Community Trust Bancorp Inc.
Annual Report 2014

Plain-text annual report

2014 Annual Report Your Company Community Banking at its Best “We are committed to increasing shareholder value by operating our community banking model with the core values of fairness, respect, and integrity.” - Mission Statement Community Trust Bancorp, Inc. continues to practice the conservative, efficient model of traditional community banking that has been the cornerstone of our customer service and driven our earnings for more than 111 years. In 2014, we were pleased to be recognized by Forbes magazine as one of “America's 50 Most Trustworthy Financial Companies.” Community Trust was ranked first in the “Small Cap” category. We are pleased the stewardship of our shareholders' assets, through strong corporate governance, has been recognized. Our history of investment returns continues to demonstrate the viability of our stock as a long-term core value investment. Having a firm foundation for our operations, a strong capital position, a highly skilled and dedicated workforce, and a business model of community banking allows us to operate successfully. Economic conditions in most of the communities we serve in Kentucky, West Virginia, and Tennessee are slowly improving. However, some business sectors in our Eastern Region, particularly the coal industry, are being negatively impacted by oversupply, low prices, and regulatory burden. We anticipate that most of our market areas will continue to experience improving economic conditions. The directors and management of Community Trust Bancorp, Inc. are committed to meeting the challenges that the economy presents while remaining focused on our core banking business and increasing shareholder value. Comparison of 5-Year Cumulative Total Return $300 $200 $100 $0 2009 2010 2011 2012 2013 2014 Community Trust Bancorp, Inc. NASDAQ Stock Market (U.S.) NASDAQ Bank Stocks Index An investment in CTBI stock on December 31, 2009 would have outperformed the NASDAQ Bank Stocks Index but not the NASDAQ Stock Market (U.S.) at December 31, 2014. 2014 Annual Report 1 To Our Shareholders Dear Shareholders Your Company continued, during 2014, to meet the challenges of operating in a recovering economy with interest rates remaining at historically low levels. While our earnings for 2014 of $43.3 million were less than our record high $45.2 million earned in 2013, our performance still allowed us to remain a high performing community banking organization. We were pleased to continue our commitment to sharing earnings with you, our shareholders, by increasing your cash dividend for the 34 consecutive year and by paying a 10% stock dividend. th Operating in Economically Diverse Markets Jean R. Hale Chairman, President and CEO The economic recovery within the United States has varied geographically, by business sector and by individual. We continue to have some areas of our country yet to recover from the recent recession. Our Company positioned itself over the years to be diversified with the varying economies in the markets we serve, our loan portfolio mix, and our customer base. We believe this diversification contributed to our continued strong profitability during the recession and extended economic recovery. We remain a margin driven institution and will continue to have pressure on our net interest margin as long as rates remain low. During 2014, we continued our focus on improving the financial performance of the Company by improving the asset quality of our loan portfolio, reducing our other real estate owned, reducing loan charge-offs, and controlling expenses, while at the same time growing our loan portfolio with quality loans. We saw improvement in all of these areas during 2014. Our focus on the growth and profitability of our subsidiary Community Trust and Investment Company resulted in a record contribution to the Company's noninterest revenue. We believe with the pressure placed on traditional noninterest revenue sources, our wealth management, trust, brokerage, and insurance operations will provide a good opportunity for growth of noninterest revenue in the future. Providing Solid Investor Returns Your management believes an investment in Community Trust Bancorp, Inc. is a long-term core value investment. We believe in returning to our shareholders in several ways, including cash dividends, stock dividends, stock splits, and price appreciation. During 2014, we increased our cash dividends to shareholders for the 34 consecutive year. As of December 31, 2014, the cash dividend yield was 3.28%. We also distributed a 10% stock dividend to our shareholders in June 2014. The price of your stock was volatile during 2014, as were the prices of most bank stocks. The closing price of your stock on December 31, 2014 was $36.61. The 5-year cumulative return to you, our shareholders, outperformed the NASDAQ Bank Stocks Index as of December 31, 2014. Our 10-year annualized return to investors was 6.08%. th We also invest in the future of your Company by retaining earnings at a level needed for the long-term growth of your Company, through internal growth, acquisitions, and de novo branching. The shareholders’ equity of your Company grew 8.6% in 2014 to $447.9 million. 2 2014 Annual Report Success We continue to meet the challenges of our current operating environment as our country's economy improves and the regulatory environment changes for both banking and financial services industries, as well as many other business sectors. We believe challenges provide opportunities and with our strong foundation and long history of successfully meeting challenges for the past 111 years, we will continue to rise and meet these opportunities! We are focused on the success of your Company. The financial strength of your Company, enhanced by the execution of our strategic plan by a highly qualified management team and over 1,000 dedicated employees, will allow your Company to continue building on our history of success. We appreciate the opportunity to serve our constituents….Our Shareholders, Our Customers, Our Employees, and Our Communities, and your loyalty and support are invaluable to the success of your Company! Jean R. Hale Chairman, President and CEO (quarterly) Sales Price High Low Close 2014 Common Stock Jun 30 $38.60 $32.33 $34.22 Mar 31 $41.13 $34.18 $37.71 Sep 30 $36.35 $33.47 $33.63 Dec 31 $37.54 $33.19 $36.61 2014 Annual Report 3 Financial Highlights (in thousands except ratios, per share amounts, and employees) Net income Basic earnings per share Diluted earnings per share Cash dividends per share Average shares outstanding For the Year 2014 2013 Percentage Change $ 43,251 2.50 2.49 1.181 17,326 $ 45,172 2.63 2.62 1.154 17,158 ( ( ( % ) 4.3 ) 4.9 ) 5.0 2.3 1.0 At Year End 2014 2013 Percentage Change Assets Earning assets Deposits, incl. repurchase agreements Loans Allowance for loan and lease losses Shareholders' equity Book value per share Market price per common share Common shares outstanding Full time equivalent employees $ 3,723,765 3,459,991 3,109,443 2,733,824 34,447 447,877 25.64 36.61 $ 3,581,716 3,311,033 3,063,141 2,615,354 34,008 412,492 23.70 41.05 17,466 1,012 17,403 1,022 % 4.0 4.5 1.5 4.5 1.3 8.6 8.2 ( 10.8 ) 0.4 ( 1.0 ) Significant Ratios 2014 2013 Percentage Change For the year Return on average assets Return on average common equity Net interest margin Efficiency ratio Net charge-offs to average loans At year end Capital ratios: Equity to assets Tier 1 leverage Tier 1 risk based Total risk based Allowance to net loans Allowance to nonperforming loans 4 2014 Annual Report % 1.18 9.94 3.92 59.12 0.31 % 1.24 11.05 4.03 59.33 0.30 12.03 12.04 16.51 17.76 1.26 88.43 11.52 11.51 16.15 17.40 1.30 78.08 % ) ( 4.8 ) ( 10.0 ) ( 2.7 ) ( 0.4 3.3 4.4 4.6 2.2 2.1 ) ( 3.1 13.3 Net Income (in thousands) Earnings Per Share $44,862 $45,172 $43,251 $38,827 $33,034 $2.64 $2.63 $2.50 $2.31 $1.97 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Dividends Per Share Shareholders’ Equity (in thousands) $1.118 $1.136 $1.154 $1.181 $1.100 $400,344 $412,492 $447,877 $338,638 $366,866 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 $50,000 $40,000 $30,000 $20,000 $10,000 $0 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 2014 Annual Report 5 Financial Highlights (in thousands except per share data) 2014 2013 Percentage Change Consolidated Statements of Income Year ended December 31 Interest income Interest expense Net interest income Provision for loan losses Noninterest income Noninterest expense Income before income taxes Income tax expense Net Income Cash dividends per share Book value per share $ $ $ $ 143,867 11,797 132,070 8,755 45,081 105,999 62,397 19,146 43,251 1.181 25.64 $ $ $ $ 148,127 13,440 134,687 8,568 49,304 110,251 65,172 20,000 45,172 1.154 23.70 Average shares outstanding 17,326 17,158 % ( ) ( 2.9 ) 12.2 ) ( 1.9 2.2 ( 8.6 ( 3.9 ( 4.3 ( 4.3 ( 4.3 ) ) ) ) ) 2.3 8.2 1.0 (in thousands) Assets Consolidated Balance Sheets At December 31 2014 2013 Percentage Change Cash and deposits in other banks Federal funds sold Securities Loans, net of allowance Other assets Total Assets $ 108,781 4,933 641,848 2,699,377 268,826 $ 107,596 8,613 611,067 2,581,346 273,094 $3,723,765 $3,581,716 Liabilities and Shareholders’ Equity Deposits Repurchase agreements Federal funds purchased and other short-term borrowings Advances from Federal Home Loan Bank Long-term debt Other liabilities $ 2,874,257 235,186 $ 2,855,074 208,067 11,041 61,170 61,341 32,893 12,465 1,286 61,341 30,991 Total Liabilities 3,275,888 3,169,224 Shareholders' Equity 447,877 412,492 Total Liabilities and Shareholders' Equity $3,723,765 $3,581,716 % ( 1.1 ) 42.7 5.0 4.6 ) 1.6 ( 4.0 0.7 13.0 ( ) 11.4 4656.6 0.0 6.1 3.4 8.6 4.0 6 2014 Annual Report Noninterest Income (in thousands) Efficiency Ratio 59.45% 60.23% 57.93% 59.33% 59.12% $43,832 $45,957 $45,081 $49,304 $40,926 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Nonperforming Assets to Loans and Foreclosed Properties 5-Year Cumulative Average Asset Growth 3.97% 3.59% 3.20% 3.12% 5.00% 4.00% 4.56% 4.09% 3.84% 3.56% 2.74% 3.00% 2.71% 2.00% 1.00% 0.00% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 4.50% 3.75% 3.00% 2.25% 1.50% 0.75% 0.00% 2014 Annual Report 7 Shareholders th Our history of strong returns to investors continued during 2014, as we increased the cash dividend to our shareholders for the 34 consecutive year and distributed a 10% stock dividend on June 2, 2014. While increasing our cash dividend to our shareholders, we continued to grow our shareholders' equity to $447.9 million at December 31, 2014, an 8.6% increase from December 31, 2013. At December 31, 2014, our cash dividend yield was 3.28%, and the five-year compound growth rate of cash dividends per share was 1.6%. The five-year compound growth rate of earnings per share was 10.6% at December 31, 2014. CTBI continues to maintain a significantly higher level of capital than required by regulators in order to be designated as “well-capitalized.” To be “well-capitalized,” banks and bank holding companies must maintain a Tier 1 leverage ratio of no less than 5.0%, a Tier 1 risk based ratio of no less than 6.0%, and a total risk based ratio of no less than 10.0%. Our ratios as of December 31, 2014 were 12.04%, 16.51%, and 17.76%, respectively, all exceeding the threshold for meeting the definition of “well-capitalized.” On December 31, 2014, our tangible common equity/tangible assets ratio remained strong at 10.44%. Our stock is traded on the prestigious NASDAQ Global Select Market (a founding stock selection) and is also one of 50 founding stocks of the NASDAQ's Dividend Achievers Index. An investment in CTBI stock on December 31, 2009 would have provided an annualized return of 14.9% as of December 31, 2014. Our stock is included in the Russell 2000 Index of small cap companies, providing us with a good benchmark for comparing our stock's performance. During the 10-year period ending December 31, 2014, CTBI produced an annualized return of 6.08%, while the Russell 2000 Index produced an annualized return of 7.77%. Book Value Per Share $23.31 $23.70 $25.64 $21.61 $20.08 $28.00 $24.00 $20.00 $16.00 $12.00 $8.00 $4.00 $0.00 8 2014 Annual Report 2010 2011 2012 2013 2014 Customers Our branch offices are located primarily in small communities where the “community banking” operational philosophy enables us to develop a banking relationship with our customers and understand their financial needs. We are proud to have served our customers for more than 111 years. In 2014, Community Trust served more than 250,000 customers. We are able to offer our customers a wide variety of banking products and services. We are committed to serving our customers, both large and small, and offer products designed to fit each customer's needs. In 2014, for the sixth consecutive year, we were recognized by the Small Business Administration (SBA) as being the top community bank SBA lender in the Commonwealth of Kentucky based on the total number of loans. We also offer USDA guaranteed loans and an entire suite of commercial loans and leases, mortgages, and consumer loans. Our deposit related products and services include certificates of deposits, savings accounts, online banking and online bill payment (at www.ctbi.com), commercial account remote deposit capture, and commercial cash management services. We offer our customers convenient access to their accounts through our network of 86 ATMs. In 2014, we were happy to enter into an agreement with a third party to provide ATM services to nine Food City stores, seven in Kentucky and two in Tennessee. This agreement allows our customers access to their accounts at these stores, as well as other Food City and Super Dollar stores in Kentucky, Tennessee, and Virginia, at no charge. This brings the total number of ATMs to which our customers have free access to more than 160! Please visit our website at www.ctbi.com/ctbi/about-us/atm-location-listing for a complete listing of our ATM locations. We offer our customers a full line of wealth and trust management, estate planning, and retirement planning services, in addition to full service brokerage and life insurance products. In 2014, our banking franchise included 71 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, four banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee, all focused on providing outstanding service to our customers. 2014 Annual Report 9 Employees Our employees are Community Trust's heart and soul. Our operational philosophy supports this tenet. Our more than 1,000 employee team works together to provide the very best service to each of our valued customers. Our success, for over a century, would not be possible without the dedication of our employees to meet the financial needs of our customers. We remain committed to providing our employees with opportunities for personal and professional growth, whether it is by providing reimbursement of educational expenses, encouraging attendance at seminars and in-house training programs, or by sponsoring memberships in local civic organizations. Our employees participated in numerous coaching, training, and education programs throughout the year. During 2014, 502 classes were conducted during 217 days of training. Additionally, Community Trust makes online training available to employees; as a result, employees completed 136 different online courses through our Regulatory University system. We actively support our employees with a wellness program. Since beginning the program in 2004, participating employees have experienced improvements in preventing cardiovascular disease, cancer, and diabetes and decreases in elevated medical risk factors, including alcohol consumption, tobacco usage, physical inactivity, high stress, elevated cholesterol, and high blood pressure. This ongoing positive impact to our medical plan is reflected in our employees not having a premium increase since 2012. Our incentive programs and internal sales campaigns also promote an environment focused on sales and service. Participants can earn cash bonuses and win awards for top achievement. In February 2015, we held our 16 annual “Pinnacle of Success” awards banquet and recognized 39 employees for their outstanding performance in sales and service during the prior year. We have included the names of those employees, as well as the offices, markets, and regions recognized, following the Branch Locations listing on page 16. th We know that the success of our employees means success for your Company. Our employees' commitment to the mission of your Company and our constituents is evidenced by their ownership of the Company's stock. Through their 401(k) and ESOP plans, our employees collectively own 1.3 million shares, or 7.2%, of Community Trust Bancorp, Inc. stock, making them our largest shareholder. In 2014, Community Trust Bancorp, Inc. contributed $2.5 million to these plans. 10 2014 Annual Report Communities Our corporate motto is “building communities…built on trust .” We take this commitment seriously every day as we work to help our friends and neighbors fulfill their financial dreams. ® We are actively involved in every community we serve. We dedicate our resources, both human and financial, to help make the places where we live and work better, not only for current generations, but also for generations yet to come. Our continuing support of our communities, both financially and through the volunteer service of our employees, has helped build great places to live for both our customers and our fellow employees. During 2014, we donated more than $800,000 to community organizations involved in a wide variety of civic activities, including economic development, affordable housing, job creation, education, cultural enrichment, medical research, and health care. Community Trust employees provide leadership, monetary support, and countless volunteer hours to many exceptional local community organizations in all of the communities we serve. Our employees are active in a wide variety of community organizations, including United Way, YMCA, American Cancer Society's Relay For Life, Habitat for Humanity, Kentucky Blood Center, Diabetes Coalition, March of Dimes, little league sports programs, Boy and Girl Scouts of America, The Salvation Army, volunteer fire departments, home realtor and builder organizations, and independent and state supported colleges and universities. Our employees volunteer thousands of hours each year to these and other excellent local community organizations. In 2014, SOAR (Shaping Our Appalachian Region) was created to expand job creation; enhance regional opportunity, innovation, and identity; improve the quality of life of our citizens; and support all those working to achieve these goals. Community Trust has partnered with SOAR since its inception with support, including service in leadership positions and providing office space for its Pikeville headquarters. Community Trust is dedicated to helping our communities grow and prosper now and in the future, and we are proud to be a part of our hometowns across Kentucky, West Virginia, and Tennessee. CTBI Cash Contributions $811,000 $819,000 $753,000 $645,000 $621,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2010 2011 2012 2013 2014 2014 Annual Report 11 Executive Committee JEAN R. HALE Chairman, President and CEO Community Trust Bancorp, Inc. Chairman Community Trust Bank, Inc. and Community Trust and Investment Company MARK A. GOOCH Executive Vice President and Secretary Community Trust Bancorp, Inc. Director, President and CEO Community Trust Bank, Inc. Director and Vice President Community Trust and Investment Company ANDY WATERS Executive Vice President Community Trust Bancorp, Inc. Director, President and CEO Community Trust and Investment Company JAMES B. DRAUGHN Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/Operations Community Trust Bank, Inc. JAMES J. GARTNER Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/ Chief Credit Officer Community Trust Bank, Inc. C. WAYNE HANCOCK II Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/ Senior Staff Attorney Community Trust Bank, Inc. * STEVEN E. JAMESON Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/Chief Internal Audit & Risk Officer Community Trust Bank, Inc. ANDREW JONES Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/ Northeastern Region President Community Trust Bank, Inc. LARRY W. JONES Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/ Central Kentucky Region President Community Trust Bank, Inc. RICHARD W. NEWSOM Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/ Eastern Region President Community Trust Bank, Inc. RICKY D. SPARKMAN Executive Vice President Community Trust Bancorp, Inc. Executive Vice President/South Central Region President Community Trust Bank, Inc. KEVIN J. STUMBO Executive Vice President, CFO and Treasurer Community Trust Bancorp, Inc. Executive Vice President/CFO Community Trust Bank, Inc. Vice President Community Trust and Investment Company * Non-voting Member 12 2014 Annual Report Boards of Directors ** *** * ** *** JEAN R. HALE Chairman, President and CEO Community Trust Bancorp, Inc. Chairman Community Trust Bank, Inc. and Community Trust and Investment Company *** MARK A. GOOCH Executive Vice President and Secretary Community Trust Bancorp, Inc. Director, President and CEO Community Trust Bank, Inc. Director and Vice President Community Trust and Investment Company ANDY WATERS Executive Vice President Community Trust Bancorp, Inc. Director, President and CEO Community Trust and Investment Company * *** CHARLES J. BAIRD President Baird & Baird, P.S.C. Pikeville, Kentucky ** J. MARK CAMPBELL President Pevler Coal Sales Company, Inc. Pikeville, Kentucky * NICK CARTER Private Investor ** DAVID E. COLLINS Managing Partner Collins & Love, CPA's Pikeville, Kentucky *** E.B. LOWMAN II President Cardinal Management Ltd. Ashland, Kentucky KRISHNA M. MALEMPATI Vice President OM Ventures Inc. General Partner Parkhills Shopping Center Lexington, Kentucky JAMES E. MCGHEE II President Three JC Investments Pikeville, Kentucky FRANKY MINNIFIELD President Minnifield Enterprize, Inc. Lexington, Kentucky M. LYNN PARRISH President Marwood Land Company, Inc. Pikeville, Kentucky * DR. JAMES R. RAMSEY President University of Louisville Louisville, Kentucky * ANTHONY W. ST. CHARLES President and Chief Executive Officer A. W. St. Charles & Associates, Inc. Cincinnati, Ohio In Appreciation of 27 Years of Dedicated Service In Appreciation of Dedicated Service Boards of Directors Community Trust Bancorp, Inc. Community Trust Bank, Inc. Community Trust and Investment Company Earl Gene Johnson The Honorable Crit Luallen Lieutenant Governor Commonwealth of Kentucky 2014 Annual Report 13 Advisory Board Members Central Region Larry W. Jones Regional President Eastern Region Northeastern Region South Central Region Richard Newsom Regional President Andrew Jones Regional President Lexington Richmond Pikeville* Ashland Larry W. Jones Regional President James C. Baughman, Jr. Robert A. Branham Linda A. Carroll C. Glen Combs Raymond Daniels Jenny Dulworth-Albert Edward J. Holmes Robert Kelly Tim Houck Market President Terrell Cobb Jeannette Crockett Alison Emmons David Fernandez James H. Howard Elizabeth McCarty David McFaddin Randall Stone Danville/Harrodsburg Versailles Rodney Mitchell Market President A. B. Chandler, Jr. Robert Cleveland Alice Kiviniemi Charles Lathrem Mark Wainwright, M.D. Winchester David Wills Market President Thomas R. Goebel Carl E. Jennings Robert M. Powe, Jr. Gardner D. Wagers David Maynard Market President Bob Allen Scott Burks James Walker Cox Bob Davis Bruce Harper James G. Ingram Alvis Johnson Myrna Miller Larry Scott, M.D. Mt. Sterling Bill McKenna Market President Byron Amburgey Marcus Shane Back Jeff Brother John W. Clay Reid Evans O. Keith Gannon Angela Patrick E. Dale Sorrell William Brett Keene Market President Andrew Jones Regional President Floyd/Knott/Johnson* David Tackett Market President Hazard Paul Daniels, Sr. Kurt Jaenicke, M.D. E. B. Lowman II E. B. Lowman III John McMeans Ann Perkins Janice Brafford-King Market President Advantage Valley William Bettinazzi Frances Feltner Nan Hagan Gorman Charles Housley Barry Martin Syamala H. K. Reddy, M.D. Tim Short Alan Dale Williams Tug Valley Duanne Thompson Market President William F. Blackburn III James H. Caines Timothy A. Hatfield John Mark Hubbard Louie Jiunta Paul E. Pinson Whitesburg Reed Caudill Market President Herbert Caudill Bill Joe Collier Sam W. Quillen, Jr., D.M.D. Pauline C. Ritter-Combs Allen Burner Market President Randie G. Lawson Christopher J. Plybon Julian Saad Steve Smith William Jack Stevens Flemingsburg Emery O. Clark Market President Michael A. Boyd, M.D. Robert W. Crain Steven Humphries T. Scott Perkins, D.M.D. James Sauer J.E. Smith, Jr. Frank Vice, D.V.M. Summersville Clovis Lawless Market President Ellis Frame III David Michael Hughes Marshall Robinson Yancy Short, M.D. Ricky Sparkman Regional President Campbellsville Ricky Sparkman Regional President Barry Bertram Salem M. George, M.D. Jerry Russell James Whitlock LaFollette Marvin Minton Market President George Ellison James C. Farris, M.D. Peggy Payne Tom Robards Conrad Troutman Robert L. Woodson III Middlesboro Tim Helton Market President Marcum Brogan Meredith J. Evans, M.D. S. A. Mars, Jr. Keith A. Nagle Richard H. Tamer Mt. Vernon Michael Blount Market President Martha Cox Connie Hunt Gary W. Mink Tommy Mink Williamsburg Andrew Pyles Market President R. Don Adkins E. L. Ballou, D.M.D. Ray F. Bryant Joseph E. Early, Sr. Paul Estes Vernon B. Faulkner Holbert Hodges, Jr. Dallas B. Steely Mark S. Stephens Lonnie D. Walden 14 2014 Annual Report *These markets are served by the Community Trust Bank, Inc. Board of Directors. Shareholders’ Information Corporate Address Community Trust Bancorp, Inc. 346 North Mayo Trail P.O. Box 2947 Pikeville, KY 41502-2947 606.432.1414 www.ctbi.com Notice of Annual Meeting The annual meeting of the shareholders will be held at 10:00 a.m. on April 28, 2015 at: Community Trust Bancorp, Inc. 346 North Mayo Trail Pikeville, Kentucky Transfer Agent Inquiries relating to shareholder records, stock transfers, changes of ownership, changes of address, and dividend payments should be sent to the transfer agent at: Broadridge Corporate Issuer Solutions, Inc. P.O. Box 1342 Brentwood, NY 11717-0718 866.232.3034 720.358.3637 (International) shareholder@broadridge.com Inquiries may also be directed to Community Trust Bancorp, Inc.'s Stock Transfer Administrator, Marilyn Justice, at: Community Trust Bank, Inc. P.O. Box 2947 Pikeville, KY 41502-2947 606.437.3279 800.422.1090, ext. 3279 (Toll Free) justicma@ctbi.com Dividend Reinvestment Community Trust Bancorp, Inc. offers its shareholders an automatic dividend reinvestment program. The program enables shareholders to reinvest their dividends in shares at the prevailing market price. For more information, contact us at: Community Trust Bancorp, Inc. c/o Broadridge Corporate Issuer Solutions, Inc. P.O. Box 1342 Brentwood, NY 11717-0718 866.232.3034 shareholder@broadridge.com Form 10-K CTBI's annual report on Form 10-K filed with the Securities and Exchange Commission is available without charge on our website at www.ctbi.com or by writing: Community Trust Bancorp, Inc. Jean R. Hale Chairman, President & CEO P.O. Box 2947 Pikeville, KY 41502-2947 Registered Market Participants Automated Trading Desk Financial Services, LLC; Barclays Capital Inc./Le; BNY Mellon Capital Markets, LLC; Cantor, Fitzgerald & Co.; Citadel Securities LLC; Citigroup Global Markets Inc.; Credit Suisse Securities USA; Goldman, Sachs & Co.; Jefferies LLC; Knight Capital Americas LLC; Latour Trading LLC; Merrill Lynch, Pierce, Fenner & Smith, Inc.; Morgan Stanley & Co. LLC; Sandler O'Neill & Partners; Susquehanna Capital Group; Susquehanna Financial Group, LLP; Susquehanna Securities; Timber Hill Inc.; Two Sigma Securities, LLC; UBS Securities LLC; Wells Fargo Securities, LLC. 2014 Annual Report 15 Branch Locations Danville Danville Main Street Danville Manor Harrodsburg Lexington * Lexington Vine Beaumont Hamburg Leestown Pasadena Richmond Road Mt. Sterling Central Region Richmond 462 W. Main St. 1560 Hustonville Rd. 570 Chestnut St. 859-239-9200 859-239-9460 859-734-4354 Eastern By-Pass Richmond Main Berea North 860 Eastern By-Pass 128 W. Main St. 525 Walnut Meadow Rd. 859-624-4622 859-623-2747 859-985-0561 Versailles 100 E. Vine St. 901 Beaumont Centre Pkwy. 2417 Sir Barton Way 109 Louie Place 185 Pasadena Dr., Suite 100 3090 Richmond Rd. 859-389-5350 859-223-1111 859-264-1938 859-258-2659 859-313-5425 859-269-0164 * Versailles Main Woodford Plaza Frankfort East Frankfort West Georgetown Wal-Mart 101 N. Main St. 480 Lexington Rd. 427 Versailles Rd. 1205 S. Hwy. 127 112 Osbourne Way 859-879-5400 859-879-5480 502-848-0913 502-696-0720 502-863-4693 Winchester Mt. Sterling Main Mt. Sterling North 110 N. Maysville St. 196 Evans Dr. 859-498-5332 859-497-6981 Winchester Main Winchester Plaza 120 S. Main St. 125 Winchester Plaza 859-745-7200 859-745-7200 Floyd/Knott/Johnson Allen Floyd County Paintsville Wal-Mart Knott County 6424 Ky Rt. 1428 161 S. Lake Dr. 470 N. Mayo Trl. 107 W. Main St. Hazard Airport Gardens Black Gold Hazard Main Street Hazard Village 1665 Combs Rd. 100 Citizens Ln. 655 Main St. 101 Village Ln. Tug Valley Williamson Tug Valley 101 E. 2nd Ave. 28160 US Hwy. 119 304-235-5454 606-237-6051 Eastern Region Pikeville 606-874-0408 606-886-2382 606-788-9934 606-785-5095 606-487-2160 606-436-2157 606-487-2162 606-487-2152 * Elkhorn City Marrowbone Mouthcard Phelps Pikeville Main Pikeville Main Street Pikeville Wal-Mart Town Mountain Virgie Weddington Plaza 211 Russell St. 10579 Regina Belcher Hwy. 32 N. Levisa Rd. 38720 State Hwy. 194 E. 346 N. Mayo Trl. 137 Main St. # 4 254 Cassidy Blvd. 105 Northgate Dr. 1056 KY Hwy. 610 W. 4205 North Mayo Trl. Whitesburg Whitesburg Main West Whitesburg Jenkins Isom Neon 155 Main St. 24 Pkwy. Plaza Loop 9505 Hwy. 805, Suite A 56 Isom Plaza 1001 Hwy. 317 606-754-5589 606-754-4462 606-835-4907 606-456-8701 606-432-1414 606-437-3326 606-437-0048 606-437-3323 606-639-4451 606-432-4529 606-633-0161 606-633-4532 606-832-2477 606-633-5995 606-855-4435 Advantage Valley Alum Creek Hamlin Fort Gay Pullman Square Flemingsburg 315 Midway Rd. 8049 Lynn Ave. 3200 Court St. 952 3rd Ave. Ewing Flemingsburg Main South Ridge 1527 Ewing Rd. 36 Brookhaven Dr. 108 Clark St. Campbellsville Campbellsville Main First Street Columbia Greensburg Lebanon Somerset North Somerset South Jamestown Williamsburg Williamsburg Main Convenience Center Corbin London Main London North 1218 E. Broadway 315 E. 1st St. 1005 Jamestown St. 205 S. Main St. 521 W. Main St. 239 N. Hwy. 27 3809 S. Hwy. 27 752 N. Main St. 201 N. Third St. 895 S. Hwy. 25 W. 678 US Hwy. 25 W. 1706 Hwy. 192 W. 38 Shiloh Dr. Northeastern Region Ashland * Ashland Main South Ashland Summit Westwood Russell Summersville 1544 Winchester Ave. 2101 29th St. 7100 US Route 60 721 Wheatley Rd. 970 Diederich Blvd. 606-329-6000 606-329-6600 606-928-9555 606-329-6610 606-329-6680 Summersville 507 Main St. 304-872-2711 304-756-3317 304-824-7223 304-648-7200 304-697-0272 606-267-2061 606-845-3551 606-849-2304 South Central Region Middlesboro Middlesboro Main Middlesboro East Pineville Mt. Vernon 1918 Cumberland Ave. 1206 E. Cumberland Ave. 11792 US Hwy. 25 E. 606-248-9600 606-248-9642 606-337-6122 Mt. Vernon Main Mt. Vernon Downtown 2134 Lake Cumberland Rd. 120 Main St. 606-256-5141 606-256-5142 LaFollette * LaFollette Main LaFollette Mall Jacksboro Clinton 106 S. Tennessee Ave. 2205 Jacksboro Pike 2603 Jacksboro Pike 2106 Charles G. Seivers Blvd. 423-562-3364 423-562-9918 423-566-7800 865-457-8684 270-789-5900 270-789-5900 270-384-4771 270-932-7464 270-692-0064 606-679-8826 606-679-8446 270-343-2556 606-549-5000 606-539-2251 606-526-8777 606-877-2644 606-864-2439 16 2014 Annual Report *Community Trust and Investment Company has offices in these locations. For a complete listing of office hours by location, visit our website at www.ctbi.com. Pinnacle Award Winners Joan Abner David Akers Steve Belcher Cindy Blanton Allen Burner Steve Bush John R. Caldwell Gerrie Clark Mike Damron Tina M. Davis Larry Forester Keith Haynes Stephanie Hudson Brett Keene Robert Kelly Savi Kumar Greg Lee Rhonda S. Longmire Elizabeth Maynard-Johnson Charlene Miller Gaylon D. Neat Michelle Newsome Richard R. Newsome Tracy Osborne Barry Pennington Ricky Peterson Andrew Pyles Tiffany Reeder Ty Reynolds Melissa Rhodes Erin Serrate Roger Smith Terry Spears Brenda Stockton Willie Swatzell Ann Tackett Jody L. Thompson David Wills Trina Yack Ashland Main Office Ashland Market Berea North Office Campbellsville Market Central Region Lexington Market Northeastern Region Pikeville Main Office Pikeville Market Richmond Main Office Richmond Market South Ashland Office www.ctbi.com 

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