For the quarter ended March 2025, Community Trust Bancorp (CTBI) reported revenue of $66.16 million, up 12.1% over the same period last year. EPS came in at $1.22, compared to $1.04 in the year-ago quarter.The reported revenue represents a surprise of +1.79% over the Zacks Consensus Estimate of $65 million. With the consensus EPS estimate being $1.19, the EPS surprise was +2.52%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to deter ...

Community Trust Bancorp (CTBI) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.52%. A quarter ago, it was expected that this bank holding company for Community Trust Bank would post earnings of $1.20 per share when it actually produced earnings of $1.25, delivering a surprise of 4.1 ...

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]

Wall Street expects a year-over-year increase in earnings on higher revenues when Community Trust Bancorp (CTBI) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the ...

Financial Performance - Net income for the year ended December 31, 2024, was $82.8 million, or $4.61 per basic share, an increase from $78.0 million, or $4.36 per basic share, in 2023[162] - Noninterest income for the year ended December 31, 2024, was $62.6 million, an increase of $4.9 million, or 8.5%, compared to 2023[167] - Net interest income increased by $12.9 million, or 7.4%, to $185.995 million for the year ended December 31, 2024[165] - Total interest income for 2024 reached $313,443,000, an increase of 16.7% from $268,650,000 in 2023[236] - Net income for 2024 was $82,813,000, representing a 6.4% increase from $78,004,000 in 2023[236] - Basic earnings per share for 2024 were $4.61, compared to $4.36 in 2023, indicating a growth of 5.7%[236] Asset and Deposit Growth - Total consolidated assets as of December 31, 2024, were $6.2 billion, with total consolidated deposits of $5.3 billion[158] - Total assets increased by $423.5 million, or 7.3%, to $6.2 billion from December 31, 2023[178] - Deposits, including repurchase agreements, increased by $360.5 million, or 7.3%, from December 31, 2023[167] - Total deposits grew to $5,070,189 thousand in 2024, up from $4,724,622 thousand in 2023, marking an increase of around 7.3%[235] Loan Portfolio - The loan portfolio grew by $435.7 million, or 10.8%, from December 31, 2023, to December 31, 2024[167] - Total loans increased by 10.8% to $4,486.6 million, with net charge-offs of $5.5 million, representing 0.13% of average loans for the year ended December 31, 2024[181][184] - Loans outstanding increased by $435.7 million, or 10.8%, to $4.5 billion year over year, with significant growth in the commercial loan portfolio[178] - The total loans and lease financing reached $4.49 billion as of December 31, 2024, compared to $4.05 billion in 2023, indicating a growth of approximately 10.8%[318] Credit Losses and Nonperforming Loans - The provision for credit losses was $11.0 million for the year ended December 31, 2024, compared to $6.8 million in 2023, reflecting a 60.8% increase[165] - Nonperforming loans increased to $26.7 million, up $12.7 million, or 91.1%, from December 31, 2023[167] - The allowance for credit losses to nonperforming loans was 206.0% at December 31, 2024, down from 354.7% a year earlier[186] - Total provision for credit losses increased to $54,968,000 for the year ended December 31, 2024, compared to $49,543,000 for the year ended December 31, 2023, reflecting a year-over-year increase of approximately 11.5%[331] Shareholder Equity and Dividends - Shareholders' equity at December 31, 2024, was $757.6 million, an increase from the previous year[161] - Cash dividends for 2024 were $1.86 per share, up from $1.80 per share in 2023, with a retention rate of 59.7% of earnings in 2023[207] - The annualized dividend yield to shareholders as of December 31, 2024, was 3.55%[179] - Dividends paid increased to $33,407,000 in 2024 from $32,187,000 in 2023, a rise of 3.8%[241] Investment Portfolio - The investment portfolio was entirely in available-for-sale securities, comprising approximately 139% of equity capital[188] - Total fair value of investments at December 31, 2024, was $1,186.649 million, with a weighted average yield of 2.27%[197] - The total available-for-sale securities amounted to $1,055.7 million, with an amortized cost of $1,186.6 million and unrealized losses of $131.2 million[304] Risk Management and Credit Policies - CTBI's strategy for credit risk management includes conservative exposure limits and regular credit examinations, emphasizing diversification across geographic and industry lines[220] - The company actively manages interest rate risk, employing an earnings simulation model to analyze net interest income sensitivity[202] - CTBI maintains an Allowance for Credit Losses (ACL) that is appropriate to cover estimated credit losses on individually evaluated loans and the remainder of the loan and lease portfolio[265] Economic Factors and Forecasting - The company forecasts economic factors including GDP, unemployment rate, and housing price index, utilizing projections from the Federal Open Market Committee[331] - CTBI's exposure to credit risk is significantly affected by changes in the economic conditions of the communities it serves in Kentucky, West Virginia, and Tennessee[320] Regulatory Changes - The FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses and other segment items on an annual and interim basis, effective for fiscal years beginning after December 15, 2023[298] - The FASB issued ASU No. 2023-09, which improves income tax disclosures, effective for public business entities for annual periods beginning after December 15, 2024[300] - The FASB issued ASU No. 2024-03, which requires additional disclosures about certain expenses in the notes to financial statements, effective for annual reporting periods beginning after December 15, 2026[301]

Core Viewpoint - Generating consistent cash flow through dividends is a primary focus for income investors, with dividends contributing significantly to long-term returns [2][6]. Company Overview - Community Trust Bancorp (CTBI) is based in Pikeville and operates in the Finance sector, with a year-to-date share price change of 0.91% [3]. - The company currently pays a dividend of $0.47 per share, resulting in a dividend yield of 3.51%, which is higher than the Banks - Southeast industry's yield of 2.26% and the S&P 500's yield of 1.5% [3]. Dividend Growth - The annualized dividend of Community Trust Bancorp is $1.88, reflecting a 1.1% increase from the previous year [4]. - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 5.47% [4]. - The current payout ratio is 41%, indicating that the company pays out 41% of its trailing 12-month earnings per share as dividends [4]. Earnings Expectations - Community Trust Bancorp is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $5.06 per share, representing a year-over-year growth rate of 9.76% [5]. Investment Appeal - Community Trust Bancorp is viewed as an attractive dividend investment and a compelling opportunity, holding a Zacks Rank of 2 (Buy) [7].

Core Insights - Community Trust Bancorp (CTBI) reported a revenue of $65.96 million for the quarter ended December 2024, marking a year-over-year increase of 15.7% and exceeding the Zacks Consensus Estimate of $64 million by 3.06% [1] - The earnings per share (EPS) for the same period was $1.25, compared to $1.04 a year ago, also surpassing the consensus EPS estimate of $1.20 by 4.17% [1] Financial Performance Metrics - Efficiency ratio was reported at 51.6%, slightly better than the estimated 51.8% by analysts [4] - Net Interest Margin remained stable at 3.4%, matching the analysts' average estimate [4] - Average Balances of Interest-earning assets were $5.78 billion, exceeding the average estimate of $5.66 billion [4] - Net charge-offs as a percentage of average loans and leases were 0.1%, better than the estimated 0.2% [4] - Net Interest Income was $49.53 million, surpassing the average estimate of $48.24 million [4] - Total Non-Interest Income reached $16.16 million, exceeding the average estimate of $15.20 million [4] - Loan-related fees were $1.47 million, compared to the average estimate of $1.05 million [4] - Deposit-related fees amounted to $7.62 million, exceeding the average estimate of $7.27 million [4] - Trust revenue was reported at $3.96 million, slightly above the average estimate of $3.87 million [4] - Other non-interest income was $2.54 million, surpassing the average estimate of $2.05 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 -3.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Community Trust Bancorp (CTBI) reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and up from $1.04 per share a year ago [1] - The earnings surprise for this quarter was 4.17%, following a previous quarter where the company also exceeded expectations with earnings of $1.23 per share against an estimate of $1.15 per share, resulting in a surprise of 6.96% [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Group 2: Revenue Performance - The company posted revenues of $65.96 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.06%, compared to revenues of $57 million in the same quarter last year [3] - Community Trust Bancorp has also topped consensus revenue estimates in each of the last four quarters [3] Group 3: Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [4] - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $63 million, and for the current fiscal year, it is $4.89 on revenues of $263 million [8] - The estimate revisions trend for Community Trust Bancorp is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Group 4: Industry Context - The Banks - Southeast industry, to which Community Trust Bancorp belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9] - Capital City Bank (CCBG), another company in the same industry, is expected to report quarterly earnings of $0.70 per share, with revenues projected to be $59.1 million, reflecting a 4.9% increase from the previous year [10]

Financial Performance - Community Trust Bancorp, Inc. reported net income of $22.5 million for Q4 2024, an increase of 1.6% from Q3 2024 and 20.0% from Q4 2023[2] - Earnings per share for Q4 2024 was $1.25, up from $1.23 in Q3 2024 and $1.04 in Q4 2023[2] - Total revenue for Q4 2024 was $2.9 million above the prior quarter and $9.0 million above the same quarter last year[2] - Net income for the three months ended December 31, 2024, was $22,493,000, representing a 20.0% increase from $18,659,000 in the same period last year[22] - The company’s diluted earnings per share for the year ended December 31, 2024, was $4.61, an increase from $4.36 in 2023, reflecting a growth of 5.7%[22] Income and Revenue Sources - Net interest income for Q4 2024 was $49.5 million, representing a 4.9% increase from Q3 2024 and a 15.2% increase from Q4 2023[3] - Noninterest income for Q4 2024 was $16.2 million, which is 3.8% higher than Q3 2024 and 17.7% higher than Q4 2023[3] - Community Trust Bancorp, Inc. reported interest income of $81,979,000 for the three months ended December 31, 2024, an increase of 11.8% compared to $73,329,000 for the same period in 2023[22] - Total noninterest income for the twelve months ended December 31, 2024, was $62,565,000, up from $57,659,000 in 2023, indicating an increase of 8.3%[22] Asset and Loan Growth - The loan portfolio increased to $4.5 billion, up $136.2 million or an annualized 12.5% from Q3 2024 and $435.7 million or 10.8% from Q4 2023[8] - Total loans increased to $4.5 billion, reflecting a 3.1% increase from Q3 2024 and a 10.8% increase from Q4 2023[12] - The average loans outstanding increased to $4,399,291,000 for the three months ended December 31, 2024, up from $4,022,547,000 in the same period last year, marking a growth of 9.4%[22] Deposit Growth - Deposits, including repurchase agreements, rose to $5.3 billion, an increase of $238.8 million or an annualized 18.7% from Q3 2024 and $360.5 million or 7.3% from Q4 2023[8] - Total deposits and repurchase agreements reached $5.3 billion, up 4.7% from Q3 2024 and 7.3% from Q4 2023[12] - The company’s total deposits increased to $5,070,189,000 as of December 31, 2024, compared to $4,724,622,000 a year earlier, reflecting a growth of 7.3%[25] Credit Quality and Losses - The provision for credit losses for Q4 2024 was $2.6 million, a decrease of 3.7% from Q3 2024 but an increase of 44.4% from Q4 2023[3] - Total nonperforming loans increased to $26.7 million, up from $25.1 million in the prior quarter and $14.0 million year-over-year[14] - Net loan charge-offs for Q4 2024 were $1.0 million, or 0.09% of average loans, compared to $1.5 million in Q3 2024[15] - The reserve coverage ratio for allowance for credit losses to nonperforming loans was 206.0% as of December 31, 2024[16] Operational Efficiency - The efficiency ratio improved to 51.60% in Q4 2024 compared to 51.75% in Q3 2024 and 55.74% in Q4 2023[2] - The efficiency ratio (tax equivalent) improved to 51.60% for the three months ended December 31, 2024, compared to 55.74% for the same period in 2023, showing enhanced operational efficiency[22] Shareholders' Equity - Shareholders' equity decreased by $3.2 million or an annualized 1.7% during Q4 2024 but increased by $55.4 million or 7.9% from December 31, 2023[8] - Shareholders' equity stood at $757.6 million, decreasing by $3.2 million from the prior quarter but increasing by $55.4 million year-over-year[13] Investment Portfolio - The company’s investment portfolio decreased by $41.8 million from Q3 2024, primarily due to an increase in unrealized losses[12] Market Presence - Community Trust Bancorp, Inc. has 72 banking locations across Kentucky and additional locations in West Virginia and Tennessee, supporting its market expansion strategy[19]

Economic Environment - The year began with optimism regarding significant interest rate cuts by the Federal Reserve, with projections of six to seven cuts as inflation cooled [1] - Inflation struggled to meet the Fed's target of 2%, leading to decreased expectations for rate cuts [1] - Since September, the Fed has lowered rates by 75 basis points, with another 25-bps cut likely to be announced soon [1] Bank Sector Performance - Bank stocks remained a focal point due to the interest rate cut trajectory, with the U.S. economy growing solidly and a tightening job market [2] - The operating environment improved, and there was a decent rise in loan demand [2] Investment Opportunities - Several banks are shifting away from relying solely on spread income for growth, making it challenging to identify fundamentally strong companies [3] - Recommended bank stocks include Community Trust Bancorp, Inc. (CTBI), East West Bancorp (EWBC), and QCR Holdings, Inc. (QCRH), which analysts favor [3][5] Company Insights - Community Trust Bancorp (CTBI) has a market cap of $1.1 billion, with a year-to-date stock increase of 33.8% and projected earnings growth of 4.6% in 2024 and 7.2% in 2025 [9] - East West Bancorp (EWBC) has a market cap of $14.3 billion, with a year-to-date stock surge of 44% and projected earnings growth of 3.2% in 2025 [12][13] - QCR Holdings (QCRH) has a market cap of $1.5 billion, with a year-to-date increase of 51.9% and projected earnings growth of 3.5% in 2025 [15] Analyst Recommendations - The selected bank stocks have strong analyst support, with over 70% of brokers recommending them as strong buys or buys [5] - CTBI has an average brokerage recommendation of 1.33, EWBC has an ABR of 1.38, and QCRH has an ABR of 1.40, indicating positive future potential [10][13][15]