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]

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]

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]