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)

June 30, 2015

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 July 15, 2015, Community Trust Bancorp, Inc. issued a press release announcing its financial results for the quarter and six months ended June 30, 2015.  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 July 15, 2015

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.
Date:  July 15, 2015	By:	/s/ Jean R. Hale
		Jean R. Hale
		Chairman, President and Chief Executive Officer

Exhibit Index

Exhibit No.	Description
99.1	Press Release dated July 15, 2015

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

July 15, 2015

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 SECOND QUARTER 2015

Earnings Summary
(in thousands except per share data)	2Q 2015			1Q 2015			2Q 2014			6 Months 2015			6 Months 2014
Net income	$	12,402		$	10,938		$	12,195		$	23,340		$	22,335
Earnings per share	$	0.71		$	0.63		$	0.70		$	1.34		$	1.29
Earnings per share - diluted	$	0.71		$	0.63		$	0.70		$	1.34		$	1.28
Return on average assets		1.32	%		1.18	%		1.33	%		1.25	%		1.23	%
Return on average equity		10.78	%		9.70	%		11.32	%		10.25	%		10.53	%
Efficiency ratio		57.28	%		58.66	%		56.96	%		57.96	%		59.45	%
Tangible common equity		10.68	%		10.60	%		10.26	%
Dividends declared per share	$	0.300		$	0.300		$	0.290		$	0.600		$	0.581
Book value per share	$	26.39		$	26.17		$	24.90
Weighted average shares		17,421			17,400			17,318			17,411			17,313
Weighted average shares - diluted		17,465			17,451			17,393			17,458			17,393

Community Trust Bancorp, Inc. (NASDAQ-CTBI) reports earnings for the second quarter 2015 of $12.4 million, or $0.71 per basic share, compared to $12.2 million, or $0.70 per basic share, earned during the second quarter 2014 and $10.9 million, or $0.63 per basic share, earned during the first quarter 2015.  Earnings for the six months ended June 30, 2015 were $23.3 million, or $1.34 per basic share compared to $22.3 million, or $1.29 per basic share, for the six months ended June 30, 2014.

Our overall core banking metrics continued to improve during the second quarter 2015 as we experienced significant loan growth, improvements in asset quality, stable loan charge-offs, increased noninterest income, and a nominal increase in noninterest expense.

2nd Quarter 2015 Highlights

v Our loan portfolio increased $160.2 million from June 30, 2014 and $46.3 million during the quarter.

v Our investment portfolio decreased $66.3 million from June 30, 2014 and $45.1 million during the quarter.

v Deposits, including repurchase agreements, increased $49.7 million from June 30, 2014 but decreased $29.3 million during the quarter.  Additional funding for loan growth was provided through an increase in short-term FHLB borrowings of $50 million during the quarter.

v Nonperforming loans at $33.4 million decreased $11.1 million from June 30, 2014 and $1.7 million from March 31, 2015.  Nonperforming assets at $70.0 million decreased $7.6 million from June 30, 2014 and $4.0 million from March 31, 2015.

v Net loan charge-offs for the quarter ended June 30, 2015 were $1.7 million, or 0.25% of average loans annualized, compared to $0.7 million, or 0.11%, experienced for the second quarter 2014 and $1.7 million, or 0.26%, for the first quarter 2015.

v CTBI invests in limited partnerships that offer low income housing, new markets, and historic tax credits in exchange for investments in low income housing and other community related investments.  Our investments in these partnerships increased by $7.2 million during the quarter and $9.3 million year-to-date.  Our tax credits for the second quarter 2015, used to offset current income tax expense, totaled $0.9 million compared to $0.3 million in the second quarter 2014 and the first quarter 2015.  Year-to-date credits used to offset current income tax expense totaled $1.2 million compared to $0.5 million for the first six months of 2014.  The amortization of our investment in these partnerships increased as well.  Amortization for the second quarter 2015 totaled $0.7 million compared to $0.2 million for the second quarter 2014 and $0.3 million for the first quarter 2015.  Year-to-date amortization was $1.0 million compared to $0.4 million for the first six months of 2014.

Net Interest Income

Net interest income for the quarter increased $0.3 million, or 1.1%, from prior year second quarter and $0.3 million, or 0.8%, from prior quarter, while our net interest margin decreased 7 basis points and 4 basis points during the respective time periods.  Average earning assets increased $100.1 million, or 2.9%, from second quarter 2014 and $33.2 million, or 1.0%, from prior quarter, while our yield on average earning assets decreased 8 basis points and 4 basis points, respectively, during these time periods.  The cost of interest bearing funds decreased 2 basis points from prior year same quarter but remained flat to prior quarter.  Our ratio of average loans to deposits, including repurchase agreements, for the quarter ended June 30, 2015 were 87.1% compared to 83.2% for the quarter ended June 30, 2014 and 86.6% for the quarter ended March 31, 2015.  Year-to-date net interest income increased $0.5 million, or 0.8% from prior year.

Noninterest Income

Noninterest income for the quarter ended June 30, 2015 increased $1.3 million, or 11.4%, from prior year same quarter and $1.5 million, or 13.9%, from prior quarter.  We experienced increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees year over year and quarter over quarter.  Year-to-date noninterest income increased $1.9 million, or 9.2% from prior year.  Gains on sales of loans increased $0.6 million, loan related fees increased $0.7 million, trust revenue increased $0.3 million, and deposit service charges increased $0.2 million.  The increase in loan related fees resulted primarily from the $0.5 million fluctuation in the fair value adjustments of our mortgage servicing rights.

Noninterest Expense

Noninterest expense for the quarter ended June 30, 2015 increased $1.1 million, or 4.2%, from prior year second quarter and $0.5 million, or 1.9%, from prior quarter.  Occupancy and equipment expense and data processing expense for the second quarter 2015 both decreased $0.2 million from same period last year and prior quarter.  However, these decreases were offset year over year by a $0.5 million increase in amortization expense related to tax credits and a $0.3 million increase in personnel expense and quarter over quarter by a $0.4 million increase in amortization expense and a $0.3 million increase in net other real estate owned expense.  Year-to-date noninterest expense remained relatively flat to prior year as a $0.6 million increase in amortization expense related to tax credits and a $0.6 million increase in personnel expense due to an increase in group medical and life insurance were offset by a $1.0 million decrease in net other real estate owned expense.

Balance Sheet Review

CTBI's total assets at $3.8 billion increased $117.5 million, or 3.2%, from June 30, 2014 and $10.7 million, or an annualized 1.1%, during the quarter.  Loans outstanding at June 30, 2015 were $2.8 billion, increasing $160.2 million, or 6.1%, from June 30, 2014 and $46.3 million, or an annualized 6.8%, during the quarter.  We experienced growth during the quarter of $25.5 million in the commercial loan portfolio, $21.7 million in the indirect loan portfolio, and $1.6 million in consumer direct loan portfolio, partially offset by a decrease of $2.5 million in the residential loan portfolio.  CTBI's investment portfolio decreased $66.3 million, or 10.2%, from June 30, 2014 and $45.1 million, or an annualized 28.8%, during the quarter.  The decline in the investment portfolio was utilized to provide additional liquidity to support loan growth.  Deposits, including repurchase agreements, at $3.2 billion increased $49.7 million, or 1.6%, from June 30, 2014 but decreased $29.3 million, or an annualized 3.7%, from prior quarter.  Additional funding for loan growth was provided through an increase in short-term FHLB borrowings of $50 million during the quarter.

Shareholders' equity at June 30, 2015 was $461.6 million compared to $433.9 million at June 30, 2014 and $457.4 million at March 31, 2015.  CTBI's annualized dividend yield to shareholders as of June 30, 2015 was 3.44%.

Asset Quality

CTBI's total nonperforming loans were $33.4 million at June 30, 2015, a 25.0% decrease from the $44.5 million at June 30, 2014 and a 4.7% decrease from the $35.1 million at March 31, 2015.  Nonaccrual loans decreased $0.8 million for the quarter and loans 90+ days past due decreased $0.9 million.  Loans 30-89 days past due at $16.0 million was a decrease of $1.8 million from March 31, 2015.  Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.  Impaired loans, loans not expected to meet contractual principal and interest payments other than insignificant delays, at June 30, 2015 totaled $50.2 million, a $16.0 million decline from the $66.2 million at June 30, 2014 and a $6.3 million decline from the $56.5 million at March 31, 2015.

Our level of foreclosed properties at $36.4 million at June 30, 2015 was an increase from $33.1 million at June 30, 2014 but a decrease from the $38.7 million at March 31, 2015.  Sales of foreclosed properties for the quarter ended June 30, 2015 totaled $2.4 million while new foreclosed properties totaled $0.4 million.  At June 30, 2015, the book value of properties under contracts to sell was $2.3 million; however, the closings had not occurred at quarter-end.

Net loan charge-offs for the quarter ended June 30, 2015 were $1.7 million, or 0.25% of average loans annualized, compared to $0.7 million, or 0.11%, experienced for the second quarter 2014 and $1.7 million, or 0.26%, for the first quarter 2015.  Of the net charge-offs for the quarter, $1.0 million were in commercial loans, $0.3 million were in indirect auto loans, $0.2 million were in residential real estate mortgage loans, and $0.2 million were in consumer direct loans.  Allocations to loan loss reserves were $2.3 million for the quarter ended June 30, 2015 compared to $0.7 million for the quarter ended June 30, 2014 and $1.9 million for the quarter ended March 31, 2015.  Our provision increased from prior quarter due to higher loan growth.  Our reserve coverage (allowance for loan and lease loss reserve to nonperforming loans) at June 30, 2015 was 105.4% compared to 75.5% at June 30, 2014 and 98.7% at March 31, 2015.  Our loan loss reserve as a percentage of total loans outstanding decreased from the 1.28% at June 30, 2014 but remained at 1.26% from March 31, 2015.

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, 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 CTBI 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 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 $3.8 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, four 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)
June 30, 2015
(in thousands except per share data and # of employees)
	Three			Three			Three			Six			Six
	Months			Months			Months			Months			Months
	Ended			Ended			Ended			Ended			Ended
	June 30, 2015			March 31, 2015			June 30, 2014			June 30, 2015			June 30, 2014
Interest income	$	36,083		$	35,725		$	35,811		$	71,808		$	71,504
Interest expense		2,901			2,820			2,978			5,721			5,921
Net interest income		33,182			32,905			32,833			66,087			65,583
Loan loss provision		2,319			1,901			735			4,220			2,080
Gains on sales of loans		823			290			288			1,113			478
Deposit service charges		6,046			5,582			5,987			11,628			11,418
Trust revenue		2,366			2,239			2,199			4,605			4,308
Loan related fees		1,242			864			766			2,106			1,445
Securities gains (losses)		(14	)		144			(51	)		130			(111	)
Other noninterest income		1,765			1,617			1,783			3,382			3,499
Total noninterest income		12,228			10,736			10,972			22,964			21,037
Personnel expense		13,622			13,645			13,274			27,267			26,691
Occupancy and equipment		2,680			2,864			2,875			5,544			5,939
Data processing expense		1,695			1,932			1,933			3,627			3,858
FDIC insurance premiums		586			606			558			1,192			1,207
Other noninterest expense		7,730			6,771			6,616			14,501			14,422
Total noninterest expense		26,313			25,818			25,256			52,131			52,117
Net income before taxes		16,778			15,922			17,814			32,700			32,423
Income taxes		4,376			4,984			5,619			9,360			10,088
Net income	$	12,402		$	10,938		$	12,195		$	23,340		$	22,335
Memo: TEQ interest income	$	36,598		$	36,238		$	36,298		$	72,836		$	72,439
Average shares outstanding		17,421			17,400			17,318			17,411			17,313
Diluted average shares outstanding		17,465			17,451			17,393			17,458			17,393
Basic earnings per share	$	0.71		$	0.63		$	0.70		$	1.34		$	1.29
Diluted earnings per share	$	0.71		$	0.63		$	0.70		$	1.34		$	1.28
Dividends per share	$	0.300		$	0.300		$	0.290		$	0.600		$	0.581
Average balances:
Loans	$	2,782,350		$	2,733,297		$	2,604,064		$	2,757,959		$	2,599,920
Earning assets		3,513,774			3,480,600			3,413,628			3,497,279			3,401,626
Total assets		3,781,553			3,745,141			3,670,820			3,763,447			3,659,744
Deposits, including repurchase agreements		3,193,743			3,155,059			3,129,289			3,174,508			3,121,771
Interest bearing liabilities		2,567,687			2,560,596			2,554,122			2,564,161			2,550,453
Shareholders' equity		461,392			457,407			432,211			459,411			427,718
Performance ratios:
Return on average assets		1.32	%		1.18	%		1.33	%		1.25	%		1.23	%
Return on average equity		10.78	%		9.70	%		11.32	%		10.25	%		10.53	%
Yield on average earning assets (tax equivalent)		4.18	%		4.22	%		4.26	%		4.20	%		4.29	%
Cost of interest bearing funds (tax equivalent)		0.45	%		0.45	%		0.47	%		0.45	%		0.47	%
Net interest margin (tax equivalent)		3.85	%		3.89	%		3.92	%		3.87	%		3.94	%
Efficiency ratio (tax equivalent)		57.28	%		58.66	%		56.96	%		57.96	%		59.45	%
Loan charge-offs	$	2,284		$	2,636		$	1,629		$	4,920		$	4,174
Recoveries		(549	)		(894	)		(896	)		(1,443	)		(1,703	)
Net charge-offs	$	1,735		$	1,742		$	733		$	3,477		$	2,471
Market Price:
High	$	35.49		$	36.47		$	38.60		$	36.47		$	41.13
Low	$	31.54		$	31.53		$	32.33		$	31.53		$	32.33
Close	$	34.87		$	33.16		$	34.22		$	34.87		$	34.22

Community Trust Bancorp, Inc.

Financial Summary (Unaudited)

June 30, 2015

(in thousands except per share data and # of employees)

	As of			As of			As of
	June 30, 2015			March 31, 2015			June 30, 2014
Assets:
Loans	$	2,792,831		$	2,746,482		$	2,632,609
Loan loss reserve		(35,190	)		(34,606	)		(33,617	)
Net loans		2,757,641			2,711,876			2,598,992
Loans held for sale		1,993			1,505			895
Securities AFS		581,236			626,335			647,536
Securities HTM		1,661			1,661			1,662
Other equity investments		22,814			22,814			22,814
Other earning assets		95,422			88,207			76,653
Cash and due from banks		58,118			61,351			72,637
Premises and equipment		48,833			49,363			50,552
Goodwill and core deposit intangible		65,861			65,914			66,074
Other assets		136,478			130,322			114,787
Total Assets	$	3,770,057		$	3,759,348		$	3,652,602
Liabilities and Equity:
NOW accounts	$	32,258		$	36,913		$	28,851
Savings deposits		955,125			962,101			911,073
CD's >=$100,000		576,785			583,112			601,602
Other time deposits		646,945			653,264			694,075
Total interest bearing deposits		2,211,113			2,235,390			2,235,601
Noninterest bearing deposits		701,958			704,150			651,588
Total deposits		2,913,071			2,939,540			2,887,189
Repurchase agreements		241,776			244,570			217,979
Other interest bearing liabilities		124,673			74,523			77,774
Noninterest bearing liabilities		28,914			43,266			35,782
Total liabilities		3,308,434			3,301,899			3,218,724
Shareholders' equity		461,623			457,449			433,878
Total Liabilities and Equity	$	3,770,057		$	3,759,348		$	3,652,602
Ending shares outstanding		17,489			17,479			17,421
Memo: Market value of HTM securities	$	1,641		$	1,653		$	1,632
30 - 89 days past due loans	$	16,001		$	17,826		$	21,466
90 days past due loans		16,915			17,798			18,807
Nonaccrual loans		16,486			17,264			25,725
Restructured loans (excluding 90 days past due and nonaccrual)		42,447			47,148			45,756
Foreclosed properties		36,405			38,735			33,062
Other repossessed assets		157			201			5
Common equity Tier 1 capital		14.34	%		14.01	%		-
Tier 1 leverage ratio		12.24	%		12.16	%		11.83	%
Tier 1 risk-based capital ratio		16.50	%		16.17	%		16.66	%
Total risk based capital ratio		17.75	%		17.41	%		17.91	%
Tangible equity to tangible assets ratio		10.68	%		10.60	%		10.26	%
FTE employees		995			1,007			1,016