Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (November 2010)
45 slides from Community Trust Bancorp's investor presentation, Nov 10, 2010
Slide 1: 2010 Investor Presentation
2010 Investor Presentation NASDAQ: CIBI www.cthi. Colt No vemb er g ON (0
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
Slide 3: Corporate Profile
Corporate Profile = Total Assets = Total Loans = Total Deposits, incuding Repurchase Agreements = Total Equity = Dividend Yield = Total Market Capitalization = 2010 EPS YTD (annualizea) = 2010 P/E Financial data as of September 30, 2010 unless otherwise noted. $3.2 billion $2.4 billion $2.8 billion
Slide 4: Organizational History
1903 1936 1981 1987- 2005 1997 1997- 2002 2010 Presently Organizational History “Over a Century of Service” Pikeville National Bank founded Pikeville National Bank & Trust Company incorporated Formed Pikeville National Corporation Acquired 14 banks and purchased 17 branch locations Changed name to C
Slide 5: Operational Structure
Operational Structure Community Trust Bancorp, Inc. Pikeville, Kentucky Community Trust and Investment Company Lexington, Kentucky Community Trust Bank, Inc, Pikeville, Kentucky = Community Trust Bank, Inc. a Regional market structure provides synergies = Community Trust and Investment Company a Ass
Slide 6: Our Banking Franchise
Our Banking Franchise © Community Trust Bank Branch Office © Community Trust & Investment Office © Pending First National Bank of LaFollette Acquisition Locations Serving 76 branch locations in 33 counties throughout Kentucky and West Virginia ~ 4 additional locations in Tennessee pending acquisitio
Slide 7: Growth of our Franchise
Growth of our Franchise Pending Acguisition = LaFollette First National Corporation, Tennessee oooaooaoaa First National Bank of LaFollette Share exchange for $650 per share Approximately 110% of Tangible Book Value Cash transaction - $16.1 million Expansion into state of Tennessee Increase of appro
Slide 8: Market Analysis
Market Analysis Competitive Position = Largest Kentucky domiciled bank holding company = #1 in Kentucky in deposit market share of all Kentucky domiciled FDIC insured institutions = 7 Jargest bank in Kentucky in terms of deposit market share of all FDIC insured institutions Economic Diversity = East
Slide 9: 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 10: Traditional Community Banking
Traditional Community Banking Focused on Retail and Commercial Products and Services Retail Commercial = Traditional Home Mortgages = Small Business Loans a Portfolio = USDA Loans a Service Retained = SBA Loans a $2.6m Mortgage Servicing Rights x Personal Loans . Indirect Auto Loans . Equity Lines o
Slide 11: Executive Management Team
Executive Management Team Name Jean R. Hale Mark A. Gooch Tracy E. Little Kevin J. Stumbo Steven E. Jameson James J. Gartner James B. Draughn Michael S. Wasson Richard W. Newsom Ricky Sparkman Larry W. Jones Banking Position Experience Chairman, President and CEO 41 years CTB President and CEO 29 ye
Slide 12: Operational Challenges
Operational Challenges = Impact from National and Regional Economic Conditions ooooaooaa a Continuing weak national and global economy Unstable real estate market National and regional unemployment rate Increased regulation of the coal mining industry Decline in natural gas prices Deterioration in a
Slide 13: Performance Summary
EPS ROAA ROAE Net Int. Margin Efficiency Ratio Nonperf. Loans Net Charge-offs Performance Summary As a % of Average Assets: Nonint. Income Nonint. Expense YTD 2010 2009 2008 2007 2006 $1.56 $1.66 $1.54 $2.42 $2.59 1.00% 0.82% 0.79% 1.23% 1.33% 9.62% 7.89% 748% 12.45% 14.51% 4.05% 3.77% 3.88% 3.90% 4
Slide 14: Earnings Review
Earnings Review
Slide 15: Earnings Per Share
Earnings Per Share $2.59 $2.42 $1.56 2005 2006 2007 2008 2009 Sept ‘09 Sept'10 = EPS increased 7.8% = 2009 pro forma EPS excluding the FDIC special assessment - $1.74 per share = 2010 EPS projected at $1.98 - $2.04 per share 15
Slide 16: Net Income
Net Income (in millions) $39.1 $36.6 $34.4 $23.1 $25.1 2005 2006 2007 2008 2009 2010 projected net income $30 - $31 million $18.1 Sept ‘09 $238 Sept 10 16
Slide 17: Net Income
Net Income 2009 Major Impacts Increased provision for loan losses Increased FDIC insurance premiums and special assessment Increased noninterest income impacted by $14.6 million OTTI charge in 2008 Increased legal and repossession fees Lower net interest margin a 3.77% vs. 3.88% a Syear historical a
Slide 18: Revenues
Revenues $146.9 gers $140.3 $142.6 2005 2006 2007 2008 2009 Sept'10 = 2009 revenues increased 17.2% Interest income lost from nonperforming loans and OREO during 2009 - $3.6 million = 2010 projected revenues $159 - $161 million *Sept ‘IOannualized 45
Slide 19: Noninterest Income
Noninterest Income as a %of Total Revenue (in millions) $41.4 390.9 saat § es6.6 gs abt 832.6 zee ean. 2oce 2005 2006 2007 2008 2009 Sept ‘10 [me Noninterest Income _% of Total Revenue = 2009 noninterest income a Increase due to OTTI charge in 2003 a Increased gains on sales of loans a Increased loa
Slide 20: Net Interest Revenue
Net Interest Revenue $117.7 2005 2006 2007 2008 2009 Sept ‘10 = 2009 increase in net interest revenue was $1.9 million a Net interest margin decreased 11 basis points year over year a Average earning assets increased $127.6 million = 2010 annualized increase in net interest revenue of $12.2 million
Slide 21: Net Interest Margin
Net Interest Margin 4.02% 427% 02% 4.05% 2005 2006 2007 2008 2009 Sept "10 [ =CTBI m Peer | = Pressure on the margin = % of assets repricing = 1-year cumulative gap position at a Within 30 days 42.09% 9/30/10 -3.05% = © % of liabilities repricing a Within 30 days 27.71% a Within 90 days 39.28% a Wit
Slide 22: Net Noninterest Expense as a % of Average Earning Assets
Net Noninterest Expense as a % of Average Eaming Assets Gn millions) $60.8 2.30% $52.4 $55.1 | 240% $45.1 pata eee 1.90% 1.70% | 1.50% 2005 2006 2007 2008 2009 Sept "10 [we Net Noninterest Expense __‘% of Earning Assets | Noninterest Expense G Efficiency Ratio (in millions) $93.8 $95.1 7 75% $78.6 2
Slide 23: Return on Average Assets
Return on Average Assets 9 1.22% 4 454 1.23% 10% j 1.00% 0°95 70% 0.82% (0.35% 0.13% 2005 2006 2007 2008 #£«2009 Sept "10 m= cCTBI m Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2010 for bank holding companies with consolidated assets of $3 bill
Slide 24: Balance Sheet Review
Balance Sheet Review
Slide 25: Total Assets
Total Assets (in billions) $3.23 $2.95 $3.09 $2.85 $2.97 $2.90 2005 2006 2007 2008 2009 Sept "10 = Total assets increased 4.5% during 2009 = Total assets increased an annualized 6.3% YTD 2010 a Loan growth $9.7 million a Deposit growth $120.8 million a Investment portfolio growth $49.3 million = Tot
Slide 26: Total Loans
Total Loans Gn billions) g2.a5 $2.44 92-45 $2.11 $2.17 $2.23 2005 2006 2007 2008 2009 Sept 10 2010 projected loan growth $95 - $130 million Loan Portfolio Mix September 30, 2010 Consumer 20% Comm R/E 37% R/E Mortgage 23% Comm Other 15% 26
Slide 27: Concentrations of Credit
Concentrations of Credit September 30, 2010 5.8% m Agricultural lm Apartments & Rental Housing MCoal Mining & Support i Floorplans ml Hotel/Motel Non-Residential Real Estate Rental » Bank Holding Company Land Subdivision and Development 27
Slide 28: Net Charge-offs
Net Charge-offs as a %of average loans 1.59% 1.45% 2005 2006 2007 2008 2009 Sept 10 mcCTBI Peer Peer data obtained from the Federal Reserve Bank Holding Company Performance Report as of 6/30/2010 for bank holding companies with consolidated assets of $3 billion to $10 billion. Net Charge-Offs By Loa
Slide 29: Nonperforming Loans
Nonperforming Loans as a % of total loans 420% 3.96% 2005 2006 2007 2008 2009 Sept “10 CTBI eer Nonperfonning Loan Mix September 30, 2010 Consumer R/B 1% Mortgage 17% Comm Other 7 Comm R/E 72% Loan Loss Reserve as a %of net loans 2.24% 2.29% % 1.26% 131 140% 497 1.22427 | 26% 94 2005 2006 2007 2008
Slide 30: Nonperforming Assets
Nonperforming Assets as a %of Total Assets 3.03% 2005 2006 2007 2008 2009 Sept "10 = Nonperforming assets increased $18.9 million from year-end 2009 to September 30, 2010 a OREO increased from $37.3 million to $41.1 million at September 30, 2010 30
Slide 31: Total Deposits
Total Deposits including Repurchase Agreements (in billions) $2.76 $2.64 $2.38 $2.49 $2.45 2005 2006 2007 2008 2009 Sept'10 = Total deposits including repurchase agreements are expected to increase $100 - $135 million in 2010 Deposit Mix including Repurchase Agreements September 30, 2010 Repurchase
Slide 32: Managing Liquidity Through Innovative Products
Managing Liquidity Through Innovative Products = 12 Month Certificate of Deposit: April 1st through maturity, rate paid is adjusted by 1 basis point for each University of Kentucky win; bonus 100 basis points added to rate for National Championship win, = Volume varies as needs vary: a 2003 $ 92,856
Slide 33: Shareholder Value
Shareholder Value
Slide 34: Historic Investment Returns
Historic Investment Returns Core value long-term investment Formation of bank holding company in 1981 12 stock splits 9 stock dividends 30 years of consecutive increases in cash dividends 5-year compound growth rate of cash dividends 6.7% Stock included in the NASDAQ Global Select Market, NASDAQ Div
Slide 35: Dividends Per Share
Dividends Per Share 2005 2006 2007 2008 2009 2010 = 2009 cash dividends increased 2.6% = 6.7% compound growth rate for past five years = September 30, 2010 cash dividend yield was 4.50% *2010 is projected DPS
Slide 36: Shareholders' Equity
Shareholders’ Equity $336.8 $308.2 $321.5 2009 Sept "10 = Shareholders’ equity has increased 26.6% during the past five years = 6.4% compound growth rate for the past five years = 2010 projected shareholders’ equity $331 - $337 million 36
Slide 37: Book Value Per Share
Book Value Per Share Tangible Common neg mh me ee Equity /Tangible Assets $16.93 858% 837% 8-47% 8.27% 2008 «862006 «862007 2008 2009 Sept'10 2005 «©2006 «= 2007 «9 2008 49 2009 Sept ‘10 37
Slide 38: Total Market Capitalization
(in millions) Total Market Capitalization $629.5 $412.8 2006 2007 2008 2009 2010 All data is as of year-end except 2010 which is based upon stock price on September 30, 2010 38
Slide 39: Comparison of Year 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, 2004 would have outperformed the NASDAQ Bank Stocks Index and the NASDAQ Composite at December 31, 2009 39
Slide 40: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index ofamral leasconinanies Return to Investors September 30, 2010 1S 3 te 12.70% 8.42% i i 1.61% | 4.03% 0.82% 0.34% = a 4 i 4.28% 1-Year 3-Year 5-Year 10-Year ™ CTBI @ Russell 2000 ® 3-,5-, and 10-year total returns annualized 40
Slide 41: 2010 Key Strategic Initiatives
2010 Key Strategic Initiatives
Slide 42: 2010 Operational Initiatives
2010 Operational Initiatives Attaining our 2010 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 43: 2010 Operational Challenges
2010 Operational Challenges Major impacts on 2010 corporate goals = Economic conditions within our markets = Actions by the U.S. Government to manage the current economic crisis = Asset quality = Loan growth = Net interest margin = Noninterest income = Profitable deposit growth driven by liquidity n
Slide 44: CTBI's Franchise Value
CTBI'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 oagoada Strong experienced management team and 1,000 dedicated empl
Slide 45: Community Trust Bancorp, Inc.
Za Community Trust Bancorp, Inc. Sowing Our Communitios for 106 Years!
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