8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

July 14, 2004

Community Trust Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Kentucky	61-0979818
(State or other jurisdiction of	(IRS Employer Identification Number)
Incorporation or organization)
346 North Mayo Trail
Pikeville, Kentucky	41501
(Address of principal executive offices)	(Zip code)

(606) 432-1414

(Registrant's telephone number, including area code)

Item 12. Results of Operations and Financial Condition --Issuance of Press Release on Second Quarter 2004 Earnings provided under Items 9 and 12 of Form 8-K

Community Trust Bancorp, Inc. announces second quarter 2004 earnings in press release dated July 14, 2004.

See Exhibit 1.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		COMMUNITY TRUST BANCORP, INC.
		By:
Date:	July 14, 2004	/s/ Jean R. Hale
		Jean R. Hale
		Vice Chairman, President and Chief Executive Officer

EX-1

Exhibit 1

FOR IMMEDIATE RELEASE

July 14, 2004

FOR ADDITIONAL INFORMATION PLEASE CONTACT JEAN R. HALE, VICE CHAIRMAN, PRESIDENT, AND C.E.O., COMMUNITY TRUST BANCORP, INC. AT (606) 437-3294

Community Trust Bancorp, Inc. reports increased earnings for the second quarter 2004 of $7.8 million or $0.58 per share.

Earnings Summary
	2Q 2004	1Q 2004	2Q 2003
Net income (in thousands)	$7,756	$7,280	$7,064
Earnings per share	$0.58	$0.54	$0.52
Earnings per share (diluted)	$0.57	$0.53	$0.52
Return on average assets	1.26%	1.18%	1.14%
Return on average equity	13.81%	12.97%	13.27%
Efficiency ratio	58.37%	58.53%	56.95%
Dividends declared per share	$0.23	$0.23	$0.19
Book value per share	$16.78	$16.81	$15.88

Community Trust Bancorp, Inc. (NASDAQ-CTBI) is reporting increased earnings for the second quarter 2004 of $7.8 million or $0.58 per share compared to $7.1 million or $0.52 per share earned during the second quarter of 2003 and $7.3 million or $0.54 per share earned during the first quarter of 2004. Year-to-date earnings for the six months ended June 30, 2004 were $15.0 million or $1.12 per share compared to $14.1 million or $1.04 per share for the six months ended June 30, 2003.

Second Quarter and Year-to-Date Highlights

v The Company's basic earnings per share of $0.58 for the second quarter 2004 reflects an increase of 11.5% over prior year. Year-to-date earnings per share increased 7.7% over prior year.

v The Company's net interest margin for the second quarter 2004 of 4.09% remained stable from the prior quarter and improved 34 basis points from prior year.

v Noninterest income for the second quarter 2004 was positively impacted by $0.5 million after-tax because of the improvement in the fair market value of our capitalized mortgage servicing rights. The impact to earnings per share for the quarter ended June 30, 2004 was $0.04 per share.

v The Company experienced growth in its loan portfolio at a rate of 10.6% from June 30, 2003 and an annualized rate of 10.0% from the first quarter 2004.

v Asset quality improved for the Company from prior year with nonperforming loans decreasing to $19.9 million, a 17.6% decrease from the $24.1 million of June 30, 2003.

Return on average assets for the quarter ended June 30, 2004 was 1.26% compared to 1.14% for the second quarter 2003 and 1.18% for the first quarter 2004. Return on average assets for the first six months of 2004 was 1.22% compared to 1.14% for the first six months of 2003. Return on average shareholders’ equity for the quarter ended June 30, 2004 was 13.81% compared to 13.27% for the quarter ended June 30, 2003 and 12.97% for the quarter ended March 31, 2004. Return on average equity for the six months ended June 30, 2004 was 13.39% compared to 13.33% for the first six months of 2003. CTBI’s efficiency ratio for the six months ended June 30, 2004 improved to 58.45% from 59.34% for the six months ended June 30, 2003.

Net Interest Income

Our net interest margin of 4.09% for the quarter ended June 30, 2004 is a 34 basis point increase from the 3.75% for the quarter ended June 30, 2003 and is flat to the quarter ended March 31, 2004. Management expects its net interest margin to remain relatively stable with the redeployment of normal maturities from the investment portfolio to the higher yielding loan portfolio.

Noninterest Income

Noninterest income decreased 4.9% for the quarter ended June 30, 2004 compared to the quarter ended June 30, 2003 but increased 13.8% compared to the quarter ended March 31, 2004. Year-to-date noninterest income decreased 5.5% from prior year. Noninterest income for the quarter ended June 30, 2003 included approximately $1.6 million in securities gains. Also, as residential mortgage refinancing slowed, the Company had a decrease in gains on sales of loans of $1.2 million in the second quarter 2004 compared to the second quarter 2003.

Noninterest income for the second quarter 2004 was positively impacted by $0.8 million pre-tax because of the improvement in the fair market value of our capitalized mortgage servicing rights. Noninterest income for the quarters ended June 30, 2003 and March 31, 2004 were negatively impacted by charges to our valuation reserve for capitalized mortgage servicing rights of $0.8 million and $0.6 million, respectively.

Noninterest income was also positively impacted by $0.5 million during the second quarter of 2004, in addition to the $0.8 million in the first quarter 2004, derived from the adjustment of the carrying value of loans acquired with the 2002 acquisition of Citizens National Bank of Hazard to its net realizable value. These loans were recorded at acquisition at an amount estimated to be their net realizable value; however, the repayment experience on these loans has been better than expected and the carrying value of these loans has been increased to reflect the higher net realizable value.

Noninterest Expense

Noninterest expense of $18.8 million is a 12.0% increase from the $16.8 million for the second quarter 2003 and a 3.2% increase from the first quarter 2004. The increase in noninterest expense from prior year and prior quarter was primarily attributable to increased personnel expense due to the filling of budgeted key positions and the accrual of a performance-based incentive in the amount of $0.8 million.

Balance Sheet Review

The Company's loan portfolio grew $174.5 million or 10.6% from prior year as growth occurred in all three major loan categories, commercial, residential real estate, and consumer loans. Total deposits and repurchase agreements of $2.1 billion at June 30, 2004 represent a decline of 2.6% from June 30, 2003. The Company’s assets were $2.4 billion at June 30, 2004, a decrease of 2.6% from prior year.

Shareholders’ equity of $225.6 million on June 30, 2004 is a 5.9% increase from the $213.1 million on June 30, 2003 and a slight decrease of 0.1% from the $225.9 on March 31, 2004. The decrease from prior quarter is due to a $5.3 million decrease in net unrealized gains on securities. The Company's annualized dividend yield to shareholders as of June 30, 2004 was 3.02%.

Asset Quality

Nonperforming loans decreased to $19.9 million, or 1.1% of total loans, from the $24.1 million, or 1.5% of total loans, at June 30, 2003, but increased from the $17.9 million, or 1.0% of total loans, at March 31, 2004.

Foreclosed properties on June 30, 2004 were $6.2 million, a decrease from the $6.8 million at March 31, 2004 but an increase from the $3.5 million reported at June 30, 2003.

Net loan charge-offs for the quarter ended June 30, 2004 of $1.2 million were 65.9% less than the $3.4 million for the second quarter of 2003 and 29.4% less than the $1.6 million for the first quarter of 2004. The improvement in net charge-offs is reflected in the decrease in provision for loan loss expense for the second quarter 2004 of $1.8 million compared to the second quarter 2003 and $0.3 million compared to the first quarter 2004. Our reserve for losses on loans as a percentage of total loans outstanding at June 30, 2004 remained flat to March 31, 2004 and June 30, 2003 at 1.42%.

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. The Company’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, the performance of coal and coal related industries, prevailing inflation and interest rates, realized gai ns from sales of investments, gains from asset sales, and losses on commercial lending activities; results of various investment activities; the effects of competitors’ pricing policies, of changes in laws and regulations on competition and of 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; the adoption by the Company of an FFIEC policy that provides guidance on the reporting of delinquent consumer loans and the timing of associated credit charge-offs for financial institution subsidiaries; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary and fiscal policies and regulations, which include those determined by the Federal R eserve Board, the Federal Deposit Insurance Corporation, and state regulators, whose policies and regulations could affect the Company’s results. These statements are representative only on the date hereof, and the Company undertakes no obligation to update any forward-looking statements made.

Community Trust Bancorp, Inc., with assets of $2.4 billion, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northern, central, and south central Kentucky, 5 banking locations in southern West Virginia, and 5 trust offices across Kentucky.

Additional information follows.

Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
June 30, 2004
(in thousands except per share data)
	Three			Three			Three			Six			Six
	Months			Months			Months			Months			Months
	Ended			Ended			Ended			Ended			Ended
	6/30/04			3/31/04			6/30/03			6/30/04			6/30/03
Interest income	$	31,022		$	31,297		$	32,688		$	62,319		$	65,355
Interest expense		8,368			8,616			11,670			16,984			23,809
Net interest income		22,654			22,681			21,018			45,335			41,546
Loan loss provision		1,785			2,133			3,585			3,918			5,132
Securities gains		-			1			1,587			1			2,566
Gains on sales of loans		410			459			1,595			869			3,116
Deposit service charges		4,462			4,237			4,300			8,699			8,162
Trust revenue		614			561			634			1,175			1,247
Insurance commissions		79			65			138			144			240
Other noninterest income		3,555			2,692			1,331			6,247			2,800
Total noninterest income		9,120			8,015			9,585			17,135			18,131
Personnel expense		10,015			9,691			7,838			19,706			16,899
Occupancy and equipment		2,365			2,413			2,414			4,778			4,714
Amortization of core deposit intangible		145			145			145			290			290
Other noninterest expense		6,247			5,945			6,367			12,192			12,472
Total noninterest expense		18,772			18,194			16,764			36,966			34,375
Net income before taxes		11,217			10,369			10,254			21,586			20,170
Income taxes		3,461			3,089			3,190			6,550			6,113
Net income	$	7,756		$	7,280		$	7,064		$	15,036		$	14,057
Memo: TEQ interest income	$	31,407		$	31,686		$	33,107		$	63,093		$	66,172
Average shares outstanding		13,447			13,467			13,478			13,457			13,507
Basic earnings per share	$	0.58		$	0.54		$	0.52		$	1.12		$	1.04
Diluted earnings per share	$	0.57		$	0.53		$	0.52		$	1.10		$	1.03
Dividends per share	$	0.23		$	0.23		$	0.19		$	0.46		$	0.38
Average balances:
Loans, net of unearned income	$	1,791,776		$	1,744,992		$	1,640,313		$	1,768,384		$	1,631,541
Earning assets		2,264,796			2,267,432			2,290,802			2,266,114			2,279,587
Total assets		2,469,417			2,471,939			2,489,213			2,470,678			2,478,742
Deposits		2,062,734			2,056,125			2,117,223			2,059,430			2,108,587
Interest bearing liabilities		1,848,146			1,867,324			1,926,411			1,857,735			1,920,990
Shareholders' equity		225,822			225,769			213,481			225,795			212,687
Performance ratios:
Return on average assets		1.26	%		1.18	%		1.14	%		1.22	%		1.14	%
Return on average equity		13.81			12.97			13.27			13.39			13.33
Yield on average earning assets (tax equivalent)		5.58			5.62			5.80			5.60			5.85
Cost of interest bearing funds (tax equivalent)		1.82			1.86			2.43			1.84			2.50
Net interest margin (tax equivalent)		4.09			4.09			3.75			4.09			3.75
Efficiency ratio		58.37			58.53			56.95			58.45			59.34
Loan charge-offs	$	(2,040	)	$	(2,564	)	$	(4,136	)	$	(4,604	)	$	(6,973	)
Recoveries		886			929			749			1,815			1,777
Net charge-offs	$	(1,154	)	$	(1,635	)	$	(3,387	)	$	(2,789	)	$	(5,196	)
Market Price:
High	$	34.30		$	33.00		$	27.27		$	34.30		$	27.27
Low		28.42			27.68			22.96			27.68			22.46
Close		30.50			33.00			23.78			30.50			23.78

		As of			As of			As of
		6/30/04			3/31/04			6/30/03
Assets:
Loans, net of unearned	$	1,814,343		$	1,770,332		$	1,639,804
Loan loss reserve		(25,782	)		(25,151	)		(23,206	)
Net loans		1,788,561			1,745,181			1,616,598
Loans held for sale		2,500			680			8,503
Securities AFS		334,317			366,869			466,150
Securities HTM		72,420			78,890			112,870
Other earning assets		15,386			30,822			67,499
Cash and due from banks		72,774			82,510			83,471
Premises and equipment		50,698			50,108			49,498
Goodwill and core deposit intangible		63,661			63,806			64,241
Other assets		41,973			41,567			38,195
Total Assets	$	2,442,290		$	2,460,433		$	2,507,025
Liabilities and Equity:
NOW accounts	$	13,837		$	15,376		$	15,538
Savings deposits		607,674			602,550			614,532
CD's >=$100,000		347,184			345,967			361,301
Other time deposits		714,164			721,412			791,130
Total interest bearing deposits		1,682,859			1,685,305			1,782,501
Noninterest bearing deposits		368,298			370,298			347,570
Total deposits		2,051,157			2,055,603			2,130,071
Repurchase agreements		79,971			87,526			58,653
Other interest bearing liabilities		69,260			71,819			87,073
Noninterest bearing liabilities		16,271			19,577			18,170
Total liabilities		2,216,659			2,234,525			2,293,967
Shareholders' equity		225,631			225,908			213,058
Total Liabilities and Equity	$	2,442,290		$	2,460,433		$	2,507,025
Ending shares outstanding		13,447			13,438			13,417
Memo: Market value of HTM Securities	$	70,411		$	79,479		$	114,046
90 days past due loans	$	6,433		$	4,980		$	5,164
Nonaccrual loans		11,982			11,423			17,434
Restructured loans		1,476			1,517			1,546
Foreclosed properties		6,223			6,814			3,521
Tier 1 leverage ratio		9.16	%		8.97	%		8.35	%
Tier 1 risk based ratio		11.80	%		11.63	%		11.06	%
Total risk based ratio		13.05	%		12.88	%		12.31	%
FTE employees		937			915			902

Community Trust Bancorp, Inc. reported earnings for the three and six months ending June 30, 2004 and 2003 as follows:
	Three Months Ended						Six Months Ended
	June 30						June 30
	2004			2003			2004			2003
(in thousands except per share information)
Net income	$	7,756		$	7,064		$	15,036		$	14,057
Basic earnings per share	$	0.58		$	0.52		$	1.12		$	1.04
Diluted earnings per share	$	0.57		$	0.52		$	1.10		$	1.03
Average shares outstanding		13,447			13,478			13,457			13,507
Total assets (end of period)	$	2,442,290		$	2,507,025
Return on average equity		13.81	%		13.27	%		13.39	%		13.33	%
Return on average assets		1.26	%		1.14	%		1.22	%		1.14	%
Provision for loan losses	$	1,785		$	3,585		$	3,918		$	5,132
Gains on sales of loans	$	410		$	1,595		$	869		$	3,116