Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (August 2011)
39 slides from Community Trust Bancorp's investor presentation, Aug 2, 2011
Slide 1: Community Trust Bancorp 2011 Investor Presentation
7: Say Trust Bancorp, Inc. 2011 lnvestor Presentation NASDAQ: CIBI www.ctbi.com August 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 $3.5 billion = Total Loans $2.6 billion = Total Deposits, including Repurchase $3.0 billion Agreements = Total Equity $352.3 million = Dividend Yield 4.40% = Total Market Capitalization $427.0 million = 2010 EPS $2.17 = 2010 P/E 13.35x Financial data as of June 30, 2
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: Branch locations across Kentucky, Tennessee and West Virginia
doen PP AUER 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 - $554 million Loans - $824 million Loans - $335 million Deposits - $525 million Deposits - $1.3 billion Deposits - $533 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 2011 2010 2009 2008 2007 EPS $1.19 $2.17 $1.66 $1.54 $2.42 ROAA 1.07% 1.03% 0.82% 0.79% 1.23% ROAE 10.59% 9.90% 7.89% T.A8% 12.45% Net Int. Margin 4.22% 4.07% 3.77% 3.88% 3.90% Efficiency Ratio 61.34% 59.45% 63.56% 58.39% 37.62% Nonperf. Loans 2.31% 2.38% 1.70% 2.22% 1.43% Net Ch
Slide 13: Earnings Review
Earnings Review
Slide 14: Earnings Per Share
Earnings Per Share $2.59 $2.42 $2.17 $1.54 a ee $1.19 ' - 7 PT == = — — ol = —_ 2006 2007 2008 2009 2010 Jun 10 Jun 14 = EPS increased 30.7% = 2011 EPS goal — $2.56 to $2.65 per share ommunity Trust incorp, Inc
Slide 15: Net Income
Net Income Gin millions) 39.1 : $36.6 $33.0 $25.1 $23.1 $183 ' ' $153 a Fel Feel Tl Feel —_— 7 yO ya 2006 «= 2007. «Ss «2008 «2009S 2010 Jun10 Jun ‘14 = 2011 goal for net income — $39 to $41 million ommunity Trust incorp, Inc
Slide 16: Revenues
Revenues (in millions) $160.2 $175.0 $142.6 $146.9 ' J . J ' 2006 2007 2008 2009 2010) Jun'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 4Jun ‘11 annualized Community Trust , Inc
Slide 17: Noninterest Income
Noninterest Income as a % of Total Revenue (in millions) 32% 20% 20% | sac%e 2006 2007 2008 2009 2010) Jun'i1 [me Noninterest Income —% of Total Revenue = YTD June 2011 noninterest income a Increases in deposit service charges and trust revenue a Fair value adjustments to our mortgage servicing righ
Slide 18: Net Interest Revenue
Net Interest Revenue Gin millions) $119.3 eee $107.8 $106.0 ¢193.6 $105.5 ' ' —= = “D006 2007 2008 2009 2010) Jun‘'11 = YTD 2011 increase in net interest revenue 11.6% ca Net interest margin improved 12 basis points year over year a Average earning assets increased $246.2 million, including acquisit
Slide 19: Net Interest Margin
Net Interest Margin A.22% 1g A.OT% 4.02 3 59%, EES 3.88% i 1 | 3.69% | Le ~ 2006 2007 2008s 2009 2010 Jun "11 [ = CTBI m Peer ] = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 39.97% 6/30/11 — (7.04) % = % of liabilities repricing a Within 30 day
Slide 20: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expense as a % of Average Eaming Assets (in millions) Cas 4 BSWRA 2.10% 1.90% 1.70% + 1.50% 2006 2007 2008 2009 2010 Jun “11 [== Net Noninterest Expense —— % of Earning Assets | Noninterest Expense G Efficiency Ratio (in millions) eth $108.3 70% 65% 60% 55% + 50% 2006 2007 2008 2009
Slide 21: Return on Average Assets
Return on Average Assets 1.33% 1.23% 1.10% 1.03% 1.07% y 0.89% 0.82% 0.70% 0.27%) 0.139 a -0.18% — 2006 2007 2008 2009 2010) Jun'11 mcCTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report for bank holding companies with consolidated assets of $3 billion to $
Slide 22: Balance Sheet Review
Balance Sheet Review
Slide 23: Total Assets
Total Assets (im billions) $3.36 %3-48 $2.97 $2.90 $2.95 S325) ) ) 2006 2007. 2008 2009 2010 Jun‘11 = Total assets have increased an annualized 7.7% from 12/31/2010 a Loans declined $24.7 million or an annualized 1.9% a Investment portfolio growth $118.1 million or an annualized 70.0% a Deposit grow
Slide 24: Total Loans
Total Loans Loan Portfolio (in billions) $2.61 $9.58 2.44. 5 s235 * Mix $2.17 $2.23 June 30, 2011 Consumer 19% Comm R/E one a2 = = = 36% 2006 2007 2008 2009 2010 Jun 41 R/E = 2011 loan growth goal — $25 to $40 million Mortgage 30% Comm Other mmunity Trust incorp, Inc
Slide 25: Concentrations of Credit
Concentrations of Credit as a % of Total Loans June 30, 2011 Agricultural 5.6% = Apart ments & Rental Housing mCoal Mining & Support Floorplans @ Hotel/Motel Non-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 1.61% 146% 094% 029% 0.27% 94) 2006 2007 2008 2009 2010 Jun‘11 cTBI Loan Loss Reserve asa %of netloans 226% 903% 2.24% 1.52% 1.27% 126% 131% 1.34% BM 1.34% 1.36 | il 2006 2007 2008 2009 2010 Jun'11 CTBI eer Nonperfornming Loans as a % of total loans 420% osu, 3
Slide 27: Nonperforming Assets
Nonperforming, Assets as a % of Total Assets 3.13% 3.05% 2006 2007 2008 2009 2010 Jun'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 2006 «2007 2008 2009 2010 Jun'11 2011 growth in total deposits including repurchase agreements goal — $30 to $50 million Total Deposits including Repurchase Agreements June 30, 2011 Repurchase Agreements
Slide 29: Shareholder Value
Shareholder Value
Slide 30: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.21 $1.23 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% Cash dividend increased to $0.31 per share effective October 1, 2011 *2011 is projected DPS om
Slide 31: Shareholders' Equity
Shareholders’ Equity Gin millions) canna $352.3 $321.5 = 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 s1as3 2003 Tae Equity /1I: angible Assets 27% 837% 847% p26, 8.36% 7.40% 4. 2006 ©2007 «2008 «2009-2010 Jun “11 y AK jommunity Trust
Slide 33: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 $554.1 $414.2 $a44-1 $427.0 if . | 7 2006 2007 2008 2009. 2010 2011 Price to Tangible Book Value 2006 2007 2008 2009 2010 2011 CTBI 2.93x 177x 2.29x 1.45x 1.63x 1.50x Peer 2.59x 1.85x 1.91x 1.03x 1.29x 1.04x All data is as of year-end except 2011 whic
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 June 30, 2011 37.38% 15.36% 6.29% 7-76% BAG%. sq, a -0.66% 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 has navigated the banking crisis in much better shape than many other banks.” — Hilliard Lyons, July 2011 Rating: Buy = “We continue to view CTBI as a high-quality franchise with a seasoned management team...we maintain our $30 PT which represents...
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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