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 1st Quarter 2024 By: Community Trust Bancorp, Inc. via Business Wire April 17, 2024 at 08:15 AM EDT Community Trust Bancorp, Inc. (NASDAQ: CTBI): Earnings Summary (in thousands except per share data) 1Q 2024 4Q 2023 1Q 2023 Net income $18,679 $18,659 $19,313 Earnings per share $1.04 $1.04 $1.08 Earnings per share – diluted $1.04 $1.04 $1.08 Return on average assets 1.30% 1.30% 1.44% Return on average equity 10.61% 10.98% 12.03% Efficiency ratio 4.94% 55.74% 55.29% Tangible common equity 11.10% 11.16% 10.82% Dividends declared per share $0.46 $0.46 $0.44 Book value per share $39.28 $39.01 $36.54 Weighted average shares 17,926 17,901 17,872 Weighted average shares – diluted 17,943 17,926 17,884 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the first quarter 2024 of $18.7 million, or $1.04 per basic share, compared to $18.7 million, or $1.04 per basic share, earned during the fourth quarter 2023 and $19.3 million, or $1.08 per basic share, earned during the first quarter 2023. Total revenue was $2.0 million above prior quarter and $1.1 million above prior year same quarter. Net interest revenue increased $0.6 million compared to prior quarter but decreased $0.3 million compared to prior year same quarter, and noninterest income increased $1.4 million compared to prior quarter and $1.5 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year fourth quarter. Noninterest expense increased $0.6 million compared to prior quarter and $0.3 million compared to prior year same quarter. Noninterest expense and tax expense were impacted by an accounting method change (ASU No. 2023-02), which is intended to improve the accounting and disclosures for investments in tax credit structures. Historically, the amortization expense related to our tax credits has been booked to noninterest expense. Beginning in January 2024, the amortization expense is now booked to tax expense. Our total amortization expense related to tax credits was $0.8 million for the three months ended March 31, 2024. 1st Quarter 2024 Highlights Net interest income for the quarter of $43.6 million was $0.6 million above prior quarter but $0.3 million below prior year same quarter, as our net interest margin increased 4 basis points from prior quarter but decreased 26 basis points from prior year same quarter. Provision for credit losses at $2.7 million for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year same quarter. Our loan portfolio at $4.2 billion increased $110.3 million, an annualized 10.9%, from December 31, 2023 and $383.8 million, or 10.2%, from March 31, 2023. We had net loan charge-offs of $1.6 million, or 0.16% of average loans annualized, for the first quarter 2024 compared to $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 and $0.4 million for the first quarter 2023. Our total nonperforming loans increased to $15.9 million at March 31, 2024 from $14.0 million at December 31, 2023 and $12.2 million at March 31, 2023. Nonperforming assets at $17.1 million increased $1.5 million from December 31, 2023 and $2.1 million from March 31, 2024. Deposits, including repurchase agreements, at $5.0 billion increased $69.1 million, or an annualized 5.6%, from December 31, 2023 and $266.7 million, or 5.6% from March 31, 2023. Shareholders’ equity at $707.7 million increased $5.5 million, or an annualized 3.2%, during the quarter and $50.9 million, or 7.7%, from March 31, 2023. Noninterest income for the quarter ended March 31, 2024 of $15.1 million was $1.4 million, or 10.3%, above prior quarter and $1.5 million, or 10.6%, above prior year same quarter. Noninterest expense for the quarter ended March 31, 2024 of $32.2 million was $0.6 million, or 1.9%, above prior quarter and $0.3 million, or 1.0%, above prior year same quarter. Net Interest Income Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Components of net interest income Income on earning assets $75,002 $73,329 $60,995 2.3% 23.0% Expense on interest bearing liabilities 31,411 30,354 17,079 3.5% 83.9% Net interest income 43,591 42,975 43,916 1.4% (0.7%) TEQ 294 297 298 (1.0%) (1.3%) Net interest income, tax equivalent $43,885 $43,272 $44,214 1.4% (0.7%) Average yield and rates paid: Earning assets yield 5.55% 5.43% 4.84% 2.2% 14.7% Rate paid on interest bearing liabilities 3.35% 3.27% 2.06% 2.4% 62.6% Gross interest margin 2.20% 2.16% 2.78% 1.9% (20.9%) Net interest margin 3.23% 3.19% 3.49% 1.3% (7.4%) Average balances: Investment securities $1,148,014 $1,144,078 $1,251,948 0.3% (8.3%) Loans $4,096,866 $4,022,547 $3,739,443 1.8% 9.6% Earning assets $5,458,075 $5,377,827 $5,131,385 1.5% 6.4% Interest-bearing liabilities $3,773,513 $3,687,660 $3,362,331 2.3% 12.2% Net interest income for the quarter of $43.6 million was $0.6 million above prior quarter but $0.3 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.23% increased 4 basis points from prior quarter but decreased 26 basis points from prior year same quarter. Our average earning assets increased $80.2 million from prior quarter and $326.7 million from prior year same quarter. Our yield on average earning assets increased 12 basis points from prior quarter and 71 basis points from prior year same quarter, and our cost of funds increased 8 basis points from prior quarter and 129 basis points from prior year same quarter. Our ratio of average loans to deposits, including repurchase agreements, was 82.7% for the quarter ended March 31, 2024 compared to 81.8% for the quarter ended December 31, 2023 and 79.8% for the quarter ended March 31, 2023. Noninterest Income Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Deposit related fees $7,011 $7,312 $7,287 (4.1%) (3.8%) Trust revenue 3,517 3,318 3,079 6.0% 14.2% Gains on sales of loans 45 54 121 (16.7%) (62.8%) Loan related fees 1,352 467 845 189.5% 60.0% Bank owned life insurance revenue 1,292 816 858 58.3% 50.6% Brokerage revenue 490 285 348 71.9% 40.8% Other 1,427 1,473 1,144 (3.1%) 24.7% Total noninterest income $15,134 $13,725 $13,682 10.3% 10.6% Noninterest income for the quarter ended March 31, 2024 of $15.1 million was $1.4 million, or 10.3%, above prior quarter and $1.5 million, or 10.6%, above prior year same quarter. The quarter over quarter increase included a $0.9 million increase in loan related fees, a $0.5 million increase in bank owned life insurance revenue, a $0.2 million increase in trust revenue, and a $0.2 million increase in brokerage revenue, partially offset by $0.3 million decrease in deposit related fees. The year over year increase included a $0.5 million increase in loan related fees, a $0.4 million increase in bank owned life insurance revenue, and a $0.4 million increase in trust revenue. The increase in loan related fees resulted from the fluctuation in the fair market value of our mortgage servicing rights. Noninterest Expense Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Salaries $13,036 $13,163 $12,633 (1.0%) 3.2% Employee benefits 7,086 5,282 6,275 34.2% 12.9% Net occupancy and equipment 3,028 3,045 3,028 (0.6%) (0.0%) Data processing 2,518 2,630 2,303 (4.3%) 9.3% Legal and professional fees 832 900 816 (7.6%) 2.0% Advertising and marketing 577 923 820 (37.5%) (29.6%) Taxes other than property and payroll 442 421 432 5.0% 2.3% Other 4,701 5,264 5,583 (10.7%) (15.8%) Total noninterest expense $32,220 $31,628 $31,890 1.9% 1.0% Noninterest expense for the quarter ended March 31, 2024 of $32.2 million was $0.6 million, or 1.9%, above prior quarter and $0.3 million, or 1.0%, above prior year same quarter. The increase in noninterest expense quarter over quarter included a $1.7 million increase in personnel expense, partially offset by decreases in other direct expenses ($0.7 million) and advertising expense ($0.2 million). The increase in personnel expense included a $1.0 million increase in bonuses and incentives and a $0.7 million increase in the cost of group medical and life insurance benefits. The decrease in other direct expenses was the result of the accounting change related to the amortization of tax credits discussed above. The increase year over year primarily resulted from a $1.2 million increase in personnel expense, partially offset by a $1.0 million decrease in other direct expenses related to the amortization of tax credits. The year over year increase in personnel expense included a $0.4 million increase in salaries and a $0.7 million increase in the cost of group medical and life insurance benefits. Balance Sheet Review Total Loans Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Commercial nonresidential real estate $813,904 $778,637 $750,498 4.5% 8.4% Commercial residential real estate 456,585 417,943 385,328 9.2% 18.5% Hotel/motel 416,759 395,765 348,876 5.3% 19.5% Other commercial 397,922 391,390 392,398 1.7% 1.4% Total commercial 2,085,170 1,983,735 1,877,100 5.1% 11.1% Residential mortgage 955,616 937,524 846,435 1.9% 12.9% Home equity loans/lines 151,577 147,036 124,096 3.1% 22.1% Total residential 1,107,193 1,084,560 970,531 2.1% 14.1% Consumer indirect 813,005 823,505 772,570 (1.3%) 5.2% Consumer direct 155,807 159,106 157,158 (2.1%) (0.9%) Total consumer 968,812 982,611 929,728 (1.4%) 4.2% Total loans $4,161,175 $4,050,906 $3,777,359 2.7% 10.2% Total Deposits and Repurchase Agreements Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Non-interest bearing deposits $1,274,583 $1,260,690 $1,409,839 1.1% (9.6%) Interest bearing deposits Interest checking 131,227 123,927 120,678 5.9% 8.7% Money market savings 1,608,849 1,525,537 1,408,314 5.5% 14.2% Savings accounts 543,338 535,063 642,232 1.5% (15.4%) Time deposits 1,226,273 1,279,405 962,361 (4.2%) 27.4% Repurchase agreements 234,671 225,245 208,777 4.2% 12.4% Total interest bearing deposits and repurchase agreements 3,744,358 3,689,177 3,342,362 1.5% 12.0% Total deposits and repurchase agreements $5,018,941 $4,949,867 $4,752,201 1.4% 5.6% CTBI’s total assets at $5.9 billion as of March 31, 2024 increased $80.6 million, or 5.6% annualized, from December 31, 2023 and $320.9 million, or 5.8%, from March 31, 2023. Loans outstanding at $4.2 billion increased $110.3 million, an annualized 10.9%, from December 31, 2023 and $383.8 million, or 10.2%, from March 31, 2023. The increase in loans from prior quarter included a $101.4 million increase in the commercial loan portfolio, a $22.6 million increase in the residential loan portfolio, partially offset by a $10.5 million decrease in the indirect consumer loan portfolio and a $3.3 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio decreased $51.8 million, or an annualized 17.9%, from December 31, 2023 and $128.4 million, or 10.3%, from March 31, 2023. Deposits in other banks increased $24.9 million from prior quarter and $62.3 million from March 31, 2023. Deposits, including repurchase agreements, at $5.0 billion increased $69.1 million, or an annualized 5.6%, from December 31, 2023 and $266.7 million, or 5.6% from March 31, 2023. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of March 31, 2024, no one customer accounted for more than 2.25% of our $5.0 billion in deposits. Only three customer relationships accounted for more than 1% each. Shareholders’ equity at $707.7 million increased $5.5 million, or an annualized 3.2%, during the quarter and $50.9 million, or 7.7%, from March 31, 2023. Net unrealized losses on securities, net of deferred taxes, were $106.9 million at March 31, 2024, compared to $103.3 million at December 31, 2023 and $112.4 million at March 31, 2023. In addition, we had a cumulative effect impact related to the adoption of ASU No. 2023-02, discussed above, that reduced retained earnings by $2.0 million. CTBI’s annualized dividend yield to shareholders as of March 31, 2024 was 4.31%. Asset Quality Our total nonperforming loans increased to $15.9 million at March 31, 2024 from $14.0 million at December 31, 2023 and $12.2 million at March 31, 2023. Accruing loans 90+ days past due at $11.6 million increased $1.6 million from prior quarter and $5.3 million from March 31, 2023. Nonaccrual loans at $4.3 million increased $0.3 million from prior quarter but decreased $1.7 million from March 31, 2023. Accruing loans 30-89 days past due at $12.2 million decreased $3.1 million from prior quarter but increased $0.5 million from March 31, 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 $1.6 million, or 0.16% of average loans annualized, for the first quarter 2024 compared to $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 and $0.4 million, or 0.05% of average loans annualized for the first quarter 2023. Allowance for Credit Losses Our provision for credit losses for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year same quarter. Our reserve coverage (allowance for credit losses to nonperforming loans) at March 31, 2024 was 319.0% compared to 354.7% at December 31, 2023 and 382.3% at March 31, 2023. Our credit loss reserve as a percentage of total loans outstanding at March 31, 2024 remained at 1.22% from December 31, 2023, down from the 1.24% at March 31, 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 $5.9 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) March 31, 2024 (in thousands except per share data and # of employees) Three Three Three Months Months Months Ended Ended Ended March 31, 2024 December 31, 2023 March 31, 2023 Interest income $ 75,002 $ 73,329 $ 60,995 Interest expense 31,411 30,354 17,079 Net interest income 43,591 42,975 43,916 Loan loss provision 2,656 1,815 1,116 Gains on sales of loans 45 54 121 Deposit related fees 7,011 7,312 7,287 Trust revenue 3,517 3,318 3,079 Loan related fees 1,352 467 845 Securities gains (losses) 371 258 218 Other noninterest income 2,838 2,316 2,132 Total noninterest income 15,134 13,725 13,682 Personnel expense 20,122 18,445 18,908 Occupancy and equipment 3,028 3,045 3,028 Data processing expense 2,518 2,630 2,303 FDIC insurance premiums 642 655 606 Other noninterest expense 5,910 6,853 7,045 Total noninterest expense 32,220 31,628 31,890 Net income before taxes 23,849 23,257 24,592 Income taxes 5,170 4,598 5,279 Net income $ 18,679 $ 18,659 $ 19,313 Memo: TEQ interest income $ 75,296 $ 73,626 $ 61,293 Average shares outstanding 17,926 17,901 17,872 Diluted average shares outstanding 17,943 17,926 17,884 Basic earnings per share $ 1.04 $ 1.04 $ 1.08 Diluted earnings per share $ 1.04 $ 1.04 $ 1.08 Dividends per share $ 0.46 $ 0.46 $ 0.44 Average balances: Loans $ 4,096,866 $ 4,022,547 $ 3,739,443 Earning assets 5,458,075 5,377,827 5,131,385 Total assets 5,786,515 5,713,977 5,458,067 Deposits, including repurchase agreements 4,956,820 4,916,208 4,688,103 Interest bearing liabilities 3,773,513 3,687,660 3,362,331 Shareholders' equity 708,341 674,349 651,008 Performance ratios: Return on average assets 1.30 % 1.30 % 1.44 % Return on average equity 10.61 % 10.98 % 12.03 % Yield on average earning assets (tax equivalent) 5.55 % 5.43 % 4.84 % Cost of interest bearing funds (tax equivalent) 3.35 % 3.27 % 2.06 % Net interest margin (tax equivalent) 3.23 % 3.19 % 3.49 % Efficiency ratio (tax equivalent) 54.94 % 55.74 % 55.29 % Loan charge-offs $ 2,667 $ 2,529 $ 1,765 Recoveries (1,039 ) (1,538 ) (1,351 ) Net charge-offs $ 1,628 $ 991 $ 414 Market Price: High $ 44.38 $ 45.74 $ 47.35 Low $ 38.44 $ 33.91 $ 37.31 Close $ 42.65 $ 43.86 $ 37.95 As of As of As of March 31, 2024 December 31, 2023 March 31, 2023 Assets: Loans $ 4,161,175 $ 4,050,906 $ 3,777,359 Loan loss reserve (50,571 ) (49,543 ) (46,683 ) Net loans 4,110,604 4,001,363 3,730,676 Loans held for sale 57 152 182 Securities AFS 1,111,505 1,163,724 1,241,080 Equity securities at fair value 3,529 3,158 2,380 Other equity investments 9,327 9,599 9,713 Other earning assets 239,554 214,664 177,209 Cash and due from banks 55,841 58,833 60,762 Premises and equipment 46,595 45,311 42,636 Right of use asset 15,500 15,703 17,037 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 192,253 191,699 182,155 Total Assets $ 5,850,255 $ 5,769,696 $ 5,529,320 Liabilities and Equity: Interest bearing checking $ 131,227 $ 123,927 $ 120,678 Savings deposits 2,152,187 2,060,600 2,050,546 CD's >=$100,000 678,148 704,222 501,557 Other time deposits 548,125 575,183 460,804 Total interest bearing deposits 3,509,687 3,463,932 3,133,585 Noninterest bearing deposits 1,274,583 1,260,690 1,409,839 Total deposits 4,784,270 4,724,622 4,543,424 Repurchase agreements 234,671 225,245 208,777 Other interest bearing liabilities 65,014 65,075 65,254 Lease liability 16,208 16,393 17,619 Other noninterest bearing liabilities 42,368 36,153 37,425 Total liabilities 5,142,531 5,067,488 4,872,499 Shareholders' equity 707,724 702,208 656,821 Total Liabilities and Equity $ 5,850,255 $ 5,769,696 $ 5,529,320 Ending shares outstanding 18,019 18,000 17,976 30 - 89 days past due loans $ 12,234 $ 15,343 $ 11,728 90 days past due loans 11,550 9,920 6,218 Nonaccrual loans 4,302 4,048 5,993 Foreclosed properties 1,266 1,616 2,776 Community bank leverage ratio 13.74 % 13.69 % 13.71 % Tangible equity to tangible assets ratio 11.10 % 11.16 % 10.82 % FTE employees 945 967 945 View source version on businesswire.com: https://www.businesswire.com/news/home/20240417151596/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 1st Quarter 2024 By: Community Trust Bancorp, Inc. via Business Wire April 17, 2024 at 08:15 AM EDT Community Trust Bancorp, Inc. (NASDAQ: CTBI): Earnings Summary (in thousands except per share data) 1Q 2024 4Q 2023 1Q 2023 Net income $18,679 $18,659 $19,313 Earnings per share $1.04 $1.04 $1.08 Earnings per share – diluted $1.04 $1.04 $1.08 Return on average assets 1.30% 1.30% 1.44% Return on average equity 10.61% 10.98% 12.03% Efficiency ratio 4.94% 55.74% 55.29% Tangible common equity 11.10% 11.16% 10.82% Dividends declared per share $0.46 $0.46 $0.44 Book value per share $39.28 $39.01 $36.54 Weighted average shares 17,926 17,901 17,872 Weighted average shares – diluted 17,943 17,926 17,884 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the first quarter 2024 of $18.7 million, or $1.04 per basic share, compared to $18.7 million, or $1.04 per basic share, earned during the fourth quarter 2023 and $19.3 million, or $1.08 per basic share, earned during the first quarter 2023. Total revenue was $2.0 million above prior quarter and $1.1 million above prior year same quarter. Net interest revenue increased $0.6 million compared to prior quarter but decreased $0.3 million compared to prior year same quarter, and noninterest income increased $1.4 million compared to prior quarter and $1.5 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year fourth quarter. Noninterest expense increased $0.6 million compared to prior quarter and $0.3 million compared to prior year same quarter. Noninterest expense and tax expense were impacted by an accounting method change (ASU No. 2023-02), which is intended to improve the accounting and disclosures for investments in tax credit structures. Historically, the amortization expense related to our tax credits has been booked to noninterest expense. Beginning in January 2024, the amortization expense is now booked to tax expense. Our total amortization expense related to tax credits was $0.8 million for the three months ended March 31, 2024. 1st Quarter 2024 Highlights Net interest income for the quarter of $43.6 million was $0.6 million above prior quarter but $0.3 million below prior year same quarter, as our net interest margin increased 4 basis points from prior quarter but decreased 26 basis points from prior year same quarter. Provision for credit losses at $2.7 million for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year same quarter. Our loan portfolio at $4.2 billion increased $110.3 million, an annualized 10.9%, from December 31, 2023 and $383.8 million, or 10.2%, from March 31, 2023. We had net loan charge-offs of $1.6 million, or 0.16% of average loans annualized, for the first quarter 2024 compared to $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 and $0.4 million for the first quarter 2023. Our total nonperforming loans increased to $15.9 million at March 31, 2024 from $14.0 million at December 31, 2023 and $12.2 million at March 31, 2023. Nonperforming assets at $17.1 million increased $1.5 million from December 31, 2023 and $2.1 million from March 31, 2024. Deposits, including repurchase agreements, at $5.0 billion increased $69.1 million, or an annualized 5.6%, from December 31, 2023 and $266.7 million, or 5.6% from March 31, 2023. Shareholders’ equity at $707.7 million increased $5.5 million, or an annualized 3.2%, during the quarter and $50.9 million, or 7.7%, from March 31, 2023. Noninterest income for the quarter ended March 31, 2024 of $15.1 million was $1.4 million, or 10.3%, above prior quarter and $1.5 million, or 10.6%, above prior year same quarter. Noninterest expense for the quarter ended March 31, 2024 of $32.2 million was $0.6 million, or 1.9%, above prior quarter and $0.3 million, or 1.0%, above prior year same quarter. Net Interest Income Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Components of net interest income Income on earning assets $75,002 $73,329 $60,995 2.3% 23.0% Expense on interest bearing liabilities 31,411 30,354 17,079 3.5% 83.9% Net interest income 43,591 42,975 43,916 1.4% (0.7%) TEQ 294 297 298 (1.0%) (1.3%) Net interest income, tax equivalent $43,885 $43,272 $44,214 1.4% (0.7%) Average yield and rates paid: Earning assets yield 5.55% 5.43% 4.84% 2.2% 14.7% Rate paid on interest bearing liabilities 3.35% 3.27% 2.06% 2.4% 62.6% Gross interest margin 2.20% 2.16% 2.78% 1.9% (20.9%) Net interest margin 3.23% 3.19% 3.49% 1.3% (7.4%) Average balances: Investment securities $1,148,014 $1,144,078 $1,251,948 0.3% (8.3%) Loans $4,096,866 $4,022,547 $3,739,443 1.8% 9.6% Earning assets $5,458,075 $5,377,827 $5,131,385 1.5% 6.4% Interest-bearing liabilities $3,773,513 $3,687,660 $3,362,331 2.3% 12.2% Net interest income for the quarter of $43.6 million was $0.6 million above prior quarter but $0.3 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.23% increased 4 basis points from prior quarter but decreased 26 basis points from prior year same quarter. Our average earning assets increased $80.2 million from prior quarter and $326.7 million from prior year same quarter. Our yield on average earning assets increased 12 basis points from prior quarter and 71 basis points from prior year same quarter, and our cost of funds increased 8 basis points from prior quarter and 129 basis points from prior year same quarter. Our ratio of average loans to deposits, including repurchase agreements, was 82.7% for the quarter ended March 31, 2024 compared to 81.8% for the quarter ended December 31, 2023 and 79.8% for the quarter ended March 31, 2023. Noninterest Income Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Deposit related fees $7,011 $7,312 $7,287 (4.1%) (3.8%) Trust revenue 3,517 3,318 3,079 6.0% 14.2% Gains on sales of loans 45 54 121 (16.7%) (62.8%) Loan related fees 1,352 467 845 189.5% 60.0% Bank owned life insurance revenue 1,292 816 858 58.3% 50.6% Brokerage revenue 490 285 348 71.9% 40.8% Other 1,427 1,473 1,144 (3.1%) 24.7% Total noninterest income $15,134 $13,725 $13,682 10.3% 10.6% Noninterest income for the quarter ended March 31, 2024 of $15.1 million was $1.4 million, or 10.3%, above prior quarter and $1.5 million, or 10.6%, above prior year same quarter. The quarter over quarter increase included a $0.9 million increase in loan related fees, a $0.5 million increase in bank owned life insurance revenue, a $0.2 million increase in trust revenue, and a $0.2 million increase in brokerage revenue, partially offset by $0.3 million decrease in deposit related fees. The year over year increase included a $0.5 million increase in loan related fees, a $0.4 million increase in bank owned life insurance revenue, and a $0.4 million increase in trust revenue. The increase in loan related fees resulted from the fluctuation in the fair market value of our mortgage servicing rights. Noninterest Expense Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Salaries $13,036 $13,163 $12,633 (1.0%) 3.2% Employee benefits 7,086 5,282 6,275 34.2% 12.9% Net occupancy and equipment 3,028 3,045 3,028 (0.6%) (0.0%) Data processing 2,518 2,630 2,303 (4.3%) 9.3% Legal and professional fees 832 900 816 (7.6%) 2.0% Advertising and marketing 577 923 820 (37.5%) (29.6%) Taxes other than property and payroll 442 421 432 5.0% 2.3% Other 4,701 5,264 5,583 (10.7%) (15.8%) Total noninterest expense $32,220 $31,628 $31,890 1.9% 1.0% Noninterest expense for the quarter ended March 31, 2024 of $32.2 million was $0.6 million, or 1.9%, above prior quarter and $0.3 million, or 1.0%, above prior year same quarter. The increase in noninterest expense quarter over quarter included a $1.7 million increase in personnel expense, partially offset by decreases in other direct expenses ($0.7 million) and advertising expense ($0.2 million). The increase in personnel expense included a $1.0 million increase in bonuses and incentives and a $0.7 million increase in the cost of group medical and life insurance benefits. The decrease in other direct expenses was the result of the accounting change related to the amortization of tax credits discussed above. The increase year over year primarily resulted from a $1.2 million increase in personnel expense, partially offset by a $1.0 million decrease in other direct expenses related to the amortization of tax credits. The year over year increase in personnel expense included a $0.4 million increase in salaries and a $0.7 million increase in the cost of group medical and life insurance benefits. Balance Sheet Review Total Loans Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Commercial nonresidential real estate $813,904 $778,637 $750,498 4.5% 8.4% Commercial residential real estate 456,585 417,943 385,328 9.2% 18.5% Hotel/motel 416,759 395,765 348,876 5.3% 19.5% Other commercial 397,922 391,390 392,398 1.7% 1.4% Total commercial 2,085,170 1,983,735 1,877,100 5.1% 11.1% Residential mortgage 955,616 937,524 846,435 1.9% 12.9% Home equity loans/lines 151,577 147,036 124,096 3.1% 22.1% Total residential 1,107,193 1,084,560 970,531 2.1% 14.1% Consumer indirect 813,005 823,505 772,570 (1.3%) 5.2% Consumer direct 155,807 159,106 157,158 (2.1%) (0.9%) Total consumer 968,812 982,611 929,728 (1.4%) 4.2% Total loans $4,161,175 $4,050,906 $3,777,359 2.7% 10.2% Total Deposits and Repurchase Agreements Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Non-interest bearing deposits $1,274,583 $1,260,690 $1,409,839 1.1% (9.6%) Interest bearing deposits Interest checking 131,227 123,927 120,678 5.9% 8.7% Money market savings 1,608,849 1,525,537 1,408,314 5.5% 14.2% Savings accounts 543,338 535,063 642,232 1.5% (15.4%) Time deposits 1,226,273 1,279,405 962,361 (4.2%) 27.4% Repurchase agreements 234,671 225,245 208,777 4.2% 12.4% Total interest bearing deposits and repurchase agreements 3,744,358 3,689,177 3,342,362 1.5% 12.0% Total deposits and repurchase agreements $5,018,941 $4,949,867 $4,752,201 1.4% 5.6% CTBI’s total assets at $5.9 billion as of March 31, 2024 increased $80.6 million, or 5.6% annualized, from December 31, 2023 and $320.9 million, or 5.8%, from March 31, 2023. Loans outstanding at $4.2 billion increased $110.3 million, an annualized 10.9%, from December 31, 2023 and $383.8 million, or 10.2%, from March 31, 2023. The increase in loans from prior quarter included a $101.4 million increase in the commercial loan portfolio, a $22.6 million increase in the residential loan portfolio, partially offset by a $10.5 million decrease in the indirect consumer loan portfolio and a $3.3 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio decreased $51.8 million, or an annualized 17.9%, from December 31, 2023 and $128.4 million, or 10.3%, from March 31, 2023. Deposits in other banks increased $24.9 million from prior quarter and $62.3 million from March 31, 2023. Deposits, including repurchase agreements, at $5.0 billion increased $69.1 million, or an annualized 5.6%, from December 31, 2023 and $266.7 million, or 5.6% from March 31, 2023. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of March 31, 2024, no one customer accounted for more than 2.25% of our $5.0 billion in deposits. Only three customer relationships accounted for more than 1% each. Shareholders’ equity at $707.7 million increased $5.5 million, or an annualized 3.2%, during the quarter and $50.9 million, or 7.7%, from March 31, 2023. Net unrealized losses on securities, net of deferred taxes, were $106.9 million at March 31, 2024, compared to $103.3 million at December 31, 2023 and $112.4 million at March 31, 2023. In addition, we had a cumulative effect impact related to the adoption of ASU No. 2023-02, discussed above, that reduced retained earnings by $2.0 million. CTBI’s annualized dividend yield to shareholders as of March 31, 2024 was 4.31%. Asset Quality Our total nonperforming loans increased to $15.9 million at March 31, 2024 from $14.0 million at December 31, 2023 and $12.2 million at March 31, 2023. Accruing loans 90+ days past due at $11.6 million increased $1.6 million from prior quarter and $5.3 million from March 31, 2023. Nonaccrual loans at $4.3 million increased $0.3 million from prior quarter but decreased $1.7 million from March 31, 2023. Accruing loans 30-89 days past due at $12.2 million decreased $3.1 million from prior quarter but increased $0.5 million from March 31, 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 $1.6 million, or 0.16% of average loans annualized, for the first quarter 2024 compared to $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 and $0.4 million, or 0.05% of average loans annualized for the first quarter 2023. Allowance for Credit Losses Our provision for credit losses for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year same quarter. Our reserve coverage (allowance for credit losses to nonperforming loans) at March 31, 2024 was 319.0% compared to 354.7% at December 31, 2023 and 382.3% at March 31, 2023. Our credit loss reserve as a percentage of total loans outstanding at March 31, 2024 remained at 1.22% from December 31, 2023, down from the 1.24% at March 31, 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 $5.9 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) March 31, 2024 (in thousands except per share data and # of employees) Three Three Three Months Months Months Ended Ended Ended March 31, 2024 December 31, 2023 March 31, 2023 Interest income $ 75,002 $ 73,329 $ 60,995 Interest expense 31,411 30,354 17,079 Net interest income 43,591 42,975 43,916 Loan loss provision 2,656 1,815 1,116 Gains on sales of loans 45 54 121 Deposit related fees 7,011 7,312 7,287 Trust revenue 3,517 3,318 3,079 Loan related fees 1,352 467 845 Securities gains (losses) 371 258 218 Other noninterest income 2,838 2,316 2,132 Total noninterest income 15,134 13,725 13,682 Personnel expense 20,122 18,445 18,908 Occupancy and equipment 3,028 3,045 3,028 Data processing expense 2,518 2,630 2,303 FDIC insurance premiums 642 655 606 Other noninterest expense 5,910 6,853 7,045 Total noninterest expense 32,220 31,628 31,890 Net income before taxes 23,849 23,257 24,592 Income taxes 5,170 4,598 5,279 Net income $ 18,679 $ 18,659 $ 19,313 Memo: TEQ interest income $ 75,296 $ 73,626 $ 61,293 Average shares outstanding 17,926 17,901 17,872 Diluted average shares outstanding 17,943 17,926 17,884 Basic earnings per share $ 1.04 $ 1.04 $ 1.08 Diluted earnings per share $ 1.04 $ 1.04 $ 1.08 Dividends per share $ 0.46 $ 0.46 $ 0.44 Average balances: Loans $ 4,096,866 $ 4,022,547 $ 3,739,443 Earning assets 5,458,075 5,377,827 5,131,385 Total assets 5,786,515 5,713,977 5,458,067 Deposits, including repurchase agreements 4,956,820 4,916,208 4,688,103 Interest bearing liabilities 3,773,513 3,687,660 3,362,331 Shareholders' equity 708,341 674,349 651,008 Performance ratios: Return on average assets 1.30 % 1.30 % 1.44 % Return on average equity 10.61 % 10.98 % 12.03 % Yield on average earning assets (tax equivalent) 5.55 % 5.43 % 4.84 % Cost of interest bearing funds (tax equivalent) 3.35 % 3.27 % 2.06 % Net interest margin (tax equivalent) 3.23 % 3.19 % 3.49 % Efficiency ratio (tax equivalent) 54.94 % 55.74 % 55.29 % Loan charge-offs $ 2,667 $ 2,529 $ 1,765 Recoveries (1,039 ) (1,538 ) (1,351 ) Net charge-offs $ 1,628 $ 991 $ 414 Market Price: High $ 44.38 $ 45.74 $ 47.35 Low $ 38.44 $ 33.91 $ 37.31 Close $ 42.65 $ 43.86 $ 37.95 As of As of As of March 31, 2024 December 31, 2023 March 31, 2023 Assets: Loans $ 4,161,175 $ 4,050,906 $ 3,777,359 Loan loss reserve (50,571 ) (49,543 ) (46,683 ) Net loans 4,110,604 4,001,363 3,730,676 Loans held for sale 57 152 182 Securities AFS 1,111,505 1,163,724 1,241,080 Equity securities at fair value 3,529 3,158 2,380 Other equity investments 9,327 9,599 9,713 Other earning assets 239,554 214,664 177,209 Cash and due from banks 55,841 58,833 60,762 Premises and equipment 46,595 45,311 42,636 Right of use asset 15,500 15,703 17,037 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 192,253 191,699 182,155 Total Assets $ 5,850,255 $ 5,769,696 $ 5,529,320 Liabilities and Equity: Interest bearing checking $ 131,227 $ 123,927 $ 120,678 Savings deposits 2,152,187 2,060,600 2,050,546 CD's >=$100,000 678,148 704,222 501,557 Other time deposits 548,125 575,183 460,804 Total interest bearing deposits 3,509,687 3,463,932 3,133,585 Noninterest bearing deposits 1,274,583 1,260,690 1,409,839 Total deposits 4,784,270 4,724,622 4,543,424 Repurchase agreements 234,671 225,245 208,777 Other interest bearing liabilities 65,014 65,075 65,254 Lease liability 16,208 16,393 17,619 Other noninterest bearing liabilities 42,368 36,153 37,425 Total liabilities 5,142,531 5,067,488 4,872,499 Shareholders' equity 707,724 702,208 656,821 Total Liabilities and Equity $ 5,850,255 $ 5,769,696 $ 5,529,320 Ending shares outstanding 18,019 18,000 17,976 30 - 89 days past due loans $ 12,234 $ 15,343 $ 11,728 90 days past due loans 11,550 9,920 6,218 Nonaccrual loans 4,302 4,048 5,993 Foreclosed properties 1,266 1,616 2,776 Community bank leverage ratio 13.74 % 13.69 % 13.71 % Tangible equity to tangible assets ratio 11.10 % 11.16 % 10.82 % FTE employees 945 967 945 View source version on businesswire.com: https://www.businesswire.com/news/home/20240417151596/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) 1Q 2024 4Q 2023 1Q 2023 Net income $18,679 $18,659 $19,313 Earnings per share $1.04 $1.04 $1.08 Earnings per share – diluted $1.04 $1.04 $1.08 Return on average assets 1.30% 1.30% 1.44% Return on average equity 10.61% 10.98% 12.03% Efficiency ratio 4.94% 55.74% 55.29% Tangible common equity 11.10% 11.16% 10.82% Dividends declared per share $0.46 $0.46 $0.44 Book value per share $39.28 $39.01 $36.54 Weighted average shares 17,926 17,901 17,872 Weighted average shares – diluted 17,943 17,926 17,884 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the first quarter 2024 of $18.7 million, or $1.04 per basic share, compared to $18.7 million, or $1.04 per basic share, earned during the fourth quarter 2023 and $19.3 million, or $1.08 per basic share, earned during the first quarter 2023. Total revenue was $2.0 million above prior quarter and $1.1 million above prior year same quarter. Net interest revenue increased $0.6 million compared to prior quarter but decreased $0.3 million compared to prior year same quarter, and noninterest income increased $1.4 million compared to prior quarter and $1.5 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year fourth quarter. Noninterest expense increased $0.6 million compared to prior quarter and $0.3 million compared to prior year same quarter. Noninterest expense and tax expense were impacted by an accounting method change (ASU No. 2023-02), which is intended to improve the accounting and disclosures for investments in tax credit structures. Historically, the amortization expense related to our tax credits has been booked to noninterest expense. Beginning in January 2024, the amortization expense is now booked to tax expense. Our total amortization expense related to tax credits was $0.8 million for the three months ended March 31, 2024. 1st Quarter 2024 Highlights Net interest income for the quarter of $43.6 million was $0.6 million above prior quarter but $0.3 million below prior year same quarter, as our net interest margin increased 4 basis points from prior quarter but decreased 26 basis points from prior year same quarter. Provision for credit losses at $2.7 million for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year same quarter. Our loan portfolio at $4.2 billion increased $110.3 million, an annualized 10.9%, from December 31, 2023 and $383.8 million, or 10.2%, from March 31, 2023. We had net loan charge-offs of $1.6 million, or 0.16% of average loans annualized, for the first quarter 2024 compared to $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 and $0.4 million for the first quarter 2023. Our total nonperforming loans increased to $15.9 million at March 31, 2024 from $14.0 million at December 31, 2023 and $12.2 million at March 31, 2023. Nonperforming assets at $17.1 million increased $1.5 million from December 31, 2023 and $2.1 million from March 31, 2024. Deposits, including repurchase agreements, at $5.0 billion increased $69.1 million, or an annualized 5.6%, from December 31, 2023 and $266.7 million, or 5.6% from March 31, 2023. Shareholders’ equity at $707.7 million increased $5.5 million, or an annualized 3.2%, during the quarter and $50.9 million, or 7.7%, from March 31, 2023. Noninterest income for the quarter ended March 31, 2024 of $15.1 million was $1.4 million, or 10.3%, above prior quarter and $1.5 million, or 10.6%, above prior year same quarter. Noninterest expense for the quarter ended March 31, 2024 of $32.2 million was $0.6 million, or 1.9%, above prior quarter and $0.3 million, or 1.0%, above prior year same quarter. Net Interest Income Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Components of net interest income Income on earning assets $75,002 $73,329 $60,995 2.3% 23.0% Expense on interest bearing liabilities 31,411 30,354 17,079 3.5% 83.9% Net interest income 43,591 42,975 43,916 1.4% (0.7%) TEQ 294 297 298 (1.0%) (1.3%) Net interest income, tax equivalent $43,885 $43,272 $44,214 1.4% (0.7%) Average yield and rates paid: Earning assets yield 5.55% 5.43% 4.84% 2.2% 14.7% Rate paid on interest bearing liabilities 3.35% 3.27% 2.06% 2.4% 62.6% Gross interest margin 2.20% 2.16% 2.78% 1.9% (20.9%) Net interest margin 3.23% 3.19% 3.49% 1.3% (7.4%) Average balances: Investment securities $1,148,014 $1,144,078 $1,251,948 0.3% (8.3%) Loans $4,096,866 $4,022,547 $3,739,443 1.8% 9.6% Earning assets $5,458,075 $5,377,827 $5,131,385 1.5% 6.4% Interest-bearing liabilities $3,773,513 $3,687,660 $3,362,331 2.3% 12.2% Net interest income for the quarter of $43.6 million was $0.6 million above prior quarter but $0.3 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.23% increased 4 basis points from prior quarter but decreased 26 basis points from prior year same quarter. Our average earning assets increased $80.2 million from prior quarter and $326.7 million from prior year same quarter. Our yield on average earning assets increased 12 basis points from prior quarter and 71 basis points from prior year same quarter, and our cost of funds increased 8 basis points from prior quarter and 129 basis points from prior year same quarter. Our ratio of average loans to deposits, including repurchase agreements, was 82.7% for the quarter ended March 31, 2024 compared to 81.8% for the quarter ended December 31, 2023 and 79.8% for the quarter ended March 31, 2023. Noninterest Income Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Deposit related fees $7,011 $7,312 $7,287 (4.1%) (3.8%) Trust revenue 3,517 3,318 3,079 6.0% 14.2% Gains on sales of loans 45 54 121 (16.7%) (62.8%) Loan related fees 1,352 467 845 189.5% 60.0% Bank owned life insurance revenue 1,292 816 858 58.3% 50.6% Brokerage revenue 490 285 348 71.9% 40.8% Other 1,427 1,473 1,144 (3.1%) 24.7% Total noninterest income $15,134 $13,725 $13,682 10.3% 10.6% Noninterest income for the quarter ended March 31, 2024 of $15.1 million was $1.4 million, or 10.3%, above prior quarter and $1.5 million, or 10.6%, above prior year same quarter. The quarter over quarter increase included a $0.9 million increase in loan related fees, a $0.5 million increase in bank owned life insurance revenue, a $0.2 million increase in trust revenue, and a $0.2 million increase in brokerage revenue, partially offset by $0.3 million decrease in deposit related fees. The year over year increase included a $0.5 million increase in loan related fees, a $0.4 million increase in bank owned life insurance revenue, and a $0.4 million increase in trust revenue. The increase in loan related fees resulted from the fluctuation in the fair market value of our mortgage servicing rights. Noninterest Expense Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Salaries $13,036 $13,163 $12,633 (1.0%) 3.2% Employee benefits 7,086 5,282 6,275 34.2% 12.9% Net occupancy and equipment 3,028 3,045 3,028 (0.6%) (0.0%) Data processing 2,518 2,630 2,303 (4.3%) 9.3% Legal and professional fees 832 900 816 (7.6%) 2.0% Advertising and marketing 577 923 820 (37.5%) (29.6%) Taxes other than property and payroll 442 421 432 5.0% 2.3% Other 4,701 5,264 5,583 (10.7%) (15.8%) Total noninterest expense $32,220 $31,628 $31,890 1.9% 1.0% Noninterest expense for the quarter ended March 31, 2024 of $32.2 million was $0.6 million, or 1.9%, above prior quarter and $0.3 million, or 1.0%, above prior year same quarter. The increase in noninterest expense quarter over quarter included a $1.7 million increase in personnel expense, partially offset by decreases in other direct expenses ($0.7 million) and advertising expense ($0.2 million). The increase in personnel expense included a $1.0 million increase in bonuses and incentives and a $0.7 million increase in the cost of group medical and life insurance benefits. The decrease in other direct expenses was the result of the accounting change related to the amortization of tax credits discussed above. The increase year over year primarily resulted from a $1.2 million increase in personnel expense, partially offset by a $1.0 million decrease in other direct expenses related to the amortization of tax credits. The year over year increase in personnel expense included a $0.4 million increase in salaries and a $0.7 million increase in the cost of group medical and life insurance benefits. Balance Sheet Review Total Loans Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Commercial nonresidential real estate $813,904 $778,637 $750,498 4.5% 8.4% Commercial residential real estate 456,585 417,943 385,328 9.2% 18.5% Hotel/motel 416,759 395,765 348,876 5.3% 19.5% Other commercial 397,922 391,390 392,398 1.7% 1.4% Total commercial 2,085,170 1,983,735 1,877,100 5.1% 11.1% Residential mortgage 955,616 937,524 846,435 1.9% 12.9% Home equity loans/lines 151,577 147,036 124,096 3.1% 22.1% Total residential 1,107,193 1,084,560 970,531 2.1% 14.1% Consumer indirect 813,005 823,505 772,570 (1.3%) 5.2% Consumer direct 155,807 159,106 157,158 (2.1%) (0.9%) Total consumer 968,812 982,611 929,728 (1.4%) 4.2% Total loans $4,161,175 $4,050,906 $3,777,359 2.7% 10.2% Total Deposits and Repurchase Agreements Percent Change 1Q 2024 Compared to: ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 4Q 2023 1Q 2023 Non-interest bearing deposits $1,274,583 $1,260,690 $1,409,839 1.1% (9.6%) Interest bearing deposits Interest checking 131,227 123,927 120,678 5.9% 8.7% Money market savings 1,608,849 1,525,537 1,408,314 5.5% 14.2% Savings accounts 543,338 535,063 642,232 1.5% (15.4%) Time deposits 1,226,273 1,279,405 962,361 (4.2%) 27.4% Repurchase agreements 234,671 225,245 208,777 4.2% 12.4% Total interest bearing deposits and repurchase agreements 3,744,358 3,689,177 3,342,362 1.5% 12.0% Total deposits and repurchase agreements $5,018,941 $4,949,867 $4,752,201 1.4% 5.6% CTBI’s total assets at $5.9 billion as of March 31, 2024 increased $80.6 million, or 5.6% annualized, from December 31, 2023 and $320.9 million, or 5.8%, from March 31, 2023. Loans outstanding at $4.2 billion increased $110.3 million, an annualized 10.9%, from December 31, 2023 and $383.8 million, or 10.2%, from March 31, 2023. The increase in loans from prior quarter included a $101.4 million increase in the commercial loan portfolio, a $22.6 million increase in the residential loan portfolio, partially offset by a $10.5 million decrease in the indirect consumer loan portfolio and a $3.3 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio decreased $51.8 million, or an annualized 17.9%, from December 31, 2023 and $128.4 million, or 10.3%, from March 31, 2023. Deposits in other banks increased $24.9 million from prior quarter and $62.3 million from March 31, 2023. Deposits, including repurchase agreements, at $5.0 billion increased $69.1 million, or an annualized 5.6%, from December 31, 2023 and $266.7 million, or 5.6% from March 31, 2023. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of March 31, 2024, no one customer accounted for more than 2.25% of our $5.0 billion in deposits. Only three customer relationships accounted for more than 1% each. Shareholders’ equity at $707.7 million increased $5.5 million, or an annualized 3.2%, during the quarter and $50.9 million, or 7.7%, from March 31, 2023. Net unrealized losses on securities, net of deferred taxes, were $106.9 million at March 31, 2024, compared to $103.3 million at December 31, 2023 and $112.4 million at March 31, 2023. In addition, we had a cumulative effect impact related to the adoption of ASU No. 2023-02, discussed above, that reduced retained earnings by $2.0 million. CTBI’s annualized dividend yield to shareholders as of March 31, 2024 was 4.31%. Asset Quality Our total nonperforming loans increased to $15.9 million at March 31, 2024 from $14.0 million at December 31, 2023 and $12.2 million at March 31, 2023. Accruing loans 90+ days past due at $11.6 million increased $1.6 million from prior quarter and $5.3 million from March 31, 2023. Nonaccrual loans at $4.3 million increased $0.3 million from prior quarter but decreased $1.7 million from March 31, 2023. Accruing loans 30-89 days past due at $12.2 million decreased $3.1 million from prior quarter but increased $0.5 million from March 31, 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 $1.6 million, or 0.16% of average loans annualized, for the first quarter 2024 compared to $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 and $0.4 million, or 0.05% of average loans annualized for the first quarter 2023. Allowance for Credit Losses Our provision for credit losses for the quarter increased $0.8 million from prior quarter and $1.5 million from prior year same quarter. Our reserve coverage (allowance for credit losses to nonperforming loans) at March 31, 2024 was 319.0% compared to 354.7% at December 31, 2023 and 382.3% at March 31, 2023. Our credit loss reserve as a percentage of total loans outstanding at March 31, 2024 remained at 1.22% from December 31, 2023, down from the 1.24% at March 31, 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 $5.9 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) March 31, 2024 (in thousands except per share data and # of employees) Three Three Three Months Months Months Ended Ended Ended March 31, 2024 December 31, 2023 March 31, 2023 Interest income $ 75,002 $ 73,329 $ 60,995 Interest expense 31,411 30,354 17,079 Net interest income 43,591 42,975 43,916 Loan loss provision 2,656 1,815 1,116 Gains on sales of loans 45 54 121 Deposit related fees 7,011 7,312 7,287 Trust revenue 3,517 3,318 3,079 Loan related fees 1,352 467 845 Securities gains (losses) 371 258 218 Other noninterest income 2,838 2,316 2,132 Total noninterest income 15,134 13,725 13,682 Personnel expense 20,122 18,445 18,908 Occupancy and equipment 3,028 3,045 3,028 Data processing expense 2,518 2,630 2,303 FDIC insurance premiums 642 655 606 Other noninterest expense 5,910 6,853 7,045 Total noninterest expense 32,220 31,628 31,890 Net income before taxes 23,849 23,257 24,592 Income taxes 5,170 4,598 5,279 Net income $ 18,679 $ 18,659 $ 19,313 Memo: TEQ interest income $ 75,296 $ 73,626 $ 61,293 Average shares outstanding 17,926 17,901 17,872 Diluted average shares outstanding 17,943 17,926 17,884 Basic earnings per share $ 1.04 $ 1.04 $ 1.08 Diluted earnings per share $ 1.04 $ 1.04 $ 1.08 Dividends per share $ 0.46 $ 0.46 $ 0.44 Average balances: Loans $ 4,096,866 $ 4,022,547 $ 3,739,443 Earning assets 5,458,075 5,377,827 5,131,385 Total assets 5,786,515 5,713,977 5,458,067 Deposits, including repurchase agreements 4,956,820 4,916,208 4,688,103 Interest bearing liabilities 3,773,513 3,687,660 3,362,331 Shareholders' equity 708,341 674,349 651,008 Performance ratios: Return on average assets 1.30 % 1.30 % 1.44 % Return on average equity 10.61 % 10.98 % 12.03 % Yield on average earning assets (tax equivalent) 5.55 % 5.43 % 4.84 % Cost of interest bearing funds (tax equivalent) 3.35 % 3.27 % 2.06 % Net interest margin (tax equivalent) 3.23 % 3.19 % 3.49 % Efficiency ratio (tax equivalent) 54.94 % 55.74 % 55.29 % Loan charge-offs $ 2,667 $ 2,529 $ 1,765 Recoveries (1,039 ) (1,538 ) (1,351 ) Net charge-offs $ 1,628 $ 991 $ 414 Market Price: High $ 44.38 $ 45.74 $ 47.35 Low $ 38.44 $ 33.91 $ 37.31 Close $ 42.65 $ 43.86 $ 37.95 As of As of As of March 31, 2024 December 31, 2023 March 31, 2023 Assets: Loans $ 4,161,175 $ 4,050,906 $ 3,777,359 Loan loss reserve (50,571 ) (49,543 ) (46,683 ) Net loans 4,110,604 4,001,363 3,730,676 Loans held for sale 57 152 182 Securities AFS 1,111,505 1,163,724 1,241,080 Equity securities at fair value 3,529 3,158 2,380 Other equity investments 9,327 9,599 9,713 Other earning assets 239,554 214,664 177,209 Cash and due from banks 55,841 58,833 60,762 Premises and equipment 46,595 45,311 42,636 Right of use asset 15,500 15,703 17,037 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 192,253 191,699 182,155 Total Assets $ 5,850,255 $ 5,769,696 $ 5,529,320 Liabilities and Equity: Interest bearing checking $ 131,227 $ 123,927 $ 120,678 Savings deposits 2,152,187 2,060,600 2,050,546 CD's >=$100,000 678,148 704,222 501,557 Other time deposits 548,125 575,183 460,804 Total interest bearing deposits 3,509,687 3,463,932 3,133,585 Noninterest bearing deposits 1,274,583 1,260,690 1,409,839 Total deposits 4,784,270 4,724,622 4,543,424 Repurchase agreements 234,671 225,245 208,777 Other interest bearing liabilities 65,014 65,075 65,254 Lease liability 16,208 16,393 17,619 Other noninterest bearing liabilities 42,368 36,153 37,425 Total liabilities 5,142,531 5,067,488 4,872,499 Shareholders' equity 707,724 702,208 656,821 Total Liabilities and Equity $ 5,850,255 $ 5,769,696 $ 5,529,320 Ending shares outstanding 18,019 18,000 17,976 30 - 89 days past due loans $ 12,234 $ 15,343 $ 11,728 90 days past due loans 11,550 9,920 6,218 Nonaccrual loans 4,302 4,048 5,993 Foreclosed properties 1,266 1,616 2,776 Community bank leverage ratio 13.74 % 13.69 % 13.71 % Tangible equity to tangible assets ratio 11.10 % 11.16 % 10.82 % FTE employees 945 967 945 View source version on businesswire.com: https://www.businesswire.com/news/home/20240417151596/en/