Key Strategic Initiatives
Slide 40: 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 customer
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 $178 to $197 million Stable to increasing (per funding needs) 57.25% to 58.00% $300 to $302 million
Slide 42: 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
Slide 43: CTBI's Franchise Value
SS CIBI's Franchise Value = = History of solid investor returns = Community banking strategy = Growth and good financial performance in slow growth markets = Growth strategies O Acquisitions 1 Denova branches O Trust subsidiary O Full service brokerage = Strong experienced management team and 1,000
Slide 44: Shareholders
SS 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 our more than 1000 employees. The continuing support by you, our shareholders, by referring your friends,
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