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]

Core Insights - Two stocks are highlighted for investors to consider, both with strong income characteristics and buy rankings Group 1: Community Trust Bancorp, Inc. (CTBI) - Community Trust Bancorp, Inc. is a bank holding company for Community Trust Bank [1] - The Zacks Consensus Estimate for its current year earnings has increased by 4.1% over the last 60 days [1] - The company has a dividend yield of 3.2%, which is higher than the industry average of 2.3% [2] Group 2: Embecta Corp. (EMBC) - Embecta Corp. is a medical device company [2] - The Zacks Consensus Estimate for its current year earnings has increased by 14.9% over the last 60 days [2] - The company has a dividend yield of 2.9%, compared to the industry average of 0.0% [3]

Financial Performance - Community Trust Bancorp, Inc. reported third quarter 2024 earnings of $22.1 million, or $1.23 per basic share, compared to $19.5 million, or $1.09 per basic share in the prior quarter, and $20.6 million, or $1.15 per basic share in the same quarter last year [207]. - Total revenue for the third quarter 2024 was $1.4 million above the prior quarter and $4.1 million above the same quarter last year [207]. - Net interest income for the quarter was $47.2 million, an increase of $1.5 million, or 3.3%, from the prior quarter and $4.1 million, or 9.4%, from the same quarter last year [208]. - Noninterest income for the quarter was $15.6 million, which was $0.1 million, or 0.9%, below the prior quarter but $0.1 million, or 0.4%, above the same quarter last year [211]. - Total noninterest expense for the quarter was $32.5 million, an increase of $1.7 million, or 5.4%, from the same quarter last year [222]. - Cash dividends for Q3 2024 were $0.47 per share, an increase from $0.46 per share in the previous quarter [232]. Loan and Deposit Growth - The loan portfolio increased to $4.4 billion, up $89.2 million, or an annualized 8.3%, from June 30, 2024, and $299.6 million, or an annualized 9.9%, from December 31, 2023 [209]. - Total deposits, including repurchase agreements, reached $5.1 billion, an increase of $110.2 million, or an annualized 8.8%, from June 30, 2024, and $121.7 million, or 2.5%, from December 31, 2023 [210]. - The average loans to deposits ratio was 85.8% for the quarter ended September 30, 2024, compared to 84.5% for the prior quarter and 83.2% for the same quarter last year [217]. - Total deposits and repurchase agreements increased by 2.2% to $5,071,586 thousand in Q3 2024 compared to Q2 2024 [227]. - Noninterest bearing deposits decreased by 3.0% to $1,204,515 thousand in Q3 2024 compared to Q2 2024 [227]. Credit Quality - The provision for credit losses for the quarter was $2.7 million, a decrease of $0.2 million from the prior quarter but an increase of $0.9 million from the same quarter last year [208]. - Nonperforming loans increased to $25.1 million at September 30, 2024, from $19.8 million at June 30, 2024, and $14.0 million at December 31, 2023 [210]. - The credit loss reserve as a percentage of total loans outstanding was 1.23% as of September 30, 2024 [219]. - Net loan charge-offs for Q3 2024 were $1.5 million, or 0.14% of average loans annualized, compared to $1.4 million, or 0.13% in Q2 2024 [231]. - Total nonperforming loans rose to $25.1 million in Q3 2024, up from $19.8 million in Q2 2024 and $14.0 million at YE 2023 [229]. Shareholder Equity - Shareholders' equity increased to $760.8 million, up $41.4 million, or an annualized 22.9%, during the quarter and $58.6 million, or 8.3%, from December 31, 2023 [211]. - As of September 30, 2024, CTBI had approximately $240.9 million in cash and cash equivalents, down from $271.4 million at YE 2023 [233]. - CTBI's community bank leverage ratio was 13.99% as of September 30, 2024, indicating strong capital resources [240]. Investment Portfolio - The investment portfolio decreased by $65.6 million, or an annualized 7.5%, from December 31, 2023 [223]. - The investment portfolio was entirely in available-for-sale securities, comprising approximately 144% of equity capital as of September 30, 2024 [234]. Risk Management - Interest rate risk is a significant concern, with management employing various techniques to mitigate its impact on net interest income [235]. - CTBI's allowance for credit losses (ACL) is based on ongoing assessments of loan collectability, considering historical credit loss experience and current market conditions [248]. - The ACL is maintained at a level CTBI considers adequate, with provisions recorded to adjust the ACL to current estimates of expected credit losses [249]. - Larger commercial loans exceeding $1 million are individually evaluated for ACL if they exhibit credit weaknesses or are 90 days or more past due [250]. - Expected credit losses for loans not individually evaluated are estimated collectively, using discounted cash flow (DCF) modeling [251]. - CTBI's expected credit loss models consider historical credit loss experience and forecasted changes in market conditions for up to one year [252]. - The reserve for unfunded commitments is maintained to absorb estimated expected credit losses related to unfunded credit facilities [256]. Goodwill and Impairment Testing - Goodwill is tested for impairment annually, with the next assessment scheduled for October 1 [257]. Yield Curve Sensitivity - A 200 basis point increase in the yield curve is estimated to increase net interest income by 1.11% over one year and 2.08% over two years [261]. - A 200 basis point decrease in the yield curve would decrease net interest income by an estimated 2.57% over one year and 5.65% over two years [261]. Stock Repurchase Program - CTBI has repurchased a total of 2,465,294 shares under its stock repurchase program as of September 30, 2024 [244].

Group 1 - Community Trust Bancorp (CTBI) is a bank holding company with a Zacks Rank 1 (Strong Buy) and has seen a 3.9% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Community Trust Bancorp's shares have gained 18.4% over the last three months, outperforming the S&P 500's gain of 5.2% [1] - Orla Mining (ORLA) is engaged in developing the Camino Rojo Oxide Gold Project in Zacatecas State, Mexico, and has a Zacks Rank 1, with a 4.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] Group 2 - Orla Mining's shares have gained 27.1% over the last three months, also outperforming the S&P 500's gain of 5.2% [2] - Both companies possess a Momentum Score of B, indicating strong momentum characteristics [1][2]

Group 1: Community Trust Bancorp (CTBI) - Community Trust Bancorp is a bank holding company focused on providing financial services to customers [1] - The Zacks Consensus Estimate for its current year earnings has increased by 3.9% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) and offers a dividend yield of 3.6%, which is higher than the industry average of 2.5% [1] Group 2: H&R Block (HRB) - H&R Block is a leading provider of tax preparation services [1] - The Zacks Consensus Estimate for its current year earnings has increased by nearly 2.8% over the last 60 days [1] - The company has a Zacks Rank of 1 and offers a dividend yield of 2.4%, compared to the industry average of 0.0% [1] Group 3: HireQuest (HQI) - HireQuest provides temporary staffing services, including general labor, industrial, and construction personnel [2] - The Zacks Consensus Estimate for its current year earnings has increased by nearly 9.3% over the last 60 days [2] - The company has a Zacks Rank of 1 and offers a dividend yield of 1.7%, which is slightly above the industry average of 1.5% [2]

Community Trust Bancorp (CTBI) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.96%. A quarter ago, it was expected that this bank holding company for Community Trust Bank would post earnings of $1.04 per share when it actually produced earnings of $1.09, delivering a surprise of 4. ...

Exhibit 99.1 FOR IMMEDIATE RELEASE October 16, 2024 FOR ADDITIONAL INFORMATION, PLEASE CONTACT MARK A. GOOCH, CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 434-4331 Pikeville, Kentucky: COMMUNITY TRUST BANCORP, INC. REPORTS EARNINGS FOR THE 3RD QUARTER 2024 Earnings Summary | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------|-------|------------------|-------|------------------|-------|---------- ...