Group 1 - Community Trust Bancorp is expected to have a decent year in 2025, with expanding net interest margins and a growing balance sheet [1] - Asset quality for Community Trust Bancorp remains resilient for the time being [1]

[FORM 10-Q General Information](index=1&type=section&id=FORM%2010-Q%20General%20Information) This section provides foundational details about Community Trust Bancorp, Inc. (CTBI), including its SEC filing status and a cautionary statement regarding forward-looking information [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides the basic identification details for Community Trust Bancorp, Inc. (CTBI), including its SEC filing status as a large accelerated filer and the number of common shares outstanding as of July 31, 2025 - CTBI is a **Large Accelerated Filer**[4](index=4&type=chunk) - The report is a **Quarterly Report** pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2025[5](index=5&type=chunk) Common Stock Outstanding | Date | Shares Outstanding | | :----------- | :----------------- | | July 31, 2025 | 18,110,585 | [Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD%20LOOKING%20STATEMENTS) This statement advises readers that the report contains forward-looking statements, which are subject to various risks and uncertainties, and CTBI does not undertake to update these statements - **Forward-looking statements** are identified by words like 'believe,' 'expect,' 'anticipate,' 'intend,' 'estimate,' and future or conditional verbs[8](index=8&type=chunk) - **Risks and uncertainties** include economic conditions, portfolio growth and credit performance, financial market performance, inflation and interest rates, regulatory changes, and competition[8](index=8&type=chunk) - CTBI undertakes **no obligation to update** any forward-looking statements[8](index=8&type=chunk) [PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents CTBI's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents CTBI's unaudited condensed consolidated financial statements, including the balance sheets, statements of income and comprehensive income, statements of changes in shareholders' equity, and statements of cash flows, along with their accompanying notes - The accompanying information has **not been audited** by independent registered public accountants but reflects all necessary normal and recurring adjustments for a **fair presentation**[10](index=10&type=chunk) - The statements do **not include all disclosures** normally required by GAAP for complete annual financial statements; readers should refer to the **Form 10-K** for the year ended December 31, 2024, for further information[11](index=11&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a growth in total assets and shareholders' equity from December 31, 2024, to June 30, 2025, primarily driven by an increase in net loans and interest-bearing deposits, alongside a rise in total deposits Condensed Consolidated Balance Sheets (in thousands) | (in thousands except share data) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | **Assets:** | | | | Cash and due from banks | $76,556 | $73,021 | | Interest bearing deposits | 318,734 | 296,484 | | Cash and cash equivalents | 395,290 | 369,505 | | Debt securities available-for-sale at fair value | 994,990 | 1,055,728 | | Loans, net | 4,643,968 | 4,431,669 | | Total assets | $6,390,938 | $6,193,245 | | **Liabilities and shareholders' equity:** | | | | Total deposits | 5,233,008 | 5,070,189 | | Total liabilities | 5,584,069 | 5,435,661 | | Total shareholders' equity | 806,869 | 757,584 | | Total liabilities and shareholders' equity | $6,390,938 | $6,193,245 | [Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) CTBI reported increased net income and comprehensive income for both the three and six months ended June 30, 2025, compared to the prior year, driven by higher total interest income and net interest income, despite an increase in total noninterest expense Condensed Consolidated Statements of Income and Comprehensive Income (in thousands except per share data) | (in thousands except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $85,571 | $76,648 | $167,625 | $151,650 | | Total interest expense | 31,531 | 30,970 | 62,318 | 62,381 | | Net interest income | 54,040 | 45,678 | 105,307 | 89,269 | | Provision for credit losses | 2,094 | 2,972 | 5,662 | 5,628 | | Total noninterest income | 16,171 | 15,708 | 31,068 | 30,842 | | Total noninterest expense | 35,663 | 32,422 | 69,871 | 64,642 | | Net income | 24,899 | 19,499 | 46,871 | 38,178 | | Comprehensive income | $30,347 | $19,265 | $64,623 | $34,398 | | Basic earnings per share | $1.38 | $1.09 | $2.60 | $2.13 | | Diluted earnings per share | $1.38 | $1.09 | $2.60 | $2.13 | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased significantly from December 31, 2024, to June 30, 2025, primarily due to net income and other comprehensive income, partially offset by cash dividends declared Consolidated Statements of Changes in Shareholders' Equity (Quarterly, in thousands) | (in thousands except per share and share amounts) | Common Shares | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total | | :------------------------------------------------ | :------------ | :----------- | :-------------- | :---------------- | :-------------------------------------------------------- | :---- | | Balance, March 31, 2025 | 18,101,765 | $90,510 | $234,355 | $545,372 | $(86,065) | $784,172 | | Net income | | | | 24,899 | | 24,899 | | Other comprehensive income (loss) | | | | | 5,448 | 5,448 | | Cash dividends declared ($0.47 per share) | | | | (8,466) | | (8,466) | | Issuance of common stock | 11,776 | 59 | 397 | | | 456 | | Vesting of restricted stock | (2,608) | (14) | 14 | | | 0 | | Forfeiture of restricted stock | (5,562) | (28) | 28 | | | 0 | | Stock-based compensation | | | 360 | | | 360 | | Balance, June 30, 2025 | 18,105,371 | $90,527 | $235,154 | $561,805 | $(80,617) | $806,869 | Consolidated Statements of Changes in Shareholders' Equity (Year-to-Date, in thousands) | (in thousands except per share and share amounts) | Common Shares | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total | | :------------------------------------------------ | :------------ | :----------- | :-------------- | :---------------- | :-------------------------------------------------------- | :---- | | Balance, December 31, 2024 | 18,057,923 | $90,290 | $233,802 | $531,861 | $(98,369) | $757,584 | | Net income | | | | 46,871 | | 46,871 | | Other comprehensive income (loss) | | | | | 17,752 | 17,752 | | Cash dividends declared ($0.94 per share) | | | | (16,927) | | (16,927) | | Issuance of common stock | 42,578 | 213 | 519 | | | 732 | | Issuance of restricted stock | 38,538 | 193 | (193) | | | 0 | | Vesting of restricted stock | (28,106) | (141) | 141 | | | 0 | | Forfeiture of restricted stock | (5,562) | (28) | 28 | | | 0 | | Stock-based compensation | | | 857 | | | 857 | | Balance, June 30, 2025 | 18,105,371 | $90,527 | $235,154 | $561,805 | $(80,617) | $806,869 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, CTBI experienced a net increase in cash and cash equivalents, primarily driven by strong cash flows from operating and financing activities, which offset significant cash used in investing activities Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $52,513 | $46,155 | | Net cash used in investing activities | (158,059) | (151,260) | | Net cash provided by (used in) financing activities | 131,331 | (4,634) | | Net increase (decrease) in cash and cash equivalents | 25,785 | (109,739) | | Cash and cash equivalents at beginning of period | 369,505 | 271,400 | | Cash and cash equivalents at end of period | $395,290 | $161,661 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on CTBI's accounting policies, financial instruments, and operational segments, offering crucial context to the condensed financial statements - The condensed consolidated financial statements include CTBI and its **wholly-owned subsidiaries**, Community Trust Bank, Inc. (CTB) and Community Trust and Investment Company, with all significant intercompany transactions **eliminated**[25](index=25&type=chunk) - FASB ASU No. 2023-09 (Income Tax Disclosures) is **effective January 1, 2025**, affecting annual financial statement disclosure only, with **no impact** on results of operations or financial condition[26](index=26&type=chunk) - The One Big Beautiful Bill Act (OBBBA), **signed July 4, 2025**, introduces regulatory changes, financial product changes, and tax/investment incentives; CTBI is **still assessing its implications**[28](index=28&type=chunk)[29](index=29&type=chunk)[35](index=35&type=chunk) [Note 1 - Summary of Significant Accounting Policies](index=12&type=section&id=Note%201%20-%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines CTBI's critical accounting policies, including principles of consolidation, the impact of new accounting standards, and detailed methodologies for investments, loans, allowance for credit losses (ACL), goodwill, income taxes, and off-balance sheet credit exposures [Principles of Consolidation](index=12&type=section&id=Principles%20of%20Consolidation) This section details the entities included in CTBI's consolidated financial statements and the treatment of intercompany transactions - The unaudited condensed consolidated financial statements include the accounts of CTBI and its **wholly-owned subsidiaries** Community Trust Bank, Inc. (CTB) and Community Trust and Investment Company[25](index=25&type=chunk) - All significant intercompany transactions have been **eliminated** in consolidation[25](index=25&type=chunk) [New Accounting Standards](index=12&type=section&id=New%20Accounting%20Standards) This section discusses the impact and effective dates of recently adopted and future accounting standards, including FASB ASUs and the One Big Beautiful Bill Act (OBBBA) - FASB ASU No. 2023-09 (Income Taxes) became **effective January 1, 2025**, enhancing income tax disclosures for annual financial statements, with **no impact** on CTBI's interim results or financial condition[26](index=26&type=chunk) - FASB ASU No. 2024-03 (Income Statement Expenses) is **effective for fiscal years beginning after December 15, 2026**, and is **not expected to have a material impact** on CTBI's financial statements[27](index=27&type=chunk) - The One Big Beautiful Bill Act (OBBBA), **signed July 4, 2025**, introduces CFPB funding cuts, a 1% foreign remittance excise tax, enhanced due diligence for green energy incentives, new tax-advantaged savings accounts (Trump Accounts), agricultural finance expansion, permanent 100% bonus depreciation, and reinstatement of R&E expenditure expensing; CTBI is **still assessing its implications**[28](index=28&type=chunk)[29](index=29&type=chunk)[35](index=35&type=chunk) [Significant Accounting Policies](index=13&type=section&id=Significant%20Accounting%20Policies) This section outlines CTBI's key accounting policies for financial instruments, credit losses, goodwill, and off-balance sheet exposures, emphasizing management's use of estimates - AFS debt securities are reported at **fair value**, with **unrealized gains/losses** in shareholders' equity; credit-related impairment is recognized as an **allowance for credit losses (ACL)** on the balance sheet, limited to the amount by which amortized cost exceeds fair value[33](index=33&type=chunk)[34](index=34&type=chunk) - Loans are reported at **carrying value**, reduced by ACL and unamortized deferred fees/costs; interest accrual is discontinued for loans greater than **90 days past due** or when collection is doubtful[39](index=39&type=chunk) - ACL for financial assets is measured on a **collective basis** using **discounted cash flow**, or **individually** for loans not sharing risk characteristics; forecasts include GDP, vehicle sales, and housing price index, with a **four-quarter forecast period** reverting to long-run averages[40](index=40&type=chunk)[41](index=41&type=chunk) - Goodwill is evaluated **annually for impairment** using fair value techniques, with the balance unchanged at **$65.5 million** since January 1, 2015[62](index=62&type=chunk) - CTBI estimates **expected credit losses** for **off-balance sheet credit exposures** (unfunded commitments, lines of credit, standby letters of credit) over their contractual period, recognized as other liabilities and adjusted as an expense in provision for credit losses[64](index=64&type=chunk) [Note 2 - Stock-Based Compensation](index=18&type=section&id=Note%202%20-%20Stock-Based%20Compensation) This note details CTBI's stock-based compensation, primarily restricted stock grants under the 2015 Stock Ownership Incentive Plan, showing increased expense and remaining unrecognized compensation Restricted Stock Expense (in thousands) | Period | 2025 (in thousands) | 2024 (in thousands) | | :------------------------- | :------------------ | :------------------ | | Three Months Ended June 30 | $403 | $344 | | Six Months Ended June 30 | $947 | $687 | - As of June 30, 2025, there was **$3.2 million** of unrecognized compensation expense related to restricted stock grants, to be recognized over a weighted average period of **2.9 years**[65](index=65&type=chunk) - Restricted stock grants generally lapse ratably over **four years**, subject to continued employment, with a specific management retention award cliff vesting at **five years**; forfeitures are recognized when they occur[67](index=67&type=chunk) - There was **no stock option activity** or related compensation expense for the periods presented, as all stock option awards have fully vested[68](index=68&type=chunk) [Note 3 - Securities](index=19&type=section&id=Note%203%20-%20Securities) This note provides a detailed breakdown of CTBI's debt and equity securities, primarily available-for-sale (AFS) debt securities, highlighting a decrease in total AFS securities and an improvement in unrealized losses Available-for-Sale Debt Securities (in thousands) | (in thousands) | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | Amortized Cost (Dec 31, 2024) | Fair Value (Dec 31, 2024) | | :------------------------------- | :----------------------------- | :------------------------- | :---------------------------- | :------------------------ | | U.S. Treasury and government agencies | $259,632 | $247,526 | $360,027 | $341,495 | | State and political subdivisions | 303,197 | 257,745 | 304,588 | 253,557 | | Agency mortgage-backed securities | 490,995 | 441,411 | 471,000 | 409,709 | | Asset-backed securities | 48,434 | 48,308 | 51,034 | 50,967 | | Total available-for-sale securities | $1,102,258 | $994,990 | $1,186,649 | $1,055,728 | - The percentage of total debt securities with unrealized losses improved to **90.2%** at June 30, 2025, from **95.5%** at December 31, 2024[76](index=76&type=chunk) - All impairment in the investment portfolio is **market and interest rate driven**, **not credit-related**, and CTBI **does not intend to sell** these investments before recovery of their amortized cost[76](index=76&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) Net Securities Gains (Losses) (in thousands) | Period | 2025 (in thousands) | 2024 (in thousands) | | :------------------------- | :------------------ | :------------------ | | Three Months Ended June 30 | $150 | $(474) | | Six Months Ended June 30 | $630 | $(103) | - Equity securities at fair value increased to **$4.4 million** at June 30, 2025, from **$3.8 million** at December 31, 2024, due to fair value adjustments[84](index=84&type=chunk) [Note 4 - Loans](index=23&type=section&id=Note%204%20-%20Loans) This note provides a comprehensive analysis of CTBI's loan portfolio, including major classifications, allowance for credit losses (ACL), nonaccrual and past due loans, credit quality indicators, and loan modifications Major Classifications of Loans, Net (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Commercial loans | $2,382,565 | $2,272,679 | | Residential loans | 1,289,807 | 1,210,826 | | Consumer loans | 1,029,421 | 1,003,132 | | Loans and lease financing (Net Loans) | $4,701,793 | $4,486,637 | - Hotel/motel loans represent a significant concentration (**10.1%** of total loans) and are susceptible to economic changes[52](index=52&type=chunk)[87](index=87&type=chunk) - The ACL for loans increased to **$57.8 million** at June 30, 2025, from **$54.9 million** at December 31, 2024[97](index=97&type=chunk)[98](index=98&type=chunk) - Total nonperforming loans decreased to **$24.4 million** at June 30, 2025, from **$26.7 million** at December 31, 2024[99](index=99&type=chunk) - Loan modifications for borrowers experiencing financial difficulty included interest rate reductions, term extensions, and payment changes, with a total amortized cost of **$7.3 million** for interest rate reductions and **$4.0 million** for term extensions for the three months ended June 30, 2025[113](index=113&type=chunk)[114](index=114&type=chunk) [Loan Classifications](index=23&type=section&id=Loan%20Classifications) This section details CTBI's loan portfolio by classification, highlighting concentrations and risk mitigation strategies across various segments Loan Portfolio by Classification (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Hotel/motel | $477,175 | $458,832 | | Commercial real estate residential | 559,906 | 508,310 | | Commercial real estate nonresidential | 913,463 | 865,031 | | Dealer floorplans | 70,270 | 84,956 | | Commercial other | 361,751 | 355,550 | | Real estate mortgage | 1,112,672 | 1,043,401 | | Home equity lines | 177,135 | 167,425 | | Consumer direct | 150,915 | 152,843 | | Consumer indirect | 878,506 | 850,289 | | Total Loans and lease financing | $4,701,793 | $4,486,637 | - CTBI's loan portfolio is segregated into **nine segments** with similar risk characteristics, serving small and mid-sized communities in Kentucky, West Virginia, and Tennessee[86](index=86&type=chunk) - Hotel/motel loans represent **10.1%** of total loans and are highly susceptible to economic changes[87](index=87&type=chunk) - Dealer floorplans are **collateralized** under a blanket security agreement and **mitigated** by monthly inventory audits and additional credit enhancements[90](index=90&type=chunk) - Residential real estate loans include **fixed and adjustable rate mortgages**, with adjustable rate loans typically held and fixed rate loans sold into the secondary market[92](index=92&type=chunk) [Allowance for Credit Losses (ACL)](index=25&type=section&id=Allowance%20for%20Credit%20Losses%20(ACL)) This section details the movements in the Allowance for Credit Losses (ACL) for loans, including provisions, charge-offs, and recoveries, reflecting management's assessment of credit risk Allowance for Credit Losses for Loans (in thousands) | (in thousands) | Beginning Balance (Mar 31, 2025) | Provision Charged to Expense | Losses Charged Off | Recoveries | Ending Balance (June 30, 2025) | | :------------------------------- | :------------------------------- | :--------------------------- | :----------------- | :--------- | :----------------------------- | | Hotel/motel | $5,594 | $10 | $0 | $0 | $5,604 | | Commercial real estate residential | 6,059 | 457 | (41) | 5 | 6,480 | | Commercial real estate nonresidential | 11,381 | 72 | 0 | 4 | 11,457 | | Dealer floorplans | 551 | (44) | 0 | 0 | 507 | | Commercial other | 3,936 | 220 | (551) | 106 | 3,711 | | Real estate mortgage | 12,322 | 630 | (2) | 3 | 12,953 | | Home equity | 1,309 | 298 | (7) | 4 | 1,604 | | Consumer direct | 2,127 | 104 | (199) | 99 | 2,131 | | Consumer indirect | 13,682 | 470 | (1,728) | 954 | 13,378 | | Total ACL | $56,961 | $2,217 | $(2,528) | $1,175 | $57,825 | - The ACL is maintained at a level appropriate to cover **estimated credit losses** on individually evaluated loans and inherent losses in the remainder of the portfolio[46](index=46&type=chunk) - Credit losses, when deemed uncollectible, are **charged to the ACL**, and subsequent recoveries are **credited to it**[46](index=46&type=chunk) [Nonaccrual Loans and Loans 90 Days Past Due](index=27&type=section&id=Nonaccrual%20Loans%20and%20Loans%2090%20Days%20Past%20Due) This section presents the balances of nonaccrual loans and loans 90 days past due, indicating a decrease in total nonperforming loans and a significant reduction in recognized interest income from these assets Nonaccrual Loans and Loans 90 Days Past Due (in thousands) | (in thousands) | June 30, 2025 Total Nonperforming Loans | December 31, 2024 Total Nonperforming Loans | | :------------------------------- | :-------------------------------------- | :------------------------------------------ | | Commercial real estate residential | $3,300 | $1,617 | | Commercial real estate nonresidential | 11,343 | 13,154 | | Commercial other | 1,313 | 1,416 | | Real estate mortgage | 6,840 | 8,820 | | Home equity lines | 687 | 648 | | Consumer direct | 224 | 269 | | Consumer indirect | 679 | 762 | | Total Nonperforming Loans | $24,386 | $26,686 | - Interest income recognized on nonaccrual loans decreased significantly to **$9.6 thousand** at June 30, 2025, from **$189.4 thousand** at December 31, 2024[99](index=99&type=chunk) [Loan Portfolio Aging Analysis](index=28&type=section&id=Loan%20Portfolio%20Aging%20Analysis) This section provides an aging analysis of the loan portfolio, detailing the total past due amounts by loan classification Loan Portfolio Aging Analysis (in thousands) | (in thousands) | June 30, 2025 Total Past Due | December 31, 2024 Total Past Due | | :------------------------------- | :--------------------------- | :------------------------------- | | Hotel/motel | $120 | $0 | | Commercial real estate residential | 4,379 | 1,847 | | Commercial real estate nonresidential | 13,077 | 14,357 | | Dealer floorplans | 0 | 0 | | Commercial other | 2,046 | 2,646 | | Real estate mortgage | 12,305 | 11,956 | | Home equity lines | 2,878 | 2,880 | | Consumer direct | 1,325 | 1,251 | | Consumer indirect | 6,257 | 6,730 | | Total Loans and lease financing | $42,387 | $41,667 | [Credit Quality Indicators](index=29&type=section&id=Credit%20Quality%20Indicators) This section outlines CTBI's internal credit risk rating system, categorizing loans based on borrower ability, collateral, and guarantor strength, with regular reviews for deterioration or improvement - CTBI categorizes loans into **risk categories** (Pass, Watch, OAEM, Substandard, Doubtful) based on borrower ability to service debt, collateral value, and guarantor strength[102](index=102&type=chunk) - Loans classified as loss, doubtful, substandard, or special mention are **reviewed quarterly** for deterioration or improvement[102](index=102&type=chunk) - **Pass grades** indicate excellent to fair credit ratings with adequate cash flows; **Watch graded** loans warrant extra management attention but are not currently criticized; **OAEM loans** are potentially weak but currently protected; **Substandard loans** are inadequately protected and have well-defined weaknesses; **Doubtful loans** have weaknesses making collection highly questionable, with a high probability of loss[102](index=102&type=chunk) [Loan Modifications](index=37&type=section&id=Loan%20Modifications) This section details loan modifications granted to borrowers experiencing financial difficulty, categorized by concession type, and notes subsequent defaults Loan Modifications by Concession Granted (Three Months Ended June 30, 2025, in thousands) | (in thousands) | Interest Rate Reduction | Term Extension | Combination – Term Extension and Interest Rate Reduction | Payment Change | | :------------------------------- | :---------------------- | :------------- | :------------------------------------------------------- | :------------- | | Hotel/motel | $0 | $0 | $0 | $0 | | Commercial real estate residential | 0 | 299 | 498 | 0 | | Commercial real estate nonresidential | 7,254 | 0 | 0 | 92 | | Dealer floorplans | 0 | 0 | 0 | 0 | | Commercial other | 0 | 264 | 203 | 29 | | Real estate mortgage | 57 | 3,007 | 560 | 35 | | Home equity lines | 0 | 107 | 49 | 0 | | Consumer direct | 0 | 176 | 0 | 0 | | Consumer indirect | 0 | 121 | 0 | 51 | | Total Loans and lease financing | $7,311 | $3,974 | $1,310 | $207 | - For the three months ended June 30, 2025, commercial real estate nonresidential loans had the largest interest rate reduction (**$7.3 million**), while real estate mortgage loans had the largest term extension (**$3.0 million**)[113](index=113&type=chunk) - **Two loans** to borrowers experiencing financial difficulty subsequently defaulted during the quarter ended June 30, 2025, totaling **$128 thousand**[127](index=127&type=chunk)[128](index=128&type=chunk) [Off-Balance Sheet Credit Exposures](index=51&type=section&id=Off-Balance%20Sheet%20Credit%20Exposures) This section details the Allowance for Credit Losses (ACL) for unfunded commitments, outlining changes due to provisions, charge-offs, and recoveries ACL for Unfunded Commitments (in thousands) | (in thousands) | Beginning Balance (Mar 31, 2025) | Provision Charged to Expense | Losses Charged Off | Recoveries | Ending Balance (June 30, 2025) | | :------------------------------- | :------------------------------- | :--------------------------- | :----------------- | :--------- | :----------------------------- | | Commercial | $1,071 | $(172) | $0 | $0 | $899 | | Real estate mortgage | 372 | 48 | 0 | 0 | 420 | | Consumer | 22 | 1 | 0 | 0 | 23 | | Total unfunded commitment off-balance sheet credit exposure | $1,465 | $(123) | $0 | $0 | $1,342 | - A liability for **expected credit losses** for **off-balance sheet exposures** is recognized if the entity has a present contractual obligation to extend credit and the obligation is not unconditionally cancellable[129](index=129&type=chunk) [Note 5 - Repurchase Agreements](index=52&type=section&id=Note%205%20-%20Repurchase%20Agreements) This note describes CTBI's use of repurchase agreements for customer needs and funding, which are recorded as secured borrowings, and details the carrying value of pledged investment securities - Repurchase agreements are used to facilitate customer needs and provide additional funding, recorded as **secured borrowings**[130](index=130&type=chunk) - The primary risk is **market risk** associated with the securities securing the transactions, requiring additional collateral based on fair value changes[131](index=131&type=chunk) Carrying Value of Investment Securities Pledged as Collateral (in millions) | Date | Carrying Value (in millions) | | :----------- | :--------------------------- | | June 30, 2025 | $299.0 | | Dec 31, 2024 | $292.2 | Repurchase Agreements Balances (in thousands) | ($ in thousands) | Balance Outstanding as of Quarter End | | :--------------- | :------------------------------------ | | June 30, 2025 | $225,075 | | December 31, 2024 | $240,166 | [Note 6 - Fair Value of Financial Assets and Liabilities](index=53&type=section&id=Note%206%20-%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) This note details CTBI's fair value measurements for financial assets and liabilities, categorized into a three-level hierarchy based on input observability, emphasizing Level 3 valuations - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than quoted prices), and **Level 3** (unobservable inputs)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) Fair Value Measurements of Assets (Recurring Basis, June 30, 2025, in thousands) | (in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | | :------------------------------- | :--------- | :-------- | :-------- | :-------- | | U.S. Treasury and government agencies | $247,526 | $236,704 | $10,822 | $0 | | State and political subdivisions | 257,745 | 0 | 257,745 | 0 | | Agency mortgage-backed securities | 441,411 | 0 | 441,411 | 0 | | Asset-backed securities | 48,308 | 0 | 48,308 | 0 | | Equity securities at fair value | 4,410 | 0 | 0 | 4,410 | | Mortgage servicing rights | 7,096 | 0 | 0 | 7,096 | - Equity securities at fair value (Visa Class B Stock) and Mortgage Servicing Rights (MSRs) are valued using **Level 3 inputs** due to **unobservable factors** like discount rates, conversion dates, and prepayment speeds[144](index=144&type=chunk)[145](index=145&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) Level 3 Reconciliation (Three Months Ended June 30, 2025, in thousands) | (in thousands) | Equity Securities at Fair Value | Mortgage Servicing Rights | | :------------- | :------------------------------ | :------------------------ | | Beginning balance | $4,261 | $7,093 | | Total unrealized gains (losses) included in net income | 149 | 157 | | Issues | 0 | 30 | | Settlements | 0 | (184) | | Ending balance | $4,410 | $7,096 | Fair Value of Financial Instruments (June 30, 2025, in thousands) | (in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | | :------------------------------- | :-------------- | :------------ | :------------ | :------------ | | **Financial assets:** | | | | | | Cash and cash equivalents | $395,290 | $395,290 | $0 | $0 | | Debt securities available-for-sale | 994,990 | 236,704 | 758,286 | 0 | | Equity securities at fair value | 4,410 | 0 | 0 | 4,410 | | Loans, net | 4,643,968 | 0 | 0 | 4,590,027 | | **Financial liabilities:** | | | | | | Deposits | $5,233,008 | $1,258,205 | $3,785,850 | $0 | | Repurchase agreements | 225,075 | 0 | 0 | 225,034 | | Long-term debt | 63,901 | 0 | 0 | 58,297 | [Note 7 - Segment Reporting](index=62&type=section&id=Note%207%20-%20Segment%20Reporting) CTBI operates as a single operating segment, community banking services, which encompasses commercial and personal banking, and trust and wealth management activities, with performance evaluated by the Executive Committee - CTBI's principal activity is the ownership and management of its **wholly-owned subsidiaries**, CTB and Community Trust and Investment Company[166](index=166&type=chunk) - Management analyzes CTBI's operations as **one operating segment**: community banking services, offering a wide range of consumer and commercial banking services[166](index=166&type=chunk) - The Executive Committee uses **net income**, **net interest income**, and **noninterest income** for resource allocation and performance evaluation[166](index=166&type=chunk) Consolidated Total Assets Reconciliation (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Community banking services assets | $6,384,442 | $6,186,518 | | Holding company assets | 871,431 | 822,851 | | Elimination of subsidiary and parent cash and intercompany receivables | (3,803) | (3,779) | | Elimination of investment in subsidiaries | (861,132) | (812,345) | | Consolidated total assets | $6,390,938 | $6,193,245 | [Note 8 - Revenue Recognition](index=68&type=section&id=Note%208%20-%20Revenue%20Recognition) This note outlines CTBI's revenue recognition policies, primarily focusing on interest income from loans and securities, and noninterest income from customer contracts and other sources - CTBI's primary revenue source is **interest income** from loans and investment securities, recognized over the instrument's life[174](index=174&type=chunk) - Noninterest income from customer contracts (e.g., deposit fees, loan fees, brokerage revenue) is recognized when **performance obligations are satisfied**, typically for short-term services with fixed pricing[175](index=175&type=chunk)[177](index=177&type=chunk) - Noninterest income **not generated from customer contracts** includes MSRs, gains/losses on securities sales, OREO sales, property/plant/equipment sales, and bank-owned life insurance income[179](index=179&type=chunk) [Note 9 - Earnings Per Share](index=69&type=section&id=Note%209%20-%20Earnings%20Per%20Share) This note presents the computation of basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2025 and 2024, showing an increase in both basic and diluted EPS for the current periods Earnings Per Share (in thousands except per share data) | (in thousands except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $24,899 | $19,499 | $46,871 | $38,178 | | Basic earnings per share | $1.38 | $1.09 | $2.60 | $2.13 | | Diluted earnings per share | $1.38 | $1.09 | $2.60 | $2.13 | - Diluted EPS calculations include the **dilutive effect** of equity grants and unvested restricted stock grants using the **treasury method**[181](index=181&type=chunk) [Note 10 – Accumulated Other Comprehensive Income (Loss)](index=69&type=section&id=Note%2010%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) This note reconciles the changes in accumulated other comprehensive income (loss) (AOCI) for the three and six months ended June 30, 2025 and 2024, showing a significant improvement due to unrealized holding gains on debt securities Accumulated Other Comprehensive Income (Loss) Reconciliation (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Beginning balance | $(86,065) | $(106,867) | $(98,369) | $(103,321) | | Unrealized holding gains (losses) on debt securities AFS, net of tax | 5,449 | (233) | 17,753 | (3,779) | | Reclassification adjustments for realized gains (losses) included in securities, net of tax | 1 | 1 | 1 | 1 | | Other comprehensive income (loss) | 5,448 | (234) | 17,752 | (3,780) | | Ending balance | $(80,617) | $(107,101) | $(80,617) | $(107,101) | - The ending balance of AOCI improved to a loss of **$80.6 million** at June 30, 2025, from a loss of **$98.4 million** at December 31, 2024, primarily due to unrealized holding gains on debt securities AFS[183](index=183&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=70&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on CTBI's financial performance and condition for the quarter and six months ended June 30, 2025, highlighting record earnings, asset growth, and strategic management of risks - CTBI reported **record earnings of $24.9 million** (**$1.38 per basic share**) for the quarter ended June 30, 2025, an increase from **$19.5 million** (**$1.09 per basic share**) in the prior year's same quarter[187](index=187&type=chunk) - Year-to-date earnings reached **$46.9 million** (**$2.60 per basic share**), up **$8.7 million** (**$0.47 per basic share**) from the prior year[187](index=187&type=chunk) - Total consolidated assets were **$6.4 billion** and total consolidated deposits, including repurchase agreements, were **$5.5 billion** at June 30, 2025[185](index=185&type=chunk) [Overview and Business](index=70&type=section&id=Overview%20and%20Business) This section provides an overview of CTBI's business, including its headquarters, operational footprint, and the range of commercial and personal banking services offered - CTBI is a **bank holding company** headquartered in Pikeville, Kentucky, owning Community Trust Bank, Inc. (CTB) and Community Trust and Investment Company[185](index=185&type=chunk) - The company operates **81 banking locations** across Kentucky, West Virginia, and Tennessee, with **four trust offices** in Kentucky and **one in Tennessee**[185](index=185&type=chunk) - CTBI offers **commercial and personal banking services**, including deposits, secured/unsecured loans, cash management, letters of credit, and trust and wealth management activities[186](index=186&type=chunk) [Results of Operations and Financial Condition](index=70&type=section&id=Results%20of%20Operations%20and%20Financial%20Condition) This section summarizes CTBI's financial performance for the six months ended June 30, 2025, highlighting increases in net interest income, loan portfolio, and deposits, alongside a decrease in nonperforming loans Key Financial Highlights (Six Months Ended June 30, in thousands) | (dollars in thousands) | 2025 | 2024 | Change Amount | Percent Change (%) | | :------------------------ | :---------- | :---------- | :------------ | :----------------- | | Net interest income | $105,307 | $89,269 | $16,038 | 18.0 | | Provision for credit losses | 5,662 | 5,628 | 34 | 0.6 | | Noninterest income | 31,068 | 30,842 | 226 | 0.7 | | Noninterest expense | 69,871 | 64,642 | 5,229 | 8.1 | | Income taxes | 13,971 | 11,663 | 2,308 | 19.8 | | Net income | $46,871 | $38,178 | $8,693 | 22.8 | - Net interest income for the quarter increased **$2.8 million** (**5.4%**) from prior quarter and **$8.4 million** (**18.3%**) from prior year same quarter[190](index=190&type=chunk) - The loan portfolio increased **$65.3 million** (annualized **5.6%**) during the quarter and **$215.2 million** (**4.8%**) from prior year end[190](index=190&type=chunk) - Total nonperforming loans decreased **$2.1 million** during the quarter and **$2.3 million** from prior year end[190](index=190&type=chunk) - Deposits, including repurchase agreements, increased **$100.2 million** (annualized **7.5%**) during the quarter and **$147.7 million** (**2.8%**) from prior year end[190](index=190&type=chunk) [Quarterly Highlights](index=71&type=section&id=Quarterly%20Highlights) This section provides key financial highlights for the quarter ended June 30, 2025, including changes in net interest income, provision for credit losses, noninterest income, and noninterest expense - Net interest income for the quarter was **$54.0 million**, up **5.4%** from prior quarter and **18.3%** from prior year same quarter[190](index=190&type=chunk) - Provision for credit losses decreased **$1.5 million** from prior quarter and **$0.9 million** from prior year same quarter[190](index=190&type=chunk) - Noninterest income increased **$1.3 million** (**8.6%**) from prior quarter and **$0.5 million** (**2.9%**) from prior year same quarter[190](index=190&type=chunk) - Noninterest expense increased **$1.5 million** (**4.3%**) from prior quarter and **$3.2 million** (**10.0%**) from prior year same quarter[190](index=190&type=chunk) [Income Statement Review](index=71&type=section&id=Income%20Statement%20Review) This section reviews CTBI's income statement for the six months ended June 30, 2025, detailing changes in net interest income, provision for credit losses, noninterest income, noninterest expense, and net income, along with key profitability metrics Income Statement Review (Six Months Ended June 30, in thousands) | (dollars in thousands) | 2025 | 2024 | Change Amount | Percent Change (%) | | :------------------------ | :---------- | :---------- | :------------ | :----------------- | | Net interest income | $105,307 | $89,269 | $16,038 | 18.0 | | Provision for credit losses | 5,662 | 5,628 | 34 | 0.6 | | Noninterest income | 31,068 | 30,842 | 226 | 0.7 | | Noninterest expense | 69,871 | 64,642 | 5,229 | 8.1 | | Income taxes | 13,971 | 11,663 | 2,308 | 19.8 | | Net income | $46,871 | $38,178 | $8,693 | 22.8 | | Average earning assets | $5,915,965 | $5,463,944 | $452,021 | 8.3 | | Yield on average earnings assets, tax equivalent* | 5.73% | 5.60% | 0.13% | 2.3 | | Cost of interest bearing funds | 3.01% | 3.32% | (0.31)% | (9.5) | | Net interest margin, tax equivalent* | 3.61% | 3.31% | 0.30% | 9.1 | [Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates](index=72&type=section&id=Consolidated%20Average%20Balance%20Sheets%20and%20Taxable%20Equivalent%20Income%2FExpense%20and%20Yields%2FRates) This section provides detailed average balance sheets and corresponding interest income/expense and yields/rates for earning assets and interest-bearing liabilities for the three and six months ended June 30, 2025 and 2024 Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates (Three Months Ended June 30, in thousands) | (in thousands) | Average Balances (June 30, 2025) | Interest (June 30, 2025) | Rate (June 30, 2025) | Average Balances (June 30, 2024) | Interest (June 30, 2024) | Rate (June 30, 2024) | | :------------------------------- | :------------------------------- | :----------------------- | :------------------- | :------------------------------- | :----------------------- | :------------------- | | Total earning assets | $5,983,093 | $85,854 | 5.76% | $5,469,813 | $76,940 | 5.66% | | Total interest bearing liabilities | $4,215,573 | $31,531 | 3.00% | $3,776,362 | $30,970 | 3.30% | | Net interest income, tax equivalent | | $54,323 | | | $45,970 | | | Net interest margin | | | 3.64% | | | 3.38% | Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates (Six Months Ended June 30, in thousands) | (in thousands) | Average Balances (June 30, 2025) | Interest (June 30, 2025) | Rate (June 30, 2025) | Average Balances (June 30, 2024) | Interest (June 30, 2024) | Rate (June 30, 2024) | | :------------------------------- | :------------------------------- | :----------------------- | :------------------- | :------------------------------- | :----------------------- | :------------------- | | Total earning assets | $5,915,965 | $168,181 | 5.73% | $5,463,944 | $152,236 | 5.60% | | Total interest bearing liabilities | $4,177,225 | $62,318 | 3.01% | $3,774,937 | $62,381 | 3.32% | | Net interest income, tax equivalent | | $105,863 | | | $89,855 | | | Net interest margin | | | 3.61% | | | 3.31% | [Net Interest Differential](index=76&type=section&id=Net%20Interest%20Differential) This section analyzes the approximate effect of volume and rate changes on net interest income, showing positive contributions from both for the six months ended June 30, 2025 Effect of Volume and Rate Changes on Net Interest Differential (Three Months Ended June 30, in thousands) | (in thousands) | Total Change 2025/2024 | Change Due to Volume | Change Due to Rate | | :-------------------- | :--------------------- | :------------------- | :----------------- | | Total interest income | $8,914 | $8,621 | $293 | | Total interest expense | 561 | 3,613 | (3,052) | | Net interest income | $8,353 | $5,008 | $3,345 | Effect of Volume and Rate Changes on Net Interest Differential (Six Months Ended June 30, in thousands) | (in thousands) | Total Change 2025/2024 | Change Due to Volume | Change Due to Rate | | :-------------------- | :--------------------- | :------------------- | :----------------- | | Total interest income | $15,945 | $7,810 | $8,135 | | Total interest expense | (63) | 3,166 | (3,229) | | Net interest income | $16,008 | $4,644 | $11,364 | - Net interest income for the quarter increased by **$8.4 million** (**18.3%**) from the prior year, with the net interest margin increasing by **26 basis points** to **3.64%**[201](index=201&type=chunk) [Provision for Credit Losses Discussion](index=77&type=section&id=Provision%20for%20Credit%20Losses%20Discussion) The provision for credit losses decreased for the quarter ended June 30, 2025, compared to both the prior quarter and prior year, primarily due to funding net charge-offs and changes in loan volume and composition Provision for Credit Losses (in millions) | Period | Provision for Credit Losses (in millions) | | :------------------------- | :---------------------------------------- | | Quarter Ended June 30, 2025 | $2.1 | | Prior Quarter | $3.6 | | Prior Year Same Quarter | $3.0 | - The provision for the quarter included **$1.4 million** for net charge-offs, **$0.6 million** for changes in loan volume and composition, and a **$123 thousand** credit for unfunded commitments[202](index=202&type=chunk) - Reserve coverage (ACL to nonperforming loans) was **237.1%** at June 30, 2025, compared to **263.0%** at June 30, 2024[202](index=202&type=chunk) [Noninterest Income Discussion](index=78&type=section&id=Noninterest%20Income%20Discussion) Noninterest income increased for the quarter ended June 30, 2025, compared to both the prior quarter and prior year, driven by higher deposit-related fees and loan-related fees Noninterest Income (in thousands) | $(in thousands) | 2Q 2025 | 1Q 2025 | 2Q 2024 | YTD 2025 | YTD 2024 | | :------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Deposit related fees | $7,350 | $6,822 | $7,308 | $14,172 | $14,319 | | Trust and wealth management income | 4,092 | 3,981 | 3,736 | 8,073 | 7,253 | | Gains on sales of loans | 77 | 47 | 119 | 124 | 164 | | Loan related fees | 1,249 | 965 | 1,320 | 2,214 | 2,672 | | Bank owned life insurance revenue | 1,102 | 1,035 | 1,815 | 2,137 | 3,107 | | Brokerage revenue | 526 | 494 | 683 | 1,020 | 1,173 | | Other | 1,775 | 1,553 | 727 | 3,328 | 2,154 | | Total noninterest income | $16,171 | $14,897 | $15,708 | $31,068 | $30,842 | - Quarter-over-quarter increase was primarily due to increases in deposit related fees (**$0.5 million**) and loan related fees (**$0.3 million**)[204](index=204&type=chunk) - Year-over-year increases in trust and wealth management income (**$0.4 million**) and securities gains (**$0.6 million**) were partially offset by a decrease in bank owned life insurance revenue (**$0.7 million**)[204](index=204&type=chunk) [Noninterest Expense Discussion](index=79&type=section&id=Noninterest%20Expense%20Discussion) Noninterest expense increased for the quarter ended June 30, 2025, compared to both the prior quarter and prior year, mainly due to higher accruals for annual incentive payments and data processing Noninterest Expense (in thousands) | $(in thousands) | 2Q 2025 | 1Q 2025 | 2Q 2024 | YTD 2025 | YTD 2024 | | :------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Salaries | $13,667 | $13,269 | $13,037 | $26,936 | $26,073 | | Employee benefits | 7,987 | 6,849 | 6,554 | 14,836 | 13,640 | | Net occupancy and equipment | 3,172 | 3,440 | 3,089 | 6,612 | 6,117 | | Data processing | 3,326 | 2,859 | 2,669 | 6,185 | 5,187 | | Legal and professional fees | 1,001 | 1,225 | 978 | 2,226 | 1,810 | | Advertising and marketing | 765 | 673 | 856 | 1,438 | 1,433 | | Taxes other than property and payroll | 573 | 529 | 438 | 1,102 | 880 | | Other | 5,172 | 5,364 | 4,801 | 10,536 | 9,502 | | Total noninterest expense | $35,663 | $34,208 | $32,422 | $69,871 | $64,642 | - The quarter-over-quarter increase was primarily due to an increase in the accrual for the annual incentive payment to employees and a **$0.5 million** increase in data processing expense[206](index=206&type=chunk) - The year-over-year increase was primarily due to increases in personnel expense (**$2.1 million**) and data processing expense (**$0.7 million**)[206](index=206&type=chunk) [Balance Sheet Review](index=79&type=section&id=Balance%20Sheet%20Review) CTBI's total assets, loans outstanding, and shareholders' equity all increased during the quarter and from prior year-end, with significant growth in commercial and residential loan portfolios and deposits - Total assets increased **$114.4 million** (annualized **7.3%**) during the quarter and **$197.7 million** (annualized **38.8%**) from prior year end, reaching **$6.4 billion**[207](index=207&type=chunk) - Loans outstanding increased **$65.3 million** (annualized **5.6%**) during the quarter and **$215.2 million** (annualized **58.3%**) from prior year end, reaching **$4.7 billion**[207](index=207&type=chunk) - Shareholders' equity increased **$22.7 million** (annualized **11.6%**) during the quarter and **$49.3 million** (annualized **79.2%**) from prior year end, reaching **$806.9 million**[209](index=209&type=chunk) - Net unrealized losses on securities, net of deferred taxes, improved to **$80.6 million** at June 30, 2025, from **$98.4 million** at December 31, 2024[209](index=209&type=chunk) [Loans Discussion](index=80&type=section&id=Loans%20Discussion) CTBI's total loan portfolio grew by **4.8%** from prior year-end to **$4.7 billion** at June 30, 2025, with growth in commercial and residential categories and managed net charge-offs Loan Portfolio Summary (June 30, 2025, in thousands) | Loan Category | Balance (June 30, 2025) | Variance from Prior Year End (%) | Net (Charge Offs)/Recoveries (YTD) | Nonperforming (June 30, 2025) | ACL (June 30, 2025) | | :------------------------------ | :---------------------- | :------------------------------- | :--------------------------------- | :---------------------------- | :------------------ | | Hotel/motel | $477,175 | 4.0 | $0 | $0 | $5,604 | | Commercial real estate residential | 559,906 | 10.2 | (49) | 3,300 | 6,480 | | Commercial real estate nonresidential | 913,463 | 5.6 | 6 | 11,343 | 11,457 | | Dealer floorplans | 70,270 | (17.3) | 0 | 0 | 507 | | Commercial other | 361,751 | 1.7 | (769) | 1,313 | 3,711 | | Real estate mortgage | 1,112,672 | 6.6 | (65) | 6,840 | 12,953 | | Home equity | 177,135 | 5.8 | 6 | 687 | 1,604 | | Consumer direct | 150,915 | (1.3) | (287) | 224 | 2,131 | | Consumer indirect | 878,506 | 3.3 | (1,770) | 679 | 13,378 | | Total loans | $4,701,793 | 4.8 | $(2,928) | $24,386 | $57,825 | - The increase in loans from prior quarter included a **$24.9 million** increase in commercial loans and a **$50.2 million** increase in residential loans, partially offset by a **$10.1 million** decrease in indirect consumer loans[207](index=207&type=chunk) [Total Deposits and Repurchase Agreements Discussion](index=80&type=section&id=Total%20Deposits%20and%20Repurchase%20Agreements%20Discussion) Total deposits and repurchase agreements increased by **1.9%** during the quarter and **2.8%** from prior year-end, reaching **$5.46 billion**, with growth in noninterest-bearing and time deposits Total Deposits and Repurchase Agreements (in thousands) | (dollars in thousands) | 2Q 2025 | 1Q 2025 | YE 2024 | Percent Change 2Q 2025 vs 1Q 2025 (%) | Percent Change 2Q 2025 vs YE 2024 (%) | | :--------------------------------------- | :---------- | :---------- | :---------- | :------------------------------------ | :------------------------------------ | | Noninterest bearing deposits | $1,258,205 | $1,235,544 | $1,242,676 | 1.8 | 1.2 | | Interest checking | 173,795 | 158,968 | 167,736 | 9.3 | 3.6 | | Money market savings | 1,820,230 | 1,828,051 | 1,781,415 | (0.4) | 2.2 | | Savings accounts | 508,467 | 516,379 | 511,378 | (1.5) | (0.6) | | Time deposits | 1,472,311 | 1,372,363 | 1,366,984 | 7.3 | 7.7 | | Repurchase agreements | 225,075 | 246,556 | 240,166 | (8.7) | (6.3) | | Total deposits and repurchase agreements | $5,458,083 | $5,357,861 | $5,310,355 | 1.9 | 2.8 | - CTBI is **not dependent** on any one customer or group of customers for deposits, with no single customer accounting for more than **3%** of total deposits[208](index=208&type=chunk) [Deposit Maturities](index=81&type=section&id=Deposit%20Maturities) This section provides a breakdown of uninsured certificates of deposit and other time deposits by maturity period, with the majority maturing within one year Maturities of Uninsured Certificates of Deposit and Other Time Deposits (June 30, 2025, in thousands) | (in thousands) | Total | Within 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | After 5 Years | | :------------- | :--------- | :------------ | :-------- | :-------- | :-------- | :-------- | :------------ | | Uninsured certificates of deposits and other time deposits greater than $250,000 | $411,915 | $393,919 | $5,346 | $9,192 | $2,950 | $508 | $0 | - As of June 30, 2025, CTBI had approximately **$1.5 million** in uninsured deposits and **no brokered deposits**[212](index=212&type=chunk) [Repurchase Agreements Discussion](index=81&type=section&id=Repurchase%20Agreements%20Discussion) This section provides information on CTBI's repurchase agreement borrowings, which decreased from December 31, 2024, to June 30, 2025, and are accounted for as secured borrowings Repurchase Agreements Balances (in thousands) | ($ in thousands) | Balance Outstanding as of Quarter End | | :--------------- | :------------------------------------ | | June 30, 2025 | $225,075 | | December 31, 2024 | $240,166 | | June 30, 2024 | $227,576 | - Repurchase agreements are accounted for as **secured borrowings**[213](index=213&type=chunk) [Asset Quality Discussion](index=81&type=section&id=Asset%20Quality%20Discussion) CTBI's asset quality improved, with total nonperforming loans decreasing from prior quarter and prior year-end, while net loan charge-offs remained stable, supported by robust risk management processes - Total nonperforming loans decreased to **$24.4 million** at June 30, 2025, from **$26.7 million** at December 31, 2024[214](index=214&type=chunk) - Net loan charge-offs for the quarter were **$1.4 million** (annualized **0.12%** of average loans), stable compared to the prior year's same period[215](index=215&type=chunk) - The allowance for credit losses to nonaccrual loans was **362.8%** at June 30, 2025, compared to **1,017.1%** at June 30, 2024[214](index=214&type=chunk) - CTBI's **risk management** includes weekly and monthly delinquent loan review meetings, a Watch List Asset Committee, and a Loan Review Department that annually reviews a high percentage of the loan portfolio[214](index=214&type=chunk) - CTBI generally **does not offer high-risk loans** such as option ARM products, high LTV mortgages, interest-only loans, or loans with negative amortizations[214](index=214&type=chunk) [Dividends](index=82&type=section&id=Dividends) CTBI has consistently paid quarterly cash dividends, with a recent increase declared by the Board of Directors, resulting in an annualized dividend yield of **3.55%** as of June 30, 2025 Quarterly Cash Dividends Paid | Pay Date | Record Date | Amount Per Share | | :---------- | :------------ | :--------------- | | July 1, 2025 | June 15, 2025 | $0.47 | | April 1, 2025 | March 15, 2025 | $0.47 | | January 1, 2025 | December 15, 2024 | $0.47 | | October 1, 2024 | September 15, 2024 | $0.47 | | July 1, 2024 | June 15, 2024 | $0.46 | | April 1, 2024 | March 15, 2024 | $0.46 | - On July 22, 2025, the Board declared a quarterly cash dividend of **$0.53 per share**, representing a **12.8% increase**, to be paid on October 1, 2025[216](index=216&type=chunk) - The annualized dividend yield to shareholders was **3.55%** as of June 30, 2025[209](index=209&type=chunk)[221](index=221&type=chunk) [Liquidity and Market Risk](index=82&type=section&id=Liquidity%20and%20Market%20Risk) CTBI manages liquidity to meet loan demand and deposit withdrawals by maintaining liquid assets, unused borrowing capacity, and core deposit growth, ensuring diverse funding sources - CTBI's objective is to maintain **consistent growth in net interest income** through effective management of balance sheet composition, liquidity, and interest rate risk[217](index=217&type=chunk) - As of June 30, 2025, CTBI had **$395.3 million** in cash and cash equivalents and **$109.4 million** in unpledged AFS securities for liquidity needs[217](index=217&type=chunk) - CTBI had a **$527.0 million** available borrowing position with the Federal Home Loan Bank at June 30, 2025, and **$50 million** in lines of credit with correspondent banks[217](index=217&type=chunk) - The investment portfolio consists primarily of investment grade short-term U.S. government and agency issuances, with **99.6%** in AFS securities[218](index=218&type=chunk) [Interest Rate Risk](index=83&type=section&id=Interest%20Rate%20Risk) CTBI considers interest rate risk a significant market risk and manages it using an earnings simulation model to analyze net interest income sensitivity, monitored by the Asset/Liability Management Committee (ALCO) - Interest rate risk is managed using an **earnings simulation model** to analyze net interest income sensitivity to movements in interest rates[219](index=219&type=chunk) - A **200 basis point increase** in the yield curve is estimated to increase net interest income by **1.41%** over one year and **3.76%** over two years[243](index=243&type=chunk) - A **200 basis point decrease** in the yield curve is estimated to decrease net interest income by **2.12%** over one year and **5.09%** over two years[243](index=243&type=chunk) - CTBI's **Asset/Liability Management Committee (ALCO)** monitors and manages interest rate risk within Board-approved policy limits[220](index=220&type=chunk) [Capital Resources](index=83&type=section&id=Capital%20Resources) CTBI's capital growth is primarily driven by retained earnings, with the company and its bank subsidiary meeting the Community Bank Leverage Ratio (CBLR) framework requirements, indicating strong capital levels - CTBI's primary source of capital growth is the **retention of earnings**, with **63.8%** of earnings retained year-to-date, compared to **56.8%** in the prior year[221](index=221&type=chunk) - CTBI and CTB elected to use the **Community Bank Leverage Ratio (CBLR) framework**, which requires a leverage ratio greater than **9%** for eligible community banks[222](index=222&type=chunk) Community Bank Leverage Ratio (CBLR) | Entity | CBLR Ratio (June 30, 2025) | | :----- | :------------------------- | | CTBI | 13.80% | | CTB | 13.33% | [Impact of Inflation, Changing Prices, and Economic Conditions](index=84&type=section&id=Impact%20of%20Inflation%2C%20Changing%20Prices%2C%20and%20Economic%20Conditions) CTBI acknowledges that inflation impacts asset growth and the need for increased equity capital, emphasizing its ability to react to interest rate changes as a significant factor influencing financial results - **Inflation impacts asset growth** in the banking industry, requiring **increased equity capital** to maintain appropriate equity-to-assets ratios, and also affects other expenses[224](index=224&type=chunk) - CTBI considers its **ability to react to changes in interest rates** as one of the most significant impacts on financial and operating results[225](index=225&type=chunk) - The company seeks to maintain a **balanced position** between interest rate sensitive assets and liabilities to mitigate the effects of wide interest rate fluctuations[225](index=225&type=chunk) [Stock Repurchase Program](index=84&type=section&id=Stock%20Repurchase%20Program) CTBI has an ongoing stock repurchase program, which has been increased multiple times since its inception in 1998, with a significant number of shares repurchased and remaining authorization - CTBI's stock repurchase program began in December 1998 and has been increased multiple times, including by an additional **1,000,000 shares** in March 2020[226](index=226&type=chunk) Stock Repurchase Program Status (June 30, 2025) | Metric | Amount | | :----------------------------------- | :----------- | | Total shares repurchased through program | 2,465,294 | | Shares remaining under authorization | 1,034,706 | [Critical Accounting Estimates](index=84&type=section&id=Critical%20Accounting%20Estimates) This section highlights CTBI's critical accounting estimates, primarily the Allowance for Credit Losses (ACL) and Goodwill impairment testing, which require significant management judgment and assumptions about future events - The preparation of consolidated financial statements requires **significant estimates and assumptions**, which are constantly reevaluated[227](index=227&type=chunk)[228](index=228&type=chunk) - The Allowance for Credit Losses (ACL) is a **critical accounting estimate**, determined through ongoing **quarterly assessments** of loan collectability, historical loss experience, current/forecasted economic conditions, and qualitative factors[229](index=229&type=chunk)[230](index=230&type=chunk) - ACL methodology involves **collective evaluation** for pooled loans using a **discounted cash flow (DCF) model** with **economic forecasts** (up to one year) and specific allowances for **individually evaluated loans** (e.g., collateral-dependent loans)[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - Goodwill is another **critical accounting estimate**, tested **annually for impairment** by comparing its fair value to its carrying amount, involving subjective estimates and judgments related to cash flows and discount rates[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reiterates CTBI's approach to managing interest rate risk, which is considered a significant market risk, using an earnings simulation model to assess net interest income sensitivity to yield curve changes - Interest rate risk management focuses on maintaining **consistent growth in net interest income** within Board-approved policy limits[243](index=243&type=chunk) - An **earnings simulation model** is used to analyze net interest income sensitivity to movements in interest rates[243](index=243&type=chunk) Estimated Impact of Yield Curve Changes on Net Interest Income | Scenario | Estimated Change in Net Interest Income (1 Year) | Estimated Change in Net Interest Income (2 Years) | | :----------------------- | :----------------------------------------------- | :----------------------------------------------- | | 200 basis point increase | +1.41% | +3.76% | | 200 basis point decrease | -2.12% | -5.09% | [Item 4. Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of CTBI's disclosure controls and procedures as of June 30, 2025, and states that there were no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were **effective** as of June 30, 2025, ensuring timely and accurate reporting of material information[244](index=244&type=chunk) - There were **no changes** in internal control over financial reporting during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect CTBI

Company Overview - Community Trust Bancorp (CTBI) is headquartered in Pikeville and operates in the Finance sector [3] - The stock has experienced a price change of 0.15% since the beginning of the year [3] Dividend Information - CTBI currently pays a dividend of $0.47 per share, resulting in a dividend yield of 3.54% [3] - The average dividend yield for the Banks - Southeast industry is 2.36%, while the S&P 500's yield is 1.49% [3] - The company's annualized dividend of $1.88 has increased by 1.1% from the previous year [4] - Over the past 5 years, CTBI has raised its dividend 5 times, achieving an average annual increase of 5.32% [4] - The current payout ratio for CTBI is 37%, indicating that it paid out 37% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, CTBI anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $5.35 per share, reflecting a year-over-year growth rate of 16.05% [5] Investment Appeal - CTBI is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6] - The company is considered a strong option for income investors due to its secure profits and consistent dividend payments [6]

Group 1 - Community Trust Bancorp (CTBI) shows a significantly improving earnings outlook, making it a solid choice for investors [1][11] - Analysts are raising earnings estimates for CTBI, reflecting growing optimism about its earnings prospects, which is expected to positively impact its stock price [2][3] - The Zacks Rank system indicates strong agreement among analysts in raising earnings estimates, leading to a considerable increase in consensus estimates for the next quarter and full year [3][10] Group 2 - The current-quarter earnings estimate for CTBI is projected at $1.39 per share, representing a year-over-year increase of 13.0% [7] - Over the past 30 days, the Zacks Consensus Estimate for CTBI has risen by 7.36%, with two estimates moving higher and no negative revisions [7][9] - For the full year, the earnings estimate stands at $5.35 per share, reflecting a 16.1% increase from the previous year [8] Group 3 - The favorable estimate revisions have earned CTBI a Zacks Rank 2 (Buy), indicating strong potential for outperformance compared to the S&P 500 [10] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically shown significant outperformance, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][10] - CTBI's stock has gained 9.9% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [11]

[Earnings Summary](index=1&type=section&id=Earnings%20Summary) Community Trust Bancorp, Inc. achieved record earnings in Q2 2025, driven by increased net interest and noninterest income and reduced credit loss provisions [2Q 2025 Earnings Highlights](index=1&type=section&id=2nd%20Quarter%202025%20Highlights) Community Trust Bancorp, Inc. reported record earnings for the second quarter of 2025, with net income reaching $24.9 million, or $1.38 per basic share. This represents significant growth compared to both the prior quarter and the prior year, driven by increased net interest revenue and noninterest income, alongside a decrease in the provision for credit losses 2Q 2025 Earnings Highlights Data | (in thousands except per share data) | 2Q 2025 | 1Q 2025 | 2Q 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net income | $24,899 | $21,972 | $19,499 | $46,871 | $38,178 | | Earnings per share | $1.38 | $1.22 | $1.09 | $2.60 | $2.13 | | Earnings per share - diluted | $1.38 | $1.22 | $1.09 | $2.60 | $2.13 | | Return on average assets | 1.58% | 1.44% | 1.35% | 1.51% | 1.33% | | Return on average equity | 12.51% | 11.50% | 11.03% | 12.01% | 10.82% | | Efficiency ratio | 50.70% | 51.86% | 52.17% | 51.26% | 53.51% | | Tangible common equity | 11.72% | 11.57% | 11.39% | | | | Dividends declared per share | $0.47 | $0.47 | $0.46 | $0.94 | $0.92 | | Book value per share | $44.57 | $43.32 | $39.91 | | | | Weighted average shares | 18,012 | 17,995 | 17,939 | 18,004 | 17,932 | | Weighted average shares - diluted | 18,036 | 18,022 | 17,959 | 18,029 | 17,951 | - Net interest income for the quarter was **$54.0 million**, an increase of **$2.8 million (5.4%)** from the prior quarter and **$8.4 million (18.3%)** from the prior year same quarter[1](index=1&type=chunk)[2](index=2&type=chunk) - Provision for credit losses for the quarter decreased by **$1.5 million** from the prior quarter and **$0.9 million** from the prior year same quarter[1](index=1&type=chunk)[2](index=2&type=chunk) - Noninterest income for the quarter was **$16.2 million**, an increase of **$1.3 million (8.6%)** from the prior quarter and **$0.5 million (2.9%)** from the prior year same quarter[1](index=1&type=chunk)[2](index=2&type=chunk)[3](index=3&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) Analysis of Q2 2025 financial performance reveals growth in net interest and noninterest income, alongside an increase in noninterest expenses [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income for Q2 2025 increased significantly, driven by higher income on earning assets and a decrease in the rate paid on interest-bearing liabilities. The net interest margin also expanded, reflecting improved asset yields and lower funding costs Net Interest Income Data | ($ in thousands) | 2Q 2025 | 1Q 2025 | 2Q 2024 | Change (%) 2Q 2025 Compared to 1Q 2025 | Change (%) 2Q 2025 Compared to 2Q 2024 | | :------------------------------- | :------- | :------- | :------- | :------------------------------------- | :------------------------------------- | | Income on earning assets | $85,571 | $82,054 | $76,648 | 4.3 | 11.6 | | Expense on interest bearing liabilities | 31,531 | 30,787 | 30,970 | 2.4 | 1.8 | | Net interest income | 54,040 | 51,267 | 45,678 | 5.4 | 18.3 | | Net interest income, tax equivalent | $54,323 | $51,540 | $45,970 | 5.4 | 18.2 | | Earning assets yield | 5.76% | 5.71% | 5.66% | 0.9 | 1.8 | | Rate paid on interest bearing liabilities | 3.00% | 3.02% | 3.30% | (0.7) | (9.1) | | Net interest margin | 3.64% | 3.57% | 3.38% | 2.0 | 7.7 | - Net interest income for the quarter was **$54.0 million**, increasing **$2.8 million (5.4%)** from the prior quarter and **$8.4 million (18.3%)** from the prior year same quarter[4](index=4&type=chunk) - Net interest margin, on a fully tax equivalent basis, increased to **3.64%**, up **7 basis points** from the prior quarter and **26 basis points** from the prior year same quarter[4](index=4&type=chunk) - Yield on average earning assets increased **5 basis points** QoQ and **10 basis points** YoY, while the cost of funds decreased **2 basis points** QoQ and **30 basis points** YoY[4](index=4&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Total noninterest income for Q2 2025 saw an increase, primarily due to higher deposit-related fees and loan-related fees quarter-over-quarter. Year-over-year growth was modest, with trust revenue and securities gains offsetting a decline in bank-owned life insurance revenue Noninterest Income Data | ($ in thousands) | 2Q 2025 | 1Q 2025 | 2Q 2024 | Percent Change (%) 2Q 2025 Compared to 1Q 2025 | Percent Change (%) 2Q 2025 Compared to 2Q 2024 | | :------------------------- | :------- | :------- | :------- | :--------------------------------------------- | :--------------------------------------------- | | Deposit related fees | $7,350 | $6,822 | $7,308 | 7.7 | 0.6 | | Trust revenue | 4,092 | 3,981 | 3,736 | 2.8 | 9.6 | | Gains on sales of loans | 77 | 47 | 119 | 64.0 | (35.3) | | Loan related fees | 1,249 | 965 | 1,320 | 29.4 | (5.4) | | Bank owned life insurance revenue | 1,102 | 1,035 | 1,815 | 6.5 | (39.3) | | Brokerage revenue | 526 | 494 | 683 | 6.5 | (23.0) | | Other | 1,775 | 1,553 | 727 | 14.3 | 144.2 | | Total noninterest income | $16,171 | $14,897 | $15,708 | 8.6 | 2.9 | - Total noninterest income for Q2 2025 was **$16.2 million**, an increase of **$1.3 million (8.6%)** from the prior quarter and **$0.5 million (2.9%)** from the prior year same quarter[8](index=8&type=chunk) - Quarter-over-quarter variance was primarily due to increases in deposit related fees (**+$0.5 million**) and loan related fees (**+$0.3 million**)[8](index=8&type=chunk) - Year-over-year increases in trust revenue (**+$0.4 million**) and securities gains (**+$0.6 million**) were partially offset by a decrease in bank owned life insurance revenue (**-$0.7 million**)[8](index=8&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Noninterest expense increased in Q2 2025, mainly due to a higher accrual for annual incentive payments to employees and increased data processing expenses. Personnel expenses and data processing were also significant contributors to the year-over-year increase Noninterest Expense Data | ($ in thousands) | 2Q 2025 | 1Q 2025 | 2Q 2024 | Percent Change (%) 2Q 2025 Compared to 1Q 2025 | Percent Change (%) 2Q 2025 Compared to 2Q 2024 | | :------------------------------- | :------- | :------- | :------- | :--------------------------------------------- | :--------------------------------------------- | | Salaries | $13,667 | $13,269 | $13,037 | 3.0 | 4.8 | | Employee benefits | 7,987 | 6,849 | 6,554 | 16.6 | 21.9 | | Net occupancy and equipment | 3,172 | 3,440 | 3,089 | (7.8) | 2.7 | | Data processing | 3,326 | 2,859 | 2,669 | 16.3 | 24.6 | | Legal and professional fees | 1,001 | 1,225 | 978 | (18.3) | 2.4 | | Advertising and marketing | 765 | 673 | 856 | 13.7 | (10.6) | | Taxes other than property and payroll | 573 | 529 | 438 | 8.3 | 30.8 | | Other | 5,172 | 5,364 | 4,801 | (3.6) | 7.7 | | Total noninterest expense | $35,663 | $34,208 | $32,422 | 4.3 | 10.0 | - Total noninterest expense for Q2 2025 was **$35.7 million**, an increase of **$1.5 million (4.3%)** from the prior quarter and **$3.2 million (10.0%)** from the prior year same quarter[9](index=9&type=chunk) - The quarter-over-quarter increase primarily resulted from an increase in the accrual for annual incentive payments to employees and a **$0.5 million** increase in data processing expense, partially offset by decreases in net occupancy and equipment expense (**-$0.3 million**) and legal and professional fees (**-$0.2 million**)[9](index=9&type=chunk) - The year-over-year increase was primarily due to increases in personnel expense (**+$2.1 million**) and data processing expense (**+$0.7 million**)[9](index=9&type=chunk) [Balance Sheet Review](index=3&type=section&id=Balance%20Sheet%20Review) The balance sheet review highlights growth in total loans, deposits, and shareholders' equity, reflecting overall asset expansion [Total Loans](index=3&type=section&id=Total%20Loans) The total loan portfolio continued to grow in Q2 2025, reaching $4.7 billion. Growth was observed across commercial and residential loan portfolios, while indirect consumer loans experienced a slight decrease Total Loans Data | ($ in thousands) | 2Q 2025 | 1Q 2025 | 2Q 2024 | Percent Change (%) 2Q 2025 Compared to 1Q 2025 | Percent Change (%) 2Q 2025 Compared to 2Q 2024 | | :------------------------------- | :---------- | :---------- | :---------- | :--------------------------------------------- | :--------------------------------------------- | | Commercial nonresidential real estate | $913,463 | $913,238 | $825,934 | 0.0 | 10.6 | | Commercial residential real estate | 559,906 | 535,427 | 480,418 | 4.6 | 16.5 | | Hotel/motel | 477,175 | 475,582 | 417,161 | 0.3 | 14.4 | | Other commercial | 432,021 | 433,379 | 428,263 | (0.3) | 0.9 | | Total commercial | 2,382,565 | 2,357,626 | 2,151,776 | 1.1 | 10.7 | | Residential mortgage | 1,112,672 | 1,066,973 | 978,144 | 4.3 | 13.8 | | Home equity loans/lines | 177,135 | 172,688 | 154,311 | 2.6 | 14.8 | | Total residential | 1,289,807 | 1,239,661 | 1,132,455 | 4.0 | 13.9 | | Consumer indirect | 878,506 | 888,635 | 819,689 | (1.1) | 7.2 | | Consumer direct | 150,915 | 150,614 | 157,327 | 0.2 | (4.1) | | Total consumer | 1,029,421 | 1,039,249 | 977,016 | (0.9) | 5.4 | | Total loans | $4,701,793 | $4,636,536 | $4,261,247 | 1.4 | 10.3 | - Total loans outstanding increased to **$4.7 billion**, up **$65.3 million (annualized 5.6%)** from March 31, 2025, and **$440.5 million (10.3%)** from June 30, 2024[7](index=7&type=chunk)[12](index=12&type=chunk) - The increase in loans from the prior quarter included a **$24.9 million** increase in the commercial loan portfolio and a **$50.2 million** increase in the residential loan portfolio[12](index=12&type=chunk) - The increase was partially offset by a **$10.1 million** decrease in the indirect consumer loan portfolio[12](index=12&type=chunk) [Total Deposits and Repurchase Agreements](index=4&type=section&id=Total%20Deposits%20and%20Repurchase%20Agreements) Total deposits and repurchase agreements increased in Q2 2025, driven by growth in interest-bearing deposits, particularly interest checking and time deposits. The company maintains a diversified deposit base with no significant customer concentration Total Deposits and Repurchase Agreements Data | ($ in thousands) | 2Q 2025 | 1Q 2025 | 2Q 2024 | Percent Change (%) 2Q 2025 Compared to 1Q 2025 | Percent Change (%) 2Q 2025 Compared to 2Q 2024 | | :--------------------------------------- | :---------- | :---------- | :---------- | :--------------------------------------------- | :--------------------------------------------- | | Noninterest bearing deposits | $1,258,205 | $1,235,544 | $1,241,514 | 1.8 | 1.3 | | Interest bearing deposits: | | | | | | | Interest checking | 173,795 | 158,968 | 138,767 | 9.3 | 25.2 | | Money market savings | 1,820,230 | 1,828,051 | 1,664,580 | (0.4) | 9.4 | | Savings accounts | 508,467 | 516,379 | 527,251 | (1.5) | (3.6) | | Time deposits | 1,472,311 | 1,372,363 | 1,161,686 | 7.3 | 26.7 | | Repurchase agreements | 225,075 | 246,556 | 227,576 | (8.7) | (1.1) | | Total interest bearing deposits and repurchase agreements | 4,199,878 | 4,122,317 | 3,719,860 | 1.9 | 12.9 | | Total deposits and repurchase agreements | $5,458,083 | $5,357,861 | $4,961,374 | 1.9 | 10.0 | - Deposits, including repurchase agreements, increased to **$5.5 billion**, up **$100.2 million (annualized 7.5%)** from March 31, 2025, and **$496.7 million (10.0%)** from June 30, 2024[7](index=7&type=chunk)[12](index=12&type=chunk) - Deposit growth outpaced loan growth, leading to an increase in deposits in other banks by **$46.6 million** QoQ and **$212.0 million** YoY[12](index=12&type=chunk) - No single customer accounted for more than **3%** of the **$5.2 billion** in deposits as of June 30, 2025, indicating a diversified deposit base[12](index=12&type=chunk) [Shareholders' Equity](index=4&type=section&id=Shareholders'%20equity) Shareholders' equity continued to grow in Q2 2025, supported by earnings and a reduction in net unrealized losses on securities. The company's annualized dividend yield was 3.55% - Shareholders' equity increased to **$806.9 million**, up **$22.7 million (annualized 11.6%)** during the quarter and **$87.5 million (12.2%)** from June 30, 2024[7](index=7&type=chunk)[13](index=13&type=chunk) - Net unrealized losses on securities, net of deferred taxes, decreased to **$80.6 million** at June 30, 2025, from **$86.1 million** at March 31, 2025, and **$107.1 million** at June 30, 2024[13](index=13&type=chunk) - CTBI's annualized dividend yield to shareholders as of June 30, 2025, was **3.55%**[13](index=13&type=chunk) [Asset Quality and Credit Losses](index=4&type=section&id=Asset%20Quality) Asset quality analysis shows a decrease in nonperforming loans quarter-over-quarter and a reduced provision for credit losses [Asset Quality Overview](index=4&type=section&id=Asset%20Quality%20Overview) Total nonperforming loans decreased quarter-over-quarter but increased year-over-year. While accruing loans 90+ days past due decreased, nonaccrual loans saw an increase. The company actively manages problem loans to minimize losses - Total nonperforming loans were **$24.4 million** at June 30, 2025, decreasing **$2.1 million** from March 31, 2025, but increasing **$4.6 million** from June 30, 2024[7](index=7&type=chunk)[14](index=14&type=chunk) - Accruing loans 90+ days past due decreased by **$2.4 million** QoQ and **$6.3 million** YoY, while nonaccrual loans increased by **$0.2 million** QoQ and **$10.8 million** YoY[14](index=14&type=chunk) - Net loan charge-offs for Q2 2025 were **$1.4 million**, an annualized **0.12%** of average loans, comparable to **$1.6 million (0.14%)** in Q1 2025 and **$1.4 million (0.13%)** in Q2 2024[7](index=7&type=chunk)[15](index=15&type=chunk) [Allowance for Credit Losses](index=4&type=section&id=Allowance%20for%20Credit%20Losses) The provision for credit losses decreased significantly in Q2 2025, with a portion allocated to fund loan growth. Reserve coverage improved quarter-over-quarter, while the loan loss reserve as a percentage of total loans remained stable - Provision for credit losses was **$2.1 million** for the quarter, decreasing **$1.5 million** from the prior quarter and **$0.9 million** from the prior year same quarter[2](index=2&type=chunk)[17](index=17&type=chunk) - Of the provision for the quarter, **$0.9 million** was allotted to fund loan growth[17](index=17&type=chunk) - Reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2025, was **237.1%**, compared to **214.7%** at March 31, 2025, and **263.0%** at June 30, 2024[17](index=17&type=chunk) - The loan loss reserve as a percentage of total loans outstanding remained at **1.23%** from March 31, 2025, compared to **1.22%** at June 30, 2024[17](index=17&type=chunk) [Company Information and Forward-Looking Statements](index=5&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) This section outlines forward-looking statement disclaimers and provides a profile of Community Trust Bancorp, Inc [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section highlights that certain statements in the report are forward-looking and subject to various risks and uncertainties. These include economic conditions, portfolio performance, regulatory changes, competition, and integration difficulties from acquisitions. The company does not undertake to update these statements - Forward-looking statements are subject to risks and uncertainties including economic conditions, portfolio growth, credit performance, prevailing inflation and interest rates, regulatory changes, and competition[18](index=18&type=chunk) - The banking industry is subject to various monetary, operational, and fiscal policies and regulations from federal and state authorities, which could affect CTBI's results[18](index=18&type=chunk) - CTBI undertakes no obligation to update any forward-looking statements made[18](index=18&type=chunk) [Company Profile](index=5&type=section&id=Community%20Trust%20Bancorp,%20Inc.%20Profile) Community Trust Bancorp, Inc. is headquartered in Pikeville, Kentucky, with $6.4 billion in assets. It operates 72 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, and three banking locations in northeastern Tennessee, along with multiple trust offices - Community Trust Bancorp, Inc. is headquartered in Pikeville, Kentucky, with **assets of $6.4 billion**[19](index=19&type=chunk) - The company has **72 banking locations** across Kentucky, **six in southern West Virginia**, and **three in northeastern Tennessee**[19](index=19&type=chunk) - It also operates **four trust offices** across Kentucky and **one trust office** in Tennessee[19](index=19&type=chunk) [Unaudited Financial Summaries](index=6&type=section&id=Financial%20Summary%20(Unaudited)) Unaudited financial summaries present detailed income statements, balance sheets, and key performance ratios for recent periods [Income Statement and Performance Ratios](index=6&type=section&id=Income%20Statement%20and%20Performance%20Ratios) This section provides a detailed unaudited income statement for the three and six months ended June 30, 2025, compared to prior periods, along with key performance ratios such as return on average assets, return on average equity, and net interest margin Income Statement and Performance Ratios Data | | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $85,571 | $82,054 | $76,648 | $167,625 | $151,650 | | Interest expense | 31,531 | 30,787 | 30,970 | 62,318 | 62,381 | | Net interest income | 54,040 | 51,267 | 45,678 | 105,307 | 89,269 | | Provision for credit losses | 2,094 | 3,568 | 2,972 | 5,662 | 5,628 | | Total noninterest income | 16,171 | 14,897 | 15,708 | 31,068 | 30,842 | | Total noninterest expense | 35,663 | 34,208 | 32,422 | 69,871 | 64,642 | | Net income | $24,899 | $21,972 | $19,499 | $46,871 | $38,178 | | Basic earnings per share | $1.38 | $1.22 | $1.09 | $2.60 | $2.13 | | Diluted earnings per share | $1.38 | $1.22 | $1.09 | $2.60 | $2.13 | | Dividends per share | $0.47 | $0.47 | $0.46 | $0.94 | $0.92 | | Return on average assets | 1.58% | 1.44% | 1.35% | 1.51% | 1.33% | | Return on average equity | 12.51% | 11.50% | 11.03% | 12.01% | 10.82% | | Net interest margin (tax equivalent) | 3.64% | 3.57% | 3.38% | 3.61% | 3.31% | | Efficiency ratio (tax equivalent) | 50.70% | 51.86% | 52.17% | 51.26% | 53.51% | | Net charge-offs | $1,353 | $1,575 | $1,395 | $2,928 | $3,023 | [Balance Sheet and Key Ratios](index=8&type=section&id=Balance%20Sheet%20and%20Key%20Ratios) This section presents a detailed unaudited balance sheet as of June 30, 2025, March 31, 2025, and June 30, 2024, outlining assets, liabilities, and equity. It also includes key balance sheet ratios such as community bank leverage ratio and tangible equity to tangible assets ratio Balance Sheet and Key Ratios Data | | As of June 30, 2025 | As of March 31, 2025 | As of June 30, 2024 | | :--------------------------------- | :------------------ | :------------------- | :------------------ | | **Assets:** | | | | | Loans | $4,701,793 | $4,636,536 | $4,261,247 | | Allowance for credit losses | (57,825) | (56,961) | (52,148) | | Net loans | 4,643,968 | 4,579,575 | 4,209,099 | | Securities AFS | 994,990 | 1,008,552 | 1,090,322 | | Other earning assets | 320,830 | 274,229 | 108,823 | | Total Assets | $6,390,938 | $6,276,518 | $5,804,339 | | **Liabilities and Equity:** | | | | | Total deposits | 5,233,008 | 5,111,305 | 4,733,798 | | Repurchase agreements | 225,075 | 246,556 | 227,576 | | Total liabilities | 5,584,069 | 5,492,346 | 5,085,016 | | Shareholders' equity | 806,869 | 784,172 | 719,323 | | Total Liabilities and Equity | $6,390,938 | $6,276,518 | $5,804,339 | | Ending shares outstanding | 18,105 | 18,102 | 18,026 | | 30 - 89 days past due loans | $20,055 | $14,537 | $24,099 | | 90 days past due loans | 8,449 | 10,835 | 14,703 | | Nonaccrual loans | 15,937 | 15,692 | 5,127 | | Foreclosed properties | 4,857 | 4,795 | 1,626 | | Community bank leverage ratio | 13.80% | 13.81% | 13.90% | | Tangible equity to tangible assets ratio | 11.72% | 11.57% | 11.39% | | FTE employees | 937 | 939 | 930 |

[FORM 10-Q Cover Page Information](index=1&type=section&id=FORM%2010-Q%20Cover%20Page%20Information) This section provides the basic identification details for Community Trust Bancorp, Inc. (CTBI) as a registrant with the SEC, including its address, state of incorporation, and trading symbol [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides the basic identification details for Community Trust Bancorp, Inc. (CTBI) as a registrant with the SEC, including its address, state of incorporation, and trading symbol - Registrant: **COMMUNITY TRUST BANCORP, INC.**[1](index=1&type=chunk) - State of Incorporation: Kentucky[1](index=1&type=chunk) - Trading Symbol: **CTBI** on The NASDAQ Global Select Market[2](index=2&type=chunk) [Filing Status](index=1&type=section&id=Filing%20Status) CTBI confirms its compliance with SEC filing requirements and identifies itself as a Large Accelerated Filer for the quarterly period ended March 31, 2025 - Filed all required reports and subject to filing requirements for the past 90 days: Yes[2](index=2&type=chunk) - Submitted interactive data files: Yes[2](index=2&type=chunk) Filer Status | Filer Type | Status | | :----------- | :----- | | Large Accelerated Filer | ✔ | | Accelerated Filer | ☐ | | Non-accelerated Filer | ☐ | | Smaller Reporting Company | ☐ | | Emerging Growth Company | ☐ | - Report Type: Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2025[5](index=5&type=chunk) [Shares Outstanding](index=2&type=section&id=Shares%20Outstanding) As of April 30, 2025, the number of common shares outstanding for CTBI was 18,110,933 - Common stock outstanding at April 30, 2025: **18,110,933 shares**[7](index=7&type=chunk) [CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS](index=3&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD%20LOOKING%20STATEMENTS) This section warns readers that the report contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially. CTBI explicitly states it undertakes no obligation to update these statements [Forward-Looking Statements Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20Disclosure) This section warns readers that the report contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially. CTBI explicitly states it undertakes no obligation to update these statements - Forward-looking statements are identified by words like 'believe,' 'expect,' 'anticipate,' 'intend,' 'estimate,' and future or conditional verbs such as 'will,' 'should,' 'would,' and 'could'[9](index=9&type=chunk) - Risks and uncertainties include economic conditions, portfolio growth, credit performance, interest rates, regulatory changes, competition, and integration difficulties from acquisitions[9](index=9&type=chunk) - CTBI undertakes no obligation to update any forward-looking statements[9](index=9&type=chunk) [PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents Community Trust Bancorp, Inc.'s (CTBI) unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This item presents CTBI's unaudited condensed consolidated financial statements, including balance sheets, income statements, statements of changes in shareholders' equity, and cash flow statements, along with detailed notes on significant accounting policies, securities, loans, fair value measurements, and segment reporting - The accompanying information has not been audited by independent registered public accountants but reflects all necessary adjustments for a fair presentation of interim results[11](index=11&type=chunk) - Statements are presented in accordance with Form 10-Q requirements and do not include all disclosures normally required by GAAP for complete annual financial statements; readers should refer to the Form 10-K for the year ended December 31, 2024, for further information[12](index=12&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents CTBI's condensed consolidated balance sheets, detailing assets, liabilities, and shareholders' equity as of March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $340,665 | $369,505 | | Debt securities available-for-sale | $1,008,552 | $1,055,728 | | Net loans | $4,579,575 | $4,431,669 | | Total assets | $6,276,518 | $6,193,245 | | **Liabilities:** | | | | Total deposits | $5,111,305 | $5,070,189 | | Total liabilities | $5,492,346 | $5,435,661 | | **Shareholders' Equity:** | | | | Total shareholders' equity | $784,172 | $757,584 | | Total liabilities and shareholders' equity | $6,276,518 | $6,193,245 | [Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This section presents CTBI's condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2025, and 2024 Condensed Consolidated Statements of Income (in thousands, except per share data) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Total interest income | $82,054 | $75,002 | | Total interest expense | $30,787 | $31,411 | | Net interest income | $51,267 | $43,591 | | Provision for credit losses | $3,568 | $2,656 | | Total noninterest income | $14,897 | $15,134 | | Total noninterest expense | $34,208 | $32,220 | | Net income | $21,972 | $18,679 | | Basic earnings per share | $1.22 | $1.04 | | Diluted earnings per share | $1.22 | $1.04 | Comprehensive Income (in thousands) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Net income | $21,972 | $18,679 | | Other comprehensive gain (loss), net of tax | $12,304 | $(3,546) | | Comprehensive income | $34,276 | $15,133 | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section details changes in CTBI's consolidated shareholders' equity for the three months ended March 31, 2025, and 2024, including net income, other comprehensive income, and dividends Changes in Shareholders' Equity (in thousands) | (in thousands) | Balance, Dec 31, 2024 | Net Income | Other Comprehensive Income (Loss) | Cash Dividends Declared | Issuance of Common Stock | Issuance of Restricted Stock | Vesting of Restricted Stock | Stock-based Compensation | Balance, Mar 31, 2025 | | :--------------- | :-------------------- | :--------- | :-------------------------------- | :---------------------- | :----------------------- | :------------------------- | :------------------------ | :----------------------- | :-------------------- | | Total | $757,584 | $21,972 | $12,304 | $(8,461) | $276 | $0 | $0 | $497 | $784,172 | Changes in Shareholders' Equity (in thousands) | (in thousands) | Balance, Dec 31, 2023 | Net Income | Other Comprehensive Income (Loss) | Cash Dividends Declared | Issuance of Common Stock | Issuance of Restricted Stock | Vesting of Restricted Stock | Forfeiture of Restricted Stock | Stock-based Compensation | Cumulative Effect of FASB Adjustment | Balance, Mar 31, 2024 | | :--------------- | :-------------------- | :--------- | :-------------------------------- | :---------------------- | :----------------------- | :------------------------- | :------------------------ | :----------------------------- | :----------------------- | :--------------------------------- | :-------------------- | | Total | $702,208 | $18,679 | $(3,546) | $(8,249) | $291 | $0 | $0 | $0 | $302 | $(1,961) | $707,724 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents CTBI's condensed consolidated statements of cash flows for the three months ended March 31, 2025, and 2024, categorizing cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $36,582 | $26,184 | | Net cash used in investing activities | $(104,641) | $(65,293) | | Net cash provided by financing activities | $39,219 | $61,007 | | Net increase (decrease) in cash and cash equivalents | $(28,840) | $21,898 | | Cash and cash equivalents at end of period | $340,665 | $293,298 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to CTBI's condensed consolidated financial statements, covering significant accounting policies, securities, loans, fair value measurements, and segment reporting [Note 1 - Summary of Significant Accounting Policies](index=11&type=section&id=Note%201%20-%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines CTBI's significant accounting policies, including principles of consolidation, new accounting standards adopted or pending, and specific policies for investments, loans, allowance for credit losses, goodwill, income taxes, and off-balance sheet credit exposures. It emphasizes the use of GAAP and management's estimates - CTBI's condensed consolidated financial statements include accounts of CTBI and its wholly-owned subsidiaries Community Trust Bank, Inc. (CTB) and Community Trust and Investment Company[24](index=24&type=chunk) - New accounting standard ASU No. 2023-09 (Income Tax Disclosures) became effective January 1, 2025, affecting annual financial statement disclosure only, with no impact on results or financial condition[25](index=25&type=chunk) - New accounting standard ASU No. 2024-03 (Income Statement Expense Disclosures) is effective for fiscal years beginning after December 15, 2026, and is not expected to have a material impact[26](index=26&type=chunk) - Debt securities are classified as available-for-sale (AFS) and reported at fair value, with unrealized gains/losses in shareholders' equity. No held-to-maturity (HTM) securities are currently held[30](index=30&type=chunk)[31](index=31&type=chunk) - Allowance for Credit Losses (ACL) is measured on a collective basis using discounted cash flow for financial assets with similar risk characteristics, or individually for others. Forecasts include GDP, vehicle sales, and housing price index[38](index=38&type=chunk)[39](index=39&type=chunk) - Goodwill is evaluated annually for impairment using fair value techniques; the balance of **$65.5 million** has not changed since January 1, 2015[59](index=59&type=chunk) [Note 2 – Stock-Based Compensation](index=17&type=section&id=Note%202%20%E2%80%93%20Stock-Based%20Compensation) This note details CTBI's stock-based compensation, primarily restricted stock. It provides expense figures for the current and prior periods, unrecognized compensation, and activity in restricted stock grants Restricted Stock Expense (in thousands) | Period | Restricted Stock Expense | | :----- | :----------------------- | | Q1 2025 | $544 | | Q1 2024 | $343 | - As of March 31, 2025, there was **$3.8 million** of unrecognized compensation expense related to restricted stock grants, to be recognized over a weighted average period of **3.1 years**[62](index=62&type=chunk) Restricted Stock Activity (March 31, 2025 vs. 2024) | Activity | March 31, 2025 (Grants) | Weighted Average Fair Value at Grant (2025) | March 31, 2024 (Grants) | Weighted Average Fair Value at Grant (2024) | | :--------- | :---------------------- | :------------------------------------------ | :---------------------- | :------------------------------------------ | | Outstanding at beginning of year | 86,572 | $43.45 | 96,840 | $43.75 | | Granted | 38,538 | $53.53 | 15,000 | $41.29 | | Vested | (25,498) | $43.76 | (22,408) | $43.37 | | Forfeited | 0 | - | (2,109) | $42.80 | | Outstanding at end of period | 99,612 | $47.27 | 87,323 | $43.45 | [Note 3 – Securities](index=17&type=section&id=Note%203%20%E2%80%93%20Securities) This note provides a detailed breakdown of CTBI's debt and equity securities, including their amortized cost, fair value, and unrealized gains/losses. It also discusses the impairment analysis for available-for-sale securities, confirming that all impairment is temporary and not credit-related Available-for-Sale Debt Securities (in thousands) | (in thousands) | March 31, 2025 Amortized Cost | March 31, 2025 Fair Value | December 31, 2024 Amortized Cost | December 31, 2024 Fair Value | | :--------------- | :------------------------------ | :------------------------ | :------------------------------- | :----------------------- | | U.S. Treasury and government agencies | $260,711 | $246,254 | $360,027 | $341,495 | | State and political subdivisions | $304,358 | $257,105 | $304,588 | $253,557 | | Agency mortgage-backed securities | $508,292 | $455,542 | $471,000 | $409,709 | | Asset-backed securities | $49,717 | $49,651 | $51,034 | $50,967 | | Total AFS securities | $1,123,078 | $1,008,552 | $1,186,649 | $1,055,728 | - Unrealized losses on debt securities are considered temporary and market/interest rate driven, not credit-related, at both March 31, 2025, and December 31, 2024[71](index=71&type=chunk)[73](index=73&type=chunk) - The percentage of total debt securities with unrealized losses decreased from **95.5%** at December 31, 2024, to **89.2%** at March 31, 2025[71](index=71&type=chunk) Equity Securities at Fair Value (in thousands) | Period | Fair Value Adjustment (Gain) | | :----- | :--------------------------- | | Q1 2025 | $480 | | Q1 2024 | $371 | [Note 4 – Loans](index=21&type=section&id=Note%204%20%E2%80%93%20Loans) This note details CTBI's loan portfolio, including major classifications, the allowance for credit losses (ACL), nonaccrual and past due loans, credit quality indicators, and loan modifications. It highlights the methodology for estimating credit losses and the impact of modifications on borrowers experiencing financial difficulty Major Classifications of Loans (in thousands) | (in thousands) | March 31, 2025 Net Loans | December 31, 2024 Net Loans | | :--------------- | :----------------------- | :------------------------ | | Commercial loans | $2,357,626 | $2,272,679 | | Residential loans | $1,239,661 | $1,210,826 | | Consumer loans | $1,039,249 | $1,003,132 | | Total Loans and lease financing | $4,636,536 | $4,486,637 | Allowance for Credit Losses (ACL) (in thousands) | (in thousands) | Beginning Balance (Q1 2025) | Provision Charged to Expense (Q1 2025) | Losses Charged Off (Q1 2025) | Recoveries (Q1 2025) | Ending Balance (Q1 2025) | | :--------------- | :-------------------------- | :----------------------------------- | :------------------- | :------------------- | :----------------------- | | Total ACL | $54,968 | $3,568 | $(2,722) | $1,147 | $56,961 | Nonperforming Loans (in thousands) | (in thousands) | March 31, 2025 Total Nonperforming Loans | December 31, 2024 Total Nonperforming Loans | | :--------------- | :--------------------------------------- | :---------------------------------------- | | Commercial loans | $17,782 | $16,187 | | Residential loans | $7,902 | $9,468 | | Consumer loans | $843 | $1,031 | | Total Loans and lease financing | $26,527 | $26,686 | - CTBI categorizes loans into risk categories (Pass, Watch, OAEM, Substandard, Doubtful) based on borrower ability to service debt, collateral value, and guarantor strength[95](index=95&type=chunk) Loan Modifications (Amortized Cost at March 31, 2025, in thousands) | (in thousands) | Interest Rate Reduction | Term Extension | Combination – Term Extension and Interest Rate Reduction | Payment Change | | :--------------- | :---------------------- | :------------- | :------------------------------------------------------- | :------------- | | Commercial loans | $129 | $3,543 | $861 | $1,007 | | Residential loans | $321 | $3,124 | $54 | $0 | | Consumer loans | $0 | $251 | $0 | $106 | | Total | $450 | $6,918 | $915 | $1,113 | - During Q1 2025, **8 loans** to borrowers experiencing financial difficulty subsequently defaulted, totaling **$668 thousand**[113](index=113&type=chunk) [Note 5 – Repurchase Agreements](index=39&type=section&id=Note%205%20%E2%80%93%20Repurchase%20Agreements) This note describes CTBI's repurchase agreements, which are used for customer needs and funding. It details the contractual maturities by collateral class and presents the agreements on a net basis, highlighting market risk associated with underlying securities - Repurchase agreements are recorded at the amount of cash received and are subject to market risk from underlying securities[115](index=115&type=chunk)[116](index=116&type=chunk) Repurchase Agreements by Contractual Maturity (March 31, 2025, in thousands) | (in thousands) | Overnight Continuous | 30 days and Up to | 30-90 days | Greater Than 90 days | Total | | :--------------- | :------------------- | :---------------- | :--------- | :------------------- | :---- | | U.S. Treasury and government agencies | $17,546 | $0 | $0 | $4,473 | $22,019 | | State and political subdivisions | $114,378 | $0 | $0 | $13,088 | $127,466 | | Agency mortgage-backed securities | $24,266 | $0 | $22,000 | $39,556 | $85,822 | | Asset-backed securities | $4,268 | $0 | $0 | $6,981 | $11,249 | | Total repurchase agreements | $160,458 | $0 | $22,000 | $64,098 | $246,556 | Repurchase Agreements Net Basis (in thousands) | (in thousands) | Gross Amount of Recognized Liabilities | Gross Amount Not Offset in the Balance Sheet (Financial Instruments Posted as Collateral) | Net Amount | | :--------------- | :------------------------------------- | :-------------------------------------------------------------------------------------- | :--------- | | March 31, 2025 | $246,556 | $(246,556) | $0 | | December 31, 2024 | $240,166 | $(240,166) | $0 | [Note 6 – Fair Value of Financial Assets and Liabilities](index=41&type=section&id=Note%206%20%E2%80%93%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) This note outlines CTBI's fair value measurements for financial assets and liabilities, adhering to ASC 820. It defines the fair value hierarchy (Level 1, 2, 3) and provides detailed valuation methodologies and inputs for recurring and nonrecurring measurements, including available-for-sale securities, equity securities, mortgage servicing rights, collateral-dependent loans, and OREO - Fair value measurements are categorized into a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) Recurring Fair Value Measurements (March 31, 2025, in thousands) | (in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | | :--------------- | :--------- | :------ | :------ | :------ | | U.S. Treasury and government agencies | $246,254 | $234,290 | $11,964 | $0 | | State and political subdivisions | $257,105 | $0 | $257,105 | $0 | | Agency mortgage-backed securities | $455,542 | $0 | $455,542 | $0 | | Asset-backed securities | $49,651 | $0 | $49,651 | $0 | | Equity securities at fair value | $4,261 | $0 | $0 | $4,261 | | Mortgage servicing rights | $7,093 | $0 | $0 | $7,093 | - Equity securities at fair value (Visa Class B Stock) and Mortgage Servicing Rights (MSRs) are valued using Level 3 inputs due to unobservable inputs like discount rates, conversion dates, prepayment speeds, and default rates[131](index=131&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) Level 3 Reconciliation (in thousands) | (in thousands) | Equity Securities at Fair Value (Q1 2025) | Mortgage Servicing Rights (Q1 2025) | Equity Securities at Fair Value (Q1 2024) | Mortgage Servicing Rights (Q1 2024) | | :--------------- | :---------------------------------------- | :---------------------------------- | :---------------------------------------- | :---------------------------------- | | Beginning balance | $3,781 | $7,357 | $3,158 | $7,665 | | Total unrealized gains (losses) included in net income | $480 | $(113) | $371 | $276 | | Ending balance | $4,261 | $7,093 | $3,529 | $7,792 | Nonrecurring Fair Value Measurements (December 31, 2024, in thousands) | (in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | | :--------------- | :--------- | :------ | :------ | :------ | | Collateral dependent loans | $8,310 | $0 | $0 | $8,310 | | Other real estate owned | $731 | $0 | $0 | $731 | [Note 7 – Segment Reporting](index=50&type=section&id=Note%207%20%E2%80%93%20Segment%20Reporting) This note clarifies that CTBI operates as one primary operating segment: community banking services. It provides a reconciliation of segment revenues, profit/loss measures, and assets to the consolidated totals, emphasizing that the Executive Committee uses net income for resource allocation and evaluation - CTBI operates as one operating segment: community banking services, offering a wide range of consumer and commercial banking and trust/wealth management services[153](index=153&type=chunk) - The Executive Committee uses net income to allocate resources and evaluate product offerings and pricing[153](index=153&type=chunk) Segment Net Income Reconciliation (in thousands) | (in thousands) | Community Banking Services (Q1 2025) | Holding Company (Q1 2025) | Eliminations (Q1 2025) | Consolidated (Q1 2025) | | :--------------- | :----------------------------------- | :------------------------ | :--------------------- | :--------------------- | | Net income | $22,262 | $21,972 | $(22,262) | $21,972 | Segment Assets Reconciliation (in thousands) | (in thousands) | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | Community banking services assets | $6,268,705 | $6,186,518 | | Holding company assets | $848,173 | $822,851 | | Elimination of subsidiary and parent cash and intercompany receivables | $(2,626) | $(3,779) | | Elimination of investment in subsidiaries | $(837,734) | $(812,345) | | Consolidated total assets | $6,276,518 | $6,193,245 | [Note 8 – Revenue Recognition](index=53&type=section&id=Note%208%20%E2%80%93%20Revenue%20Recognition) This note details CTBI's revenue recognition policies, primarily focusing on interest income from loans and securities, and noninterest income from customer contracts. It emphasizes that most customer contracts are short-term, performance obligations are fulfilled concurrently with payment, and revenue is disaggregated by contract-type and timing - Primary revenue source: interest income from loans and investment securities, recognized over the life of the instrument[158](index=158&type=chunk) - Noninterest income (e.g., deposit fees, trust income, loan fees) is recognized when performance obligations are satisfied by transferring control of a product or service to a customer[159](index=159&type=chunk) - Most customer contracts are short-term, with performance obligations fulfilled and payment processed simultaneously, leading to no contract assets or liabilities[160](index=160&type=chunk) - Revenue is disaggregated by contract-type and timing of recognition to best depict the nature, amount, timing, and uncertainty of revenue and cash flows[163](index=163&type=chunk) [Note 9 – Earnings Per Share](index=54&type=section&id=Note%209%20%E2%80%93%20Earnings%20Per%20Share) This note provides the computation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024, including the weighted average shares outstanding and the dilutive effect of equity grants Earnings Per Share (in thousands except per share data) | (in thousands except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net income | $21,972 | $18,679 | | Weighted average shares outstanding-basic | 17,995 | 17,926 | | Dilutive effect of equity grants | 27 | 17 | | Adjusted weighted average shares outstanding-diluted | 18,022 | 17,943 | | Basic earnings per share | $1.22 | $1.04 | | Diluted earnings per share | $1.22 | $1.04 | [Note 10 – Accumulated Other Comprehensive Income (Loss)](index=54&type=section&id=Note%2010%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) This note reconciles the accumulated other comprehensive income (loss) for the quarters ended March 31, 2025 and 2024, primarily reflecting unrealized holding gains/losses on available-for-sale debt securities, net of tax Accumulated Other Comprehensive Income (Loss) Reconciliation (in thousands) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Beginning balance | $(98,369) | $(103,321) | | Unrealized holding gains (losses) on debt securities AFS, net of tax | $12,304 | $(3,546) | | Ending balance | $(86,065) | $(106,867) | - No amounts were reclassified to earnings during these periods[165](index=165&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on CTBI's financial performance and condition, discussing key results, balance sheet changes, asset quality, liquidity, capital resources, and critical accounting estimates. It highlights earnings, net interest income growth, and changes in loan and deposit portfolios - CTBI reported Q1 2025 earnings of **$22.0 million** (**$1.22** per basic share), up from **$18.7 million** (**$1.04** per basic share) in Q1 2024[170](index=170&type=chunk) - Net interest income for Q1 2025 was **$51.3 million**, a **17.6%** increase from Q1 2024, with net interest margin rising **34 basis points** to **3.57%**[173](index=173&type=chunk)[176](index=176&type=chunk)[181](index=181&type=chunk) - Total assets at March 31, 2025, were **$6.3 billion**, an increase of **$83.3 million** (**5.5% annualized**) from December 31, 2024[187](index=187&type=chunk) - Loan portfolio increased by **$149.9 million** (**13.5% annualized**) from December 31, 2024, to **$4.6 billion** at March 31, 2025[187](index=187&type=chunk) - Deposits, including repurchase agreements, increased by **$47.5 million** (**3.6% annualized**) from December 31, 2024, to **$5.4 billion** at March 31, 2025[188](index=188&type=chunk) [Overview](index=55&type=section&id=Overview) This overview highlights that the MD&A supplements the condensed consolidated financial statements and should be read in conjunction with the annual report on Form 10-K - The MD&A supplements the condensed consolidated financial statements and notes in Part I, Item 1, and should be read in conjunction with the annual report on Form 10-K for the year ended December 31, 2024[167](index=167&type=chunk) [Our Business](index=55&type=section&id=Our%20Business) This section describes CTBI as a bank holding company headquartered in Pikeville, Kentucky, providing a wide range of community banking, trust, and wealth management services across multiple states - CTBI is a bank holding company headquartered in Pikeville, Kentucky, owning Community Trust Bank, Inc. (CTB) and Community Trust and Investment Company[168](index=168&type=chunk) - As of March 31, 2025, CTBI had **81 banking locations** and **5 trust offices** across Kentucky, West Virginia, and Tennessee[168](index=168&type=chunk) Key Financial Figures (March 31, 2025, in thousands) | Metric | Amount | | :----- | :----- | | Total consolidated assets | $6,300,000 | | Total consolidated deposits (including repurchase agreements) | $5,400,000 | | Total shareholders' equity | $784,200 | | Trust assets under management | $3,600,000 | | CTB's investment portfolio | $1,000,000 | - Services include commercial and personal banking, trust and wealth management, secured/unsecured loans, cash management, letters of credit, and brokerage/insurance services[169](index=169&type=chunk) [Results of Operations and Financial Condition](index=55&type=section&id=Results%20of%20Operations%20and%20Financial%20Condition) This section summarizes CTBI's net income, EPS, and key revenue and expense trends for the current and prior quarters and years, highlighting changes in net interest revenue, noninterest income, provision for credit losses, and noninterest expense Net Income and EPS (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Period | Net Income (in millions) | Basic EPS | | :----- | :----------------------- | :-------- | | Q1 2025 | $22.0 | $1.22 | | Q4 2024 | $22.5 | $1.25 | | Q1 2024 | $18.7 | $1.04 | - Total revenue for Q1 2025 was **$0.5 million** above prior quarter and **$7.4 million** above prior year same quarter[170](index=170&type=chunk) - Net interest revenue increased **$1.7 million** QoQ and **$7.7 million** YoY[170](index=170&type=chunk) - Noninterest income decreased **$1.3 million** QoQ and **$0.2 million** YoY[170](index=170&type=chunk) - Provision for credit losses increased **$1.0 million** QoQ and **$0.9 million** YoY[170](index=170&type=chunk) - Noninterest expense increased **$0.4 million** QoQ and **$2.0 million** YoY[170](index=170&type=chunk) [Quarterly Highlights](index=56&type=section&id=Quarterly%20Highlights) This section presents key financial highlights for the quarter, including net interest income, provision for credit losses, noninterest income and expense, net income, average earning assets, and changes in loan portfolios and shareholders' equity Key Financial Highlights (Q1 2025 vs. Q1 2024, in thousands) | Metric | 1Q 2025 | 1Q 2024 | Change (Amount) | Change (Percent) | | :----- | :------ | :------ | :-------------- | :--------------- | | Net interest income | $51,267 | $43,591 | $7,676 | 17.6% | | Provision for credit losses | $3,568 | $2,656 | $912 | 34.3% | | Noninterest income | $14,897 | $15,134 | $(237) | (1.6)% | | Noninterest expense | $34,208 | $32,220 | $1,988 | 6.2% | | Income taxes | $6,416 | $5,170 | $1,246 | 24.1% | | Net income | $21,972 | $18,679 | $3,293 | 17.6% | | Average earning assets | $5,848,092 | $5,458,075 | $390,017 | 7.1% | | Yield on average earning assets, tax equivalent* | 5.71% | 5.55% | 0.16% | 2.9% | | Cost of interest bearing funds | 3.02% | 3.35% | (0.33)% | (9.9)% | | Net interest margin, tax equivalent* | 3.57% | 3.23% | 0.34% | 10.5% | - Loan portfolio at **$4.6 billion** increased **$149.9 million** (**annualized 13.5%**) from December 31, 2024, and **$475.4 million** (**11.4%**) from March 31, 2024[176](index=176&type=chunk) - Total nonperforming loans decreased to **$26.5 million** at March 31, 2025, from **$26.7 million** at December 31, 2024, but increased **$10.7 million** from **$15.9 million** at March 31, 2024[176](index=176&type=chunk) - Shareholders' equity at **$784.2 million** increased **$26.6 million** (**annualized 14.2%**) during the quarter and **$76.4 million** (**10.8%**) from March 31, 2024[176](index=176&type=chunk) [Income Statement Review](index=56&type=section&id=Income%20Statement%20Review) This section reviews CTBI's income statement performance, focusing on net interest income, net interest margin, provision for credit losses, noninterest income, and noninterest expense, with comparisons to prior periods - Net interest income for Q1 2025 was **$51.3 million**, up **3.5%** QoQ and **17.6%** YoY[176](index=176&type=chunk) - Net interest margin (tax equivalent) increased **14 basis points** QoQ and **34 basis points** YoY to **3.57%**[176](index=176&type=chunk)[181](index=181&type=chunk) - Provision for credit losses increased **$1.0 million** QoQ and **$0.9 million** YoY to **$3.6 million**[176](index=176&type=chunk)[183](index=183&type=chunk) - Noninterest income for Q1 2025 was **$14.9 million**, down **7.8%** QoQ and **1.6%** YoY, primarily due to decreases in deposit-related fees and loan-related fees[176](index=176&type=chunk)[184](index=184&type=chunk) - Noninterest expense for Q1 2025 was **$34.2 million**, up **1.3%** QoQ and **6.2%** YoY, driven by increases in occupancy, equipment, and legal/professional fees[176](index=176&type=chunk)[186](index=186&type=chunk) [Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates](index=57&type=section&id=Consolidated%20Average%20Balance%20Sheets%20and%20Taxable%20Equivalent%20Income/Expense%20and%20Yields/Rates) This section provides detailed average balance sheets, taxable equivalent income/expense, and yields/rates for CTBI's earning assets and interest-bearing liabilities for the three months ended March 31, 2025, and 2024 Average Balances and Rates (Three Months Ended March 31, 2025 vs. 2024, in thousands) | (in thousands) | Average Balances (2025) | Average Rate (2025) | Average Balances (2024) | Average Rate (2024) | | :--------------- | :---------------------- | :------------------ | :---------------------- | :------------------ | | Loans | $4,533,091 | 6.51% | $4,096,866 | 6.36% | | Total earning assets | $5,848,092 | 5.71% | $5,458,075 | 5.55% | | Savings and demand deposits | $2,479,835 | 2.35% | $2,213,133 | 2.79% | | Time deposits | $1,356,907 | 3.90% | $1,266,164 | 3.91% | | Total interest bearing liabilities | $4,138,451 | 3.02% | $3,773,513 | 3.35% | | Net interest spread | | 2.69% | | 2.20% | | Net interest margin | | 3.57% | | 3.23% | [Net Interest Differential](index=59&type=section&id=Net%20Interest%20Differential) This section analyzes the effect of volume and rate changes on CTBI's net interest differential, breaking down the impact on total interest income, total interest expense, and net interest income Effect of Volume and Rate Changes on Net Interest Differential (Q1 2025 vs. Q1 2024, in thousands) | (in thousands) | Total Change (2025/2024) | Change Due to Volume | Change Due to Rate | | :--------------- | :----------------------- | :------------------- | :----------------- | | Total interest income | $7,030 | $113,364 | $(106,334) | | Total interest expense | $(624) | $43,828 | $(44,452) | | Net interest income | $7,654 | $69,536 | $(61,882) | [Provision for Credit Losses](index=60&type=section&id=Provision%20for%20Credit%20Losses) This section discusses the provision for credit losses, its components, and key credit loss ratios, including reserve coverage and the credit loss reserve as a percentage of total loans outstanding - Provision for credit losses increased **$1.0 million** QoQ and **$0.9 million** YoY to **$3.6 million** in Q1 2025[183](index=183&type=chunk) - Of the Q1 2025 provision, **$2.0 million** was for loan growth, and the remainder for net losses[183](index=183&type=chunk) Credit Loss Ratios | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----- | :------------- | :---------------- | :------------- | | Reserve coverage (ACL to nonperforming loans) | 214.7% | 206.0% | 319.0% | | Credit loss reserve as % of total loans outstanding | 1.23% | 1.23% | 1.22% | [Noninterest Income](index=60&type=section&id=Noninterest%20Income) This section provides a detailed breakdown of CTBI's noninterest income, analyzing changes quarter-over-quarter and year-over-year across various categories such as deposit-related fees, trust revenue, and loan-related fees Noninterest Income (in thousands) | ($ in thousands) | 1Q 2025 | 4Q 2024 | 1Q 2024 | % Change (1Q25 vs 4Q24) | % Change (1Q25 vs 1Q24) | | :--------------- | :------ | :------ | :------ | :---------------------- | :---------------------- | | Deposit related fees | $6,822 | $7,619 | $7,011 | (10.5)% | (2.7)% | | Trust revenue | $3,981 | $3,961 | $3,517 | 0.5% | 13.2% | | Gains on sales of loans | $47 | $50 | $45 | (5.2)% | 5.9% | | Loan related fees | $965 | $1,472 | $1,352 | (34.4)% | (28.6)% | | Bank owned life insurance revenue | $1,035 | $915 | $1,292 | 13.1% | (19.9)% | | Brokerage revenue | $494 | $536 | $490 | (7.8)% | 0.8% | | Other | $1,553 | $1,607 | $1,427 | (3.4)% | 8.8% | | Total noninterest income | $14,897 | $16,160 | $15,134 | (7.8)% | (1.6)% | - QoQ decrease primarily due to lower deposit related fees (**$0.8 million**) and loan related fees (**$0.5 million**)[184](index=184&type=chunk) - YoY decrease primarily due to lower loan related fees (**$0.4 million**), bank owned life insurance revenue (**$0.3 million**), and deposit related fees (**$0.2 million**), partially offset by higher trust revenue (**$0.5 million**) and securities gains (**$0.1 million**)[184](index=184&type=chunk) [Noninterest Expense](index=60&type=section&id=Noninterest%20Expense) This section details CTBI's noninterest expenses, analyzing changes quarter-over-quarter and year-over-year across categories like salaries, employee benefits, occupancy, equipment, and legal/professional fees Noninterest Expense (in thousands) | ($ in thousands) | 1Q 2025 | 4Q 2024 | 1Q 2024 | % Change (1Q25 vs 4Q24) | % Change (1Q25 vs 1Q24) | | :--------------- | :------ | :------ | :------ | :---------------------- | :---------------------- | | Salaries | $13,269 | $13,310 | $13,036 | (0.3)% | 1.8% | | Employee benefits | $6,849 | $6,883 | $7,086 | (0.5)% | (3.3)% | | Net occupancy and equipment | $3,440 | $3,015 | $3,028 | 14.1% | 13.6% | | Data processing | $2,859 | $3,181 | $2,518 | (10.1)% | 13.5% | | Legal and professional fees | $1,225 | $1,039 | $832 | 18.0% | 47.2% | | Advertising and marketing | $673 | $821 | $577 | (18.0)% | 16.6% | | Taxes other than property and payroll | $529 | $436 | $442 | 21.3% | 19.7% | | Other | $5,364 | $5,084 | $4,701 | 5.5% | 14.1% | | Total noninterest expense | $34,208 | $33,769 | $32,220 | 1.3% | 6.2% | - QoQ increase primarily due to higher net occupancy and equipment expense (**$0.4 million**) and legal and professional fees (**$0.2 million**), partially offset by lower data processing expense (**$0.3 million**)[186](index=186&type=chunk) - YoY increase primarily due to higher net occupancy and equipment expense (**$0.4 million**), data processing expense (**$0.3 million**), legal and professional fees (**$0.4 million**), operating losses (**$0.3 million**), and loan related expenses (**$0.2 million**)[186](index=186&type=chunk) [Balance Sheet Review](index=61&type=section&id=Balance%20Sheet%20Review) This section reviews CTBI's balance sheet, highlighting changes in total assets, loans outstanding, investment portfolio, deposits, repurchase agreements, and shareholders' equity, with comparisons to prior periods - Total assets at March 31, 2025, were **$6.3 billion**, an increase of **$83.3 million** (**5.5% annualized**) from December 31, 2024, and **$426.3 million** (**7.3%**) from March 31, 2024[187](index=187&type=chunk) - Loans outstanding increased **$149.9 million** (**13.5% annualized**) from December 31, 2024, to **$4.6 billion**, with increases in commercial, residential, and indirect consumer loans[187](index=187&type=chunk) - Investment portfolio decreased **$46.7 million** (**17.9% annualized**) from December 31, 2024, due to reinvestment of maturities into the loan portfolio[187](index=187&type=chunk) - Deposits, including repurchase agreements, increased **$47.5 million** (**3.6% annualized**) from December 31, 2024, to **$5.4 billion**[188](index=188&type=chunk) - Shareholders' equity increased **$26.6 million** (**14.2% annualized**) during the quarter to **$784.2 million**[189](index=189&type=chunk) - Net unrealized losses on securities, net of deferred taxes, improved to **$86.1 million** at March 31, 2025, from **$98.4 million** at December 31, 2024[189](index=189&type=chunk) [Loans](index=62&type=section&id=Loans) This section provides a summary of CTBI's loan portfolio by category, including balances, year-over-year variance, net charge-offs/recoveries, nonperforming loans, and allowance for credit losses Loan Portfolio Summary (March 31, 2025, in thousands) | Loan Category | Balance | Variance from Prior Year | Net (Charge Offs)/Recoveries | Nonperforming | ACL | | :-------------- | :------ | :----------------------- | :--------------------------- | :------------ | :---- | | Commercial | $2,357,626 | 3.7% | $(335) | $17,782 | $27,521 | | Residential | $1,239,661 | 2.4% | $(57) | $7,902 | $13,631 | | Consumer | $1,039,249 | 3.6% | $(1,183) | $843 | $15,809 | | Total loans | $4,636,536 | 3.3% | $(1,575) | $26,527 | $56,961 | [Total Deposits and Repurchase Agreements](index=62&type=section&id=Total%20Deposits%20and%20Repurchase%20Agreements) This section details CTBI's deposits and repurchase agreements, categorizing them by interest-bearing and noninterest-bearing, and analyzing changes quarter-over-quarter and year-over-year Deposits and Repurchase Agreements (in thousands) | (in thousands) | 1Q 2025 | YE 2024 | 1Q 2024 | % Change (1Q25 vs YE24) | % Change (1Q25 vs 1Q24) | | :--------------- | :------ | :------ | :------ | :---------------------- | :---------------------- | | Noninterest bearing deposits | $1,235,544 | $1,242,676 | $1,274,583 | (0.6)% | (3.1)% | | Interest bearing deposits | $3,875,761 | $3,827,513 | $3,509,687 | 1.3% | 10.4% | | Repurchase agreements | $246,556 | $240,166 | $234,671 | 2.7% | 5.1% | | Total deposits and repurchase agreements | $5,357,861 | $5,310,355 | $5,018,941 | 0.9% | 6.8% | - CTBI is not dependent on any one customer or group of customers for deposits; no single customer accounted for more than **3%** of deposits at March 31, 2025[188](index=188&type=chunk) [Deposit Maturities](index=63&type=section&id=Deposit%20Maturities) This section presents the maturities of CTBI's uninsured certificates of deposit and other time deposits, providing a breakdown of amounts maturing within various timeframes Maturities of Uninsured Certificates of Deposit and Other Time Deposits (March 31, 2025, in thousands) | (in thousands) | Total | Within 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | After 5 Years | | :--------------- | :---- | :------------ | :------ | :------ | :------ | :------ | :------------ | | Uninsured certificates of deposits and other time deposits greater than $250,000 | $373,016 | $352,717 | $7,950 | $9,145 | $1,517 | $1,687 | $0 | - Approximately **$1.5 million** in uninsured deposits at March 31, 2025. CTBI has no brokered deposits[193](index=193&type=chunk) [Repurchase Agreements](index=63&type=section&id=Repurchase%20Agreements) This section provides details on CTBI's repurchase agreement borrowings, including balances outstanding at quarter-end, average balances, and maximum balances during the quarter Repurchase Agreement Borrowings (in thousands) | ($ in thousands) | Balance Outstanding as of Quarter End | Average Balance Outstanding For the Quarter End | Maximum Balance Outstanding During the Quarter Ended | | :--------------- | :------------------------------------ | :-------------------------------------------- | :--------------------------------------------------- | | March 31, 2025 | $246,556 | $233,470 | $246,556 | | December 31, 2024 | $240,166 | $233,183 | $240,166 | | March 31, 2024 | $234,671 | $225,734 | $234,671 | [Asset Quality](index=63&type=section&id=Asset%20Quality) This section assesses CTBI's asset quality, focusing on trends in nonperforming loans, accruing loans past due, nonaccrual loans, and net loan charge-offs, while noting the absence of high-risk loan products - Total nonperforming loans decreased to **$26.5 million** at March 31, 2025, from **$26.7 million** at December 31, 2024, but increased from **$15.9 million** at March 31, 2024[195](index=195&type=chunk) - Accruing loans 90+ days past due increased **$0.5 million** QoQ to **$10.8 million** but decreased **$0.7 million** YoY[195](index=195&type=chunk) - Nonaccrual loans decreased **$0.7 million** QoQ to **$15.7 million** but increased **$11.4 million** YoY[195](index=195&type=chunk) - Net loan charge-offs for Q1 2025 were **$1.6 million** (**0.14%** of average loans annualized), compared to **$1.0 million** (**0.09% annualized**) in Q4 2024 and **$1.6 million** (**0.16% annualized**) in Q1 2024[196](index=196&type=chunk) - CTBI generally does not offer high-risk loans such as option ARM products, high LTV mortgages, interest-only loans, or loans with initial teaser rates[195](index=195&type=chunk) [Dividends](index=64&type=section&id=Dividends) This section lists CTBI's quarterly cash dividends paid, including pay dates, record dates, and the amount per share for recent periods Quarterly Cash Dividends Paid | Pay Date | Record Date | Amount Per Share | | :--------- | :---------- | :--------------- | | April 1, 2025 | March 15, 2025 | $0.47 | | January 1, 2025 | December 15, 2024 | $0.47 | | October 1, 2024 | September 15, 2024 | $0.47 | | July 1, 2024 | June 15, 2024 | $0.46 | | April 1, 2024 | March 15, 2024 | $0.46 | | January 1, 2024 | December 15, 2023 | $0.46 | [Liquidity and Market Risk](index=64&type=section&id=Liquidity%20and%20Market%20Risk) This section outlines CTBI's approach to managing liquidity and market risk, detailing available cash, unpledged securities, and borrowing capacity, while emphasizing the investment portfolio's composition - CTBI aims to maintain consistent growth in net interest income by managing balance sheet composition, liquidity, and interest rate risk[198](index=198&type=chunk) - As of March 31, 2025, CTBI had **$340.7 million** in cash and cash equivalents and **$111.0 million** in unpledged available-for-sale securities for liquidity[198](index=198&type=chunk) - Available borrowing position with Federal Home Loan Bank was **$508.5 million** at March 31, 2025, up from **$485.0 million** at December 31, 2024[198](index=198&type=chunk) - The investment portfolio consists of investment grade short-term issues, with the majority in U.S. government and agency issuances. AFS securities comprised all of the total investment portfolio, and **91%** of the pledge-eligible portfolio was pledged[199](index=199&type=chunk) [Interest Rate Risk](index=65&type=section&id=Interest%20Rate%20Risk) This section describes CTBI's management of interest rate risk, utilizing an earnings simulation model to quantify the sensitivity of net interest income to various changes in the yield curve - Interest rate risk is a significant market risk, managed to maintain consistent net interest income growth within policy limits[201](index=201&type=chunk) - An earnings simulation model is used to analyze net interest income sensitivity. A **200 basis point** increase in the yield curve would increase net interest income by an estimated **2.56%** over one year and **4.08%** over two years[201](index=201&type=chunk)[225](index=225&type=chunk) - A **200 basis point** decrease in the yield curve would decrease net interest income by an estimated **3.08%** over one year and **5.24%** over two years[225](index=225&type=chunk) - CTBI's Asset/Liability Management Committee (ALCO) monitors and manages interest rate risk within Board-approved policy limits[202](index=202&type=chunk) [Capital Resources](index=65&type=section&id=Capital%20Resources) This section details CTBI's capital resources, including dividend yield, retained earnings, and compliance with regulatory capital requirements, specifically the Community Bank Leverage Ratio (CBLR) framework - CTBI's annualized dividend yield to shareholders was **3.73%** as of March 31, 2025[203](index=203&type=chunk) - Cash dividends were **$0.47** per share for Q1 2025, with **61.5%** of earnings retained, compared to **55.8%** in Q1 2024[203](index=203&type=chunk) - CTBI and CTB elected to use the Community Bank Leverage Ratio (CBLR) framework. CTBI's CBLR ratio was **13.81%** and CTB's was **13.32%** as of March 31, 2025, both exceeding the **9%** requirement[204](index=204&type=chunk) [Impact of Inflation, Changing Prices, and Economic Conditions](index=65&type=section&id=Impact%20of%20Inflation,%20Changing%20Prices,%20and%20Economic%20Conditions) This section discusses the impact of inflation and changing economic conditions on CTBI's asset growth and capital requirements, highlighting the strategy to maintain a balanced position between interest rate sensitive assets and liabilities - Inflation impacts asset growth in the banking industry and the need to increase equity capital to maintain appropriate equity-to-assets ratios[206](index=206&type=chunk) - CTBI seeks to maintain a balanced position between interest rate sensitive assets and liabilities to mitigate the effects of wide interest rate fluctuations[207](index=207&type=chunk) [Stock Repurchase Program](index=66&type=section&id=Stock%20Repurchase%20Program) This section provides an overview of CTBI's stock repurchase program, detailing the total shares repurchased and the remaining authorization under the program - CTBI's stock repurchase program, initiated in December 1998 and expanded multiple times, has resulted in **2,465,294 shares** repurchased as of March 31, 2025[208](index=208&type=chunk) - There are **1,034,706 shares** remaining under the current repurchase authorization[208](index=208&type=chunk) [Critical Accounting Estimates](index=66&type=section&id=Critical%20Accounting%20Estimates) This section outlines CTBI's critical accounting estimates, focusing on the Allowance for Credit Losses (ACL) and Goodwill, and the significant management judgments involved in their determination and impairment testing - The preparation of financial statements requires significant management estimates and assumptions, particularly for the Allowance for Credit Losses (ACL) and Goodwill[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - ACL is determined through ongoing quarterly assessments, considering historical loss experience, current/forecasted economic conditions, and qualitative factors, using a discounted cash flow (DCF) model for all loan segments[212](index=212&type=chunk)[215](index=215&type=chunk) - Goodwill is tested for impairment annually (October 1) or more frequently if circumstances warrant, using qualitative and quantitative assessments to compare fair value with carrying amount[220](index=220&type=chunk)[221](index=221&type=chunk) - The fair value of CTBI for goodwill impairment testing is determined using an income-based approach with forecasted cash flows and estimated cost of equity, requiring significant management judgment[222](index=222&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reiterates CTBI's approach to interest rate risk management, using an earnings simulation model to quantify the sensitivity of net interest income to changes in interest rates - Interest rate risk management aims for consistent net interest income growth within Board-approved policy limits[225](index=225&type=chunk) - An earnings simulation model estimates that a **200 basis point** increase in the yield curve would increase net interest income by **2.56%** over one year and **4.08%** over two years[225](index=225&type=chunk) - A **200 basis point** decrease in the yield curve would decrease net interest income by an estimated **3.08%** over one year and **5.24%** over two years[225](index=225&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms management's evaluation of CTBI's disclosure controls and procedures, concluding their effectiveness as of March 31, 2025, and reports no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of March 31, 2025, and concluded they were effective[227](index=227&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended March 31, 2025[228](index=228&type=chunk) [PART II - OTHER INFORMATION](index=69&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part covers other information not included in the financial statements, such as legal proceedings, risk factors, sales of equity securities, defaults, mine safety, and exhibits [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no legal proceedings to report for the period - No legal proceedings to report[230](index=230&type=chunk) [Item 1A. Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) This section indicates that there are no new risk factors to report for the period - No risk factors to report[230](index=230&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there are no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities and use of proceeds to report[230](index=230&type=chunk) [Item 3. Defaults Upon Senior Securities](index=69&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there are no defaults upon senior securities to report for the period - No defaults upon senior securities to report[230](index=230&type=chunk) [Item 4. Mine Safety Disclosure](index=69&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This section states that mine safety disclosure is not applicable to CTBI - Mine Safety Disclosure is not applicable[230](index=230&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) This section confirms no information required for Form 8-K, no changes to director nomination procedures, and no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements adopted or terminated by directors or officers during the quarter - No information required to be disclosed in a report on Form 8-K[230](index=230&type=chunk) - No changes to director nomination procedures[230](index=230&type=chunk) - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended March 31, 2025[230](index=230&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and XBRL interactive data files - Includes Certifications Pursuant to 18 U.S.C. Section 1350 (Exhibits 31.1, 31.2, 32.1, 32.2)[231](index=231&type=chunk) - Includes XBRL Instance Document, Taxonomy Extension Schema Document, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase, and Cover Page Interactive Data File (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[231](index=231&type=chunk) [SIGNATURES](index=70&type=section&id=SIGNATURES) This section contains the signatures of authorized officers, Mark A. Gooch and Kevin J. Stumbo, certifying the report on behalf of Community Trust Bancorp, Inc [Signatures](index=70&type=section&id=Signatures) This section contains the signatures of authorized officers, Mark A. Gooch (Chairman, President, and CEO) and Kevin J. Stumbo (Executive Vice President, CFO, and Treasurer), certifying the report on behalf of Community Trust Bancorp, Inc - Report signed on May 9, 2025[235](index=235&type=chunk) - Signed by Mark A. Gooch, Chairman, President, and Chief Executive Officer[235](index=235&type=chunk) - Signed by Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer[235](index=235&type=chunk)

Financial Performance - Community Trust Bancorp (CTBI) reported revenue of $66.16 million for the quarter ended March 2025, reflecting a 12.1% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $1.22, up from $1.04 in the same quarter last year, with an EPS surprise of +2.52% over the consensus estimate of $1.19 [1] Key Metrics - Efficiency ratio was reported at 51.9%, better than the average estimate of 53.1% [4] - Net Interest Margin stood at 3.6%, exceeding the estimated 3.4% [4] - Average balances of interest-earning assets were $5.85 billion, slightly below the average estimate of $5.87 billion [4] - Net charge-offs as a percentage of average loans and leases were 0.1%, better than the estimated 0.2% [4] - Total Non-Interest Income was $14.90 million, below the estimated $15.28 million [4] - Net Interest Income was reported at $51.27 million, surpassing the estimated $49.89 million [4] - Deposit related fees were $6.82 million, lower than the estimated $7.24 million [4] - Loan related fees were $0.97 million, below the average estimate of $1.10 million [4] - Trust revenue was $3.98 million, slightly below the estimated $3.99 million [4] Stock Performance - Shares of Community Trust Bancorp have returned -8.3% over the past month, compared to the Zacks S&P 500 composite's -4.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - Community Trust Bancorp (CTBI) reported quarterly earnings of $1.22 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, and up from $1.04 per share a year ago [1] - The earnings surprise for this quarter was 2.52%, following a previous quarter where the company reported earnings of $1.25 per share against an expectation of $1.20, resulting in a surprise of 4.17% [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Group 2: Revenue Performance - The company posted revenues of $66.16 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.79% and increasing from $59.02 million year-over-year [3] - Community Trust Bancorp has also topped consensus revenue estimates in each of the last four quarters [3] Group 3: Stock Performance and Outlook - Community Trust Bancorp shares have declined approximately 11.3% since the beginning of the year, compared to a decline of 8.3% for the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $66 million, and for the current fiscal year, it is $5.01 on revenues of $268 million [8] - The estimate revisions trend for the company is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Group 4: Industry Context - The Zacks Industry Rank for Banks - Southeast, to which Community Trust Bancorp belongs, is currently in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [6]

Financial Performance - Community Trust Bancorp, Inc. reported net income of $21.972 million for Q1 2025, a decrease of 2.3% from $22.493 million in Q4 2024, but an increase of 17.3% from $18.679 million in Q1 2024[1] - Earnings per share for Q1 2025 were $1.22, down from $1.25 in Q4 2024 and up from $1.04 in Q1 2024[1] - Noninterest income decreased to $14.9 million, down $1.3 million, or 7.8%, from the prior quarter and $0.2 million, or 1.6%, from the same quarter last year[7] - The efficiency ratio for Q1 2025 was 51.86%, slightly up from 51.60% in Q4 2024 and down from 54.94% in Q1 2024[1] Income and Expenses - Net interest income for the quarter was $51.3 million, an increase of $1.7 million, or 3.5%, from the prior quarter and $7.7 million, or 17.6%, from the same quarter last year[2] - The provision for credit losses increased to $3.6 million, up $1.0 million from the prior quarter and $0.9 million from the same quarter last year[2] - Total noninterest expense for Q1 2025 was $34.2 million, an increase of $0.4 million, or 1.3%, from the prior quarter and $2.0 million, or 6.2%, from the same quarter last year[8] Loan and Deposit Growth - The loan portfolio increased to $4.6 billion, up $149.9 million, or an annualized 13.5%, from December 31, 2024, and $475.4 million, or 11.4%, from March 31, 2024[6] - Deposits, including repurchase agreements, reached $5.4 billion, an increase of $47.5 million, or an annualized 3.6%, from December 31, 2024, and $338.9 million, or 6.8%, from March 31, 2024[6] - Total loans increased to $4.6 billion, up $149.9 million or an annualized 13.5% from the prior quarter and $475.4 million or 11.4% year-over-year[10] - Total deposits and repurchase agreements reached $5.4 billion, an increase of $47.5 million or an annualized 3.6% from the prior quarter and $338.9 million or 6.8% year-over-year[11] Shareholders' Equity - Shareholders' equity increased to $784.2 million, up $26.6 million, or an annualized 14.2%, during the quarter and $76.4 million, or 10.8%, from March 31, 2024[6] - Shareholders' equity rose to $784.2 million, up $26.6 million or an annualized 14.2% during the quarter and $76.4 million or 10.8% year-over-year[12] Asset Management - Total assets increased to $6,276,518,000 as of March 31, 2025, up from $6,193,245,000 as of December 31, 2024, representing a growth of 1.34%[23] - Net loans reached $4,579,575,000, an increase from $4,431,669,000 as of December 31, 2024, reflecting a growth of 3.34%[23] - Total deposits rose to $5,111,305,000, compared to $5,070,189,000 as of December 31, 2024, indicating an increase of 0.81%[23] - The community bank leverage ratio improved to 13.81% as of March 31, 2025, compared to 13.76% as of December 31, 2024[23] Loan Quality - Nonperforming loans decreased to $26.5 million from $26.7 million in the prior quarter but increased from $15.9 million year-over-year[13] - Nonaccrual loans decreased to $15,692,000 from $16,369,000 as of December 31, 2024, showing a decline of 4.14%[23] - 30-89 days past due loans decreased to $14,537,000 from $16,833,000 as of December 31, 2024, indicating a decline of 13.61%[23] - The company reported no loans held for sale as of March 31, 2025, compared to $184,000 as of December 31, 2024[23] Investment Portfolio - The investment portfolio decreased by $46.7 million or an annualized 17.9% from the prior quarter, as management reinvested certain maturities into the loan portfolio[10] Dividend and Ratios - The annualized dividend yield to shareholders was 3.73% as of March 31, 2025[12] - The tangible equity to tangible assets ratio increased to 11.57% from 11.29% as of December 31, 2024[23] - The number of full-time equivalent employees (FTE) rose to 939, compared to 934 as of December 31, 2024[23] - The net interest margin (tax equivalent) improved to 3.57% from 3.43% in the previous quarter[20] - The efficiency ratio (tax equivalent) was 51.86%, slightly up from 51.60% in the prior quarter[20]

Group 1 - Community Trust Bancorp (CTBI) is expected to report a year-over-year increase in earnings, with a projected EPS of $1.19, reflecting a +14.4% change, and revenues of $65 million, up 10.1% from the previous year [3][12] - The consensus EPS estimate has been revised 0.8% lower in the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10] - The company has an Earnings ESP of -3.09%, suggesting challenges in predicting an earnings beat, despite holding a Zacks Rank of 3 [11][16] Group 2 - Community Trust Bancorp has a history of beating consensus EPS estimates, having done so in the last four quarters, with a notable surprise of +4.17% in the last reported quarter [12][13] - The Zacks Earnings ESP model indicates that a positive or negative reading can predict earnings deviations, but the predictive power is stronger for positive readings [7][8] - Other factors beyond earnings results can influence stock price movements, making it essential to consider various elements when evaluating the stock [14][15] Group 3 - Hancock Whitney (HWC), another player in the Southeast banking industry, is expected to report earnings of $1.28 per share, with revenues projected at $364.77 million, reflecting a 3% increase year-over-year [17][18] - Similar to CTBI, Hancock Whitney has an Earnings ESP of -2.19% and a Zacks Rank of 3, complicating predictions for an earnings beat [18]