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 2nd Quarter 2024 By: Community Trust Bancorp, Inc. via Business Wire July 17, 2024 at 08:15 AM EDT Community Trust Bancorp, Inc. (NASDAQ: CTBI): Earnings Summary Earnings Summary (in thousands except per share data) 2Q 2024 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Net income $19,499 $18,679 $19,404 $38,178 $38,717 Earnings per share $1.09 $1.04 $1.09 $2.13 $2.17 Earnings per share - diluted $1.09 $1.04 $1.08 $2.13 $2.16 Return on average assets 1.35% 1.30% 1.41% 1.33% 1.42% Return on average equity 11.03% 10.61% 11.72% 10.82% 11.87% Efficiency ratio 52.17% 54.94% 53.52% 53.51% 54.40% Tangible common equity 11.39% 11.10% 10.90% Dividends declared per share $0.46 $0.46 $0.44 $0.92 $0.88 Book value per share $39.91 $39.28 $36.71 Weighted average shares 17,939 17,926 17,884 17,932 17,877 Weighted average shares - diluted 17,959 17,943 17,890 17,951 17,885 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the second quarter 2024 of $19.5 million, or $1.09 per basic share, compared to $18.7 million, or $1.04 per basic share, earned during the first quarter 2024 and $19.4 million, or $1.09 per basic share, earned during the second quarter 2023. Total revenue for the quarter was $2.7 million above prior quarter and $3.6 million above prior year same quarter. Net interest revenue for the quarter increased $2.1 million compared to prior quarter and $2.6 million compared to prior year same quarter, and noninterest income increased $0.6 million compared to prior quarter and $1.0 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Noninterest expense increased $0.2 million compared to prior quarter and $1.4 million compared to prior year same quarter. Net income for the six months ended June 30, 2024 was $38.2 million, or $2.13 per basic share, compared to $38.7 million, or $2.17 per basic share, for the six months ended June 30, 2023. 2nd Quarter 2024 Highlights Net interest income for the quarter of $45.7 million was $2.1 million, or 4.8%, above prior quarter and $2.6 million, or 6.0%, above prior year same quarter, as our net interest margin increased 15 basis points from prior quarter and 3 basis points from prior year same quarter. Provision for credit losses at $3.0 million for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Noninterest income for the quarter ended June 30, 2024 of $15.7 million was $0.6 million, or 3.8%, above prior quarter and $1.0 million, or 6.5%, above prior year same quarter. Noninterest expense for the quarter ended June 30, 2024 of $32.4 million was $0.2 million, or 0.6%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. Our loan portfolio at $4.3 billion increased $100.1 million, an annualized 9.7%, from March 31, 2024 and $331.6 million, or 8.4%, from June 30, 2023. We had net loan charge-offs of $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 compared to $1.6 million, or an annualized 0.16% of average loans, for the first quarter 2024 and $0.7 million, or an annualized 0.07% of average loans, for the second quarter 2023. Our total nonperforming loans increased to $19.8 million at June 30, 2024 from $15.9 million at March 31, 2024 and $11.7 million at June 30, 2023. Nonperforming assets at $21.5 million increased $4.3 million from March 31, 2024 and $7.7 million from June 30, 2023. Deposits, including repurchase agreements, at $5.0 billion decreased $57.6 million, or an annualized 4.6%, from March 31, 2024 but increased $215.7 million, or 4.5%, from June 30, 2023. Shareholders’ equity at $719.3 million increased $11.6 million, or an annualized 6.6%, during the quarter and $59.2 million, or 9.0%, from June 30, 2023. Net Interest Income Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Components of net interest income: Income on earning assets $76,648 $75,002 $64,827 2.2% 18.2% $151,650 $125,822 20.5% Expense on interest bearing liabilities 30,970 31,411 21,748 (1.4%) 42.4% 62,381 38,827 60.7% Net interest income 45,678 43,591 43,079 4.8% 6.0% 89,269 86,995 2.6% TEQ 292 294 298 (0.7%) (2.1%) 586 596 (1.7%) Net interest income, tax equivalent $45,970 $43,885 $43,377 4.8% 6.0% $89,855 $87,591 2.6% Average yield and rates paid: Earning assets yield 5.66% 5.55% 5.03% 2.0% 12.4% 5.60% 4.94% 13.4% Rate paid on interest bearing liabilities 3.30% 3.35% 2.54% (1.5%) 29.9% 3.32% 2.30% 44.3% Gross interest margin 2.36% 2.20% 2.49% 7.2% (5.4%) 2.28% 2.64% (13.5%) Net interest margin 3.38% 3.23% 3.35% 4.5% 0.9% 3.31% 3.42% (3.4%) Average balances: Investment securities $1,095,182 $1,148,014 $1,230,556 (4.6%) (11.0%) $1,121,598 $1,241,193 (9.6%) Loans $4,191,992 $4,096,866 $3,836,446 2.3% 9.3% $4,144,429 $3,788,213 9.4% Earning assets $5,469,813 $5,458,075 $5,189,716 0.2% 5.4% $5,463,944 $5,160,712 5.9% Interest-bearing liabilities $3,776,362 $3,773,513 $3,435,072 0.1% 9.9% $3,774,937 $3,398,902 11.1% Net interest income for the quarter of $45.7 million was $2.1 million, or 4.8%, above prior quarter and $2.6 million, or 6.0%, above prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.38% increased 15 basis points from prior quarter and 3 basis points from prior year same quarter. Our quarterly average earning assets increased $11.7 million from prior quarter and $280.1 million from prior year same quarter. Our yield on average earning assets increased 11 basis points from prior quarter and 63 basis points from prior year same quarter, and our cost of funds decreased 5 basis points from prior quarter but increased 76 basis points from prior year same quarter. Net interest income for the six months ended June 30, 2024 was $89.3 million compared to $87.0 million for the six months ended June 30, 2023. Our ratio of average loans to deposits, including repurchase agreements, was 84.5% for the quarter ended June 30, 2024 compared to 82.7% for the quarter ended March 31, 2024 and 81.2% for the quarter ended June 30, 2023. Noninterest Income Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Deposit related fees $7,308 $7,011 $7,513 4.2% (2.7%) $14,319 $14,800 (3.2%) Trust revenue 3,736 3,517 3,351 6.2% 11.5% 7,253 6,430 12.8% Gains on sales of loans 119 45 115 167.9% 4.0% 164 236 (30.5%) Loan related fees 1,320 1,352 1,197 (2.4%) 10.3% 2,672 2,042 30.8% Bank owned life insurance revenue 1,815 1,292 735 40.5% 147.0% 3,107 1,593 95.0% Brokerage revenue 683 490 388 39.5% 76.2% 1,173 736 59.5% Other 727 1,427 1,457 (49.1%) (50.1%) 2,154 2,601 (17.2%) Total noninterest income $15,708 $15,134 $14,756 3.8% 6.4% $30,842 $28,438 8.5% Noninterest income for the quarter ended June 30, 2024 of $15.7 million was $0.6 million, or 3.8%, above prior quarter and $1.0 million, or 6.5%, above prior year same quarter. The quarter over quarter increase included a $0.5 million increase in bank owned life insurance revenue, a $0.3 million increase in deposit related fees, a $0.2 million increase in trust revenue, and a $0.2 million increase in brokerage revenue, partially offset by $0.8 million decrease in securities gains. The year over year increase included a $1.1 million increase in bank owned life insurance, a $0.4 million increase in trust revenue, a $0.3 million increase in brokerage revenue, partially offset by a $0.6 million decrease in securities gains and a $0.2 million decrease in deposit related fees. Noninterest income for the six months ended June 30, 2024 was $30.8 million compared to $28.4 million for the six months ended June 30, 2023. Noninterest Expense Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Salaries $13,037 $13,036 $12,732 0.0% 2.4% $26,073 $25,365 2.8% Employee benefits 6,554 7,086 5,573 (7.5%) 17.6% 13,640 11,848 15.1% Net occupancy and equipment 3,089 3,028 2,895 2.0% 6.7% 6,117 5,923 3.3% Data processing 2,669 2,518 2,383 6.0% 12.0% 5,187 4,686 10.7% Legal and professional fees 978 832 912 17.5% 7.3% 1,810 1,728 4.8% Advertising and marketing 856 577 704 48.2% 21.6% 1,433 1,524 (6.0%) Taxes other than property and payroll 438 442 433 (0.7%) 1.2% 880 865 1.7% Other 4,801 4,701 5,393 2.1% (11.0%) 9,502 10,976 (13.4%) Total noninterest expense $32,422 $32,220 $31,025 0.6% 4.5% $64,642 $62,915 2.7% Noninterest expense for the quarter ended June 30, 2024 of $32.4 million was $0.2 million, or 0.6%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. The increase year over year primarily resulted from a $1.3 million increase in personnel expense, which included a $0.3 million increase in salaries, a $0.9 million increase in bonuses and incentives, and a $0.5 million increase in the cost of group medical and life insurance benefits, partially offset by a $0.4 million decrease in payroll taxes. Noninterest expense for the six months ended June 30, 2024 was $64.6 million compared to $62.9 million for the six months ended June 30, 2023. Balance Sheet Review Total Loans Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 Commercial nonresidential real estate $825,934 $813,904 $787,598 1.5% 4.9% Commercial residential real estate 480,418 456,585 393,309 5.2% 22.1% Hotel/motel 417,161 416,759 372,981 0.1% 11.8% Other commercial 428,263 397,922 396,741 7.6% 7.9% Total commercial 2,151,776 2,085,170 1,950,629 3.2% 10.3% Residential mortgage 978,144 955,616 883,104 2.4% 10.8% Home equity loans/lines 154,311 151,577 132,033 1.8% 16.9% Total residential 1,132,455 1,107,193 1,015,137 2.3% 11.6% Consumer indirect 819,689 813,005 806,081 0.8% 1.7% Consumer direct 157,327 155,807 157,848 1.0% (0.3%) Total consumer 977,016 968,812 963,929 0.8% 1.4% Total loans $4,261,247 $4,161,175 $3,929,695 2.4% 8.4% Total Deposits and Repurchase Agreements Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 Noninterest bearing deposits $1,241,514 $1,274,583 $1,361,078 (2.6%) (8.8%) Interest bearing deposits Interest checking 138,767 131,227 142,542 5.7% (2.6%) Money market savings 1,664,580 1,608,849 1,389,081 3.5% 19.8% Savings accounts 527,251 543,338 611,772 (3.0%) (13.8%) Time deposits 1,161,686 1,226,273 1,012,187 (5.3%) 14.8% Repurchase agreements 227,576 234,671 229,020 (3.0%) (0.6%) Total interest bearing deposits and repurchase agreements 3,719,860 3,744,358 3,384,602 (0.7%) 9.9% Total deposits and repurchase agreements $4,961,374 $5,018,941 $4,745,680 (1.1%) 4.5% CTBI’s total assets at $5.8 billion as of June 30, 2024 decreased $45.9 million, or 3.2% annualized, from March 31, 2024 but increased $283.5 million, or 5.1%, from June 30, 2023. Loans outstanding at $4.3 billion increased $100.1 million, an annualized 9.7%, from March 31, 2024 and $331.6 million, or 8.4%, from June 30, 2023. The increase in loans from prior quarter included a $66.6 million increase in the commercial loan portfolio, a $25.3 million increase in the residential loan portfolio, a $6.7 million increase in the indirect consumer loan portfolio, and a $1.5 million increase in the consumer direct loan portfolio. CTBI’s investment portfolio decreased $21.7 million, or an annualized 7.8%, from March 31, 2024 and $110.4 million, or 9.2%, from June 30, 2023. Deposits in other banks decreased $130.7 million from prior quarter but increased $49.1 million from June 30, 2023. Deposits, including repurchase agreements, at $5.0 billion decreased $57.6 million, or an annualized 4.6%, from March 31, 2024 but increased $215.7 million, or 4.5%, from June 30, 2023. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of June 30, 2024, no one customer accounted for more than 2.25% of our $5.0 billion in deposits. Only two customer relationships accounted for more than 1% each. Shareholders’ equity at $719.3 million increased $11.6 million, or an annualized 6.6%, during the quarter and $59.2 million, or 9.0%, from June 30, 2023. Net unrealized losses on securities, net of deferred taxes, were $107.1 million at June 30, 2024, compared to $106.9 million at March 31, 2024 and $121.3 million at June 30, 2023. CTBI’s annualized dividend yield to shareholders as of June 30, 2024 was 4.21%. Asset Quality Our total nonperforming loans increased to $19.8 million at June 30, 2024 from $15.9 million at March 31, 2024 and $11.7 million at June 30, 2023. Accruing loans 90+ days past due at $14.7 million increased $3.2 million from prior quarter and $8.3 million from June 30, 2023. Nonaccrual loans at $5.1 million increased $0.8 million from prior quarter but decreased $0.2 million from June 30, 2023. Accruing loans 30-89 days past due at $24.1 million increased $11.9 million from prior quarter and from June 30, 2023. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss. We had net loan charge-offs of $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 compared to $1.6 million, or an annualized 0.16% of average loans, for the first quarter 2024 and $0.7 million, or an annualized 0.07% of average loans, for the second quarter 2023. Of the net charge-offs for the quarter, $0.8 million were in indirect consumer loans, $0.5 million were in commercial loans, and $0.1 million were in direct consumer loans. Year-to-date net loan charge-offs of an annualized 0.15% of average loans are in line with management’s expectations. Allowance for Credit Losses Our provision for credit losses at $3.0 million for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Of the provision for the quarter, $1.2 million was allotted to fund loan growth. Year-to-date provision for credit losses increased $2.5 million from the six months ended June 30, 2023. Our reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2024 was 263.0% compared to 319.0% at March 31, 2024 and 408.9% at June 30, 2023. Our credit loss reserve as a percentage of total loans outstanding at June 30, 2024 remained at 1.22% from March 31, 2024 and June 30, 2023. 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. CTBI’s 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 epidemics, pandemics, or other infectious disease outbreaks; 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 $5.8 billion, is headquartered in Pikeville, Kentucky and has 71 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) June 30, 2024 (in thousands except per share data and # of employees) Three Three Three Six Six Months Months Months Months Months Ended Ended Ended Ended Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Interest income $ 76,648 $ 75,002 $ 64,827 $ 151,650 $ 125,822 Interest expense 30,970 31,411 21,748 62,381 38,827 Net interest income 45,678 43,591 43,079 89,269 86,995 Loan loss provision 2,972 2,656 2,009 5,628 3,125 Gains on sales of loans 119 45 115 164 236 Deposit related fees 7,308 7,011 7,513 14,319 14,800 Trust revenue 3,736 3,517 3,351 7,253 6,430 Loan related fees 1,320 1,352 1,197 2,672 2,042 Securities gains (losses) (474 ) 371 165 (103 ) 383 Other noninterest income 3,699 2,838 2,415 6,537 4,547 Total noninterest income 15,708 15,134 14,756 30,842 28,438 Personnel expense 19,591 20,122 18,305 39,713 37,213 Occupancy and equipment 3,089 3,028 2,895 6,117 5,923 Data processing expense 2,669 2,518 2,383 5,187 4,686 FDIC insurance premiums 645 642 610 1,287 1,216 Other noninterest expense 6,428 5,910 6,832 12,338 13,877 Total noninterest expense 32,422 32,220 31,025 64,642 62,915 Net income before taxes 25,992 23,849 24,801 49,841 49,393 Income taxes 6,493 5,170 5,397 11,663 10,676 Net income $ 19,499 $ 18,679 $ 19,404 $ 38,178 $ 38,717 Memo: TEQ interest income $ 76,940 $ 75,296 $ 65,125 $ 152,236 $ 126,418 Average shares outstanding 17,939 17,926 17,884 17,932 17,877 Diluted average shares outstanding 17,959 17,943 17,890 17,951 17,885 Basic earnings per share $ 1.09 $ 1.04 $ 1.09 $ 2.13 $ 2.17 Diluted earnings per share $ 1.09 $ 1.04 $ 1.08 $ 2.13 $ 2.16 Dividends per share $ 0.46 $ 0.46 $ 0.44 $ 0.92 $ 0.88 Average balances: Loans $ 4,191,992 $ 4,096,866 $ 3,836,446 $ 4,144,429 $ 3,788,213 Earning assets 5,469,813 5,458,075 5,189,716 5,463,944 5,160,712 Total assets 5,795,937 5,786,515 5,509,776 5,791,226 5,484,065 Deposits, including repurchase agreements 4,959,382 4,956,820 4,727,386 4,958,101 4,707,853 Interest bearing liabilities 3,776,362 3,773,513 3,435,072 3,774,937 3,398,902 Shareholders' equity 711,331 708,341 663,896 709,836 657,488 Performance ratios: Return on average assets 1.35 % 1.30 % 1.41 % 1.33 % 1.42 % Return on average equity 11.03 % 10.61 % 11.72 % 10.82 % 11.87 % Yield on average earning assets (tax equivalent) 5.66 % 5.55 % 5.03 % 5.60 % 4.94 % Cost of interest bearing funds (tax equivalent) 3.30 % 3.35 % 2.54 % 3.32 % 2.30 % Net interest margin (tax equivalent) 3.38 % 3.23 % 3.35 % 3.31 % 3.42 % Efficiency ratio (tax equivalent) 52.17 % 54.94 % 53.52 % 53.51 % 54.40 % Loan charge-offs $ 2,836 $ 2,667 $ 1,953 $ 5,503 $ 3,718 Recoveries (1,441 ) (1,039 ) (1,279 ) (2,480 ) (2,630 ) Net charge-offs $ 1,395 $ 1,628 $ 674 $ 3,023 $ 1,088 Market Price: High $ 44.32 $ 44.38 $ 40.30 $ 44.38 $ 47.35 Low $ 39.28 $ 38.44 $ 32.68 $ 38.44 $ 32.68 Close $ 43.66 $ 42.65 $ 35.57 $ 43.66 $ 35.57 As of As of As of June 30, 2024 March 31, 2024 June 30, 2023 Assets: Loans $ 4,261,247 $ 4,161,175 $ 3,929,695 Loan loss reserve (52,148 ) (50,571 ) (48,018 ) Net loans 4,209,099 4,110,604 3,881,677 Loans held for sale 350 57 238 Securities AFS 1,090,322 1,111,505 1,201,253 Equity securities at fair value 3,054 3,529 2,545 Other equity investments 14,022 9,327 11,432 Other earning assets 108,823 239,554 62,726 Cash and due from banks 54,935 55,841 48,915 Premises and equipment 47,178 46,595 42,911 Right of use asset 15,121 15,500 16,678 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 195,945 192,253 186,933 Total Assets $ 5,804,339 $ 5,850,255 $ 5,520,798 Liabilities and Equity: Interest bearing checking $ 138,767 $ 131,227 $ 142,542 Savings deposits 2,191,831 2,152,187 2,000,853 CD's >=$100,000 637,206 678,148 538,492 Other time deposits 524,480 548,125 473,695 Total interest bearing deposits 3,492,284 3,509,687 3,155,582 Noninterest bearing deposits 1,241,514 1,274,583 1,361,078 Total deposits 4,733,798 4,784,270 4,516,660 Repurchase agreements 227,576 234,671 229,020 Other interest bearing liabilities 64,954 65,014 65,195 Lease liability 15,880 16,208 17,317 Other noninterest bearing liabilities 42,808 42,368 32,481 Total liabilities 5,085,016 5,142,531 4,860,673 Shareholders' equity 719,323 707,724 660,125 Total Liabilities and Equity $ 5,804,339 $ 5,850,255 $ 5,520,798 Ending shares outstanding 18,026 18,019 17,984 30 - 89 days past due loans $ 24,099 $ 12,234 $ 12,158 90 days past due loans 14,703 11,550 6,399 Nonaccrual loans 5,127 4,302 5,345 Foreclosed properties 1,626 1,266 2,047 Community bank leverage ratio 13.90 % 13.74 % 13.82 % Tangible equity to tangible assets ratio 11.39 % 11.10 % 10.90 % FTE employees 930 945 953 View source version on businesswire.com: https://www.businesswire.com/news/home/20240717141109/en/Contacts MARK A. GOOCH, CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 437-3229 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 2nd Quarter 2024 By: Community Trust Bancorp, Inc. via Business Wire July 17, 2024 at 08:15 AM EDT Community Trust Bancorp, Inc. (NASDAQ: CTBI): Earnings Summary Earnings Summary (in thousands except per share data) 2Q 2024 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Net income $19,499 $18,679 $19,404 $38,178 $38,717 Earnings per share $1.09 $1.04 $1.09 $2.13 $2.17 Earnings per share - diluted $1.09 $1.04 $1.08 $2.13 $2.16 Return on average assets 1.35% 1.30% 1.41% 1.33% 1.42% Return on average equity 11.03% 10.61% 11.72% 10.82% 11.87% Efficiency ratio 52.17% 54.94% 53.52% 53.51% 54.40% Tangible common equity 11.39% 11.10% 10.90% Dividends declared per share $0.46 $0.46 $0.44 $0.92 $0.88 Book value per share $39.91 $39.28 $36.71 Weighted average shares 17,939 17,926 17,884 17,932 17,877 Weighted average shares - diluted 17,959 17,943 17,890 17,951 17,885 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the second quarter 2024 of $19.5 million, or $1.09 per basic share, compared to $18.7 million, or $1.04 per basic share, earned during the first quarter 2024 and $19.4 million, or $1.09 per basic share, earned during the second quarter 2023. Total revenue for the quarter was $2.7 million above prior quarter and $3.6 million above prior year same quarter. Net interest revenue for the quarter increased $2.1 million compared to prior quarter and $2.6 million compared to prior year same quarter, and noninterest income increased $0.6 million compared to prior quarter and $1.0 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Noninterest expense increased $0.2 million compared to prior quarter and $1.4 million compared to prior year same quarter. Net income for the six months ended June 30, 2024 was $38.2 million, or $2.13 per basic share, compared to $38.7 million, or $2.17 per basic share, for the six months ended June 30, 2023. 2nd Quarter 2024 Highlights Net interest income for the quarter of $45.7 million was $2.1 million, or 4.8%, above prior quarter and $2.6 million, or 6.0%, above prior year same quarter, as our net interest margin increased 15 basis points from prior quarter and 3 basis points from prior year same quarter. Provision for credit losses at $3.0 million for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Noninterest income for the quarter ended June 30, 2024 of $15.7 million was $0.6 million, or 3.8%, above prior quarter and $1.0 million, or 6.5%, above prior year same quarter. Noninterest expense for the quarter ended June 30, 2024 of $32.4 million was $0.2 million, or 0.6%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. Our loan portfolio at $4.3 billion increased $100.1 million, an annualized 9.7%, from March 31, 2024 and $331.6 million, or 8.4%, from June 30, 2023. We had net loan charge-offs of $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 compared to $1.6 million, or an annualized 0.16% of average loans, for the first quarter 2024 and $0.7 million, or an annualized 0.07% of average loans, for the second quarter 2023. Our total nonperforming loans increased to $19.8 million at June 30, 2024 from $15.9 million at March 31, 2024 and $11.7 million at June 30, 2023. Nonperforming assets at $21.5 million increased $4.3 million from March 31, 2024 and $7.7 million from June 30, 2023. Deposits, including repurchase agreements, at $5.0 billion decreased $57.6 million, or an annualized 4.6%, from March 31, 2024 but increased $215.7 million, or 4.5%, from June 30, 2023. Shareholders’ equity at $719.3 million increased $11.6 million, or an annualized 6.6%, during the quarter and $59.2 million, or 9.0%, from June 30, 2023. Net Interest Income Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Components of net interest income: Income on earning assets $76,648 $75,002 $64,827 2.2% 18.2% $151,650 $125,822 20.5% Expense on interest bearing liabilities 30,970 31,411 21,748 (1.4%) 42.4% 62,381 38,827 60.7% Net interest income 45,678 43,591 43,079 4.8% 6.0% 89,269 86,995 2.6% TEQ 292 294 298 (0.7%) (2.1%) 586 596 (1.7%) Net interest income, tax equivalent $45,970 $43,885 $43,377 4.8% 6.0% $89,855 $87,591 2.6% Average yield and rates paid: Earning assets yield 5.66% 5.55% 5.03% 2.0% 12.4% 5.60% 4.94% 13.4% Rate paid on interest bearing liabilities 3.30% 3.35% 2.54% (1.5%) 29.9% 3.32% 2.30% 44.3% Gross interest margin 2.36% 2.20% 2.49% 7.2% (5.4%) 2.28% 2.64% (13.5%) Net interest margin 3.38% 3.23% 3.35% 4.5% 0.9% 3.31% 3.42% (3.4%) Average balances: Investment securities $1,095,182 $1,148,014 $1,230,556 (4.6%) (11.0%) $1,121,598 $1,241,193 (9.6%) Loans $4,191,992 $4,096,866 $3,836,446 2.3% 9.3% $4,144,429 $3,788,213 9.4% Earning assets $5,469,813 $5,458,075 $5,189,716 0.2% 5.4% $5,463,944 $5,160,712 5.9% Interest-bearing liabilities $3,776,362 $3,773,513 $3,435,072 0.1% 9.9% $3,774,937 $3,398,902 11.1% Net interest income for the quarter of $45.7 million was $2.1 million, or 4.8%, above prior quarter and $2.6 million, or 6.0%, above prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.38% increased 15 basis points from prior quarter and 3 basis points from prior year same quarter. Our quarterly average earning assets increased $11.7 million from prior quarter and $280.1 million from prior year same quarter. Our yield on average earning assets increased 11 basis points from prior quarter and 63 basis points from prior year same quarter, and our cost of funds decreased 5 basis points from prior quarter but increased 76 basis points from prior year same quarter. Net interest income for the six months ended June 30, 2024 was $89.3 million compared to $87.0 million for the six months ended June 30, 2023. Our ratio of average loans to deposits, including repurchase agreements, was 84.5% for the quarter ended June 30, 2024 compared to 82.7% for the quarter ended March 31, 2024 and 81.2% for the quarter ended June 30, 2023. Noninterest Income Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Deposit related fees $7,308 $7,011 $7,513 4.2% (2.7%) $14,319 $14,800 (3.2%) Trust revenue 3,736 3,517 3,351 6.2% 11.5% 7,253 6,430 12.8% Gains on sales of loans 119 45 115 167.9% 4.0% 164 236 (30.5%) Loan related fees 1,320 1,352 1,197 (2.4%) 10.3% 2,672 2,042 30.8% Bank owned life insurance revenue 1,815 1,292 735 40.5% 147.0% 3,107 1,593 95.0% Brokerage revenue 683 490 388 39.5% 76.2% 1,173 736 59.5% Other 727 1,427 1,457 (49.1%) (50.1%) 2,154 2,601 (17.2%) Total noninterest income $15,708 $15,134 $14,756 3.8% 6.4% $30,842 $28,438 8.5% Noninterest income for the quarter ended June 30, 2024 of $15.7 million was $0.6 million, or 3.8%, above prior quarter and $1.0 million, or 6.5%, above prior year same quarter. The quarter over quarter increase included a $0.5 million increase in bank owned life insurance revenue, a $0.3 million increase in deposit related fees, a $0.2 million increase in trust revenue, and a $0.2 million increase in brokerage revenue, partially offset by $0.8 million decrease in securities gains. The year over year increase included a $1.1 million increase in bank owned life insurance, a $0.4 million increase in trust revenue, a $0.3 million increase in brokerage revenue, partially offset by a $0.6 million decrease in securities gains and a $0.2 million decrease in deposit related fees. Noninterest income for the six months ended June 30, 2024 was $30.8 million compared to $28.4 million for the six months ended June 30, 2023. Noninterest Expense Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Salaries $13,037 $13,036 $12,732 0.0% 2.4% $26,073 $25,365 2.8% Employee benefits 6,554 7,086 5,573 (7.5%) 17.6% 13,640 11,848 15.1% Net occupancy and equipment 3,089 3,028 2,895 2.0% 6.7% 6,117 5,923 3.3% Data processing 2,669 2,518 2,383 6.0% 12.0% 5,187 4,686 10.7% Legal and professional fees 978 832 912 17.5% 7.3% 1,810 1,728 4.8% Advertising and marketing 856 577 704 48.2% 21.6% 1,433 1,524 (6.0%) Taxes other than property and payroll 438 442 433 (0.7%) 1.2% 880 865 1.7% Other 4,801 4,701 5,393 2.1% (11.0%) 9,502 10,976 (13.4%) Total noninterest expense $32,422 $32,220 $31,025 0.6% 4.5% $64,642 $62,915 2.7% Noninterest expense for the quarter ended June 30, 2024 of $32.4 million was $0.2 million, or 0.6%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. The increase year over year primarily resulted from a $1.3 million increase in personnel expense, which included a $0.3 million increase in salaries, a $0.9 million increase in bonuses and incentives, and a $0.5 million increase in the cost of group medical and life insurance benefits, partially offset by a $0.4 million decrease in payroll taxes. Noninterest expense for the six months ended June 30, 2024 was $64.6 million compared to $62.9 million for the six months ended June 30, 2023. Balance Sheet Review Total Loans Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 Commercial nonresidential real estate $825,934 $813,904 $787,598 1.5% 4.9% Commercial residential real estate 480,418 456,585 393,309 5.2% 22.1% Hotel/motel 417,161 416,759 372,981 0.1% 11.8% Other commercial 428,263 397,922 396,741 7.6% 7.9% Total commercial 2,151,776 2,085,170 1,950,629 3.2% 10.3% Residential mortgage 978,144 955,616 883,104 2.4% 10.8% Home equity loans/lines 154,311 151,577 132,033 1.8% 16.9% Total residential 1,132,455 1,107,193 1,015,137 2.3% 11.6% Consumer indirect 819,689 813,005 806,081 0.8% 1.7% Consumer direct 157,327 155,807 157,848 1.0% (0.3%) Total consumer 977,016 968,812 963,929 0.8% 1.4% Total loans $4,261,247 $4,161,175 $3,929,695 2.4% 8.4% Total Deposits and Repurchase Agreements Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 Noninterest bearing deposits $1,241,514 $1,274,583 $1,361,078 (2.6%) (8.8%) Interest bearing deposits Interest checking 138,767 131,227 142,542 5.7% (2.6%) Money market savings 1,664,580 1,608,849 1,389,081 3.5% 19.8% Savings accounts 527,251 543,338 611,772 (3.0%) (13.8%) Time deposits 1,161,686 1,226,273 1,012,187 (5.3%) 14.8% Repurchase agreements 227,576 234,671 229,020 (3.0%) (0.6%) Total interest bearing deposits and repurchase agreements 3,719,860 3,744,358 3,384,602 (0.7%) 9.9% Total deposits and repurchase agreements $4,961,374 $5,018,941 $4,745,680 (1.1%) 4.5% CTBI’s total assets at $5.8 billion as of June 30, 2024 decreased $45.9 million, or 3.2% annualized, from March 31, 2024 but increased $283.5 million, or 5.1%, from June 30, 2023. Loans outstanding at $4.3 billion increased $100.1 million, an annualized 9.7%, from March 31, 2024 and $331.6 million, or 8.4%, from June 30, 2023. The increase in loans from prior quarter included a $66.6 million increase in the commercial loan portfolio, a $25.3 million increase in the residential loan portfolio, a $6.7 million increase in the indirect consumer loan portfolio, and a $1.5 million increase in the consumer direct loan portfolio. CTBI’s investment portfolio decreased $21.7 million, or an annualized 7.8%, from March 31, 2024 and $110.4 million, or 9.2%, from June 30, 2023. Deposits in other banks decreased $130.7 million from prior quarter but increased $49.1 million from June 30, 2023. Deposits, including repurchase agreements, at $5.0 billion decreased $57.6 million, or an annualized 4.6%, from March 31, 2024 but increased $215.7 million, or 4.5%, from June 30, 2023. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of June 30, 2024, no one customer accounted for more than 2.25% of our $5.0 billion in deposits. Only two customer relationships accounted for more than 1% each. Shareholders’ equity at $719.3 million increased $11.6 million, or an annualized 6.6%, during the quarter and $59.2 million, or 9.0%, from June 30, 2023. Net unrealized losses on securities, net of deferred taxes, were $107.1 million at June 30, 2024, compared to $106.9 million at March 31, 2024 and $121.3 million at June 30, 2023. CTBI’s annualized dividend yield to shareholders as of June 30, 2024 was 4.21%. Asset Quality Our total nonperforming loans increased to $19.8 million at June 30, 2024 from $15.9 million at March 31, 2024 and $11.7 million at June 30, 2023. Accruing loans 90+ days past due at $14.7 million increased $3.2 million from prior quarter and $8.3 million from June 30, 2023. Nonaccrual loans at $5.1 million increased $0.8 million from prior quarter but decreased $0.2 million from June 30, 2023. Accruing loans 30-89 days past due at $24.1 million increased $11.9 million from prior quarter and from June 30, 2023. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss. We had net loan charge-offs of $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 compared to $1.6 million, or an annualized 0.16% of average loans, for the first quarter 2024 and $0.7 million, or an annualized 0.07% of average loans, for the second quarter 2023. Of the net charge-offs for the quarter, $0.8 million were in indirect consumer loans, $0.5 million were in commercial loans, and $0.1 million were in direct consumer loans. Year-to-date net loan charge-offs of an annualized 0.15% of average loans are in line with management’s expectations. Allowance for Credit Losses Our provision for credit losses at $3.0 million for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Of the provision for the quarter, $1.2 million was allotted to fund loan growth. Year-to-date provision for credit losses increased $2.5 million from the six months ended June 30, 2023. Our reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2024 was 263.0% compared to 319.0% at March 31, 2024 and 408.9% at June 30, 2023. Our credit loss reserve as a percentage of total loans outstanding at June 30, 2024 remained at 1.22% from March 31, 2024 and June 30, 2023. 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. CTBI’s 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 epidemics, pandemics, or other infectious disease outbreaks; 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 $5.8 billion, is headquartered in Pikeville, Kentucky and has 71 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) June 30, 2024 (in thousands except per share data and # of employees) Three Three Three Six Six Months Months Months Months Months Ended Ended Ended Ended Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Interest income $ 76,648 $ 75,002 $ 64,827 $ 151,650 $ 125,822 Interest expense 30,970 31,411 21,748 62,381 38,827 Net interest income 45,678 43,591 43,079 89,269 86,995 Loan loss provision 2,972 2,656 2,009 5,628 3,125 Gains on sales of loans 119 45 115 164 236 Deposit related fees 7,308 7,011 7,513 14,319 14,800 Trust revenue 3,736 3,517 3,351 7,253 6,430 Loan related fees 1,320 1,352 1,197 2,672 2,042 Securities gains (losses) (474 ) 371 165 (103 ) 383 Other noninterest income 3,699 2,838 2,415 6,537 4,547 Total noninterest income 15,708 15,134 14,756 30,842 28,438 Personnel expense 19,591 20,122 18,305 39,713 37,213 Occupancy and equipment 3,089 3,028 2,895 6,117 5,923 Data processing expense 2,669 2,518 2,383 5,187 4,686 FDIC insurance premiums 645 642 610 1,287 1,216 Other noninterest expense 6,428 5,910 6,832 12,338 13,877 Total noninterest expense 32,422 32,220 31,025 64,642 62,915 Net income before taxes 25,992 23,849 24,801 49,841 49,393 Income taxes 6,493 5,170 5,397 11,663 10,676 Net income $ 19,499 $ 18,679 $ 19,404 $ 38,178 $ 38,717 Memo: TEQ interest income $ 76,940 $ 75,296 $ 65,125 $ 152,236 $ 126,418 Average shares outstanding 17,939 17,926 17,884 17,932 17,877 Diluted average shares outstanding 17,959 17,943 17,890 17,951 17,885 Basic earnings per share $ 1.09 $ 1.04 $ 1.09 $ 2.13 $ 2.17 Diluted earnings per share $ 1.09 $ 1.04 $ 1.08 $ 2.13 $ 2.16 Dividends per share $ 0.46 $ 0.46 $ 0.44 $ 0.92 $ 0.88 Average balances: Loans $ 4,191,992 $ 4,096,866 $ 3,836,446 $ 4,144,429 $ 3,788,213 Earning assets 5,469,813 5,458,075 5,189,716 5,463,944 5,160,712 Total assets 5,795,937 5,786,515 5,509,776 5,791,226 5,484,065 Deposits, including repurchase agreements 4,959,382 4,956,820 4,727,386 4,958,101 4,707,853 Interest bearing liabilities 3,776,362 3,773,513 3,435,072 3,774,937 3,398,902 Shareholders' equity 711,331 708,341 663,896 709,836 657,488 Performance ratios: Return on average assets 1.35 % 1.30 % 1.41 % 1.33 % 1.42 % Return on average equity 11.03 % 10.61 % 11.72 % 10.82 % 11.87 % Yield on average earning assets (tax equivalent) 5.66 % 5.55 % 5.03 % 5.60 % 4.94 % Cost of interest bearing funds (tax equivalent) 3.30 % 3.35 % 2.54 % 3.32 % 2.30 % Net interest margin (tax equivalent) 3.38 % 3.23 % 3.35 % 3.31 % 3.42 % Efficiency ratio (tax equivalent) 52.17 % 54.94 % 53.52 % 53.51 % 54.40 % Loan charge-offs $ 2,836 $ 2,667 $ 1,953 $ 5,503 $ 3,718 Recoveries (1,441 ) (1,039 ) (1,279 ) (2,480 ) (2,630 ) Net charge-offs $ 1,395 $ 1,628 $ 674 $ 3,023 $ 1,088 Market Price: High $ 44.32 $ 44.38 $ 40.30 $ 44.38 $ 47.35 Low $ 39.28 $ 38.44 $ 32.68 $ 38.44 $ 32.68 Close $ 43.66 $ 42.65 $ 35.57 $ 43.66 $ 35.57 As of As of As of June 30, 2024 March 31, 2024 June 30, 2023 Assets: Loans $ 4,261,247 $ 4,161,175 $ 3,929,695 Loan loss reserve (52,148 ) (50,571 ) (48,018 ) Net loans 4,209,099 4,110,604 3,881,677 Loans held for sale 350 57 238 Securities AFS 1,090,322 1,111,505 1,201,253 Equity securities at fair value 3,054 3,529 2,545 Other equity investments 14,022 9,327 11,432 Other earning assets 108,823 239,554 62,726 Cash and due from banks 54,935 55,841 48,915 Premises and equipment 47,178 46,595 42,911 Right of use asset 15,121 15,500 16,678 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 195,945 192,253 186,933 Total Assets $ 5,804,339 $ 5,850,255 $ 5,520,798 Liabilities and Equity: Interest bearing checking $ 138,767 $ 131,227 $ 142,542 Savings deposits 2,191,831 2,152,187 2,000,853 CD's >=$100,000 637,206 678,148 538,492 Other time deposits 524,480 548,125 473,695 Total interest bearing deposits 3,492,284 3,509,687 3,155,582 Noninterest bearing deposits 1,241,514 1,274,583 1,361,078 Total deposits 4,733,798 4,784,270 4,516,660 Repurchase agreements 227,576 234,671 229,020 Other interest bearing liabilities 64,954 65,014 65,195 Lease liability 15,880 16,208 17,317 Other noninterest bearing liabilities 42,808 42,368 32,481 Total liabilities 5,085,016 5,142,531 4,860,673 Shareholders' equity 719,323 707,724 660,125 Total Liabilities and Equity $ 5,804,339 $ 5,850,255 $ 5,520,798 Ending shares outstanding 18,026 18,019 17,984 30 - 89 days past due loans $ 24,099 $ 12,234 $ 12,158 90 days past due loans 14,703 11,550 6,399 Nonaccrual loans 5,127 4,302 5,345 Foreclosed properties 1,626 1,266 2,047 Community bank leverage ratio 13.90 % 13.74 % 13.82 % Tangible equity to tangible assets ratio 11.39 % 11.10 % 10.90 % FTE employees 930 945 953 View source version on businesswire.com: https://www.businesswire.com/news/home/20240717141109/en/Contacts MARK A. GOOCH, CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 437-3229
Community Trust Bancorp, Inc. (NASDAQ: CTBI): Earnings Summary Earnings Summary (in thousands except per share data) 2Q 2024 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Net income $19,499 $18,679 $19,404 $38,178 $38,717 Earnings per share $1.09 $1.04 $1.09 $2.13 $2.17 Earnings per share - diluted $1.09 $1.04 $1.08 $2.13 $2.16 Return on average assets 1.35% 1.30% 1.41% 1.33% 1.42% Return on average equity 11.03% 10.61% 11.72% 10.82% 11.87% Efficiency ratio 52.17% 54.94% 53.52% 53.51% 54.40% Tangible common equity 11.39% 11.10% 10.90% Dividends declared per share $0.46 $0.46 $0.44 $0.92 $0.88 Book value per share $39.91 $39.28 $36.71 Weighted average shares 17,939 17,926 17,884 17,932 17,877 Weighted average shares - diluted 17,959 17,943 17,890 17,951 17,885 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the second quarter 2024 of $19.5 million, or $1.09 per basic share, compared to $18.7 million, or $1.04 per basic share, earned during the first quarter 2024 and $19.4 million, or $1.09 per basic share, earned during the second quarter 2023. Total revenue for the quarter was $2.7 million above prior quarter and $3.6 million above prior year same quarter. Net interest revenue for the quarter increased $2.1 million compared to prior quarter and $2.6 million compared to prior year same quarter, and noninterest income increased $0.6 million compared to prior quarter and $1.0 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Noninterest expense increased $0.2 million compared to prior quarter and $1.4 million compared to prior year same quarter. Net income for the six months ended June 30, 2024 was $38.2 million, or $2.13 per basic share, compared to $38.7 million, or $2.17 per basic share, for the six months ended June 30, 2023. 2nd Quarter 2024 Highlights Net interest income for the quarter of $45.7 million was $2.1 million, or 4.8%, above prior quarter and $2.6 million, or 6.0%, above prior year same quarter, as our net interest margin increased 15 basis points from prior quarter and 3 basis points from prior year same quarter. Provision for credit losses at $3.0 million for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Noninterest income for the quarter ended June 30, 2024 of $15.7 million was $0.6 million, or 3.8%, above prior quarter and $1.0 million, or 6.5%, above prior year same quarter. Noninterest expense for the quarter ended June 30, 2024 of $32.4 million was $0.2 million, or 0.6%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. Our loan portfolio at $4.3 billion increased $100.1 million, an annualized 9.7%, from March 31, 2024 and $331.6 million, or 8.4%, from June 30, 2023. We had net loan charge-offs of $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 compared to $1.6 million, or an annualized 0.16% of average loans, for the first quarter 2024 and $0.7 million, or an annualized 0.07% of average loans, for the second quarter 2023. Our total nonperforming loans increased to $19.8 million at June 30, 2024 from $15.9 million at March 31, 2024 and $11.7 million at June 30, 2023. Nonperforming assets at $21.5 million increased $4.3 million from March 31, 2024 and $7.7 million from June 30, 2023. Deposits, including repurchase agreements, at $5.0 billion decreased $57.6 million, or an annualized 4.6%, from March 31, 2024 but increased $215.7 million, or 4.5%, from June 30, 2023. Shareholders’ equity at $719.3 million increased $11.6 million, or an annualized 6.6%, during the quarter and $59.2 million, or 9.0%, from June 30, 2023. Net Interest Income Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Components of net interest income: Income on earning assets $76,648 $75,002 $64,827 2.2% 18.2% $151,650 $125,822 20.5% Expense on interest bearing liabilities 30,970 31,411 21,748 (1.4%) 42.4% 62,381 38,827 60.7% Net interest income 45,678 43,591 43,079 4.8% 6.0% 89,269 86,995 2.6% TEQ 292 294 298 (0.7%) (2.1%) 586 596 (1.7%) Net interest income, tax equivalent $45,970 $43,885 $43,377 4.8% 6.0% $89,855 $87,591 2.6% Average yield and rates paid: Earning assets yield 5.66% 5.55% 5.03% 2.0% 12.4% 5.60% 4.94% 13.4% Rate paid on interest bearing liabilities 3.30% 3.35% 2.54% (1.5%) 29.9% 3.32% 2.30% 44.3% Gross interest margin 2.36% 2.20% 2.49% 7.2% (5.4%) 2.28% 2.64% (13.5%) Net interest margin 3.38% 3.23% 3.35% 4.5% 0.9% 3.31% 3.42% (3.4%) Average balances: Investment securities $1,095,182 $1,148,014 $1,230,556 (4.6%) (11.0%) $1,121,598 $1,241,193 (9.6%) Loans $4,191,992 $4,096,866 $3,836,446 2.3% 9.3% $4,144,429 $3,788,213 9.4% Earning assets $5,469,813 $5,458,075 $5,189,716 0.2% 5.4% $5,463,944 $5,160,712 5.9% Interest-bearing liabilities $3,776,362 $3,773,513 $3,435,072 0.1% 9.9% $3,774,937 $3,398,902 11.1% Net interest income for the quarter of $45.7 million was $2.1 million, or 4.8%, above prior quarter and $2.6 million, or 6.0%, above prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.38% increased 15 basis points from prior quarter and 3 basis points from prior year same quarter. Our quarterly average earning assets increased $11.7 million from prior quarter and $280.1 million from prior year same quarter. Our yield on average earning assets increased 11 basis points from prior quarter and 63 basis points from prior year same quarter, and our cost of funds decreased 5 basis points from prior quarter but increased 76 basis points from prior year same quarter. Net interest income for the six months ended June 30, 2024 was $89.3 million compared to $87.0 million for the six months ended June 30, 2023. Our ratio of average loans to deposits, including repurchase agreements, was 84.5% for the quarter ended June 30, 2024 compared to 82.7% for the quarter ended March 31, 2024 and 81.2% for the quarter ended June 30, 2023. Noninterest Income Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Deposit related fees $7,308 $7,011 $7,513 4.2% (2.7%) $14,319 $14,800 (3.2%) Trust revenue 3,736 3,517 3,351 6.2% 11.5% 7,253 6,430 12.8% Gains on sales of loans 119 45 115 167.9% 4.0% 164 236 (30.5%) Loan related fees 1,320 1,352 1,197 (2.4%) 10.3% 2,672 2,042 30.8% Bank owned life insurance revenue 1,815 1,292 735 40.5% 147.0% 3,107 1,593 95.0% Brokerage revenue 683 490 388 39.5% 76.2% 1,173 736 59.5% Other 727 1,427 1,457 (49.1%) (50.1%) 2,154 2,601 (17.2%) Total noninterest income $15,708 $15,134 $14,756 3.8% 6.4% $30,842 $28,438 8.5% Noninterest income for the quarter ended June 30, 2024 of $15.7 million was $0.6 million, or 3.8%, above prior quarter and $1.0 million, or 6.5%, above prior year same quarter. The quarter over quarter increase included a $0.5 million increase in bank owned life insurance revenue, a $0.3 million increase in deposit related fees, a $0.2 million increase in trust revenue, and a $0.2 million increase in brokerage revenue, partially offset by $0.8 million decrease in securities gains. The year over year increase included a $1.1 million increase in bank owned life insurance, a $0.4 million increase in trust revenue, a $0.3 million increase in brokerage revenue, partially offset by a $0.6 million decrease in securities gains and a $0.2 million decrease in deposit related fees. Noninterest income for the six months ended June 30, 2024 was $30.8 million compared to $28.4 million for the six months ended June 30, 2023. Noninterest Expense Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 YTD 2024 YTD 2023 Percent Change Salaries $13,037 $13,036 $12,732 0.0% 2.4% $26,073 $25,365 2.8% Employee benefits 6,554 7,086 5,573 (7.5%) 17.6% 13,640 11,848 15.1% Net occupancy and equipment 3,089 3,028 2,895 2.0% 6.7% 6,117 5,923 3.3% Data processing 2,669 2,518 2,383 6.0% 12.0% 5,187 4,686 10.7% Legal and professional fees 978 832 912 17.5% 7.3% 1,810 1,728 4.8% Advertising and marketing 856 577 704 48.2% 21.6% 1,433 1,524 (6.0%) Taxes other than property and payroll 438 442 433 (0.7%) 1.2% 880 865 1.7% Other 4,801 4,701 5,393 2.1% (11.0%) 9,502 10,976 (13.4%) Total noninterest expense $32,422 $32,220 $31,025 0.6% 4.5% $64,642 $62,915 2.7% Noninterest expense for the quarter ended June 30, 2024 of $32.4 million was $0.2 million, or 0.6%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. The increase year over year primarily resulted from a $1.3 million increase in personnel expense, which included a $0.3 million increase in salaries, a $0.9 million increase in bonuses and incentives, and a $0.5 million increase in the cost of group medical and life insurance benefits, partially offset by a $0.4 million decrease in payroll taxes. Noninterest expense for the six months ended June 30, 2024 was $64.6 million compared to $62.9 million for the six months ended June 30, 2023. Balance Sheet Review Total Loans Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 Commercial nonresidential real estate $825,934 $813,904 $787,598 1.5% 4.9% Commercial residential real estate 480,418 456,585 393,309 5.2% 22.1% Hotel/motel 417,161 416,759 372,981 0.1% 11.8% Other commercial 428,263 397,922 396,741 7.6% 7.9% Total commercial 2,151,776 2,085,170 1,950,629 3.2% 10.3% Residential mortgage 978,144 955,616 883,104 2.4% 10.8% Home equity loans/lines 154,311 151,577 132,033 1.8% 16.9% Total residential 1,132,455 1,107,193 1,015,137 2.3% 11.6% Consumer indirect 819,689 813,005 806,081 0.8% 1.7% Consumer direct 157,327 155,807 157,848 1.0% (0.3%) Total consumer 977,016 968,812 963,929 0.8% 1.4% Total loans $4,261,247 $4,161,175 $3,929,695 2.4% 8.4% Total Deposits and Repurchase Agreements Percent Change 2Q 2024 Compared to: ($ in thousands) 2Q 2024 1Q 2024 2Q 2023 1Q 2024 2Q 2023 Noninterest bearing deposits $1,241,514 $1,274,583 $1,361,078 (2.6%) (8.8%) Interest bearing deposits Interest checking 138,767 131,227 142,542 5.7% (2.6%) Money market savings 1,664,580 1,608,849 1,389,081 3.5% 19.8% Savings accounts 527,251 543,338 611,772 (3.0%) (13.8%) Time deposits 1,161,686 1,226,273 1,012,187 (5.3%) 14.8% Repurchase agreements 227,576 234,671 229,020 (3.0%) (0.6%) Total interest bearing deposits and repurchase agreements 3,719,860 3,744,358 3,384,602 (0.7%) 9.9% Total deposits and repurchase agreements $4,961,374 $5,018,941 $4,745,680 (1.1%) 4.5% CTBI’s total assets at $5.8 billion as of June 30, 2024 decreased $45.9 million, or 3.2% annualized, from March 31, 2024 but increased $283.5 million, or 5.1%, from June 30, 2023. Loans outstanding at $4.3 billion increased $100.1 million, an annualized 9.7%, from March 31, 2024 and $331.6 million, or 8.4%, from June 30, 2023. The increase in loans from prior quarter included a $66.6 million increase in the commercial loan portfolio, a $25.3 million increase in the residential loan portfolio, a $6.7 million increase in the indirect consumer loan portfolio, and a $1.5 million increase in the consumer direct loan portfolio. CTBI’s investment portfolio decreased $21.7 million, or an annualized 7.8%, from March 31, 2024 and $110.4 million, or 9.2%, from June 30, 2023. Deposits in other banks decreased $130.7 million from prior quarter but increased $49.1 million from June 30, 2023. Deposits, including repurchase agreements, at $5.0 billion decreased $57.6 million, or an annualized 4.6%, from March 31, 2024 but increased $215.7 million, or 4.5%, from June 30, 2023. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of June 30, 2024, no one customer accounted for more than 2.25% of our $5.0 billion in deposits. Only two customer relationships accounted for more than 1% each. Shareholders’ equity at $719.3 million increased $11.6 million, or an annualized 6.6%, during the quarter and $59.2 million, or 9.0%, from June 30, 2023. Net unrealized losses on securities, net of deferred taxes, were $107.1 million at June 30, 2024, compared to $106.9 million at March 31, 2024 and $121.3 million at June 30, 2023. CTBI’s annualized dividend yield to shareholders as of June 30, 2024 was 4.21%. Asset Quality Our total nonperforming loans increased to $19.8 million at June 30, 2024 from $15.9 million at March 31, 2024 and $11.7 million at June 30, 2023. Accruing loans 90+ days past due at $14.7 million increased $3.2 million from prior quarter and $8.3 million from June 30, 2023. Nonaccrual loans at $5.1 million increased $0.8 million from prior quarter but decreased $0.2 million from June 30, 2023. Accruing loans 30-89 days past due at $24.1 million increased $11.9 million from prior quarter and from June 30, 2023. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss. We had net loan charge-offs of $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 compared to $1.6 million, or an annualized 0.16% of average loans, for the first quarter 2024 and $0.7 million, or an annualized 0.07% of average loans, for the second quarter 2023. Of the net charge-offs for the quarter, $0.8 million were in indirect consumer loans, $0.5 million were in commercial loans, and $0.1 million were in direct consumer loans. Year-to-date net loan charge-offs of an annualized 0.15% of average loans are in line with management’s expectations. Allowance for Credit Losses Our provision for credit losses at $3.0 million for the quarter increased $0.3 million from prior quarter and $1.0 million from prior year same quarter. Of the provision for the quarter, $1.2 million was allotted to fund loan growth. Year-to-date provision for credit losses increased $2.5 million from the six months ended June 30, 2023. Our reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2024 was 263.0% compared to 319.0% at March 31, 2024 and 408.9% at June 30, 2023. Our credit loss reserve as a percentage of total loans outstanding at June 30, 2024 remained at 1.22% from March 31, 2024 and June 30, 2023. 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. CTBI’s 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 epidemics, pandemics, or other infectious disease outbreaks; 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 $5.8 billion, is headquartered in Pikeville, Kentucky and has 71 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) June 30, 2024 (in thousands except per share data and # of employees) Three Three Three Six Six Months Months Months Months Months Ended Ended Ended Ended Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Interest income $ 76,648 $ 75,002 $ 64,827 $ 151,650 $ 125,822 Interest expense 30,970 31,411 21,748 62,381 38,827 Net interest income 45,678 43,591 43,079 89,269 86,995 Loan loss provision 2,972 2,656 2,009 5,628 3,125 Gains on sales of loans 119 45 115 164 236 Deposit related fees 7,308 7,011 7,513 14,319 14,800 Trust revenue 3,736 3,517 3,351 7,253 6,430 Loan related fees 1,320 1,352 1,197 2,672 2,042 Securities gains (losses) (474 ) 371 165 (103 ) 383 Other noninterest income 3,699 2,838 2,415 6,537 4,547 Total noninterest income 15,708 15,134 14,756 30,842 28,438 Personnel expense 19,591 20,122 18,305 39,713 37,213 Occupancy and equipment 3,089 3,028 2,895 6,117 5,923 Data processing expense 2,669 2,518 2,383 5,187 4,686 FDIC insurance premiums 645 642 610 1,287 1,216 Other noninterest expense 6,428 5,910 6,832 12,338 13,877 Total noninterest expense 32,422 32,220 31,025 64,642 62,915 Net income before taxes 25,992 23,849 24,801 49,841 49,393 Income taxes 6,493 5,170 5,397 11,663 10,676 Net income $ 19,499 $ 18,679 $ 19,404 $ 38,178 $ 38,717 Memo: TEQ interest income $ 76,940 $ 75,296 $ 65,125 $ 152,236 $ 126,418 Average shares outstanding 17,939 17,926 17,884 17,932 17,877 Diluted average shares outstanding 17,959 17,943 17,890 17,951 17,885 Basic earnings per share $ 1.09 $ 1.04 $ 1.09 $ 2.13 $ 2.17 Diluted earnings per share $ 1.09 $ 1.04 $ 1.08 $ 2.13 $ 2.16 Dividends per share $ 0.46 $ 0.46 $ 0.44 $ 0.92 $ 0.88 Average balances: Loans $ 4,191,992 $ 4,096,866 $ 3,836,446 $ 4,144,429 $ 3,788,213 Earning assets 5,469,813 5,458,075 5,189,716 5,463,944 5,160,712 Total assets 5,795,937 5,786,515 5,509,776 5,791,226 5,484,065 Deposits, including repurchase agreements 4,959,382 4,956,820 4,727,386 4,958,101 4,707,853 Interest bearing liabilities 3,776,362 3,773,513 3,435,072 3,774,937 3,398,902 Shareholders' equity 711,331 708,341 663,896 709,836 657,488 Performance ratios: Return on average assets 1.35 % 1.30 % 1.41 % 1.33 % 1.42 % Return on average equity 11.03 % 10.61 % 11.72 % 10.82 % 11.87 % Yield on average earning assets (tax equivalent) 5.66 % 5.55 % 5.03 % 5.60 % 4.94 % Cost of interest bearing funds (tax equivalent) 3.30 % 3.35 % 2.54 % 3.32 % 2.30 % Net interest margin (tax equivalent) 3.38 % 3.23 % 3.35 % 3.31 % 3.42 % Efficiency ratio (tax equivalent) 52.17 % 54.94 % 53.52 % 53.51 % 54.40 % Loan charge-offs $ 2,836 $ 2,667 $ 1,953 $ 5,503 $ 3,718 Recoveries (1,441 ) (1,039 ) (1,279 ) (2,480 ) (2,630 ) Net charge-offs $ 1,395 $ 1,628 $ 674 $ 3,023 $ 1,088 Market Price: High $ 44.32 $ 44.38 $ 40.30 $ 44.38 $ 47.35 Low $ 39.28 $ 38.44 $ 32.68 $ 38.44 $ 32.68 Close $ 43.66 $ 42.65 $ 35.57 $ 43.66 $ 35.57 As of As of As of June 30, 2024 March 31, 2024 June 30, 2023 Assets: Loans $ 4,261,247 $ 4,161,175 $ 3,929,695 Loan loss reserve (52,148 ) (50,571 ) (48,018 ) Net loans 4,209,099 4,110,604 3,881,677 Loans held for sale 350 57 238 Securities AFS 1,090,322 1,111,505 1,201,253 Equity securities at fair value 3,054 3,529 2,545 Other equity investments 14,022 9,327 11,432 Other earning assets 108,823 239,554 62,726 Cash and due from banks 54,935 55,841 48,915 Premises and equipment 47,178 46,595 42,911 Right of use asset 15,121 15,500 16,678 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 195,945 192,253 186,933 Total Assets $ 5,804,339 $ 5,850,255 $ 5,520,798 Liabilities and Equity: Interest bearing checking $ 138,767 $ 131,227 $ 142,542 Savings deposits 2,191,831 2,152,187 2,000,853 CD's >=$100,000 637,206 678,148 538,492 Other time deposits 524,480 548,125 473,695 Total interest bearing deposits 3,492,284 3,509,687 3,155,582 Noninterest bearing deposits 1,241,514 1,274,583 1,361,078 Total deposits 4,733,798 4,784,270 4,516,660 Repurchase agreements 227,576 234,671 229,020 Other interest bearing liabilities 64,954 65,014 65,195 Lease liability 15,880 16,208 17,317 Other noninterest bearing liabilities 42,808 42,368 32,481 Total liabilities 5,085,016 5,142,531 4,860,673 Shareholders' equity 719,323 707,724 660,125 Total Liabilities and Equity $ 5,804,339 $ 5,850,255 $ 5,520,798 Ending shares outstanding 18,026 18,019 17,984 30 - 89 days past due loans $ 24,099 $ 12,234 $ 12,158 90 days past due loans 14,703 11,550 6,399 Nonaccrual loans 5,127 4,302 5,345 Foreclosed properties 1,626 1,266 2,047 Community bank leverage ratio 13.90 % 13.74 % 13.82 % Tangible equity to tangible assets ratio 11.39 % 11.10 % 10.90 % FTE employees 930 945 953 View source version on businesswire.com: https://www.businesswire.com/news/home/20240717141109/en/