Community Trust Bancorp, Inc. Reports Earnings for the 4th Quarter and Year 2023

Rhea-AI Summary

Community Trust Bancorp, Inc. (NASDAQ: CTBI) reported a decrease in net income and earnings per share for the fourth quarter of 2023 compared to the same period in 2022 and the previous quarter. The company's net interest revenue and noninterest income also saw a decrease. However, the loan portfolio and deposits showed an increase. The company's asset quality and allowance for credit losses remained stable.

Positive

• Net income for the fourth quarter of 2023 was $18.7 million, down from $22.4 million in the same period of 2022.
• Earnings per share for the fourth quarter of 2023 were $1.04, down from $1.26 in the same period of 2022.
• Net interest revenue decreased by $0.2 million compared to the previous quarter and $1.8 million compared to the same quarter of the previous year.
• Noninterest income for the fourth quarter of 2023 was $13.7 million, down by 11.4% from the previous quarter.
• The loan portfolio at $4.1 billion increased by $65.9 million from the previous quarter and $341.6 million from the same period of the previous year.
• Deposits, including repurchase agreements, at $4.9 billion increased by $89.4 million from the previous quarter and $308.3 million from the same period of the previous year.
• The company's reserve coverage at December 31, 2023, was 354.7%, compared to 375.2% at September 30, 2023, and 300.4% at December 31, 2022.

Negative

• Net income and earnings per share for the fourth quarter of 2023 decreased compared to the same period in 2022 and the previous quarter.
• Net interest revenue and noninterest income saw a decrease in the fourth quarter of 2023.
• The company's reserve coverage decreased from the previous quarter and the same period of the previous year.

Insights

Financial Analyst

Community Trust Bancorp, Inc.'s (CTBI) recent earnings report indicates a downward trend in net income and earnings per share (EPS) when comparing both sequential quarters and year-over-year figures. The decrease in net interest income and increase in noninterest expenses are key factors contributing to this decline. These financial metrics are crucial as they reflect the company's profitability and operational efficiency, which are of significant interest to shareholders and potential investors.

The efficiency ratio, which measures noninterest expense as a percentage of revenue, has deteriorated, signaling lower efficiency. Additionally, the report reveals a shift in deposit mix, with a decrease in noninterest-bearing deposits and an increase in interest-bearing deposits, which could imply a higher cost of funds in a competitive interest rate environment. This shift may affect the bank's net interest margin in future quarters.

CTBI's provision for credit losses has increased year-over-year, which may suggest a more cautious approach to potential loan defaults, reflecting broader economic concerns. The loan portfolio growth is a positive sign, indicating potential future revenue streams, but it also necessitates careful monitoring of loan quality and default risks.

Market Research Analyst

The banking sector is highly sensitive to interest rate changes and CTBI's report showcases the impact of a rising interest rate environment on its net interest margin (NIM). A decline in NIM suggests that the cost of funds is growing faster than the income from earning assets, which could pressure future earnings. Market analysts would note that the increase in loan portfolio suggests growth potential, but it must be balanced against the risk of higher default rates, especially during economic uncertainty.

CTBI's asset quality metrics, such as nonperforming loans and net charge-offs, offer insights into the bank's risk management effectiveness. While there has been a decrease in nonperforming assets year-over-year, the slight uptick in nonperforming loans from the previous quarter requires attention to ensure asset quality remains stable.

The annualized dividend yield of 4.20% is a critical figure for investors seeking income and it remains to be seen how sustainable this yield is in the context of the bank's declining earnings and potential challenges ahead.

Economist

The reported figures reflect broader economic trends such as interest rate fluctuations and economic uncertainty. The increase in the bank's provision for credit losses and the changes in deposit types are consistent with a more cautious economic outlook and a response to a potential slowdown. Economists would analyze these indicators in the context of the macroeconomic environment, considering factors such as inflation, unemployment rates and GDP growth, which can influence consumer behavior and loan repayment capabilities.

CTBI's performance can also be seen as a microcosm of the regional banking sector's health, where shifts in asset and loan compositions can signal changes in business and consumer confidence. The bank's ability to navigate these economic headwinds while maintaining asset quality and profitability will be crucial for its long-term sustainability.

PIKEVILLE, Ky.--(BUSINESS WIRE)-- Community Trust Bancorp, Inc. (NASDAQ-CTBI):

Earnings Summary

(in thousands except per share data)	4Q 2023			3Q 2023			4Q 2022			Year 2023			Year 2022
Net income	$	18,659		$	20,628		$	22,443		$	78,004		$	81,814
Earnings per share	$	1.04		$	1.15		$	1.26		$	4.36		$	4.59
Earnings per share – diluted	$	1.04		$	1.15		$	1.26		$	4.36		$	4.58
Return on average assets		1.30	%		1.46	%		1.64	%		1.40	%		1.50	%
Return on average equity		10.98	%		12.30	%		14.42	%		11.75	%		12.73	%
Efficiency ratio		55.74	%		52.66	%		51.81	%		54.29	%		53.12	%
Tangible common equity		11.16	%		10.55	%		10.58	%
Dividends declared per share	$	0.46		$	0.46		$	0.44		$	1.80		$	1.68
Book value per share	$	39.01		$	36.30		$	35.05
Weighted average shares		17,901			17,893			17,848			17,887			17,836
Weighted average shares - diluted		17,926			17,904			17,872			17,900			17,851

Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the fourth quarter 2023 of $18.7 million, or $1.04 per basic share, compared to $20.6 million, or $1.15 per basic share, earned during the third quarter 2023 and $22.4 million, or $1.26 per basic share, earned during the fourth quarter 2022. Total revenue was $1.9 million below prior quarter and $1.8 million below prior year same quarter. Net interest revenue decreased $0.2 million compared to prior quarter and $1.8 million compared to prior year same quarter, and noninterest income decreased $1.8 million compared to prior quarter but remained relatively flat compared to prior year same quarter. Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year fourth quarter. Noninterest expense increased $0.8 million compared to prior quarter and $1.4 million compared to prior year same quarter. Earnings for the year ended December 31, 2023 were $78.0 million, or $4.36 per basic share, compared to $81.8 million, or $4.59 per basic share for the year ended December 31, 2022. Year over year earnings were impacted by increases in provision for loan losses and noninterest expense and a decrease in noninterest income.

4^th Quarter 2023 Highlights

• Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter, as our net interest margin decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter.

• Provision for credit losses at $1.8 million for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter.

• Our loan portfolio at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022.

• We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022.

• Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Nonperforming assets at $15.6 million increased $0.4 million from September 30, 2023 but decreased $3.4 million from December 31, 2022.

• Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022.

• Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022.

• Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022.

• Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter.

• Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter.

Net Interest Income

										Percent Change
										4Q 2023 Compared to:
($ in thousands)	4Q 2023			3Q 2023			4Q 2022			3Q 2023		4Q 2022		Year 2023			Year 2022			Percent Change
Components of net interest income:
Income on earning assets	$	73,329		$	69,499		$	57,458		5.5	%	27.6	%	$	268,650		$	197,742		35.9	%
Expense on interest bearing liabilities		30,354			26,359			12,714		15.2	%	138.8	%		95,540			28,640		233.6	%
Net interest income		42,975			43,140			44,744		(0.4	%)	(4.0	%)		173,110			169,102		2.4	%
TEQ		297			298			249		(0.4	%)	19.3	%		1,191			956		24.6	%
Net interest income, tax equivalent	$	43,272		$	43,438		$	44,993		(0.4	%)	(3.8	%)	$	174,301		$	170,058		2.5	%
Average yield and rates paid:
Earning assets yield		5.43	%		5.25	%		4.51	%	3.5	%	20.5	%		5.15	%		3.87	%	33.1	%
Rate paid on interest bearing liabilities		3.27	%		2.93	%		1.52	%	11.4	%	115.1	%		2.72	%		0.85	%	220.0	%
Gross interest margin		2.16	%		2.32	%		2.99	%	(6.9	%)	(27.8	%)		2.43	%		3.02	%	(19.6	%)
Net interest margin		3.19	%		3.27	%		3.51	%	(2.3	%)	(9.2	%)		3.32	%		3.32	%	0.0	%
Average balances:
Investment securities	$	1,144,078		$	1,178,707		$	1,284,470		(2.9	%)	(10.9	%)	$	1,200,965		$	1,399,877		(14.2	%)
Loans		4,022,547			3,952,096			3,662,221		1.8	%	9.8	%		3,888,585			3,552,941		9.4	%
Earning assets		5,377,827			5,274,542			5,079,176		2.0	%	5.9	%		5,244,128			5,129,345		2.2	%
Interest-bearing liabilities		3,687,660			3,567,343			3,321,914		3.4	%	11.0	%		3,514,142			3,351,221		4.9	%

Net interest income for the quarter of $43.0 million was $0.2 million below prior quarter and $1.8 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.19% decreased 8 basis points from prior quarter and 32 basis points from prior year same quarter. Our average earning assets increased $103.3 million from prior quarter and $298.7 million from prior year same quarter. Our yield on average earning assets increased 18 basis points from prior quarter and 92 basis points from prior year same quarter, and our cost of funds increased 34 basis points from prior quarter and 175 basis points from prior year same quarter. Our net interest income for the year ended December 31, 2023 was $173.1 million compared to $169.1 million for the year ended December 31, 2022.

Our ratio of average loans to deposits, including repurchase agreements, was 81.8% for the quarter ended December 31, 2023 compared to 83.2% for the quarter ended September 30, 2023 and 78.2% for the quarter ended December 31, 2022.

Noninterest Income

							Percent Change
							4Q 2023 Compared to:
($ in thousands)	4Q 2023		3Q 2023		4Q 2022		3Q 2023		4Q 2022		Year 2023		Year 2022		Percent Change
Deposit related fees	$	7,312	$	7,823	$	7,411	(6.5	%)	(1.3	%)	$	29,935	$	29,049	3.0	%
Trust revenue		3,318		3,277		2,959	1.2	%	12.1	%		13,025		12,394	5.1	%
Gains on sales of loans		54		105		174	(48.3	%)	(68.9	%)		395		1,525	(74.1	%)
Loan related fees		467		1,283		1,119	(63.6	%)	(58.3	%)		3,792		6,185	(38.7	%)
Bank owned life insurance revenue		816		1,108		572	(26.3	%)	42.7	%		3,517		2,708	29.8	%
Brokerage revenue		285		452		344	(37.0	%)	(17.2	%)		1,473		1,846	(20.2	%)
Other		1,473		1,448		1,192	1.7	%	23.6	%		5,522		4,209	31.2	%
Total noninterest income	$	13,725	$	15,496	$	13,771	(11.4	%)	(0.3	%)	$	57,659	$	57,916	(0.4	%)

Noninterest income for the quarter ended December 31, 2023 of $13.7 million was $1.8 million, or 11.4%, below prior quarter but relatively flat to prior year same quarter. The quarter over quarter decrease included a $0.5 million decrease in deposit related fees, a $0.8 million decrease in loan related fees, a $0.3 million decrease in bank owned life insurance revenue, and a $0.2 million decrease in brokerage revenue. A year over year decrease of $0.7 million in loan related fees was primarily offset by increases in trust revenue ($0.4 million) and bank owned life insurance revenue ($0.2 million). The decline in loan related fees resulted from the fluctuation in the fair market value of our mortgage servicing rights. Noninterest income for the year 2023 was $57.7 million compared to $57.9 million for the year 2022. Noninterest income was impacted year over year by a $2.4 million decline in loan related fees, a $1.1 million decline in gains on sales of loans, and a $0.4 million decline in brokerage revenue, offset by increases of $0.9 million in deposit related fees, $0.6 million in trust revenue, $1.2 million in securities gains, and $0.8 million in bank owned life insurance revenue.

Noninterest Expense

							Percent Change
							4Q 2023 Compared to:
($ in thousands)	4Q 2023		3Q 2023		4Q 2022		3Q 2023		4Q 2022		Year 2023		Year 2022		Percent Change
Salaries	$	13,163	$	12,755	$	12,439	3.2	%	5.8	%	$	51,283	$	48,934	4.8	%
Employee benefits		5,282		5,298		5,433	(0.3	%)	(2.8	%)		22,428		23,556	(4.8	%)
Net occupancy and equipment		3,045		2,875		2,576	5.9	%	18.2	%		11,843		11,083	6.9	%
Data processing		2,630		2,410		2,344	9.1	%	12.2	%		9,726		8,910	9.2	%
Legal and professional fees		900		722		931	24.6	%	(3.3	%)		3,350		3,434	(2.4	%)
Advertising and marketing		923		767		826	20.4	%	11.8	%		3,214		3,005	7.0	%
Taxes other than property and payroll		421		420		296	0.3	%	42.2	%		1,706		1,570	8.7	%
Net other real estate owned expense		5		165		18	(96.8	%)	(72.2	%)		350		456	(23.4	%)
Other		5,259		5,435		5,396	(3.2	%)	(2.5	%)		21,490		20,123	6.8	%
Total noninterest expense	$	31,628	$	30,847	$	30,259	2.5	%	4.5	%	$	125,390	$	121,071	3.6	%

Noninterest expense for the quarter ended December 31, 2023 of $31.6 million was $0.8 million, or 2.5%, above prior quarter and $1.4 million, or 4.5%, above prior year same quarter. The increase in noninterest expense quarter over quarter included a $0.4 million increase in personnel expense, a $0.2 million increase in occupancy and equipment, and a $0.2 million increase in data processing expense. The increase year over year resulted from a $0.6 million increase in personnel expense, a $0.5 million increase in occupancy and equipment expense, a $0.3 million increase in data processing expense, and a $0.3 million increase in FDIC insurance premiums. Noninterest expense for the year 2023 was $125.4 million compared to $121.1 million for the year 2022 with increases of $1.2 million in personnel expense, $0.8 million in occupancy and equipment, $0.8 million in data processing expense, $1.0 million in FDIC insurance premiums, and $0.4 million in telephone expense.

The Compensation Committee of the Board of Directors has authorized a discretionary gift/payment to all full-time employees hired prior to July 1, 2023 of $1000 and all full-time employees hired after June 30, 2023 of $500. The Committee also authorized a discretionary gift/payment to our Executive Committee and other members of senior management. This discretionary gift/payment will occur January 19, 2024 for all eligible employees. This payment was accrued as of December 31, 2023 in the amount of $1.2 million. The Compensation Committee approved this gift/payment even though we did not achieve the desired financial results for our company and chose to do so because they recognize the significant efforts of all our employees during this very turbulent time in the banking industry.

Balance Sheet Review

Total Loans

							Percent Change
							4Q 2023 Compared to:
($ in thousands)	4Q 2023		3Q 2023		4Q 2022		3Q 2023		4Q 2022
Commercial nonresidential real estate	$	778,637	$	788,287	$	762,349	(1.2	%)	2.1	%
Commercial residential real estate		417,943		404,779		372,914	3.3	%	12.1	%
Hotel/motel		395,765		386,067		343,640	2.5	%	15.2	%
Other commercial		391,390		377,449		389,955	3.7	%	0.4	%
Total commercial		1,983,735		1,956,582		1,868,858	1.4	%	6.1	%
Residential mortgage		937,524		916,580		824,996	2.3	%	13.6	%
Home equity loans/lines		147,036		139,085		120,540	5.7	%	22.0	%
Total residential		1,084,560		1,055,665		945,536	2.7	%	14.7	%
Consumer indirect		823,505		812,060		737,392	1.4	%	11.7	%
Consumer direct		159,106		160,712		157,504	(1.0	%)	1.0	%
Total consumer		982,611		972,772		894,896	1.0	%	9.8	%
Total loans	$	4,050,906	$	3,985,019	$	3,709,290	1.7	%	9.2	%

Total Deposits and Repurchase Agreements

							Percent Change
							4Q 2023 Compared to:
($ in thousands)	4Q 2023		3Q 2023		4Q 2022		3Q 2023		4Q 2022
Non-interest bearing deposits	$	1,260,690	$	1,314,189	$	1,394,915	(4.1	%)	(9.6	%)
Interest bearing deposits
Interest checking		123,927		125,107		112,265	(0.9	%)	10.4	%
Money market savings		1,525,537		1,412,679		1,348,809	8.0	%	13.1	%
Savings accounts		535,063		556,820		654,380	(3.9	%)	(18.2	%)
Time deposits		1,279,405		1,219,097		915,774	4.9	%	39.7	%
Repurchase agreements		225,245		232,577		215,431	(3.2	%)	4.6	%
Total interest bearing deposits and repurchase agreements		3,689,177		3,546,280		3,246,659	4.0	%	13.6	%
Total deposits and repurchase agreements	$	4,949,867	$	4,860,469	$	4,641,574	1.8	%	6.6	%

CTBI’s total assets at $5.8 billion as of December 31, 2023 increased $134.8 million, or 9.5% annualized, from September 30, 2023 and $389.4 million, or 7.2%, from December 31, 2022. Loans outstanding at $4.1 billion increased $65.9 million, an annualized 6.6%, from September 30, 2023 and $341.6 million, or 9.2%, from December 31, 2022. The increase in loans from prior quarter included a $27.2 million increase in the commercial loan portfolio, a $28.9 million increase in the residential loan portfolio, a $11.4 million increase in the indirect consumer loan portfolio, and a $1.6 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio increased $28.1 million, or an annualized 9.8%, from September 30, 2023 but decreased $91.5 million, or 7.3%, from December 31, 2022. Deposits in other banks increased $62.6 million from prior quarter and $135.2 million from December 31, 2022. Deposits, including repurchase agreements, at $4.9 billion increased $89.4 million, or an annualized 7.3%, from September 30, 2023 and $308.3 million, or 6.6% from December 31, 2022. Due to the increasing and competitive interest rate environment, we have seen a change in our deposit mix year over year with a 9.6% decrease in noninterest bearing deposits and a 13.6% increase in interest bearing deposits and repurchase agreements.

Shareholders’ equity at $702.2 million increased $49.2 million, or an annualized 29.9%, during the quarter and $74.2 million, or 11.8%, from December 31, 2022. Net unrealized losses on securities, net of deferred taxes, decreased to $103.3 million at December 31, 2023, compared to $141.4 million at September 30, 2023 and $129.2 million at December 31, 2022. CTBI’s annualized dividend yield to shareholders as of December 31, 2023 was 4.20%.

Asset Quality

Our total nonperforming loans increased to $14.0 million at December 31, 2023 from $13.0 million at September 30, 2023 but decreased from $15.3 million at December 31, 2022. Prior year nonperforming loans, as previously reported, exclude troubled debt restructurings which have been eliminated in the current period due to implementation of Accounting Standard Update 2022-02. Accruing loans 90+ days past due at $9.9 million increased $1.9 million from prior quarter and $1.4 million from December 31, 2022. Nonaccrual loans at $4.0 million decreased $0.9 million from prior quarter and $2.8 million from December 31, 2022. Accruing loans 30-89 days past due at $15.3 million increased $3.2 million from prior quarter and were relatively flat to December 31, 2022. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.

Our level of foreclosed properties was $1.6 million at December 31, 2023 compared to $2.2 million at September 30, 2023 and $3.7 million at December 31, 2022. Sales of foreclosed properties for the quarter ended December 31, 2023 totaled $0.7 million while new foreclosed properties totaled $0.2 million.

We had net loan charge-offs of $1.0 million, or 0.10% of average loans annualized, for the fourth quarter 2023 compared to $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 and a net recovery of loan charge-offs of $9 thousand for the fourth quarter 2022. Net charge-offs for the year ended December 31, 2023 were $3.2 million, or 0.08% of average loans annualized compared to $0.7 million, or 0.02% of average loans annualized, for the year ended December 31, 2022.

Allowance for Credit Losses

Our provision for credit losses for the quarter decreased $0.1 million from prior quarter but increased $0.3 million from prior year same quarter. Provision for credit losses for the year ended December 31, 2023 increased $1.9 million from the year ended December 31, 2022. Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2023 was 354.7% compared to 375.2% at September 30, 2023 and 300.4% at December 31, 2022. Our credit loss reserve as a percentage of total loans outstanding at December 31, 2023 remained at 1.22% from September 30, 2023 down from the 1.24% at December 31, 2022.

Forward-Looking Statements

Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Community Trust Bancorp, Inc.’s (“CTBI”) actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of the COVID-19 pandemic on our business operations and credit quality and on general economic and financial market conditions, as well as our ability to respond to the related challenges; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and state regulators, whose policies, regulations, and enforcement actions could affect CTBI’s results. These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made.

Community Trust Bancorp, Inc., with assets of $5.8 billion, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, three banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee.

Additional information follows.

Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
December 31, 2023
(in thousands except per share data and # of employees)
	Three			Three			Three			Twelve			Twelve
	Months			Months			Months			Months			Months
	Ended			Ended			Ended			Ended			Ended
	December 31, 2023			September 30, 2023			December 31, 2022			December 31, 2023			December 31, 2022
Interest income	$	73,329		$	69,499		$	57,458		$	268,650		$	197,742
Interest expense		30,354			26,359			12,714			95,540			28,640
Net interest income		42,975			43,140			44,744			173,110			169,102
Loan loss provision		1,815			1,871			1,539			6,811			4,905
Gains on sales of loans		54			105			174			395			1,525
Deposit related fees		7,312			7,823			7,411			29,935			29,049
Trust revenue		3,318			3,277			2,959			13,025			12,394
Loan related fees		467			1,283			1,119			3,792			6,185
Securities gains (losses)		258			355			117			996			(168	)
Other noninterest income		2,316			2,653			1,991			9,516			8,931
Total noninterest income		13,725			15,496			13,771			57,659			57,916
Personnel expense		18,445			18,053			17,872			73,711			72,490
Occupancy and equipment		3,045			2,875			2,576			11,843			11,083
Data processing expense		2,630			2,410			2,344			9,726			8,910
FDIC insurance premiums		655			612			374			2,483			1,447
Other noninterest expense		6,853			6,897			7,093			27,627			27,141
Total noninterest expense		31,628			30,847			30,259			125,390			121,071
Net income before taxes		23,257			25,918			26,717			98,568			101,042
Income taxes		4,598			5,290			4,274			20,564			19,228
Net income	$	18,659		$	20,628		$	22,443		$	78,004		$	81,814
Memo: TEQ interest income	$	73,626		$	69,797		$	57,707		$	269,841		$	198,698
Average shares outstanding		17,901			17,893			17,848			17,887			17,836
Diluted average shares outstanding		17,926			17,904			17,872			17,900			17,851
Basic earnings per share	$	1.04		$	1.15		$	1.26		$	4.36		$	4.59
Diluted earnings per share	$	1.04		$	1.15		$	1.26		$	4.36		$	4.58
Dividends per share	$	0.46		$	0.46		$	0.44		$	1.80		$	1.68
Average balances:
Loans	$	4,022,547		$	3,952,096		$	3,662,221		$	3,888,585		$	3,552,941
Earning assets		5,377,827			5,274,542			5,079,176			5,244,128			5,129,345
Total assets		5,713,977			5,603,586			5,412,752			5,572,141			5,438,696
Deposits, including repurchase agreements		4,916,208			4,750,448			4,682,014			4,771,106			4,688,976
Interest bearing liabilities		3,687,660			3,567,343			3,321,914			3,514,142			3,351,221
Shareholders' equity		674,349			665,129			617,338			663,664			642,423
Performance ratios:
Return on average assets		1.30	%		1.46	%		1.64	%		1.40	%		1.50	%
Return on average equity		10.98	%		12.30	%		14.42	%		11.75	%		12.73	%
Yield on average earning assets (tax equivalent)		5.43	%		5.25	%		4.51	%		5.15	%		3.87	%
Cost of interest bearing funds (tax equivalent)		3.27	%		2.93	%		1.52	%		2.72	%		0.85	%
Net interest margin (tax equivalent)		3.19	%		3.27	%		3.51	%		3.32	%		3.32	%
Efficiency ratio (tax equivalent)		55.74	%		52.66	%		51.81	%		54.29	%		53.12	%
Loan charge-offs	$	2,529		$	2,012		$	1,995		$	8,259		$	5,346
Recoveries		(1,538	)		(842	)		(2,004	)		(5,010	)		(4,666	)
Net charge-offs	$	991		$	1,170		$	(9	)	$	3,249		$	680
Market Price:
High	$	45.74		$	39.86		$	48.05		$	47.35		$	48.05
Low	$	33.91		$	33.48		$	40.81		$	32.68		$	39.10
Close	$	43.86		$	34.26		$	45.93		$	43.86		$	45.93
							As of			As of			As of
							December 31, 2023			September 30, 2023			December 31, 2022
Assets:
Loans							$	4,050,906		$	3,985,019		$	3,709,290
Loan loss reserve								(49,543	)		(48,719	)		(45,981	)
Net loans								4,001,363			3,936,300			3,663,309
Loans held for sale								152			-			109
Securities AFS								1,163,724			1,135,878			1,256,226
Equity securities at fair value								3,158			2,900			2,166
Other equity investments								9,599			12,557			11,563
Other earning assets								214,664			152,064			79,475
Cash and due from banks								58,833			69,291			51,306
Premises and equipment								45,311			44,962			42,633
Right of use asset								15,703			16,100			17,071
Goodwill and core deposit intangible								65,490			65,490			65,490
Other assets								191,699			199,390			190,968
Total Assets							$	5,769,696		$	5,634,932		$	5,380,316
Liabilities and Equity:
Interest bearing checking							$	123,927		$	125,107		$	112,265
Savings deposits								2,060,600			1,969,499			2,003,189
CD's >=$100,000								704,222			666,808			471,934
Other time deposits								575,183			552,289			443,840
Total interest bearing deposits								3,463,932			3,313,703			3,031,228
Noninterest bearing deposits								1,260,690			1,314,189			1,394,915
Total deposits								4,724,622			4,627,892			4,426,143
Repurchase agreements								225,245			232,577			215,431
Other interest bearing liabilities								65,075			65,136			58,696
Lease liability								16,393			16,801			17,628
Other noninterest bearing liabilities								36,153			39,492			34,371
Total liabilities								5,067,488			4,981,898			4,752,269
Shareholders' equity								702,208			653,034			628,047
Total Liabilities and Equity							$	5,769,696		$	5,634,932		$	5,380,316
Ending shares outstanding								18,000			17,991			17,918
30 - 89 days past due loans							$	15,343		$	12,098		$	15,303
90 days past due loans								9,920			8,069			8,496
Nonaccrual loans								4,048			4,916			6,813
Foreclosed properties								1,616			2,175			3,671
Community bank leverage ratio								13.69	%		13.78	%		13.55	%
Tangible equity to tangible assets ratio								11.16	%		10.55	%		10.58	%
FTE employees								967			951			985

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240117725422/en/

MARK A. GOOCH, VICE CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 437-3229

Source: Community Trust Bancorp, Inc.

FAQ

What is the ticker symbol for Community Trust Bancorp, Inc.?

The ticker symbol for Community Trust Bancorp, Inc. is CTBI.

What was the net income for the fourth quarter of 2023?

The net income for the fourth quarter of 2023 was $18.7 million.

How did the net interest revenue change in the fourth quarter of 2023?

The net interest revenue decreased by $0.2 million compared to the previous quarter and $1.8 million compared to the same quarter of the previous year.

What was the change in the loan portfolio for Community Trust Bancorp, Inc.?

The loan portfolio at $4.1 billion increased by $65.9 million from the previous quarter and $341.6 million from the same period of the previous year.

What was the change in deposits for Community Trust Bancorp, Inc.?

Deposits, including repurchase agreements, at $4.9 billion increased by $89.4 million from the previous quarter and $308.3 million from the same period of the previous year.