Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Community Trust Bancorp, Inc. Reports Earnings for the 4th Quarter and Year 2023 By: Community Trust Bancorp, Inc. via Business Wire January 17, 2024 at 08:15 AM EST Community Trust Bancorp, Inc. (NASDAQ-CTBI): Earnings Summary (in thousands except per share data) 4Q 2023 3Q 2023 4Q 2022 Year 2023 Year 2022 Net income $ 18,659 $ 20,628 $ 22,443 $ 78,004 $ 81,814 Earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.59 Earnings per share – diluted $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.58 Return on average assets 1.30 % 1.46 % 1.64 % 1.40 % 1.50 % Return on average equity 10.98 % 12.30 % 14.42 % 11.75 % 12.73 % Efficiency ratio 55.74 % 52.66 % 51.81 % 54.29 % 53.12 % Tangible common equity 11.16 % 10.55 % 10.58 % Dividends declared per share $ 0.46 $ 0.46 $ 0.44 $ 1.80 $ 1.68 Book value per share $ 39.01 $ 36.30 $ 35.05 Weighted average shares 17,901 17,893 17,848 17,887 17,836 Weighted average shares - diluted 17,926 17,904 17,872 17,900 17,851 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the fourth quarter 2023 of $18.7 million, or $1.04 per basic share, compared to $20.6 million, or $1.15 per basic share, earned during the third quarter 2023 and $22.4 million, or $1.26 per basic share, earned during the fourth quarter 2022. Total revenue was $1.9 million below prior quarter and $1.8 million below prior year same quarter. Net interest revenue decreased $0.2 million compared to prior quarter and $1.8 million compared to prior year same quarter, and noninterest income decreased $1.8 million compared to prior quarter but remained relatively flat compared to prior year same quarter. Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year fourth quarter. Noninterest expense increased $0.8 million compared to prior quarter and $1.4 million compared to prior year same quarter. Earnings for the year ended December 31, 2023 were $78.0 million, or $4.36 per basic share, compared to $81.8 million, or $4.59 per basic share for the year ended December 31, 2022. Year over year earnings were impacted by increases in provision for loan losses and noninterest expense and a decrease in noninterest income. 4th Quarter 2023 Highlights Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter, as our net interest margin decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter. Provision for credit losses at $1.8 million for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter. Our loan portfolio at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022. We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022. Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Nonperforming assets at $15.6 million increased $0.4 million from September 30, 2023 but decreased $3.4 million from December 31, 2022. Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022. Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022. Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022. Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter. Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. Net Interest Income Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Components of net interest income: Income on earning assets $ 73,329 $ 69,499 $ 57,458 5.5 % 27.6 % $ 268,650 $ 197,742 35.9 % Expense on interest bearing liabilities 30,354 26,359 12,714 15.2 % 138.8 % 95,540 28,640 233.6 % Net interest income 42,975 43,140 44,744 (0.4 %) (4.0 %) 173,110 169,102 2.4 % TEQ 297 298 249 (0.4 %) 19.3 % 1,191 956 24.6 % Net interest income, tax equivalent $ 43,272 $ 43,438 $ 44,993 (0.4 %) (3.8 %) $ 174,301 $ 170,058 2.5 % Average yield and rates paid: Earning assets yield 5.43 % 5.25 % 4.51 % 3.5 % 20.5 % 5.15 % 3.87 % 33.1 % Rate paid on interest bearing liabilities 3.27 % 2.93 % 1.52 % 11.4 % 115.1 % 2.72 % 0.85 % 220.0 % Gross interest margin 2.16 % 2.32 % 2.99 % (6.9 %) (27.8 %) 2.43 % 3.02 % (19.6 %) Net interest margin 3.19 % 3.27 % 3.51 % (2.3 %) (9.2 %) 3.32 % 3.32 % 0.0 % Average balances: Investment securities $ 1,144,078 $ 1,178,707 $ 1,284,470 (2.9 %) (10.9 %) $ 1,200,965 $ 1,399,877 (14.2 %) Loans 4,022,547 3,952,096 3,662,221 1.8 % 9.8 % 3,888,585 3,552,941 9.4 % Earning assets 5,377,827 5,274,542 5,079,176 2.0 % 5.9 % 5,244,128 5,129,345 2.2 % Interest-bearing liabilities 3,687,660 3,567,343 3,321,914 3.4 % 11.0 % 3,514,142 3,351,221 4.9 % Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.19% decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter. Our average earning assets increased $103.3 million from prior quarter and $298.7 million from prior year same quarter. Our yield on average earning assets increased 18 basis points from prior quarter and 92 basis points from prior year same quarter, and our cost of funds increased 34 basis points from prior quarter and 175 basis points from prior year same quarter. Our net interest income for the year ended December 31, 2023 was $173.1 million compared to $169.1 million for the year ended December 31, 2022. Our ratio of average loans to deposits, including repurchase agreements, was 81.8% for the quarter ended December 31, 2023 compared to 83.2% for the quarter ended September 30, 2023 and 78.2% for the quarter ended December 31, 2022. Noninterest Income Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Deposit related fees $ 7,312 $ 7,823 $ 7,411 (6.5 %) (1.3 %) $ 29,935 $ 29,049 3.0 % Trust revenue 3,318 3,277 2,959 1.2 % 12.1 % 13,025 12,394 5.1 % Gains on sales of loans 54 105 174 (48.3 %) (68.9 %) 395 1,525 (74.1 %) Loan related fees 467 1,283 1,119 (63.6 %) (58.3 %) 3,792 6,185 (38.7 %) Bank owned life insurance revenue 816 1,108 572 (26.3 %) 42.7 % 3,517 2,708 29.8 % Brokerage revenue 285 452 344 (37.0 %) (17.2 %) 1,473 1,846 (20.2 %) Other 1,473 1,448 1,192 1.7 % 23.6 % 5,522 4,209 31.2 % Total noninterest income $ 13,725 $ 15,496 $ 13,771 (11.4 %) (0.3 %) $ 57,659 $ 57,916 (0.4 %) Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter. The quarter over quarter decrease included a $0.5 million decrease in deposit related fees, a $0.8 million decrease in loan related fees, a $0.3 million decrease in bank owned life insurance revenue, and a $0.2 million decrease in brokerage revenue. A year over year decrease of $0.7 million in loan related fees was primarily offset by increases in trust revenue ($0.4 million) and bank owned life insurance revenue ($0.2 million). The decline in loan related fees resulted from the fluctuation in the fair market value of our mortgage servicing rights. Noninterest income for the year 2023 was $57.7 million compared to $57.9 million for the year 2022. Noninterest income was impacted year over year by a $2.4 million decline in loan related fees, a $1.1 million decline in gains on sales of loans, and a $0.4 million decline in brokerage revenue, offset by increases of $0.9 million in deposit related fees, $0.6 million in trust revenue, $1.2 million in securities gains, and $0.8 million in bank owned life insurance revenue. Noninterest Expense Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Salaries $ 13,163 $ 12,755 $ 12,439 3.2 % 5.8 % $ 51,283 $ 48,934 4.8 % Employee benefits 5,282 5,298 5,433 (0.3 %) (2.8 %) 22,428 23,556 (4.8 %) Net occupancy and equipment 3,045 2,875 2,576 5.9 % 18.2 % 11,843 11,083 6.9 % Data processing 2,630 2,410 2,344 9.1 % 12.2 % 9,726 8,910 9.2 % Legal and professional fees 900 722 931 24.6 % (3.3 %) 3,350 3,434 (2.4 %) Advertising and marketing 923 767 826 20.4 % 11.8 % 3,214 3,005 7.0 % Taxes other than property and payroll 421 420 296 0.3 % 42.2 % 1,706 1,570 8.7 % Net other real estate owned expense 5 165 18 (96.8 %) (72.2 %) 350 456 (23.4 %) Other 5,259 5,435 5,396 (3.2 %) (2.5 %) 21,490 20,123 6.8 % Total noninterest expense $ 31,628 $ 30,847 $ 30,259 2.5 % 4.5 % $ 125,390 $ 121,071 3.6 % Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. The increase in noninterest expense quarter over quarter included a $0.4 million increase in personnel expense, a $0.2 million increase in occupancy and equipment, and a $0.2 million increase in data processing expense. The increase year over year resulted from a $0.6 million increase in personnel expense, a $0.5 million increase in occupancy and equipment expense, a $0.3 million increase in data processing expense, and a $0.3 million increase in FDIC insurance premiums. Noninterest expense for the year 2023 was $125.4 million compared to $121.1 million for the year 2022 with increases of $1.2 million in personnel expense, $0.8 million in occupancy and equipment, $0.8 million in data processing expense, $1.0 million in FDIC insurance premiums, and $0.4 million in telephone expense. The Compensation Committee of the Board of Directors has authorized a discretionary gift/payment to all full-time employees hired prior to July 1, 2023 of $1000 and all full-time employees hired after June 30, 2023 of $500. The Committee also authorized a discretionary gift/payment to our Executive Committee and other members of senior management. This discretionary gift/payment will occur January 19, 2024 for all eligible employees. This payment was accrued as of December 31, 2023 in the amount of $1.2 million. The Compensation Committee approved this gift/payment even though we did not achieve the desired financial results for our company and chose to do so because they recognize the significant efforts of all our employees during this very turbulent time in the banking industry. Balance Sheet Review Total Loans Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Commercial nonresidential real estate $ 778,637 $ 788,287 $ 762,349 (1.2 %) 2.1 % Commercial residential real estate 417,943 404,779 372,914 3.3 % 12.1 % Hotel/motel 395,765 386,067 343,640 2.5 % 15.2 % Other commercial 391,390 377,449 389,955 3.7 % 0.4 % Total commercial 1,983,735 1,956,582 1,868,858 1.4 % 6.1 % Residential mortgage 937,524 916,580 824,996 2.3 % 13.6 % Home equity loans/lines 147,036 139,085 120,540 5.7 % 22.0 % Total residential 1,084,560 1,055,665 945,536 2.7 % 14.7 % Consumer indirect 823,505 812,060 737,392 1.4 % 11.7 % Consumer direct 159,106 160,712 157,504 (1.0 %) 1.0 % Total consumer 982,611 972,772 894,896 1.0 % 9.8 % Total loans $ 4,050,906 $ 3,985,019 $ 3,709,290 1.7 % 9.2 % Total Deposits and Repurchase Agreements Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Non-interest bearing deposits $ 1,260,690 $ 1,314,189 $ 1,394,915 (4.1 %) (9.6 %) Interest bearing deposits Interest checking 123,927 125,107 112,265 (0.9 %) 10.4 % Money market savings 1,525,537 1,412,679 1,348,809 8.0 % 13.1 % Savings accounts 535,063 556,820 654,380 (3.9 %) (18.2 %) Time deposits 1,279,405 1,219,097 915,774 4.9 % 39.7 % Repurchase agreements 225,245 232,577 215,431 (3.2 %) 4.6 % Total interest bearing deposits and repurchase agreements 3,689,177 3,546,280 3,246,659 4.0 % 13.6 % Total deposits and repurchase agreements $ 4,949,867 $ 4,860,469 $ 4,641,574 1.8 % 6.6 % CTBI’s total assets at $5.8 billion as of December 31, 2023 increased $134.8 million, or 9.5% annualized, from September 30, 2023 and $389.4 million, or 7.2%, from December 31, 2022. Loans outstanding at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022. The increase in loans from prior quarter included a $27.2 million increase in the commercial loan portfolio, a $28.9 million increase in the residential loan portfolio, a $11.4 million increase in the indirect consumer loan portfolio, and a $1.6 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio increased $28.1 million, or an annualized 9.8%, from September 30, 2023 but decreased $91.5 million, or 7.3%, from December 31, 2022. Deposits in other banks increased $62.6 million from prior quarter and $135.2 million from December 31, 2022. Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022. Due to the increasing and competitive interest rate environment, we have seen a change in our deposit mix year over year with a 9.6% decrease in noninterest bearing deposits and a 13.6% increase in interest bearing deposits and repurchase agreements. Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022. Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022. CTBI’s annualized dividend yield to shareholders as of December 31, 2023 was 4.20%. Asset Quality Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Prior year nonperforming loans, as previously reported, exclude troubled debt restructurings which have been eliminated in the current period due to implementation of Accounting Standard Update 2022-02. Accruing loans 90+ days past due at $9.9 million increased $1.9 million from prior quarter and $1.4 million from December 31, 2022. Nonaccrual loans at $4.0 million decreased $0.9 million from prior quarter and $2.8 million from December 31, 2022. Accruing loans 30-89 days past due at $15.3 million increased $3.2 million from prior quarter and were relatively flat to December 31, 2022. 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 was $1.6 million at December 31, 2023 compared to $2.2 million at September 30, 2023 and $3.7 million at December 31, 2022. Sales of foreclosed properties for the quarter ended December 31, 2023 totaled $0.7 million while new foreclosed properties totaled $0.2 million. We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022. Net charge-offs for the year ended December 31, 2023 were $3.2 million, or 0.08% of average loans annualized compared to $0.7 million, or 0.02% of average loans annualized, for the year ended December 31, 2022. Allowance for Credit Losses Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter. Provision for credit losses for the year ended December 31, 2023 increased $1.9 million from the year ended December 31, 2022. Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2023 was 354.7% compared to 375.2% at September 30, 2023 and 300.4% at December 31, 2022. Our credit loss reserve as a percentage of total loans outstanding at December 31, 2023 remained at 1.22% from September 30, 2023 down from the 1.24% at December 31, 2022. 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 $5.8 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) December 31, 2023 (in thousands except per share data and # of employees) Three Three Three Twelve Twelve Months Months Months Months Months Ended Ended Ended Ended Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Interest income $ 73,329 $ 69,499 $ 57,458 $ 268,650 $ 197,742 Interest expense 30,354 26,359 12,714 95,540 28,640 Net interest income 42,975 43,140 44,744 173,110 169,102 Loan loss provision 1,815 1,871 1,539 6,811 4,905 Gains on sales of loans 54 105 174 395 1,525 Deposit related fees 7,312 7,823 7,411 29,935 29,049 Trust revenue 3,318 3,277 2,959 13,025 12,394 Loan related fees 467 1,283 1,119 3,792 6,185 Securities gains (losses) 258 355 117 996 (168 ) Other noninterest income 2,316 2,653 1,991 9,516 8,931 Total noninterest income 13,725 15,496 13,771 57,659 57,916 Personnel expense 18,445 18,053 17,872 73,711 72,490 Occupancy and equipment �� 3,045 2,875 2,576 11,843 11,083 Data processing expense 2,630 2,410 2,344 9,726 8,910 FDIC insurance premiums 655 612 374 2,483 1,447 Other noninterest expense 6,853 6,897 7,093 27,627 27,141 Total noninterest expense 31,628 30,847 30,259 125,390 121,071 Net income before taxes 23,257 25,918 26,717 98,568 101,042 Income taxes 4,598 5,290 4,274 20,564 19,228 Net income $ 18,659 $ 20,628 $ 22,443 $ 78,004 $ 81,814 Memo: TEQ interest income $ 73,626 $ 69,797 $ 57,707 $ 269,841 $ 198,698 Average shares outstanding 17,901 17,893 17,848 17,887 17,836 Diluted average shares outstanding 17,926 17,904 17,872 17,900 17,851 Basic earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.59 Diluted earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.58 Dividends per share $ 0.46 $ 0.46 $ 0.44 $ 1.80 $ 1.68 Average balances: Loans $ 4,022,547 $ 3,952,096 $ 3,662,221 $ 3,888,585 $ 3,552,941 Earning assets 5,377,827 5,274,542 5,079,176 5,244,128 5,129,345 Total assets 5,713,977 5,603,586 5,412,752 5,572,141 5,438,696 Deposits, including repurchase agreements 4,916,208 4,750,448 4,682,014 4,771,106 4,688,976 Interest bearing liabilities 3,687,660 3,567,343 3,321,914 3,514,142 3,351,221 Shareholders' equity 674,349 665,129 617,338 663,664 642,423 Performance ratios: Return on average assets 1.30 % 1.46 % 1.64 % 1.40 % 1.50 % Return on average equity 10.98 % 12.30 % 14.42 % 11.75 % 12.73 % Yield on average earning assets (tax equivalent) 5.43 % 5.25 % 4.51 % 5.15 % 3.87 % Cost of interest bearing funds (tax equivalent) 3.27 % 2.93 % 1.52 % 2.72 % 0.85 % Net interest margin (tax equivalent) 3.19 % 3.27 % 3.51 % 3.32 % 3.32 % Efficiency ratio (tax equivalent) 55.74 % 52.66 % 51.81 % 54.29 % 53.12 % Loan charge-offs $ 2,529 $ 2,012 $ 1,995 $ 8,259 $ 5,346 Recoveries (1,538 ) (842 ) (2,004 ) (5,010 ) (4,666 ) Net charge-offs $ 991 $ 1,170 $ (9 ) $ 3,249 $ 680 Market Price: High $ 45.74 $ 39.86 $ 48.05 $ 47.35 $ 48.05 Low $ 33.91 $ 33.48 $ 40.81 $ 32.68 $ 39.10 Close $ 43.86 $ 34.26 $ 45.93 $ 43.86 $ 45.93 As of As of As of December 31, 2023 September 30, 2023 December 31, 2022 Assets: Loans $ 4,050,906 $ 3,985,019 $ 3,709,290 Loan loss reserve (49,543 ) (48,719 ) (45,981 ) Net loans 4,001,363 3,936,300 3,663,309 Loans held for sale 152 - 109 Securities AFS 1,163,724 1,135,878 1,256,226 Equity securities at fair value 3,158 2,900 2,166 Other equity investments 9,599 12,557 11,563 Other earning assets 214,664 152,064 79,475 Cash and due from banks 58,833 69,291 51,306 Premises and equipment 45,311 44,962 42,633 Right of use asset 15,703 16,100 17,071 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 191,699 199,390 190,968 Total Assets $ 5,769,696 $ 5,634,932 $ 5,380,316 Liabilities and Equity: Interest bearing checking $ 123,927 $ 125,107 $ 112,265 Savings deposits 2,060,600 1,969,499 2,003,189 CD's >=$100,000 704,222 666,808 471,934 Other time deposits 575,183 552,289 443,840 Total interest bearing deposits 3,463,932 3,313,703 3,031,228 Noninterest bearing deposits 1,260,690 1,314,189 1,394,915 Total deposits 4,724,622 4,627,892 4,426,143 Repurchase agreements 225,245 232,577 215,431 Other interest bearing liabilities 65,075 65,136 58,696 Lease liability 16,393 16,801 17,628 Other noninterest bearing liabilities 36,153 39,492 34,371 Total liabilities 5,067,488 4,981,898 4,752,269 Shareholders' equity 702,208 653,034 628,047 Total Liabilities and Equity $ 5,769,696 $ 5,634,932 $ 5,380,316 Ending shares outstanding 18,000 17,991 17,918 30 - 89 days past due loans $ 15,343 $ 12,098 $ 15,303 90 days past due loans 9,920 8,069 8,496 Nonaccrual loans 4,048 4,916 6,813 Foreclosed properties 1,616 2,175 3,671 Community bank leverage ratio 13.69 % 13.78 % 13.55 % Tangible equity to tangible assets ratio 11.16 % 10.55 % 10.58 % FTE employees 967 951 985 View source version on businesswire.com: https://www.businesswire.com/news/home/20240117725422/en/Contacts MARK A. GOOCH, VICE 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 4th Quarter and Year 2023 By: Community Trust Bancorp, Inc. via Business Wire January 17, 2024 at 08:15 AM EST Community Trust Bancorp, Inc. (NASDAQ-CTBI): Earnings Summary (in thousands except per share data) 4Q 2023 3Q 2023 4Q 2022 Year 2023 Year 2022 Net income $ 18,659 $ 20,628 $ 22,443 $ 78,004 $ 81,814 Earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.59 Earnings per share – diluted $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.58 Return on average assets 1.30 % 1.46 % 1.64 % 1.40 % 1.50 % Return on average equity 10.98 % 12.30 % 14.42 % 11.75 % 12.73 % Efficiency ratio 55.74 % 52.66 % 51.81 % 54.29 % 53.12 % Tangible common equity 11.16 % 10.55 % 10.58 % Dividends declared per share $ 0.46 $ 0.46 $ 0.44 $ 1.80 $ 1.68 Book value per share $ 39.01 $ 36.30 $ 35.05 Weighted average shares 17,901 17,893 17,848 17,887 17,836 Weighted average shares - diluted 17,926 17,904 17,872 17,900 17,851 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the fourth quarter 2023 of $18.7 million, or $1.04 per basic share, compared to $20.6 million, or $1.15 per basic share, earned during the third quarter 2023 and $22.4 million, or $1.26 per basic share, earned during the fourth quarter 2022. Total revenue was $1.9 million below prior quarter and $1.8 million below prior year same quarter. Net interest revenue decreased $0.2 million compared to prior quarter and $1.8 million compared to prior year same quarter, and noninterest income decreased $1.8 million compared to prior quarter but remained relatively flat compared to prior year same quarter. Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year fourth quarter. Noninterest expense increased $0.8 million compared to prior quarter and $1.4 million compared to prior year same quarter. Earnings for the year ended December 31, 2023 were $78.0 million, or $4.36 per basic share, compared to $81.8 million, or $4.59 per basic share for the year ended December 31, 2022. Year over year earnings were impacted by increases in provision for loan losses and noninterest expense and a decrease in noninterest income. 4th Quarter 2023 Highlights Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter, as our net interest margin decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter. Provision for credit losses at $1.8 million for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter. Our loan portfolio at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022. We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022. Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Nonperforming assets at $15.6 million increased $0.4 million from September 30, 2023 but decreased $3.4 million from December 31, 2022. Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022. Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022. Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022. Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter. Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. Net Interest Income Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Components of net interest income: Income on earning assets $ 73,329 $ 69,499 $ 57,458 5.5 % 27.6 % $ 268,650 $ 197,742 35.9 % Expense on interest bearing liabilities 30,354 26,359 12,714 15.2 % 138.8 % 95,540 28,640 233.6 % Net interest income 42,975 43,140 44,744 (0.4 %) (4.0 %) 173,110 169,102 2.4 % TEQ 297 298 249 (0.4 %) 19.3 % 1,191 956 24.6 % Net interest income, tax equivalent $ 43,272 $ 43,438 $ 44,993 (0.4 %) (3.8 %) $ 174,301 $ 170,058 2.5 % Average yield and rates paid: Earning assets yield 5.43 % 5.25 % 4.51 % 3.5 % 20.5 % 5.15 % 3.87 % 33.1 % Rate paid on interest bearing liabilities 3.27 % 2.93 % 1.52 % 11.4 % 115.1 % 2.72 % 0.85 % 220.0 % Gross interest margin 2.16 % 2.32 % 2.99 % (6.9 %) (27.8 %) 2.43 % 3.02 % (19.6 %) Net interest margin 3.19 % 3.27 % 3.51 % (2.3 %) (9.2 %) 3.32 % 3.32 % 0.0 % Average balances: Investment securities $ 1,144,078 $ 1,178,707 $ 1,284,470 (2.9 %) (10.9 %) $ 1,200,965 $ 1,399,877 (14.2 %) Loans 4,022,547 3,952,096 3,662,221 1.8 % 9.8 % 3,888,585 3,552,941 9.4 % Earning assets 5,377,827 5,274,542 5,079,176 2.0 % 5.9 % 5,244,128 5,129,345 2.2 % Interest-bearing liabilities 3,687,660 3,567,343 3,321,914 3.4 % 11.0 % 3,514,142 3,351,221 4.9 % Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.19% decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter. Our average earning assets increased $103.3 million from prior quarter and $298.7 million from prior year same quarter. Our yield on average earning assets increased 18 basis points from prior quarter and 92 basis points from prior year same quarter, and our cost of funds increased 34 basis points from prior quarter and 175 basis points from prior year same quarter. Our net interest income for the year ended December 31, 2023 was $173.1 million compared to $169.1 million for the year ended December 31, 2022. Our ratio of average loans to deposits, including repurchase agreements, was 81.8% for the quarter ended December 31, 2023 compared to 83.2% for the quarter ended September 30, 2023 and 78.2% for the quarter ended December 31, 2022. Noninterest Income Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Deposit related fees $ 7,312 $ 7,823 $ 7,411 (6.5 %) (1.3 %) $ 29,935 $ 29,049 3.0 % Trust revenue 3,318 3,277 2,959 1.2 % 12.1 % 13,025 12,394 5.1 % Gains on sales of loans 54 105 174 (48.3 %) (68.9 %) 395 1,525 (74.1 %) Loan related fees 467 1,283 1,119 (63.6 %) (58.3 %) 3,792 6,185 (38.7 %) Bank owned life insurance revenue 816 1,108 572 (26.3 %) 42.7 % 3,517 2,708 29.8 % Brokerage revenue 285 452 344 (37.0 %) (17.2 %) 1,473 1,846 (20.2 %) Other 1,473 1,448 1,192 1.7 % 23.6 % 5,522 4,209 31.2 % Total noninterest income $ 13,725 $ 15,496 $ 13,771 (11.4 %) (0.3 %) $ 57,659 $ 57,916 (0.4 %) Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter. The quarter over quarter decrease included a $0.5 million decrease in deposit related fees, a $0.8 million decrease in loan related fees, a $0.3 million decrease in bank owned life insurance revenue, and a $0.2 million decrease in brokerage revenue. A year over year decrease of $0.7 million in loan related fees was primarily offset by increases in trust revenue ($0.4 million) and bank owned life insurance revenue ($0.2 million). The decline in loan related fees resulted from the fluctuation in the fair market value of our mortgage servicing rights. Noninterest income for the year 2023 was $57.7 million compared to $57.9 million for the year 2022. Noninterest income was impacted year over year by a $2.4 million decline in loan related fees, a $1.1 million decline in gains on sales of loans, and a $0.4 million decline in brokerage revenue, offset by increases of $0.9 million in deposit related fees, $0.6 million in trust revenue, $1.2 million in securities gains, and $0.8 million in bank owned life insurance revenue. Noninterest Expense Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Salaries $ 13,163 $ 12,755 $ 12,439 3.2 % 5.8 % $ 51,283 $ 48,934 4.8 % Employee benefits 5,282 5,298 5,433 (0.3 %) (2.8 %) 22,428 23,556 (4.8 %) Net occupancy and equipment 3,045 2,875 2,576 5.9 % 18.2 % 11,843 11,083 6.9 % Data processing 2,630 2,410 2,344 9.1 % 12.2 % 9,726 8,910 9.2 % Legal and professional fees 900 722 931 24.6 % (3.3 %) 3,350 3,434 (2.4 %) Advertising and marketing 923 767 826 20.4 % 11.8 % 3,214 3,005 7.0 % Taxes other than property and payroll 421 420 296 0.3 % 42.2 % 1,706 1,570 8.7 % Net other real estate owned expense 5 165 18 (96.8 %) (72.2 %) 350 456 (23.4 %) Other 5,259 5,435 5,396 (3.2 %) (2.5 %) 21,490 20,123 6.8 % Total noninterest expense $ 31,628 $ 30,847 $ 30,259 2.5 % 4.5 % $ 125,390 $ 121,071 3.6 % Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. The increase in noninterest expense quarter over quarter included a $0.4 million increase in personnel expense, a $0.2 million increase in occupancy and equipment, and a $0.2 million increase in data processing expense. The increase year over year resulted from a $0.6 million increase in personnel expense, a $0.5 million increase in occupancy and equipment expense, a $0.3 million increase in data processing expense, and a $0.3 million increase in FDIC insurance premiums. Noninterest expense for the year 2023 was $125.4 million compared to $121.1 million for the year 2022 with increases of $1.2 million in personnel expense, $0.8 million in occupancy and equipment, $0.8 million in data processing expense, $1.0 million in FDIC insurance premiums, and $0.4 million in telephone expense. The Compensation Committee of the Board of Directors has authorized a discretionary gift/payment to all full-time employees hired prior to July 1, 2023 of $1000 and all full-time employees hired after June 30, 2023 of $500. The Committee also authorized a discretionary gift/payment to our Executive Committee and other members of senior management. This discretionary gift/payment will occur January 19, 2024 for all eligible employees. This payment was accrued as of December 31, 2023 in the amount of $1.2 million. The Compensation Committee approved this gift/payment even though we did not achieve the desired financial results for our company and chose to do so because they recognize the significant efforts of all our employees during this very turbulent time in the banking industry. Balance Sheet Review Total Loans Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Commercial nonresidential real estate $ 778,637 $ 788,287 $ 762,349 (1.2 %) 2.1 % Commercial residential real estate 417,943 404,779 372,914 3.3 % 12.1 % Hotel/motel 395,765 386,067 343,640 2.5 % 15.2 % Other commercial 391,390 377,449 389,955 3.7 % 0.4 % Total commercial 1,983,735 1,956,582 1,868,858 1.4 % 6.1 % Residential mortgage 937,524 916,580 824,996 2.3 % 13.6 % Home equity loans/lines 147,036 139,085 120,540 5.7 % 22.0 % Total residential 1,084,560 1,055,665 945,536 2.7 % 14.7 % Consumer indirect 823,505 812,060 737,392 1.4 % 11.7 % Consumer direct 159,106 160,712 157,504 (1.0 %) 1.0 % Total consumer 982,611 972,772 894,896 1.0 % 9.8 % Total loans $ 4,050,906 $ 3,985,019 $ 3,709,290 1.7 % 9.2 % Total Deposits and Repurchase Agreements Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Non-interest bearing deposits $ 1,260,690 $ 1,314,189 $ 1,394,915 (4.1 %) (9.6 %) Interest bearing deposits Interest checking 123,927 125,107 112,265 (0.9 %) 10.4 % Money market savings 1,525,537 1,412,679 1,348,809 8.0 % 13.1 % Savings accounts 535,063 556,820 654,380 (3.9 %) (18.2 %) Time deposits 1,279,405 1,219,097 915,774 4.9 % 39.7 % Repurchase agreements 225,245 232,577 215,431 (3.2 %) 4.6 % Total interest bearing deposits and repurchase agreements 3,689,177 3,546,280 3,246,659 4.0 % 13.6 % Total deposits and repurchase agreements $ 4,949,867 $ 4,860,469 $ 4,641,574 1.8 % 6.6 % CTBI’s total assets at $5.8 billion as of December 31, 2023 increased $134.8 million, or 9.5% annualized, from September 30, 2023 and $389.4 million, or 7.2%, from December 31, 2022. Loans outstanding at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022. The increase in loans from prior quarter included a $27.2 million increase in the commercial loan portfolio, a $28.9 million increase in the residential loan portfolio, a $11.4 million increase in the indirect consumer loan portfolio, and a $1.6 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio increased $28.1 million, or an annualized 9.8%, from September 30, 2023 but decreased $91.5 million, or 7.3%, from December 31, 2022. Deposits in other banks increased $62.6 million from prior quarter and $135.2 million from December 31, 2022. Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022. Due to the increasing and competitive interest rate environment, we have seen a change in our deposit mix year over year with a 9.6% decrease in noninterest bearing deposits and a 13.6% increase in interest bearing deposits and repurchase agreements. Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022. Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022. CTBI’s annualized dividend yield to shareholders as of December 31, 2023 was 4.20%. Asset Quality Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Prior year nonperforming loans, as previously reported, exclude troubled debt restructurings which have been eliminated in the current period due to implementation of Accounting Standard Update 2022-02. Accruing loans 90+ days past due at $9.9 million increased $1.9 million from prior quarter and $1.4 million from December 31, 2022. Nonaccrual loans at $4.0 million decreased $0.9 million from prior quarter and $2.8 million from December 31, 2022. Accruing loans 30-89 days past due at $15.3 million increased $3.2 million from prior quarter and were relatively flat to December 31, 2022. 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 was $1.6 million at December 31, 2023 compared to $2.2 million at September 30, 2023 and $3.7 million at December 31, 2022. Sales of foreclosed properties for the quarter ended December 31, 2023 totaled $0.7 million while new foreclosed properties totaled $0.2 million. We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022. Net charge-offs for the year ended December 31, 2023 were $3.2 million, or 0.08% of average loans annualized compared to $0.7 million, or 0.02% of average loans annualized, for the year ended December 31, 2022. Allowance for Credit Losses Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter. Provision for credit losses for the year ended December 31, 2023 increased $1.9 million from the year ended December 31, 2022. Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2023 was 354.7% compared to 375.2% at September 30, 2023 and 300.4% at December 31, 2022. Our credit loss reserve as a percentage of total loans outstanding at December 31, 2023 remained at 1.22% from September 30, 2023 down from the 1.24% at December 31, 2022. 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 $5.8 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) December 31, 2023 (in thousands except per share data and # of employees) Three Three Three Twelve Twelve Months Months Months Months Months Ended Ended Ended Ended Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Interest income $ 73,329 $ 69,499 $ 57,458 $ 268,650 $ 197,742 Interest expense 30,354 26,359 12,714 95,540 28,640 Net interest income 42,975 43,140 44,744 173,110 169,102 Loan loss provision 1,815 1,871 1,539 6,811 4,905 Gains on sales of loans 54 105 174 395 1,525 Deposit related fees 7,312 7,823 7,411 29,935 29,049 Trust revenue 3,318 3,277 2,959 13,025 12,394 Loan related fees 467 1,283 1,119 3,792 6,185 Securities gains (losses) 258 355 117 996 (168 ) Other noninterest income 2,316 2,653 1,991 9,516 8,931 Total noninterest income 13,725 15,496 13,771 57,659 57,916 Personnel expense 18,445 18,053 17,872 73,711 72,490 Occupancy and equipment �� 3,045 2,875 2,576 11,843 11,083 Data processing expense 2,630 2,410 2,344 9,726 8,910 FDIC insurance premiums 655 612 374 2,483 1,447 Other noninterest expense 6,853 6,897 7,093 27,627 27,141 Total noninterest expense 31,628 30,847 30,259 125,390 121,071 Net income before taxes 23,257 25,918 26,717 98,568 101,042 Income taxes 4,598 5,290 4,274 20,564 19,228 Net income $ 18,659 $ 20,628 $ 22,443 $ 78,004 $ 81,814 Memo: TEQ interest income $ 73,626 $ 69,797 $ 57,707 $ 269,841 $ 198,698 Average shares outstanding 17,901 17,893 17,848 17,887 17,836 Diluted average shares outstanding 17,926 17,904 17,872 17,900 17,851 Basic earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.59 Diluted earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.58 Dividends per share $ 0.46 $ 0.46 $ 0.44 $ 1.80 $ 1.68 Average balances: Loans $ 4,022,547 $ 3,952,096 $ 3,662,221 $ 3,888,585 $ 3,552,941 Earning assets 5,377,827 5,274,542 5,079,176 5,244,128 5,129,345 Total assets 5,713,977 5,603,586 5,412,752 5,572,141 5,438,696 Deposits, including repurchase agreements 4,916,208 4,750,448 4,682,014 4,771,106 4,688,976 Interest bearing liabilities 3,687,660 3,567,343 3,321,914 3,514,142 3,351,221 Shareholders' equity 674,349 665,129 617,338 663,664 642,423 Performance ratios: Return on average assets 1.30 % 1.46 % 1.64 % 1.40 % 1.50 % Return on average equity 10.98 % 12.30 % 14.42 % 11.75 % 12.73 % Yield on average earning assets (tax equivalent) 5.43 % 5.25 % 4.51 % 5.15 % 3.87 % Cost of interest bearing funds (tax equivalent) 3.27 % 2.93 % 1.52 % 2.72 % 0.85 % Net interest margin (tax equivalent) 3.19 % 3.27 % 3.51 % 3.32 % 3.32 % Efficiency ratio (tax equivalent) 55.74 % 52.66 % 51.81 % 54.29 % 53.12 % Loan charge-offs $ 2,529 $ 2,012 $ 1,995 $ 8,259 $ 5,346 Recoveries (1,538 ) (842 ) (2,004 ) (5,010 ) (4,666 ) Net charge-offs $ 991 $ 1,170 $ (9 ) $ 3,249 $ 680 Market Price: High $ 45.74 $ 39.86 $ 48.05 $ 47.35 $ 48.05 Low $ 33.91 $ 33.48 $ 40.81 $ 32.68 $ 39.10 Close $ 43.86 $ 34.26 $ 45.93 $ 43.86 $ 45.93 As of As of As of December 31, 2023 September 30, 2023 December 31, 2022 Assets: Loans $ 4,050,906 $ 3,985,019 $ 3,709,290 Loan loss reserve (49,543 ) (48,719 ) (45,981 ) Net loans 4,001,363 3,936,300 3,663,309 Loans held for sale 152 - 109 Securities AFS 1,163,724 1,135,878 1,256,226 Equity securities at fair value 3,158 2,900 2,166 Other equity investments 9,599 12,557 11,563 Other earning assets 214,664 152,064 79,475 Cash and due from banks 58,833 69,291 51,306 Premises and equipment 45,311 44,962 42,633 Right of use asset 15,703 16,100 17,071 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 191,699 199,390 190,968 Total Assets $ 5,769,696 $ 5,634,932 $ 5,380,316 Liabilities and Equity: Interest bearing checking $ 123,927 $ 125,107 $ 112,265 Savings deposits 2,060,600 1,969,499 2,003,189 CD's >=$100,000 704,222 666,808 471,934 Other time deposits 575,183 552,289 443,840 Total interest bearing deposits 3,463,932 3,313,703 3,031,228 Noninterest bearing deposits 1,260,690 1,314,189 1,394,915 Total deposits 4,724,622 4,627,892 4,426,143 Repurchase agreements 225,245 232,577 215,431 Other interest bearing liabilities 65,075 65,136 58,696 Lease liability 16,393 16,801 17,628 Other noninterest bearing liabilities 36,153 39,492 34,371 Total liabilities 5,067,488 4,981,898 4,752,269 Shareholders' equity 702,208 653,034 628,047 Total Liabilities and Equity $ 5,769,696 $ 5,634,932 $ 5,380,316 Ending shares outstanding 18,000 17,991 17,918 30 - 89 days past due loans $ 15,343 $ 12,098 $ 15,303 90 days past due loans 9,920 8,069 8,496 Nonaccrual loans 4,048 4,916 6,813 Foreclosed properties 1,616 2,175 3,671 Community bank leverage ratio 13.69 % 13.78 % 13.55 % Tangible equity to tangible assets ratio 11.16 % 10.55 % 10.58 % FTE employees 967 951 985 View source version on businesswire.com: https://www.businesswire.com/news/home/20240117725422/en/Contacts MARK A. GOOCH, VICE CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 437-3229
Community Trust Bancorp, Inc. (NASDAQ-CTBI): Earnings Summary (in thousands except per share data) 4Q 2023 3Q 2023 4Q 2022 Year 2023 Year 2022 Net income $ 18,659 $ 20,628 $ 22,443 $ 78,004 $ 81,814 Earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.59 Earnings per share – diluted $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.58 Return on average assets 1.30 % 1.46 % 1.64 % 1.40 % 1.50 % Return on average equity 10.98 % 12.30 % 14.42 % 11.75 % 12.73 % Efficiency ratio 55.74 % 52.66 % 51.81 % 54.29 % 53.12 % Tangible common equity 11.16 % 10.55 % 10.58 % Dividends declared per share $ 0.46 $ 0.46 $ 0.44 $ 1.80 $ 1.68 Book value per share $ 39.01 $ 36.30 $ 35.05 Weighted average shares 17,901 17,893 17,848 17,887 17,836 Weighted average shares - diluted 17,926 17,904 17,872 17,900 17,851 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the fourth quarter 2023 of $18.7 million, or $1.04 per basic share, compared to $20.6 million, or $1.15 per basic share, earned during the third quarter 2023 and $22.4 million, or $1.26 per basic share, earned during the fourth quarter 2022. Total revenue was $1.9 million below prior quarter and $1.8 million below prior year same quarter. Net interest revenue decreased $0.2 million compared to prior quarter and $1.8 million compared to prior year same quarter, and noninterest income decreased $1.8 million compared to prior quarter but remained relatively flat compared to prior year same quarter. Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year fourth quarter. Noninterest expense increased $0.8 million compared to prior quarter and $1.4 million compared to prior year same quarter. Earnings for the year ended December 31, 2023 were $78.0 million, or $4.36 per basic share, compared to $81.8 million, or $4.59 per basic share for the year ended December 31, 2022. Year over year earnings were impacted by increases in provision for loan losses and noninterest expense and a decrease in noninterest income. 4th Quarter 2023 Highlights Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter, as our net interest margin decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter. Provision for credit losses at $1.8 million for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter. Our loan portfolio at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022. We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022. Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Nonperforming assets at $15.6 million increased $0.4 million from September 30, 2023 but decreased $3.4 million from December 31, 2022. Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022. Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022. Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022. Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter. Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. Net Interest Income Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Components of net interest income: Income on earning assets $ 73,329 $ 69,499 $ 57,458 5.5 % 27.6 % $ 268,650 $ 197,742 35.9 % Expense on interest bearing liabilities 30,354 26,359 12,714 15.2 % 138.8 % 95,540 28,640 233.6 % Net interest income 42,975 43,140 44,744 (0.4 %) (4.0 %) 173,110 169,102 2.4 % TEQ 297 298 249 (0.4 %) 19.3 % 1,191 956 24.6 % Net interest income, tax equivalent $ 43,272 $ 43,438 $ 44,993 (0.4 %) (3.8 %) $ 174,301 $ 170,058 2.5 % Average yield and rates paid: Earning assets yield 5.43 % 5.25 % 4.51 % 3.5 % 20.5 % 5.15 % 3.87 % 33.1 % Rate paid on interest bearing liabilities 3.27 % 2.93 % 1.52 % 11.4 % 115.1 % 2.72 % 0.85 % 220.0 % Gross interest margin 2.16 % 2.32 % 2.99 % (6.9 %) (27.8 %) 2.43 % 3.02 % (19.6 %) Net interest margin 3.19 % 3.27 % 3.51 % (2.3 %) (9.2 %) 3.32 % 3.32 % 0.0 % Average balances: Investment securities $ 1,144,078 $ 1,178,707 $ 1,284,470 (2.9 %) (10.9 %) $ 1,200,965 $ 1,399,877 (14.2 %) Loans 4,022,547 3,952,096 3,662,221 1.8 % 9.8 % 3,888,585 3,552,941 9.4 % Earning assets 5,377,827 5,274,542 5,079,176 2.0 % 5.9 % 5,244,128 5,129,345 2.2 % Interest-bearing liabilities 3,687,660 3,567,343 3,321,914 3.4 % 11.0 % 3,514,142 3,351,221 4.9 % Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.19% decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter. Our average earning assets increased $103.3 million from prior quarter and $298.7 million from prior year same quarter. Our yield on average earning assets increased 18 basis points from prior quarter and 92 basis points from prior year same quarter, and our cost of funds increased 34 basis points from prior quarter and 175 basis points from prior year same quarter. Our net interest income for the year ended December 31, 2023 was $173.1 million compared to $169.1 million for the year ended December 31, 2022. Our ratio of average loans to deposits, including repurchase agreements, was 81.8% for the quarter ended December 31, 2023 compared to 83.2% for the quarter ended September 30, 2023 and 78.2% for the quarter ended December 31, 2022. Noninterest Income Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Deposit related fees $ 7,312 $ 7,823 $ 7,411 (6.5 %) (1.3 %) $ 29,935 $ 29,049 3.0 % Trust revenue 3,318 3,277 2,959 1.2 % 12.1 % 13,025 12,394 5.1 % Gains on sales of loans 54 105 174 (48.3 %) (68.9 %) 395 1,525 (74.1 %) Loan related fees 467 1,283 1,119 (63.6 %) (58.3 %) 3,792 6,185 (38.7 %) Bank owned life insurance revenue 816 1,108 572 (26.3 %) 42.7 % 3,517 2,708 29.8 % Brokerage revenue 285 452 344 (37.0 %) (17.2 %) 1,473 1,846 (20.2 %) Other 1,473 1,448 1,192 1.7 % 23.6 % 5,522 4,209 31.2 % Total noninterest income $ 13,725 $ 15,496 $ 13,771 (11.4 %) (0.3 %) $ 57,659 $ 57,916 (0.4 %) Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter. The quarter over quarter decrease included a $0.5 million decrease in deposit related fees, a $0.8 million decrease in loan related fees, a $0.3 million decrease in bank owned life insurance revenue, and a $0.2 million decrease in brokerage revenue. A year over year decrease of $0.7 million in loan related fees was primarily offset by increases in trust revenue ($0.4 million) and bank owned life insurance revenue ($0.2 million). The decline in loan related fees resulted from the fluctuation in the fair market value of our mortgage servicing rights. Noninterest income for the year 2023 was $57.7 million compared to $57.9 million for the year 2022. Noninterest income was impacted year over year by a $2.4 million decline in loan related fees, a $1.1 million decline in gains on sales of loans, and a $0.4 million decline in brokerage revenue, offset by increases of $0.9 million in deposit related fees, $0.6 million in trust revenue, $1.2 million in securities gains, and $0.8 million in bank owned life insurance revenue. Noninterest Expense Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Year 2023 Year 2022 Percent Change Salaries $ 13,163 $ 12,755 $ 12,439 3.2 % 5.8 % $ 51,283 $ 48,934 4.8 % Employee benefits 5,282 5,298 5,433 (0.3 %) (2.8 %) 22,428 23,556 (4.8 %) Net occupancy and equipment 3,045 2,875 2,576 5.9 % 18.2 % 11,843 11,083 6.9 % Data processing 2,630 2,410 2,344 9.1 % 12.2 % 9,726 8,910 9.2 % Legal and professional fees 900 722 931 24.6 % (3.3 %) 3,350 3,434 (2.4 %) Advertising and marketing 923 767 826 20.4 % 11.8 % 3,214 3,005 7.0 % Taxes other than property and payroll 421 420 296 0.3 % 42.2 % 1,706 1,570 8.7 % Net other real estate owned expense 5 165 18 (96.8 %) (72.2 %) 350 456 (23.4 %) Other 5,259 5,435 5,396 (3.2 %) (2.5 %) 21,490 20,123 6.8 % Total noninterest expense $ 31,628 $ 30,847 $ 30,259 2.5 % 4.5 % $ 125,390 $ 121,071 3.6 % Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. The increase in noninterest expense quarter over quarter included a $0.4 million increase in personnel expense, a $0.2 million increase in occupancy and equipment, and a $0.2 million increase in data processing expense. The increase year over year resulted from a $0.6 million increase in personnel expense, a $0.5 million increase in occupancy and equipment expense, a $0.3 million increase in data processing expense, and a $0.3 million increase in FDIC insurance premiums. Noninterest expense for the year 2023 was $125.4 million compared to $121.1 million for the year 2022 with increases of $1.2 million in personnel expense, $0.8 million in occupancy and equipment, $0.8 million in data processing expense, $1.0 million in FDIC insurance premiums, and $0.4 million in telephone expense. The Compensation Committee of the Board of Directors has authorized a discretionary gift/payment to all full-time employees hired prior to July 1, 2023 of $1000 and all full-time employees hired after June 30, 2023 of $500. The Committee also authorized a discretionary gift/payment to our Executive Committee and other members of senior management. This discretionary gift/payment will occur January 19, 2024 for all eligible employees. This payment was accrued as of December 31, 2023 in the amount of $1.2 million. The Compensation Committee approved this gift/payment even though we did not achieve the desired financial results for our company and chose to do so because they recognize the significant efforts of all our employees during this very turbulent time in the banking industry. Balance Sheet Review Total Loans Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Commercial nonresidential real estate $ 778,637 $ 788,287 $ 762,349 (1.2 %) 2.1 % Commercial residential real estate 417,943 404,779 372,914 3.3 % 12.1 % Hotel/motel 395,765 386,067 343,640 2.5 % 15.2 % Other commercial 391,390 377,449 389,955 3.7 % 0.4 % Total commercial 1,983,735 1,956,582 1,868,858 1.4 % 6.1 % Residential mortgage 937,524 916,580 824,996 2.3 % 13.6 % Home equity loans/lines 147,036 139,085 120,540 5.7 % 22.0 % Total residential 1,084,560 1,055,665 945,536 2.7 % 14.7 % Consumer indirect 823,505 812,060 737,392 1.4 % 11.7 % Consumer direct 159,106 160,712 157,504 (1.0 %) 1.0 % Total consumer 982,611 972,772 894,896 1.0 % 9.8 % Total loans $ 4,050,906 $ 3,985,019 $ 3,709,290 1.7 % 9.2 % Total Deposits and Repurchase Agreements Percent Change 4Q 2023 Compared to: ($ in thousands) 4Q 2023 3Q 2023 4Q 2022 3Q 2023 4Q 2022 Non-interest bearing deposits $ 1,260,690 $ 1,314,189 $ 1,394,915 (4.1 %) (9.6 %) Interest bearing deposits Interest checking 123,927 125,107 112,265 (0.9 %) 10.4 % Money market savings 1,525,537 1,412,679 1,348,809 8.0 % 13.1 % Savings accounts 535,063 556,820 654,380 (3.9 %) (18.2 %) Time deposits 1,279,405 1,219,097 915,774 4.9 % 39.7 % Repurchase agreements 225,245 232,577 215,431 (3.2 %) 4.6 % Total interest bearing deposits and repurchase agreements 3,689,177 3,546,280 3,246,659 4.0 % 13.6 % Total deposits and repurchase agreements $ 4,949,867 $ 4,860,469 $ 4,641,574 1.8 % 6.6 % CTBI’s total assets at $5.8 billion as of December 31, 2023 increased $134.8 million, or 9.5% annualized, from September 30, 2023 and $389.4 million, or 7.2%, from December 31, 2022. Loans outstanding at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022. The increase in loans from prior quarter included a $27.2 million increase in the commercial loan portfolio, a $28.9 million increase in the residential loan portfolio, a $11.4 million increase in the indirect consumer loan portfolio, and a $1.6 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio increased $28.1 million, or an annualized 9.8%, from September 30, 2023 but decreased $91.5 million, or 7.3%, from December 31, 2022. Deposits in other banks increased $62.6 million from prior quarter and $135.2 million from December 31, 2022. Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022. Due to the increasing and competitive interest rate environment, we have seen a change in our deposit mix year over year with a 9.6% decrease in noninterest bearing deposits and a 13.6% increase in interest bearing deposits and repurchase agreements. Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022. Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022. CTBI’s annualized dividend yield to shareholders as of December 31, 2023 was 4.20%. Asset Quality Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Prior year nonperforming loans, as previously reported, exclude troubled debt restructurings which have been eliminated in the current period due to implementation of Accounting Standard Update 2022-02. Accruing loans 90+ days past due at $9.9 million increased $1.9 million from prior quarter and $1.4 million from December 31, 2022. Nonaccrual loans at $4.0 million decreased $0.9 million from prior quarter and $2.8 million from December 31, 2022. Accruing loans 30-89 days past due at $15.3 million increased $3.2 million from prior quarter and were relatively flat to December 31, 2022. 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 was $1.6 million at December 31, 2023 compared to $2.2 million at September 30, 2023 and $3.7 million at December 31, 2022. Sales of foreclosed properties for the quarter ended December 31, 2023 totaled $0.7 million while new foreclosed properties totaled $0.2 million. We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022. Net charge-offs for the year ended December 31, 2023 were $3.2 million, or 0.08% of average loans annualized compared to $0.7 million, or 0.02% of average loans annualized, for the year ended December 31, 2022. Allowance for Credit Losses Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter. Provision for credit losses for the year ended December 31, 2023 increased $1.9 million from the year ended December 31, 2022. Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2023 was 354.7% compared to 375.2% at September 30, 2023 and 300.4% at December 31, 2022. Our credit loss reserve as a percentage of total loans outstanding at December 31, 2023 remained at 1.22% from September 30, 2023 down from the 1.24% at December 31, 2022. 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 $5.8 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) December 31, 2023 (in thousands except per share data and # of employees) Three Three Three Twelve Twelve Months Months Months Months Months Ended Ended Ended Ended Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Interest income $ 73,329 $ 69,499 $ 57,458 $ 268,650 $ 197,742 Interest expense 30,354 26,359 12,714 95,540 28,640 Net interest income 42,975 43,140 44,744 173,110 169,102 Loan loss provision 1,815 1,871 1,539 6,811 4,905 Gains on sales of loans 54 105 174 395 1,525 Deposit related fees 7,312 7,823 7,411 29,935 29,049 Trust revenue 3,318 3,277 2,959 13,025 12,394 Loan related fees 467 1,283 1,119 3,792 6,185 Securities gains (losses) 258 355 117 996 (168 ) Other noninterest income 2,316 2,653 1,991 9,516 8,931 Total noninterest income 13,725 15,496 13,771 57,659 57,916 Personnel expense 18,445 18,053 17,872 73,711 72,490 Occupancy and equipment �� 3,045 2,875 2,576 11,843 11,083 Data processing expense 2,630 2,410 2,344 9,726 8,910 FDIC insurance premiums 655 612 374 2,483 1,447 Other noninterest expense 6,853 6,897 7,093 27,627 27,141 Total noninterest expense 31,628 30,847 30,259 125,390 121,071 Net income before taxes 23,257 25,918 26,717 98,568 101,042 Income taxes 4,598 5,290 4,274 20,564 19,228 Net income $ 18,659 $ 20,628 $ 22,443 $ 78,004 $ 81,814 Memo: TEQ interest income $ 73,626 $ 69,797 $ 57,707 $ 269,841 $ 198,698 Average shares outstanding 17,901 17,893 17,848 17,887 17,836 Diluted average shares outstanding 17,926 17,904 17,872 17,900 17,851 Basic earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.59 Diluted earnings per share $ 1.04 $ 1.15 $ 1.26 $ 4.36 $ 4.58 Dividends per share $ 0.46 $ 0.46 $ 0.44 $ 1.80 $ 1.68 Average balances: Loans $ 4,022,547 $ 3,952,096 $ 3,662,221 $ 3,888,585 $ 3,552,941 Earning assets 5,377,827 5,274,542 5,079,176 5,244,128 5,129,345 Total assets 5,713,977 5,603,586 5,412,752 5,572,141 5,438,696 Deposits, including repurchase agreements 4,916,208 4,750,448 4,682,014 4,771,106 4,688,976 Interest bearing liabilities 3,687,660 3,567,343 3,321,914 3,514,142 3,351,221 Shareholders' equity 674,349 665,129 617,338 663,664 642,423 Performance ratios: Return on average assets 1.30 % 1.46 % 1.64 % 1.40 % 1.50 % Return on average equity 10.98 % 12.30 % 14.42 % 11.75 % 12.73 % Yield on average earning assets (tax equivalent) 5.43 % 5.25 % 4.51 % 5.15 % 3.87 % Cost of interest bearing funds (tax equivalent) 3.27 % 2.93 % 1.52 % 2.72 % 0.85 % Net interest margin (tax equivalent) 3.19 % 3.27 % 3.51 % 3.32 % 3.32 % Efficiency ratio (tax equivalent) 55.74 % 52.66 % 51.81 % 54.29 % 53.12 % Loan charge-offs $ 2,529 $ 2,012 $ 1,995 $ 8,259 $ 5,346 Recoveries (1,538 ) (842 ) (2,004 ) (5,010 ) (4,666 ) Net charge-offs $ 991 $ 1,170 $ (9 ) $ 3,249 $ 680 Market Price: High $ 45.74 $ 39.86 $ 48.05 $ 47.35 $ 48.05 Low $ 33.91 $ 33.48 $ 40.81 $ 32.68 $ 39.10 Close $ 43.86 $ 34.26 $ 45.93 $ 43.86 $ 45.93 As of As of As of December 31, 2023 September 30, 2023 December 31, 2022 Assets: Loans $ 4,050,906 $ 3,985,019 $ 3,709,290 Loan loss reserve (49,543 ) (48,719 ) (45,981 ) Net loans 4,001,363 3,936,300 3,663,309 Loans held for sale 152 - 109 Securities AFS 1,163,724 1,135,878 1,256,226 Equity securities at fair value 3,158 2,900 2,166 Other equity investments 9,599 12,557 11,563 Other earning assets 214,664 152,064 79,475 Cash and due from banks 58,833 69,291 51,306 Premises and equipment 45,311 44,962 42,633 Right of use asset 15,703 16,100 17,071 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 191,699 199,390 190,968 Total Assets $ 5,769,696 $ 5,634,932 $ 5,380,316 Liabilities and Equity: Interest bearing checking $ 123,927 $ 125,107 $ 112,265 Savings deposits 2,060,600 1,969,499 2,003,189 CD's >=$100,000 704,222 666,808 471,934 Other time deposits 575,183 552,289 443,840 Total interest bearing deposits 3,463,932 3,313,703 3,031,228 Noninterest bearing deposits 1,260,690 1,314,189 1,394,915 Total deposits 4,724,622 4,627,892 4,426,143 Repurchase agreements 225,245 232,577 215,431 Other interest bearing liabilities 65,075 65,136 58,696 Lease liability 16,393 16,801 17,628 Other noninterest bearing liabilities 36,153 39,492 34,371 Total liabilities 5,067,488 4,981,898 4,752,269 Shareholders' equity 702,208 653,034 628,047 Total Liabilities and Equity $ 5,769,696 $ 5,634,932 $ 5,380,316 Ending shares outstanding 18,000 17,991 17,918 30 - 89 days past due loans $ 15,343 $ 12,098 $ 15,303 90 days past due loans 9,920 8,069 8,496 Nonaccrual loans 4,048 4,916 6,813 Foreclosed properties 1,616 2,175 3,671 Community bank leverage ratio 13.69 % 13.78 % 13.55 % Tangible equity to tangible assets ratio 11.16 % 10.55 % 10.58 % FTE employees 967 951 985 View source version on businesswire.com: https://www.businesswire.com/news/home/20240117725422/en/