Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Community Trust Bancorp, Inc. Reports Earnings for the Third Quarter 2021 By: Community Trust Bancorp, Inc. via Business Wire October 20, 2021 at 08:15 AM EDT Community Trust Bancorp, Inc. (NASDAQ:CTBI): Earnings Summary (in thousands except per share data) 3Q 2021 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Net income $21,142 $23,931 $17,447 $68,691 $43,678 Earnings per share $1.19 $1.35 $0.98 $3.86 $2.46 Earnings per share - diluted $1.19 $1.34 $0.98 $3.86 $2.46 Return on average assets 1.54% 1.76% 1.38% 1.71% 1.23% Return on average equity 12.06% 14.20% 10.81% 13.55% 9.26% Efficiency ratio 53.50% 53.17% 55.99% 52.35% 56.72% Tangible common equity 11.77% 11.39% 11.68% Dividends declared per share $0.400 $0.385 $0.385 $1.170 $1.145 Book value per share $38.78 $38.36 $36.20 Weighted average shares 17,790 17,784 17,746 17,783 17,746 Weighted average shares - diluted 17,808 17,800 17,752 17,798 17,753 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the third quarter 2021 of $21.1 million, or $1.19 per basic share, compared to $23.9 million, or $1.35 per basic share, earned during the second quarter 2021 and $17.4 million, or $0.98 per basic share, earned during the third quarter 2020. Our loan portfolio quality continues to see improvement, allowing a further reduction in credit loss reserves. Noninterest income declined; however, total revenue increased as our net interest margin saw improvement resulting from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of Paycheck Protection Program (PPP) loans. Earnings for the nine months ended September 30, 2021 were $68.7 million compared to $43.7 million for the nine months ended September 30, 2020. 3rd Quarter 2021 Highlights Net interest income for the quarter of $42.0 million was $2.0 million, or 5.0%, above prior quarter and $4.3 million, or 11.5%, above third quarter 2020. We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021. The reduction to our allowance for credit losses was the result of improving credit metrics. We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million. Provision for credit losses for the third quarter 2020 totaled $2.4 million. Our loan portfolio decreased $50.3 million, an annualized 5.8%, during the quarter and $159.7 million, or 4.5%, from September 30, 2020. Loans, excluding PPP loans, increased $26.6 million during the quarter. Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020. Asset quality remains strong from prior quarter as our nonperforming loans, excluding troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021 and $29.9 million at September 30, 2020. Nonperforming assets at $23.0 million decreased $3.9 million from June 30, 2021 and $22.4 million from September 30, 2020. Deposits, including repurchase agreements, decreased $106.0 million, an annualized 9.0%, during the quarter but increased $326.3 million, or 7.7%, from September 30, 2020. The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary. Noninterest income for the quarter ended September 30, 2021 of $14.4 million decreased from prior quarter by $1.1 million, or 7.3%, and $0.5 million, or 3.5%, from prior year same quarter. Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter. COVID-19 We continue working with our customers through the COVID-19 pandemic. At September 30, 2021, the number of customers with CARES Act deferrals reduced to 27 for a total outstanding amount of $15.8 million. The majority of our CARES Act deferrals have been 90 day deferrals. Total outstanding deferrals include 6 commercial loan deferrals with a total outstanding amount of $14.3 million, 17 residential loan deferrals with a total outstanding amount of $1.4 million, and 4 consumer loan deferrals with a total outstanding amount of $0.1 million. These loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act. Pursuant to the CARES Act, these loan deferrals are not included in our nonperforming loans disclosed below. At September 30, 2021, we had closed 6,312 Paycheck Protection Program (PPP) loans totaling $401.3 million, including 3,352 loans totaling $124.3 million stemming from the Consolidated Appropriations Act 2021 (second round). Through September 30, 2021, we have had 4,730 of our PPP loans totaling $297.7 million forgiven by the SBA, including 1,877 loans totaling $35.9 million from the second round. Net Interest Income Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Components of net interest income Income on earning assets $45,952 $44,105 $43,815 4.2% 4.9% $134,485 $133,832 0.5% Expense on interest bearing liabilities 3,712 3,868 5,946 (4.0)% (37.6)% 11,549 20,907 (44.8)% Net interest income (tax equivalent) $42,240 $40,237 $37,869 5.0% 11.5% $122,936 $112,925 8.9% Average yield and rates paid Earning assets yield 3.52% 3.41% 3.66% 3.1% (3.8)% 3.52% 3.99% (11.9)% Rate paid on interest bearing liabilities 0.43% 0.45% 0.73% (4.7)% (40.9)% 0.46% 0.91% (50.1)% Gross interest margin 3.09% 2.96% 2.93% 4.3% 5.4% 3.06% 3.08% (0.6)% Net interest margin 3.23% 3.11% 3.16% 3.8% 2.3% 3.22% 3.37% (4.6)% Average balances Investment securities $1,511,178 $1,223,123 $ 946,426 23.55% 59.7% $1,266,850 $ 770,184 64.5% Loans $3,400,194 $3,495,655 $3,539,520 (2.73)% (3.9)% $3,480,860 $3,421,749 1.7% Earning assets $5,184,749 $5,184,923 $4,768,869 0.00% 8.7% $5,109,934 $4,475,200 14.2% Interest-bearing liabilities $3,410,286 $3,424,218 $3,238,474 (0.41)% 5.3% $3,390,178 $3,060,851 10.8% Net interest income for the quarter of $42.0 million increased $2.0 million, or 5.0%, from second quarter 2021 and $4.3 million, or 11.5%, from third quarter 2020. Our net interest income excluding PPP loans for the quarter ended September 30, 2021 was $37.9 million compared to $36.7 million for the quarter ended June 30, 2021 and $36.6 million for the quarter ended September 30, 2020. Our net interest margin at 3.23% increased 12 basis points from prior quarter and 7 basis points from prior year same quarter, as our average earning assets decreased $0.2 million from prior quarter but increased $415.9 million from prior year same quarter. Our yield on average earning assets increased 11 basis points from prior quarter but decreased 14 basis points from prior year same quarter, and our cost of funds decreased 2 basis points from prior quarter and 30 basis points from prior year same quarter. The improvement in our net interest margin resulted from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of PPP loans. As discussed more fully below, the impact of the PPP loans to the net interest margin for the third quarter 2021 was 25 basis points. Net interest income for the nine months ended September 30, 2021 increased $9.9 million, or 8.8%, compared to the nine months ended September 30, 2020. The PPP loan portfolio had an annualized yield for the quarter of 12.24%, a 620 basis point increase from the 6.04% yield in the second quarter 2021. Interest income on the portfolio was $0.4 million during the quarter, down $0.2 million from prior quarter, while the amortization of net loan origination fees from current outstanding loans and recognition of net fee income from paid and forgiven loans was $4.0 million, up $1.0 million from prior quarter. These fees are amortized over the life of the loan with any unamortized balance fully recognized at the time of loan forgiveness. The impact of the PPP loan portfolio to the net interest margin was 25 basis points for the third quarter 2021, an 11 basis point increase from the 14 basis points for the second quarter 2021. Our ratio of average loans to deposits, including repurchase agreements, was 73.1% for the quarter ended September 30, 2021 compared to 75.0% for the quarter ended June 30, 2021 and 82.8% for the quarter ended September 30, 2020. Noninterest Income Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Deposit service charges $7,066 $6,358 $6,296 11.1% 12.2% $19,446 $17,179 13.2% Trust revenue 3,039 3,349 2,692 (9.2)% 12.9% 9,339 8,145 14.7% Gains on sales of loans 1,239 1,907 2,470 (35.0)% (49.8)% 5,579 4,706 18.6% Loan related fees 1,050 1,004 1,383 4.7% (24.0)% 4,324 2,300 88.0% Bank owned life insurance revenue 654 581 602 12.4% 8.7% 1,808 1,739 4.0% Brokerage revenue 519 554 310 (6.3)% 67.4% 1,530 995 53.7% Other 821 1,768 1,158 (53.7)% (29.3)% 3,460 4,247 (18.6)% Total noninterest income $14,388 $15,521 $14,911 (7.3)% (3.5)% $45,486 $39,311 15.7% Noninterest income for the quarter ended September 30, 2021 of $14.4 million was a decrease of $1.1 million, or 7.3%, from prior quarter and $0.5 million, or 3.5%, from prior year same quarter. The decrease from prior quarter included decreases in gains on sales of loans ($0.7 million), trust revenue ($0.3 million), securities gains ($0.3 million), and other operating revenue ($0.4 million), partially offset by an increase in deposit service charges ($0.7 million). The decrease from prior year same quarter included decreases in gains on sales of loans ($1.2 million), loan related fees ($0.3 million), and securities gains ($0.2 million), partially offset by increases in deposit service charges ($0.8 million) and trust revenue ($0.3 million). Noninterest income for the nine months ended September 30, 2021 of $45.5 million was a $6.2 million, or 15.7% increase from the nine months ended September 30, 2020. Gains on sales of loans continue to be impacted by the slowdown in the industry-wide refinancing boom. Deposit service charges were impacted during the quarter by an increase in overdraft charges. The year over year increase in noninterest income was driven by increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees. Deposit service charges were primarily impacted year over year by an increase in debit card income. Loan related fees were primarily impacted by the change in the fair market value of mortgage servicing rights. Noninterest Expense Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Salaries $11,962 $11,706 $11,640 2.2% 2.8% $35,080 $34,651 1.2% Employee benefits 6,891 7,254 4,497 (5.0)% 53.3% 19,566 11,670 67.7% Net occupancy and equipment 2,733 2,668 2,724 2.4% 0.3% 8,229 8,054 2.2% Data processing 1,911 1,870 1,936 2.3% (1.2)% 5,940 5,789 2.6% Legal and professional fees 685 753 1,001 (9.2)% (31.6)% 2,331 3,057 (23.7)% Advertising and marketing 819 710 797 15.5% 2.8% 2,251 1,999 12.6% Telephone 486 502 500 (3.1)% (2.7)% 1,498 1,389 7.8% Other 4,841 4,035 6,378 20.0% (24.1)% 13,241 18,994 (30.3)% Total noninterest expense $30,328 $29,498 $29,473 2.8% 2.9% $88,136 $85,603 3.0% Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter. The increase in noninterest expense quarter over quarter included increases in operating losses ($0.3 million), marketing and promotional ($0.2 million), and loan related expense ($0.2 million). The increase from prior year same quarter was the result of an increase in personnel expense ($2.7 million), partially offset by decreases in taxes other than property and payroll ($1.4 million), net other real estate owned expense ($0.2 million), and repossession expense ($0.2 million). The increase in personnel expense included a $1.8 million increase in bonuses and incentives as we increased the accruals for incentive payments based on our current projected earnings for the year. Noninterest expense for the nine months ended September 30, 2021 increased $2.5 million, or 3.0%, compared to the nine months ended September 30, 2020. Balance Sheet Review Total Loans Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 Commercial nonresidential real estate $ 732,442 $ 718,338 $ 742,436 2.0% (1.3)% Commercial residential real estate 330,660 309,627 284,428 6.8% 16.3% SBA guaranteed PPP loans 99,116 175,983 270,271 (43.7)% (63.3)% Other commercial 600,583 617,781 602,218 (2.8)% (0.3)% Total commercial 1,762,801 1,821,729 1,899,353 (3.2)% (7.2)% Residential mortgage 763,005 762,649 783,818 0.0% (2.7)% Home equity loans/lines 105,007 102,551 105,454 2.4% (0.4)% Total residential 868,012 865,200 889,272 0.3% (2.4)% Consumer indirect 612,394 610,025 615,608 0.4% (0.5)% Consumer direct 155,022 151,539 153,666 2.3% 0.9% Total consumer 767,416 761,564 769,274 0.8% (0.2)% Total loans $3,398,229 $3,448,493 $3,557,899 (1.5)% (4.5)% Total Deposits and Repurchase Agreements Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 Non-interest bearing deposits $1,318,158 $1,286,989 $1,103,863 2.4% 19.4% Interest bearing deposits Interest checking 90,657 99,226 78,989 (8.6)% 14.8% Money market savings 1,210,551 1,281,431 1,167,516 (5.5)% 3.7% Savings accounts 616,561 596,426 499,604 3.4% 23.4% Time deposits 1,060,309 1,059,630 1,044,209 0.1% 1.5% Repurchase agreements 292,022 370,568 367,788 (21.2)% (20.6)% Total interest bearing deposits and repurchase agreements $3,270,100 $3,407,281 $3,158,106 (4.0)% 3.5% Total deposits and repurchase agreements $4,588,258 $4,694,270 $4,261,969 (2.3)% 7.7% CTBI’s total assets at $5.4 billion decreased $108.6 million, or 7.8% annualized, from June 30, 2021 but increased $365.2 million, or 7.3%, from September 30, 2020. Loans outstanding at September 30, 2021 were $3.4 billion, a decrease of $50.3 million, an annualized 5.8%, from June 30, 2021 and $159.7 million, or 4.5%, from September 30, 2020. Loans, excluding PPP loans, increased $26.6 million during the quarter, with a $17.9 million increase in the commercial loan portfolio, a $3.5 million increase in the direct consumer loan portfolio, a $2.8 million increase in the residential loan portfolio, and a $2.4 million increase in the indirect consumer loan portfolio. The PPP loan portfolio declined $76.9 million as a result of SBA forgiveness. CTBI’s investment portfolio increased $168.1 million, or an annualized 49.0%, from June 30, 2021 and $576.9 million, or 60.6%, from September 30, 2020 as we redeployed funds from our Federal Reserve account into our investment portfolio. Deposits in other banks decreased $249.8 million from prior quarter and $58.9 million from prior year same quarter. Deposits, including repurchase agreements, at $4.6 billion decreased $106.0 million, or an annualized 9.0%, from June 30, 2021 but increased $326.3 million, or 7.7%, from September 30, 2020. The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary. Shareholders’ equity at September 30, 2021 was $691.6 million, a $7.6 million increase from the $684.1 million at June 30, 2021 and a $47.2 million increase from the $644.4 million at September 30, 2020. CTBI’s annualized dividend yield to shareholders as of September 30, 2021 was 3.80%. Asset Quality CTBI’s total nonperforming loans, not including performing troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021 and $29.9 million at September 30, 2020. Accruing loans 90+ days past due decreased $1.6 million from prior quarter and $11.3 million from September 30, 2020. Nonaccrual loans decreased $0.8 million during the quarter but increased $0.2 million from September 30, 2020. Accruing loans 30-89 days past due at $8.9 million decreased $2.0 million from prior quarter and $4.5 million from September 30, 2020. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss. Our level of foreclosed properties at $4.3 million at September 30, 2021 was a $1.5 million decrease from the $5.8 million at June 30, 2021 and an $11.3 million decrease from the $15.6 million at June 30, 2020. Sales of foreclosed properties for the quarter ended September 30, 2021 totaled $2.0 million while new foreclosed properties totaled $0.6 million. At September 30, 2021, the book value of properties under contracts to sell was $0.4 million; however, the closings had not occurred at quarter-end. Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020. For the nine months ended September 30, 2021, we experienced a net recovery of loan losses of $0.1 million compared to net charge-offs of $5.2 million, or 0.20% of average loans annualized, for the nine months ended September 30, 2020. Allowance for Credit Losses We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021 as a result of improving credit metrics. We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million. Provision for credit losses for the third quarter 2020 totaled $2.4 million. Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2021 was 220.0% compared to 197.2% at June 30, 2021 and 160.7% at September 30, 2020. Our credit loss reserve as a percentage of total loans outstanding at September 30, 2021 was 1.21% (1.25% excluding PPP loans) compared to 1.21% at June 30, 2021 (1.27% excluding PPP loans) and 1.35% at September 30, 2020 (1.46% excluding PPP loans). Forward-Looking Statements Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Community Trust Bancorp, Inc.’s (“CTBI”) actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of the COVID-19 pandemic on our business operations and credit quality and on general economic and financial market conditions, as well as our ability to respond to the related challenges; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and state regulators, whose policies, regulations, and enforcement actions could affect CTBI’s results. These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made. Community Trust Bancorp, Inc., with assets of $5.4 billion, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, three banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee. Additional information follows. Community Trust Bancorp, Inc. Financial Summary (Unaudited) September 30, 2021 (in thousands except per share data and # of employees) Three Three Three Nine Nine Months Months Months Months Months Ended Ended Ended Ended Ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Interest income $ 45,726 $ 43,875 $ 43,626 $ 133,812 $ 133,293 Interest expense 3,712 3,868 5,946 11,549 20,907 Net interest income 42,014 40,007 37,680 122,263 112,386 Loan loss provision (163) (4,257) 2,433 (6,919) 15,091 Gains on sales of loans 1,239 1,907 2,470 5,579 4,706 Deposit service charges 7,066 6,358 6,296 19,446 17,179 Trust revenue 3,039 3,349 2,692 9,339 8,145 Loan related fees 1,050 1,004 1,383 4,324 2,300 Securities gains (losses) (62) 280 142 50 1,328 Other noninterest income 2,056 2,623 1,928 6,748 5,653 Total noninterest income 14,388 15,521 14,911 45,486 39,311 Personnel expense 18,853 18,960 16,137 54,646 46,321 Occupancy and equipment 2,733 2,668 2,724 8,229 8,054 Data processing expense 1,911 1,870 1,936 5,940 5,789 FDIC insurance premiums 393 323 295 1,042 736 Other noninterest expense 6,438 5,677 8,381 18,279 24,703 Total noninterest expense 30,328 29,498 29,473 88,136 85,603 Net income before taxes 26,237 30,287 20,685 86,532 51,003 Income taxes 5,095 6,356 3,238 17,841 7,325 Net income $ 21,142 $ 23,931 $ 17,447 $ 68,691 $ 43,678 Memo: TEQ interest income $ 45,952 $ 44,105 $ 43,815 $ 134,485 $ 133,832 Average shares outstanding 17,790 17,784 17,746 17,783 17,746 Diluted average shares outstanding 17,808 17,800 17,752 17,798 17,753 Basic earnings per share $ 1.19 $ 1.35 $ 0.98 $ 3.86 $ 2.46 Diluted earnings per share $ 1.19 $ 1.34 $ 0.98 $ 3.86 $ 2.46 Dividends per share $ 0.400 $ 0.385 $ 0.385 $ 1.170 $ 1.145 Average balances: Loans $ 3,400,194 $ 3,495,655 $ 3,539,520 $ 3,480,860 $ 3,421,749 Earning assets 5,184,749 5,184,923 4,768,869 5,109,934 4,475,200 Total assets 5,457,558 5,450,182 5,035,874 5,376,588 4,752,895 Deposits, including repurchase agreements 4,650,885 4,661,615 4,276,496 4,585,812 4,002,194 Interest bearing liabilities 3,410,286 3,424,218 3,238,474 3,390,178 3,060,851 Shareholders' equity 695,490 675,727 642,306 677,632 630,320 Performance ratios: Return on average assets 1.54% 1.76% 1.38% 1.71% 1.23% Return on average equity 12.06% 14.20% 10.81% 13.55% 9.26% Yield on average earning assets (tax equivalent) 3.52% 3.41% 3.66% 3.52% 3.99% Cost of interest bearing funds (tax equivalent) 0.43% 0.45% 0.73% 0.46% 0.91% Net interest margin (tax equivalent) 3.23% 3.11% 3.16% 3.22% 3.37% Efficiency ratio (tax equivalent) 53.50% 53.17% 55.99% 52.35% 56.72% Loan charge-offs $ 1,042 $ 948 $ 2,268 $ 3,460 $ 8,492 Recoveries (725) (1,554) (1,187) (3,572) (3,251) Net charge-offs $ 317 $ (606) $ 1,081 $ (112) $ 5,241 Market Price: High $ 42.95 $ 45.95 $ 35.09 $ 47.53 $ 46.87 Low $ 38.20 $ 39.76 $ 28.00 $ 36.02 $ 26.45 Close $ 42.10 $ 40.38 $ 28.26 $ 42.10 $ 28.26 As of As of As of September 30, 2021 June 30, 2021 September 30, 2020 Assets: Loans $ 3,398,229 $ 3,448,493 $ 3,557,899 Loan loss reserve (41,215) (41,695) (47,986) Net loans 3,357,014 3,406,798 3,509,913 Loans held for sale 12,056 4,912 20,125 Securities AFS 1,525,738 1,357,597 949,089 Equity securities at fair value 2,461 2,523 2,212 Other equity investments 13,026 13,915 15,010 Other earning assets 143,789 392,591 201,651 Cash and due from banks 66,075 63,917 58,206 Premises and equipment 40,145 40,391 42,115 Right of use asset 12,399 12,729 13,536 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 147,392 133,300 143,074 Total Assets $ 5,385,585 $ 5,494,163 $ 5,020,421 Liabilities and Equity: Interest bearing checking $ 90,657 $ 99,226 $ 78,989 Savings deposits 1,827,112 1,877,857 1,667,120 CD's >=$100,000 565,869 561,269 533,103 Other time deposits 494,440 498,361 511,106 Total interest bearing deposits 2,978,078 3,036,713 2,790,318 Noninterest bearing deposits 1,318,158 1,286,989 1,103,863 Total deposits 4,296,236 4,323,702 3,894,181 Repurchase agreements 292,022 370,568 367,788 Other interest bearing liabilities 58,721 58,726 60,641 Lease liability 13,229 13,529 14,257 Other noninterest bearing liabilities 33,734 43,555 39,104 Total liabilities 4,693,942 4,810,080 4,375,971 Shareholders' equity 691,643 684,083 644,450 Total Liabilities and Equity $ 5,385,585 $ 5,494,163 $ 5,020,421 Ending shares outstanding 17,837 17,831 17,802 30 - 89 days past due loans $ 8,874 $ 10,847 $ 13,324 90 days past due loans 6,650 8,283 17,989 Nonaccrual loans 12,084 12,863 11,880 Restructured loans (excluding 90 days past due and nonaccrual) 69,190 66,887 67,500 Foreclosed properties 4,314 5,848 15,586 Community bank leverage ratio 12.71% 12.45% 12.65% Tangible equity to tangible assets ratio 11.77% 11.39% 11.68% FTE employees 960 961 966 View source version on businesswire.com: https://www.businesswire.com/news/home/20211020005232/en/Contacts Community Trust Bancorp, Inc. Jean R. Hale, (606) 437-3294 Chairman and C.E.O. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Community Trust Bancorp, Inc. Reports Earnings for the Third Quarter 2021 By: Community Trust Bancorp, Inc. via Business Wire October 20, 2021 at 08:15 AM EDT Community Trust Bancorp, Inc. (NASDAQ:CTBI): Earnings Summary (in thousands except per share data) 3Q 2021 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Net income $21,142 $23,931 $17,447 $68,691 $43,678 Earnings per share $1.19 $1.35 $0.98 $3.86 $2.46 Earnings per share - diluted $1.19 $1.34 $0.98 $3.86 $2.46 Return on average assets 1.54% 1.76% 1.38% 1.71% 1.23% Return on average equity 12.06% 14.20% 10.81% 13.55% 9.26% Efficiency ratio 53.50% 53.17% 55.99% 52.35% 56.72% Tangible common equity 11.77% 11.39% 11.68% Dividends declared per share $0.400 $0.385 $0.385 $1.170 $1.145 Book value per share $38.78 $38.36 $36.20 Weighted average shares 17,790 17,784 17,746 17,783 17,746 Weighted average shares - diluted 17,808 17,800 17,752 17,798 17,753 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the third quarter 2021 of $21.1 million, or $1.19 per basic share, compared to $23.9 million, or $1.35 per basic share, earned during the second quarter 2021 and $17.4 million, or $0.98 per basic share, earned during the third quarter 2020. Our loan portfolio quality continues to see improvement, allowing a further reduction in credit loss reserves. Noninterest income declined; however, total revenue increased as our net interest margin saw improvement resulting from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of Paycheck Protection Program (PPP) loans. Earnings for the nine months ended September 30, 2021 were $68.7 million compared to $43.7 million for the nine months ended September 30, 2020. 3rd Quarter 2021 Highlights Net interest income for the quarter of $42.0 million was $2.0 million, or 5.0%, above prior quarter and $4.3 million, or 11.5%, above third quarter 2020. We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021. The reduction to our allowance for credit losses was the result of improving credit metrics. We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million. Provision for credit losses for the third quarter 2020 totaled $2.4 million. Our loan portfolio decreased $50.3 million, an annualized 5.8%, during the quarter and $159.7 million, or 4.5%, from September 30, 2020. Loans, excluding PPP loans, increased $26.6 million during the quarter. Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020. Asset quality remains strong from prior quarter as our nonperforming loans, excluding troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021 and $29.9 million at September 30, 2020. Nonperforming assets at $23.0 million decreased $3.9 million from June 30, 2021 and $22.4 million from September 30, 2020. Deposits, including repurchase agreements, decreased $106.0 million, an annualized 9.0%, during the quarter but increased $326.3 million, or 7.7%, from September 30, 2020. The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary. Noninterest income for the quarter ended September 30, 2021 of $14.4 million decreased from prior quarter by $1.1 million, or 7.3%, and $0.5 million, or 3.5%, from prior year same quarter. Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter. COVID-19 We continue working with our customers through the COVID-19 pandemic. At September 30, 2021, the number of customers with CARES Act deferrals reduced to 27 for a total outstanding amount of $15.8 million. The majority of our CARES Act deferrals have been 90 day deferrals. Total outstanding deferrals include 6 commercial loan deferrals with a total outstanding amount of $14.3 million, 17 residential loan deferrals with a total outstanding amount of $1.4 million, and 4 consumer loan deferrals with a total outstanding amount of $0.1 million. These loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act. Pursuant to the CARES Act, these loan deferrals are not included in our nonperforming loans disclosed below. At September 30, 2021, we had closed 6,312 Paycheck Protection Program (PPP) loans totaling $401.3 million, including 3,352 loans totaling $124.3 million stemming from the Consolidated Appropriations Act 2021 (second round). Through September 30, 2021, we have had 4,730 of our PPP loans totaling $297.7 million forgiven by the SBA, including 1,877 loans totaling $35.9 million from the second round. Net Interest Income Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Components of net interest income Income on earning assets $45,952 $44,105 $43,815 4.2% 4.9% $134,485 $133,832 0.5% Expense on interest bearing liabilities 3,712 3,868 5,946 (4.0)% (37.6)% 11,549 20,907 (44.8)% Net interest income (tax equivalent) $42,240 $40,237 $37,869 5.0% 11.5% $122,936 $112,925 8.9% Average yield and rates paid Earning assets yield 3.52% 3.41% 3.66% 3.1% (3.8)% 3.52% 3.99% (11.9)% Rate paid on interest bearing liabilities 0.43% 0.45% 0.73% (4.7)% (40.9)% 0.46% 0.91% (50.1)% Gross interest margin 3.09% 2.96% 2.93% 4.3% 5.4% 3.06% 3.08% (0.6)% Net interest margin 3.23% 3.11% 3.16% 3.8% 2.3% 3.22% 3.37% (4.6)% Average balances Investment securities $1,511,178 $1,223,123 $ 946,426 23.55% 59.7% $1,266,850 $ 770,184 64.5% Loans $3,400,194 $3,495,655 $3,539,520 (2.73)% (3.9)% $3,480,860 $3,421,749 1.7% Earning assets $5,184,749 $5,184,923 $4,768,869 0.00% 8.7% $5,109,934 $4,475,200 14.2% Interest-bearing liabilities $3,410,286 $3,424,218 $3,238,474 (0.41)% 5.3% $3,390,178 $3,060,851 10.8% Net interest income for the quarter of $42.0 million increased $2.0 million, or 5.0%, from second quarter 2021 and $4.3 million, or 11.5%, from third quarter 2020. Our net interest income excluding PPP loans for the quarter ended September 30, 2021 was $37.9 million compared to $36.7 million for the quarter ended June 30, 2021 and $36.6 million for the quarter ended September 30, 2020. Our net interest margin at 3.23% increased 12 basis points from prior quarter and 7 basis points from prior year same quarter, as our average earning assets decreased $0.2 million from prior quarter but increased $415.9 million from prior year same quarter. Our yield on average earning assets increased 11 basis points from prior quarter but decreased 14 basis points from prior year same quarter, and our cost of funds decreased 2 basis points from prior quarter and 30 basis points from prior year same quarter. The improvement in our net interest margin resulted from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of PPP loans. As discussed more fully below, the impact of the PPP loans to the net interest margin for the third quarter 2021 was 25 basis points. Net interest income for the nine months ended September 30, 2021 increased $9.9 million, or 8.8%, compared to the nine months ended September 30, 2020. The PPP loan portfolio had an annualized yield for the quarter of 12.24%, a 620 basis point increase from the 6.04% yield in the second quarter 2021. Interest income on the portfolio was $0.4 million during the quarter, down $0.2 million from prior quarter, while the amortization of net loan origination fees from current outstanding loans and recognition of net fee income from paid and forgiven loans was $4.0 million, up $1.0 million from prior quarter. These fees are amortized over the life of the loan with any unamortized balance fully recognized at the time of loan forgiveness. The impact of the PPP loan portfolio to the net interest margin was 25 basis points for the third quarter 2021, an 11 basis point increase from the 14 basis points for the second quarter 2021. Our ratio of average loans to deposits, including repurchase agreements, was 73.1% for the quarter ended September 30, 2021 compared to 75.0% for the quarter ended June 30, 2021 and 82.8% for the quarter ended September 30, 2020. Noninterest Income Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Deposit service charges $7,066 $6,358 $6,296 11.1% 12.2% $19,446 $17,179 13.2% Trust revenue 3,039 3,349 2,692 (9.2)% 12.9% 9,339 8,145 14.7% Gains on sales of loans 1,239 1,907 2,470 (35.0)% (49.8)% 5,579 4,706 18.6% Loan related fees 1,050 1,004 1,383 4.7% (24.0)% 4,324 2,300 88.0% Bank owned life insurance revenue 654 581 602 12.4% 8.7% 1,808 1,739 4.0% Brokerage revenue 519 554 310 (6.3)% 67.4% 1,530 995 53.7% Other 821 1,768 1,158 (53.7)% (29.3)% 3,460 4,247 (18.6)% Total noninterest income $14,388 $15,521 $14,911 (7.3)% (3.5)% $45,486 $39,311 15.7% Noninterest income for the quarter ended September 30, 2021 of $14.4 million was a decrease of $1.1 million, or 7.3%, from prior quarter and $0.5 million, or 3.5%, from prior year same quarter. The decrease from prior quarter included decreases in gains on sales of loans ($0.7 million), trust revenue ($0.3 million), securities gains ($0.3 million), and other operating revenue ($0.4 million), partially offset by an increase in deposit service charges ($0.7 million). The decrease from prior year same quarter included decreases in gains on sales of loans ($1.2 million), loan related fees ($0.3 million), and securities gains ($0.2 million), partially offset by increases in deposit service charges ($0.8 million) and trust revenue ($0.3 million). Noninterest income for the nine months ended September 30, 2021 of $45.5 million was a $6.2 million, or 15.7% increase from the nine months ended September 30, 2020. Gains on sales of loans continue to be impacted by the slowdown in the industry-wide refinancing boom. Deposit service charges were impacted during the quarter by an increase in overdraft charges. The year over year increase in noninterest income was driven by increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees. Deposit service charges were primarily impacted year over year by an increase in debit card income. Loan related fees were primarily impacted by the change in the fair market value of mortgage servicing rights. Noninterest Expense Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Salaries $11,962 $11,706 $11,640 2.2% 2.8% $35,080 $34,651 1.2% Employee benefits 6,891 7,254 4,497 (5.0)% 53.3% 19,566 11,670 67.7% Net occupancy and equipment 2,733 2,668 2,724 2.4% 0.3% 8,229 8,054 2.2% Data processing 1,911 1,870 1,936 2.3% (1.2)% 5,940 5,789 2.6% Legal and professional fees 685 753 1,001 (9.2)% (31.6)% 2,331 3,057 (23.7)% Advertising and marketing 819 710 797 15.5% 2.8% 2,251 1,999 12.6% Telephone 486 502 500 (3.1)% (2.7)% 1,498 1,389 7.8% Other 4,841 4,035 6,378 20.0% (24.1)% 13,241 18,994 (30.3)% Total noninterest expense $30,328 $29,498 $29,473 2.8% 2.9% $88,136 $85,603 3.0% Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter. The increase in noninterest expense quarter over quarter included increases in operating losses ($0.3 million), marketing and promotional ($0.2 million), and loan related expense ($0.2 million). The increase from prior year same quarter was the result of an increase in personnel expense ($2.7 million), partially offset by decreases in taxes other than property and payroll ($1.4 million), net other real estate owned expense ($0.2 million), and repossession expense ($0.2 million). The increase in personnel expense included a $1.8 million increase in bonuses and incentives as we increased the accruals for incentive payments based on our current projected earnings for the year. Noninterest expense for the nine months ended September 30, 2021 increased $2.5 million, or 3.0%, compared to the nine months ended September 30, 2020. Balance Sheet Review Total Loans Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 Commercial nonresidential real estate $ 732,442 $ 718,338 $ 742,436 2.0% (1.3)% Commercial residential real estate 330,660 309,627 284,428 6.8% 16.3% SBA guaranteed PPP loans 99,116 175,983 270,271 (43.7)% (63.3)% Other commercial 600,583 617,781 602,218 (2.8)% (0.3)% Total commercial 1,762,801 1,821,729 1,899,353 (3.2)% (7.2)% Residential mortgage 763,005 762,649 783,818 0.0% (2.7)% Home equity loans/lines 105,007 102,551 105,454 2.4% (0.4)% Total residential 868,012 865,200 889,272 0.3% (2.4)% Consumer indirect 612,394 610,025 615,608 0.4% (0.5)% Consumer direct 155,022 151,539 153,666 2.3% 0.9% Total consumer 767,416 761,564 769,274 0.8% (0.2)% Total loans $3,398,229 $3,448,493 $3,557,899 (1.5)% (4.5)% Total Deposits and Repurchase Agreements Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 Non-interest bearing deposits $1,318,158 $1,286,989 $1,103,863 2.4% 19.4% Interest bearing deposits Interest checking 90,657 99,226 78,989 (8.6)% 14.8% Money market savings 1,210,551 1,281,431 1,167,516 (5.5)% 3.7% Savings accounts 616,561 596,426 499,604 3.4% 23.4% Time deposits 1,060,309 1,059,630 1,044,209 0.1% 1.5% Repurchase agreements 292,022 370,568 367,788 (21.2)% (20.6)% Total interest bearing deposits and repurchase agreements $3,270,100 $3,407,281 $3,158,106 (4.0)% 3.5% Total deposits and repurchase agreements $4,588,258 $4,694,270 $4,261,969 (2.3)% 7.7% CTBI’s total assets at $5.4 billion decreased $108.6 million, or 7.8% annualized, from June 30, 2021 but increased $365.2 million, or 7.3%, from September 30, 2020. Loans outstanding at September 30, 2021 were $3.4 billion, a decrease of $50.3 million, an annualized 5.8%, from June 30, 2021 and $159.7 million, or 4.5%, from September 30, 2020. Loans, excluding PPP loans, increased $26.6 million during the quarter, with a $17.9 million increase in the commercial loan portfolio, a $3.5 million increase in the direct consumer loan portfolio, a $2.8 million increase in the residential loan portfolio, and a $2.4 million increase in the indirect consumer loan portfolio. The PPP loan portfolio declined $76.9 million as a result of SBA forgiveness. CTBI’s investment portfolio increased $168.1 million, or an annualized 49.0%, from June 30, 2021 and $576.9 million, or 60.6%, from September 30, 2020 as we redeployed funds from our Federal Reserve account into our investment portfolio. Deposits in other banks decreased $249.8 million from prior quarter and $58.9 million from prior year same quarter. Deposits, including repurchase agreements, at $4.6 billion decreased $106.0 million, or an annualized 9.0%, from June 30, 2021 but increased $326.3 million, or 7.7%, from September 30, 2020. The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary. Shareholders’ equity at September 30, 2021 was $691.6 million, a $7.6 million increase from the $684.1 million at June 30, 2021 and a $47.2 million increase from the $644.4 million at September 30, 2020. CTBI’s annualized dividend yield to shareholders as of September 30, 2021 was 3.80%. Asset Quality CTBI’s total nonperforming loans, not including performing troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021 and $29.9 million at September 30, 2020. Accruing loans 90+ days past due decreased $1.6 million from prior quarter and $11.3 million from September 30, 2020. Nonaccrual loans decreased $0.8 million during the quarter but increased $0.2 million from September 30, 2020. Accruing loans 30-89 days past due at $8.9 million decreased $2.0 million from prior quarter and $4.5 million from September 30, 2020. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss. Our level of foreclosed properties at $4.3 million at September 30, 2021 was a $1.5 million decrease from the $5.8 million at June 30, 2021 and an $11.3 million decrease from the $15.6 million at June 30, 2020. Sales of foreclosed properties for the quarter ended September 30, 2021 totaled $2.0 million while new foreclosed properties totaled $0.6 million. At September 30, 2021, the book value of properties under contracts to sell was $0.4 million; however, the closings had not occurred at quarter-end. Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020. For the nine months ended September 30, 2021, we experienced a net recovery of loan losses of $0.1 million compared to net charge-offs of $5.2 million, or 0.20% of average loans annualized, for the nine months ended September 30, 2020. Allowance for Credit Losses We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021 as a result of improving credit metrics. We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million. Provision for credit losses for the third quarter 2020 totaled $2.4 million. Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2021 was 220.0% compared to 197.2% at June 30, 2021 and 160.7% at September 30, 2020. Our credit loss reserve as a percentage of total loans outstanding at September 30, 2021 was 1.21% (1.25% excluding PPP loans) compared to 1.21% at June 30, 2021 (1.27% excluding PPP loans) and 1.35% at September 30, 2020 (1.46% excluding PPP loans). Forward-Looking Statements Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Community Trust Bancorp, Inc.’s (“CTBI”) actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of the COVID-19 pandemic on our business operations and credit quality and on general economic and financial market conditions, as well as our ability to respond to the related challenges; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and state regulators, whose policies, regulations, and enforcement actions could affect CTBI’s results. These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made. Community Trust Bancorp, Inc., with assets of $5.4 billion, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, three banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee. Additional information follows. Community Trust Bancorp, Inc. Financial Summary (Unaudited) September 30, 2021 (in thousands except per share data and # of employees) Three Three Three Nine Nine Months Months Months Months Months Ended Ended Ended Ended Ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Interest income $ 45,726 $ 43,875 $ 43,626 $ 133,812 $ 133,293 Interest expense 3,712 3,868 5,946 11,549 20,907 Net interest income 42,014 40,007 37,680 122,263 112,386 Loan loss provision (163) (4,257) 2,433 (6,919) 15,091 Gains on sales of loans 1,239 1,907 2,470 5,579 4,706 Deposit service charges 7,066 6,358 6,296 19,446 17,179 Trust revenue 3,039 3,349 2,692 9,339 8,145 Loan related fees 1,050 1,004 1,383 4,324 2,300 Securities gains (losses) (62) 280 142 50 1,328 Other noninterest income 2,056 2,623 1,928 6,748 5,653 Total noninterest income 14,388 15,521 14,911 45,486 39,311 Personnel expense 18,853 18,960 16,137 54,646 46,321 Occupancy and equipment 2,733 2,668 2,724 8,229 8,054 Data processing expense 1,911 1,870 1,936 5,940 5,789 FDIC insurance premiums 393 323 295 1,042 736 Other noninterest expense 6,438 5,677 8,381 18,279 24,703 Total noninterest expense 30,328 29,498 29,473 88,136 85,603 Net income before taxes 26,237 30,287 20,685 86,532 51,003 Income taxes 5,095 6,356 3,238 17,841 7,325 Net income $ 21,142 $ 23,931 $ 17,447 $ 68,691 $ 43,678 Memo: TEQ interest income $ 45,952 $ 44,105 $ 43,815 $ 134,485 $ 133,832 Average shares outstanding 17,790 17,784 17,746 17,783 17,746 Diluted average shares outstanding 17,808 17,800 17,752 17,798 17,753 Basic earnings per share $ 1.19 $ 1.35 $ 0.98 $ 3.86 $ 2.46 Diluted earnings per share $ 1.19 $ 1.34 $ 0.98 $ 3.86 $ 2.46 Dividends per share $ 0.400 $ 0.385 $ 0.385 $ 1.170 $ 1.145 Average balances: Loans $ 3,400,194 $ 3,495,655 $ 3,539,520 $ 3,480,860 $ 3,421,749 Earning assets 5,184,749 5,184,923 4,768,869 5,109,934 4,475,200 Total assets 5,457,558 5,450,182 5,035,874 5,376,588 4,752,895 Deposits, including repurchase agreements 4,650,885 4,661,615 4,276,496 4,585,812 4,002,194 Interest bearing liabilities 3,410,286 3,424,218 3,238,474 3,390,178 3,060,851 Shareholders' equity 695,490 675,727 642,306 677,632 630,320 Performance ratios: Return on average assets 1.54% 1.76% 1.38% 1.71% 1.23% Return on average equity 12.06% 14.20% 10.81% 13.55% 9.26% Yield on average earning assets (tax equivalent) 3.52% 3.41% 3.66% 3.52% 3.99% Cost of interest bearing funds (tax equivalent) 0.43% 0.45% 0.73% 0.46% 0.91% Net interest margin (tax equivalent) 3.23% 3.11% 3.16% 3.22% 3.37% Efficiency ratio (tax equivalent) 53.50% 53.17% 55.99% 52.35% 56.72% Loan charge-offs $ 1,042 $ 948 $ 2,268 $ 3,460 $ 8,492 Recoveries (725) (1,554) (1,187) (3,572) (3,251) Net charge-offs $ 317 $ (606) $ 1,081 $ (112) $ 5,241 Market Price: High $ 42.95 $ 45.95 $ 35.09 $ 47.53 $ 46.87 Low $ 38.20 $ 39.76 $ 28.00 $ 36.02 $ 26.45 Close $ 42.10 $ 40.38 $ 28.26 $ 42.10 $ 28.26 As of As of As of September 30, 2021 June 30, 2021 September 30, 2020 Assets: Loans $ 3,398,229 $ 3,448,493 $ 3,557,899 Loan loss reserve (41,215) (41,695) (47,986) Net loans 3,357,014 3,406,798 3,509,913 Loans held for sale 12,056 4,912 20,125 Securities AFS 1,525,738 1,357,597 949,089 Equity securities at fair value 2,461 2,523 2,212 Other equity investments 13,026 13,915 15,010 Other earning assets 143,789 392,591 201,651 Cash and due from banks 66,075 63,917 58,206 Premises and equipment 40,145 40,391 42,115 Right of use asset 12,399 12,729 13,536 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 147,392 133,300 143,074 Total Assets $ 5,385,585 $ 5,494,163 $ 5,020,421 Liabilities and Equity: Interest bearing checking $ 90,657 $ 99,226 $ 78,989 Savings deposits 1,827,112 1,877,857 1,667,120 CD's >=$100,000 565,869 561,269 533,103 Other time deposits 494,440 498,361 511,106 Total interest bearing deposits 2,978,078 3,036,713 2,790,318 Noninterest bearing deposits 1,318,158 1,286,989 1,103,863 Total deposits 4,296,236 4,323,702 3,894,181 Repurchase agreements 292,022 370,568 367,788 Other interest bearing liabilities 58,721 58,726 60,641 Lease liability 13,229 13,529 14,257 Other noninterest bearing liabilities 33,734 43,555 39,104 Total liabilities 4,693,942 4,810,080 4,375,971 Shareholders' equity 691,643 684,083 644,450 Total Liabilities and Equity $ 5,385,585 $ 5,494,163 $ 5,020,421 Ending shares outstanding 17,837 17,831 17,802 30 - 89 days past due loans $ 8,874 $ 10,847 $ 13,324 90 days past due loans 6,650 8,283 17,989 Nonaccrual loans 12,084 12,863 11,880 Restructured loans (excluding 90 days past due and nonaccrual) 69,190 66,887 67,500 Foreclosed properties 4,314 5,848 15,586 Community bank leverage ratio 12.71% 12.45% 12.65% Tangible equity to tangible assets ratio 11.77% 11.39% 11.68% FTE employees 960 961 966 View source version on businesswire.com: https://www.businesswire.com/news/home/20211020005232/en/Contacts Community Trust Bancorp, Inc. Jean R. Hale, (606) 437-3294 Chairman and C.E.O.
Community Trust Bancorp, Inc. (NASDAQ:CTBI): Earnings Summary (in thousands except per share data) 3Q 2021 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Net income $21,142 $23,931 $17,447 $68,691 $43,678 Earnings per share $1.19 $1.35 $0.98 $3.86 $2.46 Earnings per share - diluted $1.19 $1.34 $0.98 $3.86 $2.46 Return on average assets 1.54% 1.76% 1.38% 1.71% 1.23% Return on average equity 12.06% 14.20% 10.81% 13.55% 9.26% Efficiency ratio 53.50% 53.17% 55.99% 52.35% 56.72% Tangible common equity 11.77% 11.39% 11.68% Dividends declared per share $0.400 $0.385 $0.385 $1.170 $1.145 Book value per share $38.78 $38.36 $36.20 Weighted average shares 17,790 17,784 17,746 17,783 17,746 Weighted average shares - diluted 17,808 17,800 17,752 17,798 17,753 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the third quarter 2021 of $21.1 million, or $1.19 per basic share, compared to $23.9 million, or $1.35 per basic share, earned during the second quarter 2021 and $17.4 million, or $0.98 per basic share, earned during the third quarter 2020. Our loan portfolio quality continues to see improvement, allowing a further reduction in credit loss reserves. Noninterest income declined; however, total revenue increased as our net interest margin saw improvement resulting from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of Paycheck Protection Program (PPP) loans. Earnings for the nine months ended September 30, 2021 were $68.7 million compared to $43.7 million for the nine months ended September 30, 2020. 3rd Quarter 2021 Highlights Net interest income for the quarter of $42.0 million was $2.0 million, or 5.0%, above prior quarter and $4.3 million, or 11.5%, above third quarter 2020. We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021. The reduction to our allowance for credit losses was the result of improving credit metrics. We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million. Provision for credit losses for the third quarter 2020 totaled $2.4 million. Our loan portfolio decreased $50.3 million, an annualized 5.8%, during the quarter and $159.7 million, or 4.5%, from September 30, 2020. Loans, excluding PPP loans, increased $26.6 million during the quarter. Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020. Asset quality remains strong from prior quarter as our nonperforming loans, excluding troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021 and $29.9 million at September 30, 2020. Nonperforming assets at $23.0 million decreased $3.9 million from June 30, 2021 and $22.4 million from September 30, 2020. Deposits, including repurchase agreements, decreased $106.0 million, an annualized 9.0%, during the quarter but increased $326.3 million, or 7.7%, from September 30, 2020. The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary. Noninterest income for the quarter ended September 30, 2021 of $14.4 million decreased from prior quarter by $1.1 million, or 7.3%, and $0.5 million, or 3.5%, from prior year same quarter. Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter. COVID-19 We continue working with our customers through the COVID-19 pandemic. At September 30, 2021, the number of customers with CARES Act deferrals reduced to 27 for a total outstanding amount of $15.8 million. The majority of our CARES Act deferrals have been 90 day deferrals. Total outstanding deferrals include 6 commercial loan deferrals with a total outstanding amount of $14.3 million, 17 residential loan deferrals with a total outstanding amount of $1.4 million, and 4 consumer loan deferrals with a total outstanding amount of $0.1 million. These loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act. Pursuant to the CARES Act, these loan deferrals are not included in our nonperforming loans disclosed below. At September 30, 2021, we had closed 6,312 Paycheck Protection Program (PPP) loans totaling $401.3 million, including 3,352 loans totaling $124.3 million stemming from the Consolidated Appropriations Act 2021 (second round). Through September 30, 2021, we have had 4,730 of our PPP loans totaling $297.7 million forgiven by the SBA, including 1,877 loans totaling $35.9 million from the second round. Net Interest Income Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Components of net interest income Income on earning assets $45,952 $44,105 $43,815 4.2% 4.9% $134,485 $133,832 0.5% Expense on interest bearing liabilities 3,712 3,868 5,946 (4.0)% (37.6)% 11,549 20,907 (44.8)% Net interest income (tax equivalent) $42,240 $40,237 $37,869 5.0% 11.5% $122,936 $112,925 8.9% Average yield and rates paid Earning assets yield 3.52% 3.41% 3.66% 3.1% (3.8)% 3.52% 3.99% (11.9)% Rate paid on interest bearing liabilities 0.43% 0.45% 0.73% (4.7)% (40.9)% 0.46% 0.91% (50.1)% Gross interest margin 3.09% 2.96% 2.93% 4.3% 5.4% 3.06% 3.08% (0.6)% Net interest margin 3.23% 3.11% 3.16% 3.8% 2.3% 3.22% 3.37% (4.6)% Average balances Investment securities $1,511,178 $1,223,123 $ 946,426 23.55% 59.7% $1,266,850 $ 770,184 64.5% Loans $3,400,194 $3,495,655 $3,539,520 (2.73)% (3.9)% $3,480,860 $3,421,749 1.7% Earning assets $5,184,749 $5,184,923 $4,768,869 0.00% 8.7% $5,109,934 $4,475,200 14.2% Interest-bearing liabilities $3,410,286 $3,424,218 $3,238,474 (0.41)% 5.3% $3,390,178 $3,060,851 10.8% Net interest income for the quarter of $42.0 million increased $2.0 million, or 5.0%, from second quarter 2021 and $4.3 million, or 11.5%, from third quarter 2020. Our net interest income excluding PPP loans for the quarter ended September 30, 2021 was $37.9 million compared to $36.7 million for the quarter ended June 30, 2021 and $36.6 million for the quarter ended September 30, 2020. Our net interest margin at 3.23% increased 12 basis points from prior quarter and 7 basis points from prior year same quarter, as our average earning assets decreased $0.2 million from prior quarter but increased $415.9 million from prior year same quarter. Our yield on average earning assets increased 11 basis points from prior quarter but decreased 14 basis points from prior year same quarter, and our cost of funds decreased 2 basis points from prior quarter and 30 basis points from prior year same quarter. The improvement in our net interest margin resulted from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of PPP loans. As discussed more fully below, the impact of the PPP loans to the net interest margin for the third quarter 2021 was 25 basis points. Net interest income for the nine months ended September 30, 2021 increased $9.9 million, or 8.8%, compared to the nine months ended September 30, 2020. The PPP loan portfolio had an annualized yield for the quarter of 12.24%, a 620 basis point increase from the 6.04% yield in the second quarter 2021. Interest income on the portfolio was $0.4 million during the quarter, down $0.2 million from prior quarter, while the amortization of net loan origination fees from current outstanding loans and recognition of net fee income from paid and forgiven loans was $4.0 million, up $1.0 million from prior quarter. These fees are amortized over the life of the loan with any unamortized balance fully recognized at the time of loan forgiveness. The impact of the PPP loan portfolio to the net interest margin was 25 basis points for the third quarter 2021, an 11 basis point increase from the 14 basis points for the second quarter 2021. Our ratio of average loans to deposits, including repurchase agreements, was 73.1% for the quarter ended September 30, 2021 compared to 75.0% for the quarter ended June 30, 2021 and 82.8% for the quarter ended September 30, 2020. Noninterest Income Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Deposit service charges $7,066 $6,358 $6,296 11.1% 12.2% $19,446 $17,179 13.2% Trust revenue 3,039 3,349 2,692 (9.2)% 12.9% 9,339 8,145 14.7% Gains on sales of loans 1,239 1,907 2,470 (35.0)% (49.8)% 5,579 4,706 18.6% Loan related fees 1,050 1,004 1,383 4.7% (24.0)% 4,324 2,300 88.0% Bank owned life insurance revenue 654 581 602 12.4% 8.7% 1,808 1,739 4.0% Brokerage revenue 519 554 310 (6.3)% 67.4% 1,530 995 53.7% Other 821 1,768 1,158 (53.7)% (29.3)% 3,460 4,247 (18.6)% Total noninterest income $14,388 $15,521 $14,911 (7.3)% (3.5)% $45,486 $39,311 15.7% Noninterest income for the quarter ended September 30, 2021 of $14.4 million was a decrease of $1.1 million, or 7.3%, from prior quarter and $0.5 million, or 3.5%, from prior year same quarter. The decrease from prior quarter included decreases in gains on sales of loans ($0.7 million), trust revenue ($0.3 million), securities gains ($0.3 million), and other operating revenue ($0.4 million), partially offset by an increase in deposit service charges ($0.7 million). The decrease from prior year same quarter included decreases in gains on sales of loans ($1.2 million), loan related fees ($0.3 million), and securities gains ($0.2 million), partially offset by increases in deposit service charges ($0.8 million) and trust revenue ($0.3 million). Noninterest income for the nine months ended September 30, 2021 of $45.5 million was a $6.2 million, or 15.7% increase from the nine months ended September 30, 2020. Gains on sales of loans continue to be impacted by the slowdown in the industry-wide refinancing boom. Deposit service charges were impacted during the quarter by an increase in overdraft charges. The year over year increase in noninterest income was driven by increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees. Deposit service charges were primarily impacted year over year by an increase in debit card income. Loan related fees were primarily impacted by the change in the fair market value of mortgage servicing rights. Noninterest Expense Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 YTD 2021 YTD 2020 Percent Change Salaries $11,962 $11,706 $11,640 2.2% 2.8% $35,080 $34,651 1.2% Employee benefits 6,891 7,254 4,497 (5.0)% 53.3% 19,566 11,670 67.7% Net occupancy and equipment 2,733 2,668 2,724 2.4% 0.3% 8,229 8,054 2.2% Data processing 1,911 1,870 1,936 2.3% (1.2)% 5,940 5,789 2.6% Legal and professional fees 685 753 1,001 (9.2)% (31.6)% 2,331 3,057 (23.7)% Advertising and marketing 819 710 797 15.5% 2.8% 2,251 1,999 12.6% Telephone 486 502 500 (3.1)% (2.7)% 1,498 1,389 7.8% Other 4,841 4,035 6,378 20.0% (24.1)% 13,241 18,994 (30.3)% Total noninterest expense $30,328 $29,498 $29,473 2.8% 2.9% $88,136 $85,603 3.0% Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter. The increase in noninterest expense quarter over quarter included increases in operating losses ($0.3 million), marketing and promotional ($0.2 million), and loan related expense ($0.2 million). The increase from prior year same quarter was the result of an increase in personnel expense ($2.7 million), partially offset by decreases in taxes other than property and payroll ($1.4 million), net other real estate owned expense ($0.2 million), and repossession expense ($0.2 million). The increase in personnel expense included a $1.8 million increase in bonuses and incentives as we increased the accruals for incentive payments based on our current projected earnings for the year. Noninterest expense for the nine months ended September 30, 2021 increased $2.5 million, or 3.0%, compared to the nine months ended September 30, 2020. Balance Sheet Review Total Loans Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 Commercial nonresidential real estate $ 732,442 $ 718,338 $ 742,436 2.0% (1.3)% Commercial residential real estate 330,660 309,627 284,428 6.8% 16.3% SBA guaranteed PPP loans 99,116 175,983 270,271 (43.7)% (63.3)% Other commercial 600,583 617,781 602,218 (2.8)% (0.3)% Total commercial 1,762,801 1,821,729 1,899,353 (3.2)% (7.2)% Residential mortgage 763,005 762,649 783,818 0.0% (2.7)% Home equity loans/lines 105,007 102,551 105,454 2.4% (0.4)% Total residential 868,012 865,200 889,272 0.3% (2.4)% Consumer indirect 612,394 610,025 615,608 0.4% (0.5)% Consumer direct 155,022 151,539 153,666 2.3% 0.9% Total consumer 767,416 761,564 769,274 0.8% (0.2)% Total loans $3,398,229 $3,448,493 $3,557,899 (1.5)% (4.5)% Total Deposits and Repurchase Agreements Percent Change 3Q 2021 Compared to: ($ in thousands) 3Q 2021 2Q 2021 3Q 2020 2Q 2021 3Q 2020 Non-interest bearing deposits $1,318,158 $1,286,989 $1,103,863 2.4% 19.4% Interest bearing deposits Interest checking 90,657 99,226 78,989 (8.6)% 14.8% Money market savings 1,210,551 1,281,431 1,167,516 (5.5)% 3.7% Savings accounts 616,561 596,426 499,604 3.4% 23.4% Time deposits 1,060,309 1,059,630 1,044,209 0.1% 1.5% Repurchase agreements 292,022 370,568 367,788 (21.2)% (20.6)% Total interest bearing deposits and repurchase agreements $3,270,100 $3,407,281 $3,158,106 (4.0)% 3.5% Total deposits and repurchase agreements $4,588,258 $4,694,270 $4,261,969 (2.3)% 7.7% CTBI’s total assets at $5.4 billion decreased $108.6 million, or 7.8% annualized, from June 30, 2021 but increased $365.2 million, or 7.3%, from September 30, 2020. Loans outstanding at September 30, 2021 were $3.4 billion, a decrease of $50.3 million, an annualized 5.8%, from June 30, 2021 and $159.7 million, or 4.5%, from September 30, 2020. Loans, excluding PPP loans, increased $26.6 million during the quarter, with a $17.9 million increase in the commercial loan portfolio, a $3.5 million increase in the direct consumer loan portfolio, a $2.8 million increase in the residential loan portfolio, and a $2.4 million increase in the indirect consumer loan portfolio. The PPP loan portfolio declined $76.9 million as a result of SBA forgiveness. CTBI’s investment portfolio increased $168.1 million, or an annualized 49.0%, from June 30, 2021 and $576.9 million, or 60.6%, from September 30, 2020 as we redeployed funds from our Federal Reserve account into our investment portfolio. Deposits in other banks decreased $249.8 million from prior quarter and $58.9 million from prior year same quarter. Deposits, including repurchase agreements, at $4.6 billion decreased $106.0 million, or an annualized 9.0%, from June 30, 2021 but increased $326.3 million, or 7.7%, from September 30, 2020. The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary. Shareholders’ equity at September 30, 2021 was $691.6 million, a $7.6 million increase from the $684.1 million at June 30, 2021 and a $47.2 million increase from the $644.4 million at September 30, 2020. CTBI’s annualized dividend yield to shareholders as of September 30, 2021 was 3.80%. Asset Quality CTBI’s total nonperforming loans, not including performing troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021 and $29.9 million at September 30, 2020. Accruing loans 90+ days past due decreased $1.6 million from prior quarter and $11.3 million from September 30, 2020. Nonaccrual loans decreased $0.8 million during the quarter but increased $0.2 million from September 30, 2020. Accruing loans 30-89 days past due at $8.9 million decreased $2.0 million from prior quarter and $4.5 million from September 30, 2020. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss. Our level of foreclosed properties at $4.3 million at September 30, 2021 was a $1.5 million decrease from the $5.8 million at June 30, 2021 and an $11.3 million decrease from the $15.6 million at June 30, 2020. Sales of foreclosed properties for the quarter ended September 30, 2021 totaled $2.0 million while new foreclosed properties totaled $0.6 million. At September 30, 2021, the book value of properties under contracts to sell was $0.4 million; however, the closings had not occurred at quarter-end. Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020. For the nine months ended September 30, 2021, we experienced a net recovery of loan losses of $0.1 million compared to net charge-offs of $5.2 million, or 0.20% of average loans annualized, for the nine months ended September 30, 2020. Allowance for Credit Losses We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021 as a result of improving credit metrics. We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million. Provision for credit losses for the third quarter 2020 totaled $2.4 million. Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2021 was 220.0% compared to 197.2% at June 30, 2021 and 160.7% at September 30, 2020. Our credit loss reserve as a percentage of total loans outstanding at September 30, 2021 was 1.21% (1.25% excluding PPP loans) compared to 1.21% at June 30, 2021 (1.27% excluding PPP loans) and 1.35% at September 30, 2020 (1.46% excluding PPP loans). Forward-Looking Statements Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Community Trust Bancorp, Inc.’s (“CTBI”) actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of the COVID-19 pandemic on our business operations and credit quality and on general economic and financial market conditions, as well as our ability to respond to the related challenges; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and state regulators, whose policies, regulations, and enforcement actions could affect CTBI’s results. These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made. Community Trust Bancorp, Inc., with assets of $5.4 billion, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, three banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee. Additional information follows. Community Trust Bancorp, Inc. Financial Summary (Unaudited) September 30, 2021 (in thousands except per share data and # of employees) Three Three Three Nine Nine Months Months Months Months Months Ended Ended Ended Ended Ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Interest income $ 45,726 $ 43,875 $ 43,626 $ 133,812 $ 133,293 Interest expense 3,712 3,868 5,946 11,549 20,907 Net interest income 42,014 40,007 37,680 122,263 112,386 Loan loss provision (163) (4,257) 2,433 (6,919) 15,091 Gains on sales of loans 1,239 1,907 2,470 5,579 4,706 Deposit service charges 7,066 6,358 6,296 19,446 17,179 Trust revenue 3,039 3,349 2,692 9,339 8,145 Loan related fees 1,050 1,004 1,383 4,324 2,300 Securities gains (losses) (62) 280 142 50 1,328 Other noninterest income 2,056 2,623 1,928 6,748 5,653 Total noninterest income 14,388 15,521 14,911 45,486 39,311 Personnel expense 18,853 18,960 16,137 54,646 46,321 Occupancy and equipment 2,733 2,668 2,724 8,229 8,054 Data processing expense 1,911 1,870 1,936 5,940 5,789 FDIC insurance premiums 393 323 295 1,042 736 Other noninterest expense 6,438 5,677 8,381 18,279 24,703 Total noninterest expense 30,328 29,498 29,473 88,136 85,603 Net income before taxes 26,237 30,287 20,685 86,532 51,003 Income taxes 5,095 6,356 3,238 17,841 7,325 Net income $ 21,142 $ 23,931 $ 17,447 $ 68,691 $ 43,678 Memo: TEQ interest income $ 45,952 $ 44,105 $ 43,815 $ 134,485 $ 133,832 Average shares outstanding 17,790 17,784 17,746 17,783 17,746 Diluted average shares outstanding 17,808 17,800 17,752 17,798 17,753 Basic earnings per share $ 1.19 $ 1.35 $ 0.98 $ 3.86 $ 2.46 Diluted earnings per share $ 1.19 $ 1.34 $ 0.98 $ 3.86 $ 2.46 Dividends per share $ 0.400 $ 0.385 $ 0.385 $ 1.170 $ 1.145 Average balances: Loans $ 3,400,194 $ 3,495,655 $ 3,539,520 $ 3,480,860 $ 3,421,749 Earning assets 5,184,749 5,184,923 4,768,869 5,109,934 4,475,200 Total assets 5,457,558 5,450,182 5,035,874 5,376,588 4,752,895 Deposits, including repurchase agreements 4,650,885 4,661,615 4,276,496 4,585,812 4,002,194 Interest bearing liabilities 3,410,286 3,424,218 3,238,474 3,390,178 3,060,851 Shareholders' equity 695,490 675,727 642,306 677,632 630,320 Performance ratios: Return on average assets 1.54% 1.76% 1.38% 1.71% 1.23% Return on average equity 12.06% 14.20% 10.81% 13.55% 9.26% Yield on average earning assets (tax equivalent) 3.52% 3.41% 3.66% 3.52% 3.99% Cost of interest bearing funds (tax equivalent) 0.43% 0.45% 0.73% 0.46% 0.91% Net interest margin (tax equivalent) 3.23% 3.11% 3.16% 3.22% 3.37% Efficiency ratio (tax equivalent) 53.50% 53.17% 55.99% 52.35% 56.72% Loan charge-offs $ 1,042 $ 948 $ 2,268 $ 3,460 $ 8,492 Recoveries (725) (1,554) (1,187) (3,572) (3,251) Net charge-offs $ 317 $ (606) $ 1,081 $ (112) $ 5,241 Market Price: High $ 42.95 $ 45.95 $ 35.09 $ 47.53 $ 46.87 Low $ 38.20 $ 39.76 $ 28.00 $ 36.02 $ 26.45 Close $ 42.10 $ 40.38 $ 28.26 $ 42.10 $ 28.26 As of As of As of September 30, 2021 June 30, 2021 September 30, 2020 Assets: Loans $ 3,398,229 $ 3,448,493 $ 3,557,899 Loan loss reserve (41,215) (41,695) (47,986) Net loans 3,357,014 3,406,798 3,509,913 Loans held for sale 12,056 4,912 20,125 Securities AFS 1,525,738 1,357,597 949,089 Equity securities at fair value 2,461 2,523 2,212 Other equity investments 13,026 13,915 15,010 Other earning assets 143,789 392,591 201,651 Cash and due from banks 66,075 63,917 58,206 Premises and equipment 40,145 40,391 42,115 Right of use asset 12,399 12,729 13,536 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 147,392 133,300 143,074 Total Assets $ 5,385,585 $ 5,494,163 $ 5,020,421 Liabilities and Equity: Interest bearing checking $ 90,657 $ 99,226 $ 78,989 Savings deposits 1,827,112 1,877,857 1,667,120 CD's >=$100,000 565,869 561,269 533,103 Other time deposits 494,440 498,361 511,106 Total interest bearing deposits 2,978,078 3,036,713 2,790,318 Noninterest bearing deposits 1,318,158 1,286,989 1,103,863 Total deposits 4,296,236 4,323,702 3,894,181 Repurchase agreements 292,022 370,568 367,788 Other interest bearing liabilities 58,721 58,726 60,641 Lease liability 13,229 13,529 14,257 Other noninterest bearing liabilities 33,734 43,555 39,104 Total liabilities 4,693,942 4,810,080 4,375,971 Shareholders' equity 691,643 684,083 644,450 Total Liabilities and Equity $ 5,385,585 $ 5,494,163 $ 5,020,421 Ending shares outstanding 17,837 17,831 17,802 30 - 89 days past due loans $ 8,874 $ 10,847 $ 13,324 90 days past due loans 6,650 8,283 17,989 Nonaccrual loans 12,084 12,863 11,880 Restructured loans (excluding 90 days past due and nonaccrual) 69,190 66,887 67,500 Foreclosed properties 4,314 5,848 15,586 Community bank leverage ratio 12.71% 12.45% 12.65% Tangible equity to tangible assets ratio 11.77% 11.39% 11.68% FTE employees 960 961 966 View source version on businesswire.com: https://www.businesswire.com/news/home/20211020005232/en/