EX-99.2 3 a5419664ex992.htm EXHIBIT 99.2 Exhibit 99.2
NASDAQ: PBIBJune 2007

Page 2 DisclaimerDisclaimerThis presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are based on management’s current expectations. Porter Bancorp’s actual results in future periods may differ materially from those currently expected due to various factors,including those risk factors described in documents that the Company files with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The forward-looking statements in this presentation are made as of the date of the presentation and Porter Bancorp does not assume any responsibility to update these statements.

Page 3 Stock OverviewStock Overview IPO Date: NASDAQ Symbol: Shares Outstanding: Market Capitalization:(1) Average Daily Volume:(2) Insider Ownership:September 22, 2006PBIB7.62 Million$181 Million2,282 Shares69%Notes:(1) Based on May 8, 2007 closing price of $23.73(2) For the last 30 calendar days

Page 4 Company OverviewCompany Overview Louisville, Kentucky headquarters 7thlargest bank domiciled in Kentucky $1.1 billion in assets $927 million in loans $897 million in deposits Focused on developing the I-65 corridor Efficient operating modelNote: Financial data as of March 31, 2007

Page 5 Market OverviewDiversified Growth Markets-Louisville-South Central Kentucky-Bowling Green/Glasgow

Page 6 Louisville Market CharacteristicsLouisville Market Characteristics 16thlargest city in the U.S. Economic and job growth rates are greater than the national average Strong commercial loan demand Diversified economy Large employers include UPS, GE, Humana, YUM! Brands, Ford New distribution businesses attributed to UPS hub -Best Buy, Gordon Foods, Johnson & Johnson, Zappos, Geek Squad Home of University of Louisville -J. Chester Porter serves as Chairman of Trustees

Page 7 South Central Kentucky MarketSouth Central Kentucky Market Community markets Stable source of deposits and loans Lower cost of funds PBIB’smain back-office location Fort Knox consolidation relocation (BRAC) Agricultural and service-based economy

Page 8 Bowling Green / Glasgow MarketBowling Green / Glasgow Market 4thlargest city in Kentucky 425,000 population Attractive growth market Major employers include GM (Corvette) and RR Donnelley New branch expansion Home of Western Kentucky University

Page 9 Successful Track RecordSuccessful Track Record19881988 -199919991999 -2005Dec. 31, 2005Sept. 22, 2006Porter Bancorp organized with 3 banks(1)EstablishedAscenciaBankCompletedIPOAcquired 3 banksAcquired 2 banksConsolidated banks into PBI Bank$122$230$281$319$368$454$553$623$653$715$767$887$991$1,051$85$88$94$101$11119881989199019911992199319941995199619971998199920002001200220032004200520061st Qtr2007Total Assets ($M)$1,120Note:(1) J. Chester Porter and Maria L. Bouvette acquired 3 banks in 1985 -1986; Bill Porter participated in 2 of the 3 bank acquisitions

Page 10 Operating StrengthsOperating Strengths Experienced management team Extensive market knowledge and community relationships Acquisition and integration capabilities Scalable operating platform Highly efficient organizational structure Diversified funding sources Highly focused on profits

Page 11 Growth StrategiesGrowth StrategiesWe will expand our presence in fast growing markets by adding strategically located new offices and making selective acquisitions Focus on markets with attractive growth prospects Strategic de novo branching Selective acquisitions Experienced integrators Extensive market knowledge and contacts Accretive to earnings in first year Continue marketing our new brand -top of mind awareness Increasing core deposits Open new retail offices (3 over next twelve months)

Page 12Financial Highlights

page 13 2006 Key Accomplishments2006 Key Accomplishments Record Net Income of $14.3 million Above peer financial performance Passed the $1 billion asset threshold Record loans of $854 million and deposits of $862 million Successful PBI Bank branding campaign Completed IPONote: (1) Peer Median Financial Performance per SNLPBIBPeer (1)ROAA1.44%1.09%ROAE17.19%12.76%NIM3.97%3.82%Efficiency46.68%61.26%

page 14 Growing Net IncomeGrowing Net Income($ in millions)Note: Adjusted for consolidation through add-back of minority interests, deduction of applicable income taxesand deduction of acquisition funding (net of tax)$6,750$9,012$11,379$14,3392003200420052006

page 15 Solid Net Interest MarginSolid Net Interest Margin3.71%3.84%4.06%3.97%2003200420052006

page 16 Consistent Quarterly NIMConsistent Quarterly NIM3.95%4.10%3.95%3.90%3.92%Q1 06Q2 06Q3 06Q4 06Q1 07

page 17 Net Interest Margin vs. Prime Rate0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%10.00%19992000200120022003200420052006Prime Rate -EOYNIM -Annualized

page 18 Improving Operational EfficiencyImproving Operational Efficiency55.0%51.0%48.0%46.7%2003200420052006

page 19 Strong Return on AssetsStrong Return on AssetsNote: Adjusted for consolidation through add-back of minority interests, deduction of applicable income taxesand deduction of acquisition funding (net of tax) 0.91%1.09%1.21%1.44%2003200420052006

page 20 Solid Return on EquitySolid Return on EquityNote: (1) Adjusted for consolidation through add-back of minority interests, deduction of applicable income taxesand deduction of acquisition funding (net of tax).(1)(1)13.45%16.57%17.19%200420052006

page 21 Q1 07 Operating PerformanceQ1 07 Operating Performance Growth exceeded expectations Loans -8.5% (annualized 34%) Deposits -4.1% (annualized 16%) Assets -6.5% (annualized 26%) Efficient operations -45.4% efficiency ratio Sound credit quality 1.18% NPA to loans .89% NPL to loans ROAA -1.37% ROAE -13.25%Note: Financial data as of March 31, 2007

page 22 Note: (1) As of March 31, 2007 Primary focus on residential and commercial real estate and construction -real estate lending 86% of total loans at March 31, 2007 Granular portfolio No “subprime”exposure Loyal and experienced producers Team approach to customers Locally empowered lenders with timely decision makingLoan Portfolio (1)Total Loans: $927MLoan StratificationLoan StratificationHighlightsCommercial Real Estate37.7%Construction -Real Estate25.9%Residential Real Estate22.5%Home Equity2.0%C & I7.2%Consumer3.1%Agriculture1.5%Other0.1%

page 23 Portfolio CompositionPortfolio CompositionNote: As of March 31, 2007Commercial Real Estate Portfolio Details$349 millionCommercial -Owner Occupied26%Farmland14%Commercial -Investor Owned60%Construction -Real Estate Portfolio Details$240 millionOffice Building/Condo 5.1%Retail Facility 10.1%Other 16.2%Residential Condo Development 28.6%Residential Home Construction -Owner Occupied 2.3%Residential Lot -Developed 3.5%Commercial Lot -Developed 1.1%Commercial Land Development 11.8%Medical/Assisted Living 2.1%Multifamily 1.3%Storage/Warehouse 0.9%Industrial Building 0.4%Residential Land Development 16.5%

page 24 New Loan Growth Q1 2007$72 million or 8.5% (34% annualized)ResLand Dev 4.9%Office 5.1%C&I 8.0%ResCondo Dev 32.2%Retail Ctr18.2%CommLand Dev 12.5%Multifamily 1.5%Warehouse 4.6%1-4 FamConst 0.7%C-Store 1.5%Other 10.8%Note: Loans > $500,000

page 25 Reserves / Total LoansReserves / Total Loans1.28%1.40%1.54%1.50%1.43%2003200420052006Q1 07ReservesNPA's/Loans

page 26 NCOs / Average LoansNCOs / Average Loans0.23%0.18%0.32%0.09%0.03%0.0%1.0%2.0%3.0%4.0%2003200420052006Q1 07

page 27 Deposit StratificationDeposit StratificationNote: (1) For the quarter ended March 31, 2007; rate based on average daily deposit balancesDeposit Mix (1)Total Deposits: $897MCost of Deposits:(1)4.30% Effective core deposit growth initiatives Core non-interest bearing deposits up 9.5% (Q1 07) High CD retention rates Focus on core deposit development Online banking division a ready source of alternative funding (used to pre-fund loan growth in new and current markets)HighlightsCD's less than $100k54%CD's $100k or greater21%Now and MMDA14%Savings3%Non-Interest Bearing DDA8%

page 28 Transactional Account Growth(in millions)$136$151$165$173$195$-$50$100$150$200$2502003200420052006Q1 2007

page 29 Investment Highlights

30 Investment HighlightsInvestment Highlights Attractive, diversified growth markets History of executing growth strategy Scalable platform for expansion Efficient operating model Solid operating performance Undervalued investment opportunity

page 31 2007 Key Strategic Initiatives2007 Key Strategic Initiatives Outperform peer median financial performance -i.e. ROAA, ROAE, efficiency and growth metrics Above peer EPS growth Execution of growth strategies Pursue strategic acquisitions Focus on core deposit growth initiatives Improve loan quality metrics Continuance of quarterly dividend

page 32 Undervalued OpportunityUndervalued OpportunityCurrent Market Price (5/8/07)$23.73Trading Multiples: ValueMultipleEPS (1)$2.05 11.6xTangible BV Per Share (2)$12.73 186.4%Quarterly Dividend (2)$0.20Annualized Dividend3.4%Notes:(1)Based on 2007 peer median EPS estimates per SNL(2)Based on 3/31/07 financial data

page 33 Contact InformationContact InformationMaria L. BouvetteDavid B. PiercePresident and CEOChief Financial OfficerPorter Bancorp, Inc.2500 Eastpoint ParkwayLouisville, KY 40223502-499-4800www.pbibank.com

page 34 Addendum

page 35 Experienced Management TeamExperienced Management TeamIndustry PorterNameAgePositionExperienceExperienceJ. Chester Porter66Chairman of the Board, General Counsel and Director2521 of Porter Bancorp and PBI BankMaria L. Bouvette50President, CEO and Director of Porter Bancorp and PBI Bank2521David B. Pierce47CFO of Porter Bancorp, Chief Strategic Officer and Director2118 of PBI BankPhil Barnhouse36CFO of PBI Bank99Jim Grubbs52Sr. VP Commercial Lending273Fred Catlett49Executive Vice President3011Avery Matney48Regional President2611Todd Young40Chief Operations Officer2313Charles Darst44Chief Development Officer2111Eric Satterly37Chief Technology Officer98Bradford Harris36Corporate General Counsel101Average Years of Experience2112

page 36 Growth DriversGrowth Drivers Existing and contiguous markets provide attractive opportunities Kyeconomy is steady and stable Kylabor market grew 1.6% over last year (9 consecutive quarters of positive growth) Consistent year-over-year job growth Market expansion Selective de novo branching where we have existing lending presence Louisville, Bullitt County, Bowling Green Add offices in growing communities in our footprint Hardin County (Fort Knox Relocation) Selective acquisition opportunities On-line capabilities -nationwide deposit opportunities without cost of new branches Low cost vehicle for current customers

page 37 Peer MetricsPeer MetricsPorter Bancorp, Inc. Comparable GroupFinancial Information as of the Year ended 12/31/06Dollar Values in (000's)TotalCoreCoreNet InterestEfficiencyCompany NameTickerCityStateAssetsROAAROAEMarginRatioCommunity Trust Bancorp, Inc.CTBIPikevilleKY$3,046,7871.00%12.63%3.22%61.76%Republic Bancorp, Inc.RBCAALouisvilleKY2,969,7611.33%14.51%4.02%55.86%Integra Bank CorporationIBNKEvansvilleIN2,684,4790.69%8.21%3.43%62.57%Farmers Capital Bank Corp.FFKTFrankfortKY1,824,3660.79%8.52%3.74%69.80%S.Y. Bancorp, Inc.SYBTLouisvilleKY1,426,3211.69%17.35%4.36%55.76%Bank of Kentucky Financial Corp.BKYFCrestview HillsKY1,051,0061.44%17.15%3.97%45.50%First Financial Service Corp.FFKYElizabethtownKY822,8261.30%14.97%4.04%58.47%Community Bank Shares of IN, Inc.CBINNew AlbanyIN816,6330.55%7.70%2.85%76.39%Kentucky Bancshares, Inc.KTYBParisKY629,5421.09%12.89%3.48%61.45%High$3,046,7871.69%17.35%4.36%76.39%Low629,5420.55%7.70%2.85%45.50%Average1,632,3281.10%12.65%3.70%60.86%Median1,238,9421.09%12.76%3.82%61.26%Note: Data per SNL

38 Deposit MetricsDeposit MetricsMoney Market Accounts -Age of Customer Relationship< 1 Yr32%1 to 3 Yrs23%> 3 Yrs45%CD's -Age of Customer Relationship< 1 Yr45%1 to 3 Yrs36%> 3 Yrs19%CD RetentionNew CD Growth --Last 12 Months5%1-3 Renewals32%More than 3 Renewals13%Original Term50%