Community Trust Bancorp, Inc. · NASDAQ:CTBI
Community Trust Bancorp — Investor Presentation (May 2009)
43 slides from Community Trust Bancorp's investor presentation, May 2009
Slide 1: Investor Presentation
Investor Presentation NASDAQ: CTBI May 2009 www.ctbi.com
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: Organizational History
Organizational History “Over a 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 4: Organizational Structure
Organizational Structure Community Trust Bancorp, Inc. Pikeville, Kentucky Community Trust and Community Trust Bank, Inc. Investment Company Pikeville, Kentucky Lexington, Kentucky Community Trust Bank, Inc. Regional market structure provides synergies Community Trust and Investment Company
Slide 5: Our Banking Franchise
Our Banking Franchise 77 branch locations serving 33 counties throughout Kentucky and West Virginia 5
Slide 6: Market Analysis
Market Analysis Competitive Position 2nd largest Kentucky domiciled bank holding company 7th largest 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
Slide 7: Operational Philosophy
Operational Philosophy Executive Management and Board of Director Commitment to Corporate Governance Local Market Presidents Decentralized decision making Centralized operations and risk management Specialized product offerings Maximized use of technology 7
Slide 8: Traditional Community Banking
Traditional Community Banking Focused on Retail and Commercial Products & Services Retail Commercial Traditional Home Mortgages Small Business Loans Portfolio USDA Loans Service Retained SBA Loans $2.5m Mortgage Servicing Rights Auto Floor Plans Personal Loans Commercial Real Est
Slide 9: Executive Management Team
Executive Management Team Banking Yrs. w/ Name Position Experience CTBI Jean R. Hale Chairman, President and CEO 40 years 40 Mark A. Gooch CTB President and CEO 28 years 28 Tracy E. Little CTIC President and CEO 35 years 6 Kevin J. Stumbo EVP/Controller 22 years 14 Steven E. Jameson EVP/Risk Manager
Slide 10: Operational Challenges
Operational Challenges 2008 Economic Crisis Worldwide historic recession Greed, leverage, fraud Volatile gas prices Failed investment banks Treasury places GSE in receivership Mortgage giants fail “Too big to fail” theory Retail icons failed Unemployment levels increased Consum
Slide 11: Operational Challenges
Operational Challenges 2009 Continued deterioration of the U.S. economy Federal government working to stabilize the U.S. economy World economy still in crisis 11
Slide 12: Performance Summary
Performance Summary YTD 2009 2008 2007 2006 2005 EPS $0.49 $1.54 $2.42 $2.59 $2.31 ROAA 1.00% 0.79% 1.23% 1.33% 1.22% ROAE 9.52% 7.48% 12.45% 14.51% 13.98% Net Int. Margin 3.61% 3.88% 3.90% 4.02% 4.03% Efficiency Ratio 64.06% 58.39% 57.62% 56.67% 56.83% Nonperf. Loans 2.23% 2.22% 1.43% 0.66% 1.02% N
Slide 13: Earnings Review
Earnings Review 13
Slide 14: Earnings Per Share
Earnings Per Share $2.59 $2.42 $2.31 $2.09 $1.54 $0.57 $0.49 2004 2005 2006 2007 2008 Mar '08 Mar '09 EPS decreased 36.4% from 2007 to 2008 2009 EPS projected at $1.66 - $1.90 per share 14
Slide 15: Net Income
Net Income (in millions) $39.1 $36.6 $34.4 $31.0 $23.1 $8.5 $7.4 2004 2005 2006 2007 2008 Mar '08 Mar '09 2009 projected net income $25 - $29 million 15
Slide 16: Net Income
Net Income At June 30, 2008, CTBI held $14.9 million in Freddie Mac and Fannie Mae pass-through auction rate securities which had an unrealized loss of $0.5 million. As a result of the U.S. Treasury placing Freddie Mac and Fannie Mae into conservatorship on September 7, 2008, the value of these in
Slide 17: Revenues
Revenues (in millions) $136.7 $140.3 $142.6 $142.9 $127.1 $125.4 2004 2005 2006 2007 2008 Mar '09 2008 revenues decreased 12.1% 2009 projected revenues $143 - $145 million *Mar ‘09 annualized 17
Slide 18: Noninterest Income
Noninterest Income as a % of Total Revenue (in millions) 34% $43.6 $36.6 $33.9 $33.5 $32.6 28% $21.8 21% 15% 2004 2005 2006 2007 2008 Mar '09 Noninterest Income % of Total Revenue 2008 noninterest income OTTI charges Decline in fair value of mortgage servicing Increased gains on sales of loa
Slide 19: Net Interest Revenue
Net Interest Revenue (in millions) $103.2 $107.8 $106.0 $103.6 $93.2 $99.3 2004 2005 2006 2007 2008 Mar '09 2008 decrease in net interest revenue was $2.4 million Net interest margin for the year ended December 31, 2008 decreased 2 basis points from prior year Average earning assets decreased
Slide 20: Net Interest Margin
Net Interest Margin 4.02% 4.00% 3.97% 3.88% 3.78% 3.69% 3.63% 3.61% 3.59% 3.32% 3.32% Dec '07 Mar '08 Jun '08 Sep '08 Dec '08 Mar '09 CT BI Peer Pressure on the margin % of assets repricing 1-year cumulative gap position at Within 30 days 38.32% 12/31/08 -3.40% % of liabilities repricing
Slide 21: Net Noninterest Expense & Efficiency Ratio
Net Noninterest Expense as a % of Average Earning Assets (in millions) $60.8 2.30% 2.10% $47.8 $45.1 $46.4 $47.3 1.90% $40.7 1.70% 1.50% 2004 2005 2006 2007 2008 Mar '09 Net Noninterest Expense % of Earning Assets Noninterest Expense & Efficiency Ratio (in millions) $90.9 80% $80.4 $83.1 75% $78.6 $
Slide 22: Balance Sheet Review
Balance Sheet Review 22
Slide 23: Total Assets
Total Assets (in billions) $2.97 $2.95 $3.02 $2.85 $2.90 $2.71 2004 2005 2006 2007 2008 Mar '09 Total assets increased 1.8% during 2008 to $2.95 billion Loan growth $120.8 million Deposit growth $37.1 million Investment portfolio decline $64.1 million Total assets are expected to increase
Slide 24: Total Loans and Loan Portfolio Mix
Total Loans (in billions) $2.17 $2.23 $2.35 $2.34 Loan Portfolio Mix $2.11 $1.90 March 31, 2009 Consumer 21% Comm R/E 35% 2004 2005 2006 2007 2008 Mar '09 2009 projected loan growth $35 - $75 R/E million Mortgage 27% Comm Other 17% 24
Slide 25: Concentrations of Credit
Concentrations of Credit March 31, 2009 Agricultural 5.5% Apartments & Rental Housing 4.2% Coal Mining & Support 3.0% 2.8% Floorplans 2.2% 2.2% 2.1% Hotel/Motel Non-Residential Real Estate Rental Single Family Construction 25
Slide 26: Net Charge-offs
Net Charge-offs as a % of average loans 0.66% 0.37% 0.38% 0.38% 0.35% Net Charge-offs by 0.29% 0.27% 0.24% 0.19% 0.15% 0.13% Loan Category 2004 2005 2006 2007 2008 Mar '09 March 31, 2009 CTBI Peer 32% Mar ‘09 annualized – Peer data not available 43% 16% 9% Commercial Mortgage Consumer Indirect 26
Slide 27: Nonperforming Loans and Loan Loss Reserve
Nonperforming Loans as a % of Total Loans 2.40% 2.22% 2.23% 1.06% 1.02% 1.43% 1.08% Loan Loss Reserve 0.57% 0.66% 0.52% 0.56% as a % of net loans 1.42% 1.40% 1.50% 1.27% 1.26% 1.31% 1.31% 2004 2005 2006 2007 2008 Mar '09 1.30% 1.22% 1.16% 1.20% CTBI Peer Nonperforming Loan Mix March 31, 2009 Consu m
Slide 28: Nonperforming Assets
Nonperforming Assets as a Percentage of Total Assets 2.86% 2.65% 1.78% 1.30% 1.27% 0.86% 2004 2005 2006 2007 2008 Mar '09 Nonperforming assets increased from $62.6 million at year-end 2008 to $67.3 million at March 31, 2009 OREO increased $4.8 million to $15.2 million at March 31, 2009 28 1
Slide 29: Total Deposits
Total Deposits including Repurchase Agreements (in billions) Total Deposits $2.50 $2.45 $2.49 $2.53 including Repurchase Agreements $2.38 $2.23 March 31, 2009 Repurchase Agreements Noni nterest 6% Beari ng Other Ti me 18% 5% 2004 2005 2006 2007 2008 Mar '09 NOW 1% CDs <$100K Total deposits includi
Slide 30: 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: 2003 $ 92,856
Slide 31: Shareholder Value
Shareholder Value 31
Slide 32: Historic Investment Returns
Historic Investment Returns Core value long-term investment Formation of bank holding h company in 1981 12 stock splits 9 stock dividends 28 years of consecutive increases in cash dividends $0.01 per share increase effective December 15, 2008 5-year compound growth rate of cash dividends
Slide 33: Dividends Per Share
Dividends Per Share $1.17 $1.20 $1.05 $1.10 $0.98 $0.87 9.4% 2004 2005 2006 2007 2008 2009* 2008 cash dividends increased 6.4% 9.4% compound growth rate for past five years December 31, 2008 cash dividend yield was 3.27% *2009 is projected DPS 33
Slide 34: Shareholders' Equity
Shareholders’ Equity (in millions) $301.4 $308.2 $312.6 $282.4 $253.9 $236.2 6.8% 2004 2005 2006 2007 2008 Mar '09 Shareholders’ equity has increased 30.5% during the past five years 6.8% compound growth rate for the past five years 2009 projected shareholders’ equity $314 - $335 million 34
Slide 35: Book Value Per Share and Tangible Equity
Book Value Per Share $20.5 $20.7 $20.0 $18.6 Tangible Common Equity/ $16.9 $15.9 Tangible Assets 8.37% 8.34% 8.27% 7.40% 6.53% 6.72% 2004 2005 2006 2007 2008 Mar '09 2004 2005 2006 2007 2008 Mar '09 35
Slide 36: Total Market Capitalization
Total Market Capitalization (in millions) $629.5 $553.7 $461.2 $406.5 $414.2 $403.3 2004 2005 2006 2007 2008 2009 All data is as of year-end except 2009 which is based upon stock price on March 31, 2009 36
Slide 37: Comparison of 5 Year Cumulative Total Return
Comparison of 5 Year Cumulative Total Return among CTBI, NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks $200 $100 $0 2003 2004 2005 2006 2007 2008 Communit y T rust Bancorp, Inc. NASDAQ St ock Market (U.S.) NASDAQ Bank Stocks An investment in CTBI stock on December 31, 2003 would have outperfo
Slide 38: Comparison to Russell 2000 Index
Comparison to Russell 2000 Index of small cap companies Return to Investors December 31, 2008 38.57% 13.53% 9.73% 9.48% 3.07% -0.89% -8.26% -33.80% 1-Year 3-Year 5-Year 10-Year CTBI Russell 2000 3-, 5-, and 10-year total returns annualized 38
Slide 39: 2009 Key Strategic Initiatives
2009 Key Strategic Initiatives 39
Slide 40: 2009 Operational Initiatives
2009 Operational Initiatives Attaining our 2009 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 41: 2009 Operational Challenges
2009 Operational Challenges Major impacts on 2009 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 42: 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 Strong experienced management team and 1,000 dedicated em
Slide 43: Community Trust Bancorp, Inc.
Z Community Trust Bancorp, Inc. Seruing our Communities for 105 Yeare
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