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)

September 30, 2006

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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 425 under the Securities Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 - Results of Operations and Financial Condition

On October 17, 2006, Community Trust Bancorp, Inc. issued a press release announcing its financial results for the quarter and nine months ended September 30, 2006. A copy of this press release is being furnished to the Securities and Exchange Commission pursuant to Item 2.02 - Results of Operations and Financial Condition and Item 7.01 - Regulation FD Disclosure of Form 8-K and is attached hereto as Exhibit 99.1. The information in this Form 8-K and in Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference.

Item 9.01 - Financial Statements and Exhibits

(d)Exhibits

The following exhibit is filed with this report:

99.1 Press release, dated October 17, 2006.

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:	October 17, 2006	/s/ Jean R. Hale
		Jean R. Hale
		Chairman, President and Chief Executive Officer

Exhibit Index

Exhibit No.	Description
99.1	Press release, dated October 17, 2006.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

October 17, 2006

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

Pikeville, Kentucky:

COMMUNITY TRUST BANCORP, INC. REPORTS EARNINGS FOR THE THIRD QUARTER 2006.

Earnings Summary
(in thousands except per share data)		3Q 2006			2Q 2006			3Q 2005			9 Months 2006			9 Months 2005
Net income	$	9,884		$	9,892		$	9,083		$	29,544		$	25,522
Earnings per share		0.65			0.66			0.61			1.96			1.71
Earnings per share (diluted)		0.64			0.65			0.60			1.93			1.68
Return on average assets		1.34	%		1.33	%		1.26	%		1.34	%		1.22	%
Return on average equity		14.40			15.02			14.50			14.89			14.00
Efficiency ratio		55.35			55.73			55.27			56.41			57.36
Dividends declared per share	$	0.26		$	0.26		$	0.24		$	0.78		$	0.72
Book value per share		18.16			17.54			16.77			18.16			16.77
Weighted average shares		15,129			15,051			14,917			15,064			14,885
Weighted average shares (diluted)		15,369			15,274			15,215			15,272			15,166

Community Trust Bancorp, Inc. (NASDAQ-CTBI) is pleased to report earnings for the third quarter 2006 of $9.9 million or $0.65 per share compared to $9.1 million or $0.61 per share earned during the third quarter of 2005 and $9.9 million or $0.66 per share earned during the second quarter of 2006. Earnings for the nine months ended September 30, 2006 were $29.5 million or $1.96 per share compared to $25.5 million or $1.71 per share earned during the nine months ended September 30, 2005.

Third Quarter Highlights

v   The Company's basic earnings per share for the third quarter 2006 reflects an increase of 6.6% over the third quarter 2005 and a 1.5% decrease from the second quarter 2006. The 1.5% decrease in earnings per share quarter over quarter is primarily due to the increase in weighted average shares outstanding quarter over quarter. Year-to-date earnings per share increased 14.6% from prior year.

v   The Company's net interest margin at 4.06% for the third quarter 2006 decreased 1 basis point from prior year third quarter but increased 5 basis points from the second quarter 2006. The year-to-date net interest margin increased 5 basis points from prior year. As rates stabilize in the latter part of the year, management expects some margin compression during the fourth quarter of 2006.

v   Net interest revenue for the quarter increased 2.5% from the third quarter 2005 and 0.9% from the second quarter 2006. Net interest revenue for the nine months ended September 30, 2006 was a 6.1% increase from the same period last year.

v   The Company’s average earning assets for the quarter ended September 30, 2006 increased 2.6% from the quarter ended September 30, 2005 and decreased 1.4% from the quarter ended June 30, 2006. Average earning assets for the nine months ended September 30, 2006 was a 4.8% increase over the nine months ended September 30, 2005.

v   The Company's investment portfolio increased $14.1 million from September 30, 2005 to September 30, 2006, but decreased $59.3 million from prior quarter. The quarter over quarter decrease was due to funding for loan growth and the payment of a maturing Federal Home Loan Bank advance acquired in the third quarter 2004 to fund growth in our investment portfolio.

v   The Company's loan portfolio grew at a rate of 2.4% from September 30, 2005 and at an annualized rate of 2.8% from prior quarter.

v   Nonperforming loans as of percentage of total loans at September 30, 2006 were a 30 basis point decrease from September 30, 2005 and a decrease of 7 basis points from prior quarter.

v   As a result of the improvement in credit quality trends, provision for loan losses for the nine months ended September 30, 2006 decreased to $3.1 million compared to $5.5 million for the same period last year.

v   Return on average assets was 1.34% for the quarter ended September 30, 2006 compared to 1.26% for the quarter ended September 30, 2005 and 1.33% for the quarter ended June 30, 2006. Return on average assets for the nine months ended September 30, 2006 was 1.34%, a 9.8% increase from the 1.22% for the nine months ended September 30, 2005.

v   Return on average shareholders' equity for the quarter ended September 30, 2006 was 14.40% compared to 14.50% for the quarter ended September 30, 2005 and 15.02% for the quarter ended June 30, 2006. Our return on average equity for the nine months ended September 30, 2006 of 14.89% reflects an 89 basis point, or 6.4%, increase from the 14.00% for the nine months ended September 30, 2005.

v   CTBI's efficiency ratio for the quarter ended September 30, 2006 was 55.35% compared to 55.27% for the quarter ended September 30, 2005 and 55.73% for the quarter ended June 30, 2006. Our efficiency ratio for the nine months ended September 30, 2006 improved 95 basis points to 56.41% compared to 57.36% for the nine months ended September 30, 2005.

Net Interest Income

Our net interest margin for the third quarter 2006 was 4.06% compared to 4.07% for the third quarter 2005 and 4.01% for the second quarter 2006. As rates stabilize in the latter part of the year, management expects some margin compression during the fourth quarter of 2006.

Net interest income for the quarter of $27.0 million was an increase of 2.5% from the $26.4 million for the third quarter 2005 and a 0.9% increase from the $26.8 million for the second quarter 2006. Year-to-date net interest income increased 6.1% or $4.6 million from the nine months ended September 30, 2005. Average earnings assets increased 2.6% from the quarter ended September 30, 2005 to $2.7 billion for the quarter ended September 30, 2006 but decreased 1.4% from prior quarter due to a reduction in the investment portfolio to provide funding for loan growth and payment of a maturing Federal Home Loan Bank advance acquired in the third quarter 2004 to fund growth in our investment portfolio. Average earning assets for the nine months ended September 30, 2006 increased 4.8% or $123.0 million over the nine months ended September 30, 2005.

Noninterest Income

Noninterest income for the quarter ended September 30, 2006 decreased 4.5% from the quarter ended September 30, 2005 but increased 1.7% from the quarter ended June 30, 2006. Year-to-date noninterest income decreased 2.7% to $25.3 million for the nine months ended September 30, 2006 from the $26.0 million for the same period last year.

The following table displays the quarterly activity in the various significant noninterest income accounts.

Noninterest Income Summary
(in thousands)		3Q 2006		2Q 2006		3Q 2005		9 Months 2006		9 Months 2005
Deposit related fees	$	5,220	$	5,309	$	4,723	$	15,081	$	13,230
Loan related fees		661		488		1,489		1,774		4,131
Trust revenue		927		861		750		2,669		2,230
Gains on sales of loans		265		316		440		885		1,092
Other revenue		1,556		1,510		1,638		4,868		5,301
Total noninterest income	$	8,629	$	8,484	$	9,040	$	25,277	$	25,984

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2006 of $20.0 million was a 0.8% increase from the $19.8 million for the third quarter 2005 and a 0.5% increase from the $19.9 million for the second quarter 2006. Year-to-date noninterest expense increased 2.1% from $58.7 million to $59.9 million primarily due to increases in personnel expense associated with annual salary adjustments and staffing of new branches as well as increases in occupancy and equipment related to new branch openings.

Balance Sheet Review

The Company’s total assets at September 30, 2006 were $2.9 billion compared to $2.8 billion at September 30, 2005 and $3.0 billion at June 30, 2006. Loans outstanding grew $50.1 million year over year representing an increase of 2.4% from September 30, 2005 to September 30, 2006. Loan growth for the quarter was $15.3 million, an annualized growth rate of 2.8%. The investment portfolio increased 3.2% or $14.1 million year over year but decreased an annualized 45.5% or $59.3 million during the quarter. The decrease in the investment portfolio quarter over quarter primarily consisted of a $57.0 million reduction in securities available-for-sale to provide funding for loan growth and payment of a maturing Federal Home Loan Bank advance acquired in the third quarter 2004 to fund growth in our investment portfolio. Deposits including repurchase agreements of $2.4 billion at September 30, 2006 increased 3.1% from September 30, 2005 but decreased an annualized 6.5% from June 30, 2006.

Shareholders’ equity of $274.9 million on September 30, 2006 was a 9.8% increase from the $250.3 million on September 30, 2005 and an annualized increase of 15.5% from the $264.6 million on June 30, 2006. The Company's annualized dividend yield to shareholders as of September 30, 2006 was 2.76%.

Asset Quality

Nonperforming loans at September 30, 2006 were $15.7 million, a 28.1% decrease from $21.8 million at September 30, 2005 and an 8.1% decrease from the $17.0 million at June 30, 2006. Nonperforming loans as of percentage of total loans at September 30, 2006 were 0.73%, a 30 basis point decrease from September 30, 2005 and a 7 basis point decrease from prior quarter.

Foreclosed properties at September 30, 2006 were $3.9 million compared to $5.7 million on September 30, 2005 and $5.0 million on June 30, 2006.

Net loan charge-offs for the quarter ended September 30, 2006 were $1.6 million, or 0.3% of average loans annualized, compared to $1.9 million, or 0.4% of average loans annualized, for the quarter ended September 30, 2005 and $1.7 million, or 0.3% of average loans annualized, for the quarter ended June 30, 2006. Our reserve for losses on loans as a percentage of total loans outstanding at September 30, 2006 decreased to 1.30% from the 1.41% at September 30, 2005 and remained flat to June 30, 2006.

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 gains 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 Reserve 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 $2.9 billion, is headquartered in Pikeville, Kentucky and has 74 banking locations across eastern, northern, central, and south central Kentucky, five banking locations in southern West Virginia, one loan production office in Kentucky, and five trust offices across Kentucky.

Additional information follows.

Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
September 30, 2006
(in thousands except per share data)
	Three			Three			Three			Nine			Nine
	Months			Months			Months			Months			Months
	Ended			Ended			Ended			Ended			Ended
	9/30/2006			6/30/2006			9/30/2005			9/30/2006			9/30/2005
Interest income	$	48,055		$	46,759		$	41,240		$	138,781		$	115,715
Interest expense		21,028			19,983			14,865			59,042			40,573
Net interest income		27,027			26,776			26,375			79,739			75,142
Loan loss provision		1,755			1,350			2,470			3,105			5,537
Securities gains		-			-			-			-			3
Gains on sales of loans		265			316			440			885			1,092
Deposit service charges		5,220			5,309			4,723			15,081			13,230
Trust revenue		927			861			750			2,669			2,230
Insurance commissions		124			153			112			406			329
Other noninterest income		2,093			1,845			3,015			6,236			9,100
Total noninterest income		8,629			8,484			9,040			25,277			25,984
Personnel expense		10,750			10,823			10,816			32,538			31,690
Occupancy and equipment		2,735			2,967			2,808			8,688			8,037
Amortization of core deposit intangible		159			158			159			476			449
Other noninterest expense		6,313			5,919			6,007			18,199			18,505
Total noninterest expense		19,957			19,867			19,790			59,901			58,681
Net income before taxes		13,944			14,043			13,155			42,010			36,908
Income taxes		4,060			4,151			4,072			12,466			11,386
Net income	$	9,884		$	9,892		$	9,083		$	29,544		$	25,522
Memo: TEQ interest income	$	48,451		$	47,150		$	41,632		$	139,958		$	116,897
Average shares outstanding		15,129			15,051			14,917			15,064			14,885
Basic earnings per share	$	0.65		$	0.66		$	0.61		$	1.96		$	1.71
Diluted earnings per share	$	0.64		$	0.65		$	0.60		$	1.93		$	1.68
Dividends per share	$	0.26		$	0.26		$	0.24		$	0.78		$	0.72
Average balances:
Loans, net of unearned income	$	2,144,185		$	2,124,485		$	2,085,841		$	2,122,011		$	1,996,950
Earning assets		2,678,697			2,717,205			2,611,941			2,685,181			2,562,196
Total assets		2,932,924			2,974,836			2,859,430			2,940,087			2,801,774
Deposits		2,282,383			2,291,822			2,250,172			2,282,958			2,202,204
Interest bearing liabilities		2,205,385			2,244,540			2,160,991			2,212,085			2,122,551
Shareholders' equity		272,256			264,181			248,594			265,325			243,797
Performance ratios:
Return on average assets		1.34	%		1.33	%		1.26	%		1.34	%		1.22	%
Return on average equity		14.40	%		15.02	%		14.50	%		14.89	%		14.00	%
Yield on average earning assets (tax equivalent)		7.18	%		6.96	%		6.32	%		6.97	%		6.10	%
Cost of interest bearing funds (tax equivalent)		3.78	%		3.57	%		2.73	%		3.57	%		2.56	%
Net interest margin (tax equivalent)		4.06	%		4.01	%		4.07	%		4.03	%		3.98	%
Efficiency ratio		55.35	%		55.73	%		55.27	%		56.41	%		57.36	%
Loan charge-offs	$	(2,101	)	$	(2,555	)	$	(2,593	)	$	(7,017	)	$	(7,151	)
Recoveries		538			895			659			2,412			2,537
Net charge-offs	$	(1,563	)	$	(1,660	)	$	(1,934	)	$	(4,605	)	$	(4,614	)
Market Price:
High	$	39.07		$	35.50		$	35.01		$	39.07		$	35.01
Low		33.62			31.50			30.77			30.60			27.94
Close		37.65			34.93			32.18			37.65			32.18
								As of			As of			As of
								9/30/06			6/30/2006			9/30/2005
Assets:
Loans, net of unearned							$	2,154,129		$	2,138,817		$	2,104,067
Loan loss reserve								(28,006	)		(27,814	)		(29,699	)
Net loans								2,126,123			2,111,003			2,074,368
Loans held for sale								1,826			2,140			745
Securities AFS								415,691			472,678			392,843
Securities HTM								42,213			44,550			50,957
Other earning assets								25,483			49,385			27,684
Cash and due from banks								77,078			81,185			82,982
Premises and equipment								56,025			57,230			57,585
Goodwill and core deposit intangible								67,769			66,391			68,398
Other assets								82,111			82,490			79,279
Total Assets							$	2,894,319		$	2,967,052		$	2,834,841
Liabilities and Equity:
NOW accounts							$	16,636		$	25,296		$	14,590
Savings deposits								648,336			629,022			611,217
CD's >=$100,000								421,959			412,700			414,811
Other time deposits								778,737			774,606			770,233
Total interest bearing deposits								1,865,668			1,841,624			1,810,851
Noninterest bearing deposits								414,037			448,842			437,872
Total deposits								2,279,705			2,290,466			2,248,723
Repurchase agreements								158,085			188,224			116,628
Other interest bearing liabilities								148,650			199,161			195,270
Noninterest bearing liabilities								32,980			24,641			23,933
Total liabilities								2,619,420			2,702,492			2,584,554
Shareholders' equity								274,899			264,560			250,287
Total Liabilities and Equity							$	2,894,319		$	2,967,052		$	2,834,841
Ending shares outstanding								15,141			15,083			14,922
Memo: Market value of HTM Securities							$	40,237		$	42,002		$	49,717
90 days past due loans							$	6,648		$	5,644		$	6,556
Nonaccrual loans								8,926			10,697			14,314
Restructured loans								84			693			894
Foreclosed properties								3,900			5,000			5,674
Tier 1 leverage ratio								9.42	%		9.06	%		8.68	%
Tier 1 risk based ratio								12.05	%		11.51	%		11.34	%
Total risk based ratio								13.30	%		12.72	%		12.59	%
FTE employees								1,006			1,019			988
Community Trust Bancorp, Inc. reported earnings for the three and nine months ending September 30, 2006 and 2005 as follows:
					Three Months Ended						Nine Months Ended
					September 30						September 30
(in thousands except per share information)					2006			2005			2006			2005
Net income				$	9,884		$	9,083		$	29,544		$	25,522
Basic earnings per share				$	0.65		$	0.61		$	1.96		$	1.71
Diluted earnings per share				$	0.64		$	0.60		$	1.93		$	1.68
Average shares outstanding					15,129			14,917			15,064			14,885
Total assets (end of period)				$	2,894,319		$	2,834,841
Return on average equity					14.40	%		14.50	%		14.89	%		14.00	%
Return on average assets					1.34	%		1.26	%		1.34	%		1.22	%
Provision for loan losses				$	1,755		$	2,470		$	3,105		$	5,537
Gains on sales of loans				$	265		$	440		$	885		$	1,092