Community Trust Bank(CTBI)2025-02-28 13:35Financial Performance - Net income for the year ended December 31, 2024, was 4.61 per basic share, an increase from 4.36 per basic share, in 2023[162] - Noninterest income for the year ended December 31, 2024, was 4.9 million, or 8.5%, compared to 2023[167] - Net interest income increased by 185.995 million for the year ended December 31, 2024[165] - Total interest income for 2024 reached 268,650,000 in 2023[236] - Net income for 2024 was 78,004,000 in 2023[236] - Basic earnings per share for 2024 were 4.36 in 2023, indicating a growth of 5.7%[236] Asset and Deposit Growth - Total consolidated assets as of December 31, 2024, were 5.3 billion[158] - Total assets increased by 6.2 billion from December 31, 2023[178] - Deposits, including repurchase agreements, increased by 5,070,189 thousand in 2024, up from 435.7 million, or 10.8%, from December 31, 2023, to December 31, 2024[167] - Total loans increased by 10.8% to 5.5 million, representing 0.13% of average loans for the year ended December 31, 2024[181][184] - Loans outstanding increased by 4.5 billion year over year, with significant growth in the commercial loan portfolio[178] - The total loans and lease financing reached 4.05 billion in 2023, indicating a growth of approximately 10.8%[318] Credit Losses and Nonperforming Loans - The provision for credit losses was 6.8 million in 2023, reflecting a 60.8% increase[165] - Nonperforming loans increased to 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 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 1.86 per share, up from 33,407,000 in 2024 from 1,186.649 million, with a weighted average yield of 2.27%[197] - The total available-for-sale securities amounted to 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]