Kentucky
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61-0979818
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(State or other jurisdiction of
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(IRS Employer Identification Number)
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incorporation or organization)
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346 North Mayo Trail
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Pikeville, Kentucky
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41501
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(Address of principal executive offices)
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(Zip code)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 425 under the Securities Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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99.1
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Press Release dated October 15, 2014
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COMMUNITY TRUST BANCORP, INC.
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Date: October 15, 2014
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By:
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/s/ Jean R. Hale | |
Jean R. Hale
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Chairman, President and Chief Executive Officer
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Exhibit No.
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Description
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99.1
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Press Release dated October 15, 2014
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Earnings Summary
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||||||||||||||||||||
(in thousands except per share data)
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3Q
2014
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2Q
2014
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3Q
2013
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9 Months
2014
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9 Months
2013
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|||||||||||||||
Net income
|
$ | 10,924 | $ | 12,195 | $ | 12,653 | $ | 33,259 | $ | 36,415 | ||||||||||
Earnings per share
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$ | 0.63 | $ | 0.70 | $ | 0.74 | $ | 1.92 | $ | 2.13 | ||||||||||
Earnings per share - diluted
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$ | 0.63 | $ | 0.70 | $ | 0.73 | $ | 1.91 | $ | 2.12 | ||||||||||
Return on average assets
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1.18 | % | 1.33 | % | 1.38 | % | 1.21 | % | 1.33 | % | ||||||||||
Return on average equity
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9.89 | % | 11.32 | % | 12.39 | % | 10.31 | % | 11.99 | % | ||||||||||
Efficiency ratio
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56.82 | % | 56.96 | % | 54.80 | % | 58.55 | % | 55.89 | % | ||||||||||
Tangible common equity
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10.33 | % | 10.26 | % | 9.57 | % | ||||||||||||||
Dividends declared per share
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$ | 0.300 | $ | 0.290 | $ | 0.291 | $ | 0.881 | $ | 0.863 | ||||||||||
Book value per share
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$ | 25.14 | $ | 24.90 | $ | 23.67 | ||||||||||||||
Weighted average shares
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17,326 | 17,318 | 17,154 | 17,317 | 17,123 | |||||||||||||||
Weighted average shares - diluted
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17,402 | 17,393 | 17,257 | 17,395 | 17,212 |
v
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CTBI’s basic earnings per share for the quarter decreased $0.11 from prior year third quarter and $0.07 from second quarter 2014. Year-to-date basic earnings per share decreased $0.21 from prior year.
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v
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Net interest income for the quarter decreased 3.4% from prior year third quarter but increased 0.5% from prior quarter as our net interest margin decreased 19 basis points and 4 basis points, respectively. Average earning assets increased 1.6% from third quarter 2013 and 0.4% from prior quarter while our yield on average earning assets decreased 24 basis points and 4 basis points, respectively. The cost of interest bearing funds decreased 5 basis points and 1 basis point, respectively, during these time periods. Net interest income for the nine months ended September 30, 2014 decreased 2.1% from prior year.
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v
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Nonperforming loans at $48.6 million increased $6.3 million from September 30, 2013 and $4.0 million from June 30, 2014. Nonperforming assets at $81.3 million decreased $3.4 million from September 30, 2013 but increased $3.7 million from June 30, 2014.
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v
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Net loan charge-offs for the quarter ended September 30, 2014 were $2.8 million, or 0.42% of average loans annualized, compared to $1.7 million, or 0.26%, experienced for the third quarter 2013 and $0.7 million, or 0.11%, for the second quarter 2014. Year-to-date net charge-offs declined from 0.34% of average loans to 0.27%.
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v
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Our loan loss provision for the quarter increased $1.2 million from prior year third quarter and $2.6 million from prior quarter. Year-to-date provision decreased $2.0 million. The quarterly increase in our provision was due to an increase in net charge-offs and loan portfolio growth. Our year-to-date loan loss provision remains lower than prior year due to the year-to-date decline in net losses to average loans.
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v
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Noninterest income decreased 0.5% for the quarter ended September 30, 2014 compared to the same period in 2013 but increased 9.4% from prior quarter. The increase from prior quarter was primarily due to increased deposit service charges, trust revenue, and loan related fees. Noninterest income for the first nine months of 2014 decreased 11.3% from prior year. The decrease from prior year was primarily attributable to decreases in gains on sales of loans, deposit service charges, loan related fees resulting from the fluctuation in the fair value of our mortgage servicing rights, and other noninterest income due to the prior year death benefits received in bank owned life insurance.
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v
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Noninterest expense for the quarter ended September 30, 2014 increased 1.1% from prior year third quarter and 2.4% from prior quarter. Noninterest expense for the first nine months of 2014 increased 0.1% from prior year. Increases in personnel expense and data processing expense were partially offset by decreases in net other real estate owned expense and repossession expense, as well as adjustments totaling $0.8 million to reduce the accrual for the Federal Reserve determination which was previously disclosed in our annual report on Form 10-K for the year ended December 31, 2013.
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v
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Our loan portfolio increased $67.5 million from September 30, 2013 and $51.3 million during the quarter.
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v
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Our investment portfolio decreased $30.3 million from September 30, 2013 and $14.0 million during the quarter.
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v
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Deposits, including repurchase agreements, increased $33.2 million from September 30, 2013 and $17.1 million during the quarter.
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v
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Our tangible common equity/tangible assets ratio increased to 10.33%.
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Community Trust Bancorp, Inc.
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||||||||||||||||||||
Financial Summary (Unaudited)
September 30, 2014
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||||||||||||||||||||
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||||||||||||||||||||
(in thousands except per share data and # of employees)
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||||||||||||||||||||
Three
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Three
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Three
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Nine
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Nine
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||||||||||||||||
Months
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Months
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Months
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Months
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Months
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||||||||||||||||
Ended
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Ended
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Ended
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Ended
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Ended
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||||||||||||||||
September 30, 2014
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June 30, 2014
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September 30, 2013
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September 30, 2014
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September 30, 2013
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||||||||||||||||
Interest income
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$ | 35,957 | $ | 35,811 | $ | 37,455 | $ | 107,461 | $ | 111,014 | ||||||||||
Interest expense
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2,969 | 2,978 | 3,305 | 8,890 | 10,325 | |||||||||||||||
Net interest income
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32,988 | 32,833 | 34,150 | 98,571 | 100,689 | |||||||||||||||
Loan loss provision
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3,300 | 735 | 2,129 | 5,380 | 7,349 | |||||||||||||||
Gains on sales of loans
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303 | 288 | 653 | 781 | 2,805 | |||||||||||||||
Deposit service charges
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6,321 | 5,987 | 6,349 | 17,739 | 18,298 | |||||||||||||||
Trust revenue
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2,395 | 2,199 | 2,005 | 6,703 | 6,028 | |||||||||||||||
Loan related fees
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1,128 | 766 | 1,088 | 2,573 | 3,532 | |||||||||||||||
Securities gains (losses)
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(34 | ) | (51 | ) | (23 | ) | (145 | ) | (31 | ) | ||||||||||
Other noninterest income
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1,893 | 1,783 | 1,999 | 5,392 | 6,633 | |||||||||||||||
Total noninterest income
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12,006 | 10,972 | 12,071 | 33,043 | 37,265 | |||||||||||||||
Personnel expense
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13,465 | 13,274 | 13,248 | 40,156 | 39,444 | |||||||||||||||
Occupancy and equipment
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2,838 | 2,875 | 2,865 | 8,777 | 8,730 | |||||||||||||||
Data processing expense
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2,017 | 1,933 | 1,850 | 5,875 | 5,438 | |||||||||||||||
FDIC insurance premiums
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575 | 558 | 624 | 1,782 | 1,863 | |||||||||||||||
Other noninterest expense
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6,968 | 6,616 | 7,004 | 21,390 | 22,402 | |||||||||||||||
Total noninterest expense
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25,863 | 25,256 | 25,591 | 77,980 | 77,877 | |||||||||||||||
Net income before taxes
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15,831 | 17,814 | 18,501 | 48,254 | 52,728 | |||||||||||||||
Income taxes
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4,907 | 5,619 | 5,848 | 14,995 | 16,313 | |||||||||||||||
Net income
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$ | 10,924 | $ | 12,195 | $ | 12,653 | $ | 33,259 | $ | 36,415 | ||||||||||
Memo: TEQ interest income
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$ | 36,444 | $ | 36,298 | $ | 37,905 | $ | 108,883 | $ | 112,356 | ||||||||||
Average shares outstanding
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17,326 | 17,318 | 17,154 | 17,317 | 17,123 | |||||||||||||||
Diluted average shares outstanding
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17,402 | 17,393 | 17,257 | 17,395 | 17,212 | |||||||||||||||
Basic earnings per share
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$ | 0.63 | $ | 0.70 | $ | 0.74 | $ | 1.92 | $ | 2.13 | ||||||||||
Diluted earnings per share
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$ | 0.63 | $ | 0.70 | $ | 0.73 | $ | 1.91 | $ | 2.12 | ||||||||||
Dividends per share
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$ | 0.300 | $ | 0.290 | $ | 0.291 | $ | 0.881 | $ | 0.863 | ||||||||||
Average balances:
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Loans
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$ | 2,656,523 | $ | 2,604,064 | $ | 2,596,805 | $ | 2,618,995 | $ | 2,572,096 | ||||||||||
Earning assets
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3,426,195 | 3,413,628 | 3,372,755 | 3,409,905 | 3,386,571 | |||||||||||||||
Total assets
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3,677,142 | 3,670,820 | 3,638,742 | 3,665,607 | 3,654,547 | |||||||||||||||
Deposits, including repurchase agreements
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3,127,372 | 3,129,289 | 3,121,466 | 3,123,659 | 3,132,032 | |||||||||||||||
Interest bearing liabilities
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2,544,960 | 2,554,122 | 2,578,567 | 2,548,602 | 2,591,766 | |||||||||||||||
Shareholders' equity
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438,399 | 432,211 | 405,043 | 431,317 | 405,930 | |||||||||||||||
Performance ratios:
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Return on average assets
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1.18 | % | 1.33 | % | 1.38 | % | 1.21 | % | 1.33 | % | ||||||||||
Return on average equity
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9.89 | % | 11.32 | % | 12.39 | % | 10.31 | % | 11.99 | % | ||||||||||
Yield on average earning assets (tax equivalent)
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4.22 | % | 4.26 | % | 4.46 | % | 4.27 | % | 4.44 | % | ||||||||||
Cost of interest bearing funds (tax equivalent)
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0.46 | % | 0.47 | % | 0.51 | % | 0.47 | % | 0.53 | % | ||||||||||
Net interest margin (tax equivalent)
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3.88 | % | 3.92 | % | 4.07 | % | 3.92 | % | 4.03 | % | ||||||||||
Efficiency ratio (tax equivalent)
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56.82 | % | 56.96 | % | 54.80 | % | 58.55 | % | 55.89 | % | ||||||||||
Loan charge-offs
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$ | 3,470 | $ | 1,629 | $ | 2,519 | $ | 7,644 | $ | 8,822 | ||||||||||
Recoveries
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(643 | ) | (896 | ) | (802 | ) | (2,346 | ) | (2,241 | ) | ||||||||||
Net charge-offs
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$ | 2,827 | $ | 733 | $ | 1,717 | $ | 5,298 | $ | 6,581 | ||||||||||
Market Price:
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High
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$ | 36.35 | $ | 38.60 | $ | 37.76 | $ | 41.13 | $ | 37.76 | ||||||||||
Low
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$ | 33.47 | $ | 32.33 | $ | 32.55 | $ | 32.33 | $ | 29.23 | ||||||||||
Close
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$ | 33.63 | $ | 34.22 | $ | 36.90 | $ | 33.63 | $ | 36.90 |
Community Trust Bancorp, Inc.
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Financial Summary (Unaudited)
September 30, 2014
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(in thousands except per share data and # of employees)
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As of
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As of
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As of
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||||||||||
September 30, 2014
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June 30, 2014
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September 30, 2013
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||||||||||
Assets:
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Loans
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$ | 2,683,905 | $ | 2,632,609 | $ | 2,616,365 | ||||||
Loan loss reserve
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(34,090 | ) | (33,617 | ) | (34,013 | ) | ||||||
Net loans
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2,649,815 | 2,598,992 | 2,582,352 | |||||||||
Loans held for sale
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367 | 895 | 768 | |||||||||
Securities AFS
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633,572 | 647,536 | 663,916 | |||||||||
Securities HTM
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1,662 | 1,662 | 1,662 | |||||||||
Other equity investments
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22,814 | 22,814 | 30,559 | |||||||||
Other earning assets
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66,971 | 76,653 | 46,156 | |||||||||
Cash and due from banks
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62,510 | 72,637 | 74,252 | |||||||||
Premises and equipment
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50,604 | 50,552 | 51,898 | |||||||||
Goodwill and core deposit intangible
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66,020 | 66,074 | 66,234 | |||||||||
Other assets
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115,751 | 114,787 | 126,057 | |||||||||
Total Assets
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$ | 3,670,086 | $ | 3,652,602 | $ | 3,643,854 | ||||||
Liabilities and Equity:
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NOW accounts
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$ | 33,208 | $ | 28,851 | $ | 26,889 | ||||||
Savings deposits
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930,225 | 911,073 | 864,073 | |||||||||
CD's >=$100,000
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592,684 | 601,602 | 627,347 | |||||||||
Other time deposits
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685,964 | 694,075 | 739,179 | |||||||||
Total interest bearing deposits
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2,242,081 | 2,235,601 | 2,257,488 | |||||||||
Noninterest bearing deposits
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660,100 | 651,588 | 616,796 | |||||||||
Total deposits
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2,902,181 | 2,887,189 | 2,874,284 | |||||||||
Repurchase agreements
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220,095 | 217,979 | 214,755 | |||||||||
Other interest bearing liabilities
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73,654 | 77,774 | 106,590 | |||||||||
Noninterest bearing liabilities
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35,918 | 35,782 | 39,548 | |||||||||
Total liabilities
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3,231,848 | 3,218,724 | 3,235,177 | |||||||||
Shareholders' equity
|
438,238 | 433,878 | 408,677 | |||||||||
Total Liabilities and Equity
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$ | 3,670,086 | $ | 3,652,602 | $ | 3,643,854 | ||||||
Ending shares outstanding
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17,431 | 17,421 | 17,267 | |||||||||
Memo: Market value of HTM securities
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$ | 1,631 | $ | 1,632 | $ | 1,614 | ||||||
30 - 89 days past due loans
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$ | 20,877 | $ | 21,466 | $ | 23,274 | ||||||
90 days past due loans
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19,607 | 18,807 | 25,133 | |||||||||
Nonaccrual loans
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28,951 | 25,725 | 17,131 | |||||||||
Restructured loans (excluding 90 days past due and nonaccrual)
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44,926 | 45,756 | 42,630 | |||||||||
Foreclosed properties
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32,747 | 33,062 | 42,481 | |||||||||
Other repossessed assets
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5 | 5 | - | |||||||||
Tier 1 leverage ratio
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11.97 | % | 11.83 | % | 11.29 | % | ||||||
Tier 1 risk based ratio
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16.57 | % | 16.66 | % | 15.71 | % | ||||||
Total risk based ratio
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17.82 | % | 17.91 | % | 16.96 | % | ||||||
Tangible equity to tangible assets ratio
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10.33 | % | 10.26 | % | 9.57 | % | ||||||
FTE employees
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1,013 | 1,016 | 1,026 |
Community Trust Bancorp, Inc.
|
||||||||||||
Financial Summary (Unaudited)
September 30, 2014
|
||||||||||||
|
||||||||||||
(in thousands except per share data and # of employees)
|
||||||||||||
Community Trust Bancorp, Inc. reported earnings for the three and nine months ending September 30, 2014 and 2013 as follows:
|
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Three Months Ended
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Nine Months Ended
|
|||||||||||||||
September 30
|
September 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net income
|
$ | 10,924 | $ | 12,653 | $ | 33,259 | $ | 36,415 | ||||||||
Basic earnings per share
|
$ | 0.63 | $ | 0.74 | $ | 1.92 | $ | 2.13 | ||||||||
Diluted earnings per share
|
$ | 0.63 | $ | 0.73 | $ | 1.91 | $ | 2.12 | ||||||||
Average shares outstanding
|
17,326 | 17,154 | 17,317 | 17,123 | ||||||||||||
Total assets (end of period)
|
$ | 3,670,086 | $ | 3,643,854 | ||||||||||||
Return on average equity
|
9.89 | % | 12.39 | % | 10.31 | % | 11.99 | % | ||||||||
Return on average assets
|
1.18 | % | 1.38 | % | 1.21 | % | 1.33 | % | ||||||||
Provision for loan losses
|
$ | 3,300 | $ | 2,129 | $ | 5,380 | $ | 7,349 | ||||||||
Gains on sales of loans
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$ | 303 | $ | 653 | $ | 781 | $ | 2,805 |