Community Trust Bancorp, Inc. (NASDAQ-CTBI):
Earnings Summary
Earnings Summary
(in thousands except per share data)
3Q 2024
2Q 2024
3Q 2023
YTD 2024
YTD 2023
Net income
$22,142
$19,499
$20,628
$60,320
$59,345
Earnings per share
$1.23
$1.09
$1.15
$3.36
$3.32
Earnings per share - diluted
$1.23
$1.09
$1.15
$3.36
$3.32
Return on average assets
1.50%
1.35%
1.46%
1.38%
1.44%
Return on average equity
11.77%
11.03%
12.30%
11.15%
12.02%
Efficiency ratio
51.75%
52.17%
52.66%
52.91%
53.82%
Tangible common equity
11.79%
11.39%
10.55%
Dividends declared per share
$0.47
$0.46
$0.46
$1.39
$1.34
Book value per share
$42.14
$39.91
$36.30
Weighted average shares
17,962
17,939
17,893
17,942
17,882
Weighted average shares - diluted
17,991
17,959
17,904
17,965
17,892
Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings
for the third quarter 2024 of $22.1 million, or $1.23 per basic
share, compared to $19.5 million, or $1.09 per basic share, earned
during the second quarter 2024 and $20.6 million, or $1.15 per
basic share, earned during the third quarter 2023. Total revenue
for the quarter was $1.4 million above prior quarter and $4.1
million above prior year same quarter. Net interest revenue for the
quarter increased $1.5 million compared to prior quarter and $4.1
million compared to prior year same quarter, and noninterest income
decreased $0.1 million compared to prior quarter but increased $0.1
million compared to prior year same quarter. Our provision for
credit losses for the quarter decreased $0.2 million from prior
quarter but increased $0.9 million from prior year same quarter.
Noninterest expense increased $0.1 million compared to prior
quarter and $1.7 million compared to prior year same quarter. Net
income for the nine months ended September 30, 2024 was $60.3
million, or $3.36 per basic share, compared to $59.3 million, or
$3.32 per basic share, for the nine months ended September 30,
2023.
3rd Quarter 2024 Highlights
- Net interest income for the quarter of $47.2 million was $1.5
million, or 3.3%, above prior quarter and $4.1 million, or 9.4%,
above prior year same quarter, as our net interest margin increased
1 basis point from prior quarter and 12 basis points from prior
year same quarter.
- Provision for credit losses at $2.7 million for the quarter
decreased $0.2 million from prior quarter but increased $0.9
million from prior year same quarter.
- Noninterest income for the quarter ended September 30, 2024 of
$15.6 million was $0.1 million, or 0.9%, below prior quarter but
$0.1 million, or 0.4%, above prior year same quarter.
- Noninterest expense for the quarter ended September 30, 2024 of
$32.5 million was $0.1 million, or 0.3%, above prior quarter and
$1.7 million, or 5.4%, above prior year same quarter.
- Our loan portfolio at $4.4 billion increased $89.2 million, an
annualized 8.3%, from June 30, 2024 and $365.5 million, or 9.2%,
from September 30, 2023.
- We had net loan charge-offs of $1.5 million, or an annualized
0.14% of average loans, for the third quarter 2024 compared to $1.4
million, or an annualized 0.13% of average loans, for the second
quarter 2024 and $1.2 million, or an annualized 0.12% of average
loans, for the third quarter 2023.
- Our total nonperforming loans increased to $25.1 million at
September 30, 2024 from $19.8 million at June 30, 2024 and $13.0
million at September 30, 2023. Nonperforming assets at $26.4
million increased $5.0 million from June 30, 2024 and $11.3 million
from September 30, 2023.
- Deposits, including repurchase agreements, at $5.1 billion
increased $110.2 million, or an annualized 8.8%, from June 30, 2024
and $211.1 million, or 4.3%, from September 30, 2023.
- Shareholders’ equity at $760.8 million increased $41.4 million,
or an annualized 22.9%, during the quarter and $107.7 million, or
16.5%, from September 30, 2023. Shareholders’ equity was positively
impacted by the improvement in interest rates and the resulting
decrease in unrealized losses on securities.
Net Interest Income
Percent Change
3Q 2024 Compared
to:
($ in thousands)
3Q 2024
2Q 2024
3Q 2023
2Q 2024
3Q 2023
YTD 2024
YTD 2023
Percent Change
Components of net interest income:
Income on earning assets
$79,814
$76,648
$69,499
4.1%
14.8%
$231,464
$195,321
18.5%
Expense on interest bearing
liabilities
32,615
30,970
26,359
5.3%
23.7%
94,996
65,186
45.7%
Net interest income
47,199
45,678
43,140
3.3%
9.4%
136,468
130,135
4.9%
TEQ
280
292
298
(4.1%)
(5.8%)
866
894
(3.2%)
Net interest income, tax equivalent
$47,479
$45,970
$43,438
3.3%
9.3%
$137,334
$131,029
4.8%
Average yield and rates paid:
Earning assets yield
5.72%
5.66%
5.25%
1.1%
9.0%
5.64%
5.05%
11.8%
Rate paid on interest bearing
liabilities
3.36%
3.30%
2.93%
1.9%
14.7%
3.34%
2.52%
32.3%
Gross interest margin
2.36%
2.36%
2.32%
0.0%
1.7%
2.31%
2.53%
(9.0%)
Net interest margin
3.39%
3.38%
3.27%
0.3%
3.9%
3.34%
3.37%
(1.0%)
Average balances:
Investment securities
$1,091,258
$1,095,182
$1,178,707
(0.4%)
(7.4%)
$1,111,411
$1,220,135
(8.9%)
Loans
$4,300,652
$4,191,992
$3,952,096
2.6%
8.8%
$4,196,884
$3,843,441
9.2%
Earning assets
$5,570,160
$5,469,813
$5,274,542
1.8%
5.6%
$5,499,608
$5,199,072
5.8%
Interest-bearing liabilities
$3,859,978
$3,776,362
$3,567,343
2.2%
8.2%
$3,803,491
$3,455,666
10.1%
Net interest income for the quarter of $47.2 million was $1.5
million, or 3.3%, above prior quarter and $4.1 million, or 9.4%,
above prior year same quarter. Our net interest margin, on a fully
tax equivalent basis, at 3.39% increased 1 basis point from prior
quarter and 12 basis points from prior year same quarter. Our
quarterly average earning assets increased $100.3 million from
prior quarter and $295.6 million from prior year same quarter. Our
yield on average earning assets increased 6 basis points from prior
quarter and 47 basis points from prior year same quarter, while our
cost of funds increased 6 basis points from prior quarter and 43
basis points from prior year same quarter. Net interest income for
the nine months ended September 30, 2024 was $136.5 million
compared to $130.1 million for the nine months ended September 30,
2023.
Our ratio of average loans to deposits, including repurchase
agreements, was 85.8% for the quarter ended September 30, 2024
compared to 84.5% for the quarter ended June 30, 2024 and 83.2% for
the quarter ended September 30, 2023.
Noninterest Income
Percent Change
3Q 2024 Compared
to:
($ in thousands)
3Q 2024
2Q 2024
3Q 2023
2Q 2024
3Q 2023
YTD 2024
YTD 2023
Percent Change
Deposit related fees
$7,886
$7,308
$7,823
7.9%
0.8%
$22,205
$22,623
(1.8%)
Trust revenue
3,707
3,736
3,277
(0.8%)
13.1%
10,960
9,707
12.9%
Gains on sales of loans
80
119
105
(33.2%)
(23.8%)
244
341
(28.4%)
Loan related fees
813
1,320
1,283
(38.4%)
(36.6%)
3,485
3,325
4.8%
Bank owned life insurance revenue
1,214
1,815
1,108
(33.1%)
9.6%
4,321
2,701
60.0%
Brokerage revenue
563
683
452
(17.7%)
24.5%
1,736
1,188
46.2%
Other
1,300
727
1,448
78.8%
(10.2%)
3,454
4,049
(14.7%)
Total noninterest income
$15,563
$15,708
$15,496
(0.9%)
0.4%
46,405
43,934
5.6%
Noninterest income for the quarter ended September 30, 2024 of
$15.6 million was $0.1 million, or 0.9%, below prior quarter but
$0.1 million, or 0.4%, above prior year same quarter. Quarter over
quarter increases in deposit related fees ($0.6 million) and
securities gains ($0.7 million) were offset by decreases in loan
related fees ($0.5 million) and bank owned life insurance revenue
($0.6 million). Year over year increase in trust fees ($0.4 million
was offset by a decrease in loan related fees ($0.5 million).
Noninterest income for the nine months ended September 30, 2024 was
$46.4 million compared to $43.9 million for the nine months ended
September 30, 2023.
Noninterest Expense
Percent Change
3Q 2024 Compared
to:
($ in thousands)
3Q 2024
2Q 2024
3Q 2023
2Q 2024
3Q 2023
YTD 2024
YTD 2023
Percent Change
Salaries
$13,374
$13,037
$12,755
2.6%
4.9%
$39,447
$38,120
3.5%
Employee benefits
6,147
6,554
5,298
(6.2%)
16.0%
19,787
17,146
15.4%
Net occupancy and equipment
3,072
3,089
2,875
(0.6%)
6.8%
9,189
8,798
4.5%
Data processing
2,804
2,669
2,410
5.1%
16.3%
7,991
7,096
12.6%
Legal and professional fees
1,024
978
722
4.7%
41.8%
2,834
2,450
15.7%
Advertising and marketing
876
856
767
2.4%
14.3%
2,309
2,291
0.8%
Taxes other than property and payroll
438
438
420
(0.0%)
4.4%
1,318
1,285
2.6%
Other
4,777
4,801
5,600
(0.5%)
(14.7%)
14,279
16,576
(13.9%)
Total noninterest expense
$32,512
$32,422
$30,847
0.3%
5.4%
$97,154
$93,762
3.6%
Noninterest expense for the quarter ended September 30, 2024 of
$32.5 million was $0.1 million, or 0.3%, above prior quarter and
$1.7 million, or 5.4%, above prior year same quarter. The increase
year over year primarily resulted from a $1.5 million increase in
personnel expense, which included a $0.6 million increase in
salaries and a $0.7 million increase in the cost of group medical
and life insurance benefits. Other noninterest expense was
positively impacted by the accounting method change related to
investments in tax credit structures (ASU No. 2023-02). Noninterest
expense for the nine months ended September 30, 2024 was $97.2
million compared to $93.8 million for the nine months ended
September 30, 2023.
Balance Sheet Review
Total Loans
Percent Change
3Q 2024 Compared to:
($ in thousands)
3Q 2024
2Q 2024
3Q 2023
2Q 2024
3Q 2023
Commercial nonresidential real estate
$834,985
$825,934
$788,287
1.1%
5.9%
Commercial residential real estate
485,004
480,418
404,779
1.0%
19.8%
Hotel/motel
453,465
417,161
386,067
8.7%
17.5%
Other commercial
440,636
428,263
377,449
2.9%
16.7%
Total commercial
2,214,090
2,151,776
1,956,582
2.9%
13.2%
Residential mortgage
1,003,123
978,144
916,580
2.6%
9.4%
Home equity loans/lines
163,013
154,311
139,085
5.6%
17.2%
Total residential
1,166,136
1,132,455
1,055,665
3.0%
10.5%
Consumer indirect
816,187
819,689
812,060
(0.4%)
0.5%
Consumer direct
154,061
157,327
160,712
(2.1%)
(4.1%)
Total consumer
970,248
977,016
972,772
(0.7%)
(0.3%)
Total loans
$4,350,474
$4,261,247
$3,985,019
2.1%
9.2%
Total Deposits and Repurchase Agreements
Percent Change
3Q 2024 Compared to:
($ in thousands)
3Q 2024
2Q 2024
3Q 2023
2Q 2024
3Q 2023
Noninterest bearing deposits
$1,204,515
$1,241,514
$1,314,189
(3.0%)
(8.3%)
Interest bearing deposits
Interest checking
156,249
138,767
125,107
12.6%
24.9%
Money market savings
1,658,758
1,664,580
1,412,679
(0.3%)
17.4%
Savings accounts
501,933
527,251
556,820
(4.8%)
(9.9%)
Time deposits
1,316,807
1,161,686
1,219,097
13.4%
8.0%
Repurchase agreements
233,324
227,576
232,577
2.5%
0.3%
Total interest bearing deposits and
repurchase agreements
3,867,071
3,719,860
3,546,280
4.0%
9.0%
Total deposits and repurchase
agreements
$5,071,586
$4,961,374
$4,860,469
2.2%
4.3%
CTBI’s total assets at $6.0 billion as of September 30, 2024
increased $158.6 million, or 10.9% annualized, from June 30, 2024
and $328.0 million, or 5.8%, from September 30, 2023. Loans
outstanding at $4.4 billion increased $89.2 million, an annualized
8.3%, from June 30, 2024 and $365.5 million, or 9.2%, from
September 30, 2023. The increase in loans from prior quarter
included a $62.3 million increase in the commercial loan portfolio
and a $33.7 million increase in the residential loan portfolio,
partially offset by a $3.5 million decrease in the indirect
consumer loan portfolio and a $3.3 million decrease in the consumer
direct loan portfolio. CTBI’s investment portfolio increased $8.0
million, or an annualized 2.9%, from June 30, 2024 but decreased
$37.4 million, or 3.3%, from September 30, 2023. Deposits in other
banks increased $48.3 million from prior quarter and $5.0 million
from September 30, 2023. Deposits, including repurchase agreements,
at $5.1 billion increased $110.2 million, or an annualized 8.8%,
from June 30, 2024 and $211.1 million, or 4.3%, from September 30,
2023. CTBI is not dependent on any one customer or group of
customers for their source of deposits. As of September 30, 2024,
no one customer accounted for more than 3% of our $5.1 billion in
deposits. Only two customer relationships accounted for more than
1% each.
Shareholders’ equity at $760.8 million increased $41.4 million,
or an annualized 22.9%, during the quarter and $107.7 million, or
16.5%, from September 30, 2023. Net unrealized losses on
securities, net of deferred taxes, were $80.6 million at September
30, 2024, compared to $107.1 million at June 30, 2024 and $141.4
million at September 30, 2023. CTBI’s annualized dividend yield to
shareholders as of September 30, 2024 was 3.79%.
Asset Quality
Our total nonperforming loans increased to $25.1 million at
September 30, 2024 from $19.8 million at June 30, 2024 and $13.0
million at September 30, 2023. Accruing loans 90+ days past due at
$19.1 million increased $4.4 million from prior quarter and $11.0
million from September 30, 2023. Nonaccrual loans at $6.0 million
increased $0.9 million from prior quarter and $1.1 million from
September 30, 2023. Accruing loans 30-89 days past due at $20.6
million decreased $3.5 million from prior quarter but increased
$8.5 million from September 30, 2023. Our loan portfolio management
processes focus on the immediate identification, management, and
resolution of problem loans to maximize recovery and minimize
loss.
We had net loan charge-offs of $1.5 million, or an annualized
0.14% of average loans, for the third quarter 2024 compared to $1.4
million, or an annualized 0.13% of average loans, for the second
quarter 2024 and $1.2 million, or an annualized 0.12% of average
loans, for the third quarter 2023. Of the net charge-offs for the
quarter, $1.2 million were in indirect consumer loans, $0.2 million
were in direct consumer loans, and $0.1 million were in residential
loans. Year-to-date net loan charge-offs of an annualized 0.14% of
average loans are in line with management’s expectations.
Allowance for Credit Losses
Our provision for credit losses at $2.7 million for the quarter
decreased $0.2 million from prior quarter but increased $0.9
million from prior year same quarter. Of the provision for the
quarter, $1.1 million was allotted to fund loan growth.
Year-to-date provision for credit losses increased $3.4 million
from the nine months ended September 30, 2023. Our reserve coverage
(allowance for credit losses to nonperforming loans) at September
30, 2024 was 212.7% compared to 263.0% at June 30, 2024 and 375.2%
at September 30, 2023. Our credit loss reserve as a percentage of
total loans outstanding at September 30, 2024 was 1.23% compared to
1.22% at June 30, 2024 and September 30, 2023.
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. CTBI’s 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 epidemics, pandemics, or other
infectious disease outbreaks; 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 $6.0 billion, is
headquartered in Pikeville, Kentucky and has 72 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) September 30, 2024 (in thousands except per
share data and # of employees) Three Three Three Nine Nine
Months Months Months Months Months Ended Ended Ended Ended Ended
September 30, 2024 June 30, 2024 September 30, 2023 September 30,
2024 September 30, 2023 Interest income
$
79,814
$
76,648
$
69,499
$
231,464
$
195,321
Interest expense
32,615
30,970
26,359
94,996
65,186
Net interest income
47,199
45,678
43,140
136,468
130,135
Loan loss provision
2,736
2,972
1,871
8,364
4,996
Gains on sales of loans
80
119
105
244
341
Deposit related fees
7,886
7,308
7,823
22,205
22,623
Trust revenue
3,707
3,736
3,277
10,960
9,707
Loan related fees
813
1,320
1,283
3,485
3,325
Securities gains (losses)
213
(474
)
355
110
738
Other noninterest income
2,864
3,699
2,653
9,401
7,200
Total noninterest income
15,563
15,708
15,496
46,405
43,934
Personnel expense
19,521
19,591
18,053
59,234
55,266
Occupancy and equipment
3,072
3,089
2,875
9,189
8,798
Data processing expense
2,804
2,669
2,410
7,991
7,096
FDIC insurance premiums
629
645
612
1,916
1,828
Other noninterest expense
6,486
6,428
6,897
18,824
20,774
Total noninterest expense
32,512
32,422
30,847
97,154
93,762
Net income before taxes
27,514
25,992
25,918
77,355
75,311
Income taxes
5,372
6,493
5,290
17,035
15,966
Net income
$
22,142
$
19,499
$
20,628
$
60,320
$
59,345
Memo: TEQ interest income
$
80,094
$
76,940
$
69,797
$
232,330
$
196,215
Average shares outstanding
17,962
17,939
17,893
17,942
17,882
Diluted average shares outstanding
17,991
17,959
17,904
17,965
17,892
Basic earnings per share
$
1.23
$
1.09
$
1.15
$
3.36
$
3.32
Diluted earnings per share
$
1.23
$
1.09
$
1.15
$
3.36
$
3.32
Dividends per share
$
0.47
$
0.46
$
0.46
$
1.39
$
1.34
Average balances: Loans
$
4,300,652
$
4,191,992
$
3,952,096
$
4,196,884
$
3,843,441
Earning assets
5,570,160
5,469,813
5,274,542
5,499,608
5,199,072
Total assets
5,891,157
5,795,937
5,603,586
5,824,780
5,524,343
Deposits, including repurchase agreements
5,014,506
4,959,382
4,750,448
4,977,040
4,722,207
Interest bearing liabilities
3,859,978
3,776,362
3,567,343
3,803,491
3,455,666
Shareholders' equity
748,098
711,331
665,129
722,683
660,063
Performance ratios: Return on average assets
1.50
%
1.35
%
1.46
%
1.38
%
1.44
%
Return on average equity
11.77
%
11.03
%
12.30
%
11.15
%
12.02
%
Yield on average earning assets (tax equivalent)
5.72
%
5.66
%
5.25
%
5.64
%
5.05
%
Cost of interest bearing funds (tax equivalent)
3.36
%
3.30
%
2.93
%
3.34
%
2.52
%
Net interest margin (tax equivalent)
3.39
%
3.38
%
3.27
%
3.34
%
3.37
%
Efficiency ratio (tax equivalent)
51.75
%
52.17
%
52.66
%
52.91
%
53.82
%
Loan charge-offs
$
2,736
$
2,836
$
2,012
$
8,239
$
5,730
Recoveries
(1,212
)
(1,441
)
(842
)
(3,692
)
(3,472
)
Net charge-offs
$
1,524
$
1,395
$
1,170
$
4,547
$
2,258
Market Price: High
$
52.22
$
44.32
$
39.86
$
52.22
$
47.35
Low
$
41.50
$
39.28
$
33.48
$
38.44
$
32.68
Close
$
49.66
$
43.66
$
34.26
$
49.66
$
34.26
As of As of As of September 30, 2024 June 30, 2024 September
30, 2023
Assets: Loans
$
4,350,474
$
4,261,247
$
3,985,019
Loan loss reserve
(53,360
)
(52,148
)
(48,719
)
Net loans
4,297,114
4,209,099
3,936,300
Loans held for sale
115
350
-
Securities AFS
1,098,076
1,090,322
1,135,878
Equity securities at fair value
3,266
3,054
2,900
Other equity investments
10,060
14,022
12,557
Other earning assets
157,092
108,823
152,064
Cash and due from banks
85,944
54,935
69,291
Premises and equipment
47,519
47,178
44,962
Right of use asset
14,718
15,121
16,100
Goodwill and core deposit intangible
65,490
65,490
65,490
Other assets
183,574
195,945
199,390
Total Assets
$
5,962,968
$
5,804,339
$
5,634,932
Liabilities and Equity: Interest bearing checking
$
156,249
$
138,767
$
125,107
Savings deposits
2,160,691
2,191,831
1,969,499
CD's >=$100,000
753,253
637,206
666,808
Other time deposits
563,554
524,480
552,289
Total interest bearing deposits
3,633,747
3,492,284
3,313,703
Noninterest bearing deposits
1,204,515
1,241,514
1,314,189
Total deposits
4,838,262
4,733,798
4,627,892
Repurchase agreements
233,324
227,576
232,577
Other interest bearing liabilities
64,893
64,954
65,136
Lease liability
15,530
15,880
16,801
Other noninterest bearing liabilities
50,197
42,808
39,492
Total liabilities
5,202,206
5,085,016
4,981,898
Shareholders' equity
760,762
719,323
653,034
Total Liabilities and Equity
$
5,962,968
$
5,804,339
$
5,634,932
Ending shares outstanding
18,052
18,026
17,991
30 - 89 days past due loans
$
20,578
$
24,099
$
12,098
90 days past due loans
19,111
14,703
8,069
Nonaccrual loans
5,980
5,127
4,916
Foreclosed properties
1,344
1,626
2,175
Community bank leverage ratio
13.99
%
13.90
%
13.78
%
Tangible equity to tangible assets ratio
11.79
%
11.39
%
10.55
%
FTE employees
943
930
951
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241016686097/en/
MARK A. GOOCH, CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST
BANCORP, INC. AT (606) 434-4331
Community Trust Bancorp (NASDAQ:CTBI)
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