Exhibit 99.1


FOR IMMEDIATE RELEASE
October 16, 2019

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 2019

Earnings Summary
                             
(in thousands except per share data)
 
3Q
2019
   
2Q
2019
   
3Q
2018
   
9 Months
2019
   
9 Months
2018
 
Net income
 
$
15,269
   
$
18,324
   
$
16,106
   
$
48,532
   
$
43,519
 
Earnings per share
 
$
0.86
   
$
1.03
   
$
0.91
   
$
2.74
   
$
2.46
 
Earnings per share - diluted
 
$
0.86
   
$
1.03
   
$
0.91
   
$
2.74
   
$
2.46
 
                                         
Return on average assets
   
1.40
%
   
1.69
%
   
1.52
%
   
1.50
%
   
1.39
%
Return on average equity
   
10.02
%
   
12.45
%
   
11.62
%
   
11.01
%
   
10.72
%
Efficiency ratio
   
61.16
%
   
62.22
%
   
57.33
%
   
61.32
%
   
60.88
%
Tangible common equity
   
12.64
%
   
12.27
%
   
11.80
%
               
                                         
Dividends declared per share
 
$
0.38
   
$
0.36
   
$
0.36
   
$
1.10
   
$
1.02
 
Book value per share
 
$
34.06
   
$
33.46
   
$
31.04
                 
                                         
Weighted average shares
   
17,726
     
17,721
     
17,691
     
17,720
     
17,683
 
Weighted average shares - diluted
   
17,743
     
17,733
     
17,710
     
17,733
     
17,700
 

Community Trust Bancorp, Inc. (NASDAQ-CTBI) reports earnings for the third quarter 2019 of $15.3 million, or $0.86 per basic share, compared to $18.3 million, or $1.03 per basic share, earned during the second quarter 2019 and $16.1 million, or $0.91 per basic share, earned during the third quarter 2018.  Earnings for the nine months ended September 30, 2019 were $48.5 million, or $2.74 per basic share, compared to $43.5 million, or $2.46 per basic share, earned during the nine months ended September 30, 2018.

3rd Quarter 2019 Highlights

Net interest income for the quarter of $36.5 million was $0.5 million, or 1.4%, above prior quarter and $0.4 million, or 1.1%, above third quarter 2018.

Provision for loan losses for the quarter ended September 30, 2019 decreased $0.3 million from prior quarter and $0.3 million from prior year same quarter.

Our loan portfolio increased $22.6 million, an annualized 2.8%, during the quarter and $36.9 million, or 1.2%, from September 30, 2018.

Net loan charge-offs for the quarter ended September 30, 2019 were $1.4 million, or 0.18% of average loans annualized, compared to $1.6 million, or 0.20%, experienced for the second quarter 2019 and $1.5 million, or 0.19%, for the third quarter 2018.

Nonperforming loans at $31.4 million increased $7.4 million from June 30, 2019 and $10.4 million from September 30, 2018.  While both the 30-89 days past due and nonaccrual loan categories decreased for the quarter, our loans 90+ days past due increased $9.3 million from prior quarter and $12.3 million from prior year same quarter.  Nonperforming assets at $51.3 million increased $4.7 million from June 30, 2019 and $0.5 million from September 30, 2018.

Deposits, including repurchase agreements, decreased $52.1 million, an annualized 5.6%, during the quarter but increased $93.7 million, or 2.7%, from September 30, 2018.

Noninterest income for the quarter ended September 30, 2019 of $12.4 million was a $0.1 million increase over prior quarter, but a decrease of $0.3 million, or 2.2%, from prior year same quarter.

Noninterest expense for the quarter ended September 30, 2019 of $29.9 million decreased $0.1 million, or 0.5%, from prior quarter, but increased $1.8 million, or 6.3%, from prior year same quarter.

The variance in income tax expense from prior quarter is a result of the $3.6 million reversal of the valuation allowance on our deferred tax asset for CTBI’s net operating losses, as a result of the enactment of Kentucky HB458, which was discussed in further detail in our prior quarter filings.

Net Interest Income

Net interest income for the quarter of $36.5 million was an increase of $0.5 million, or 1.4%, from second quarter 2019 and $0.4 million from third quarter 2018.  Our net interest margin at 3.59% increased 2 basis points from prior quarter but declined 9 basis points from prior year same quarter, while our average earning assets decreased $7.9 million but increased $143.2 million, respectively, during those same periods.  Our yield on average earning assets decreased 2 basis points from prior quarter but increased 17 basis points from prior year same quarter, and our cost of funds decreased 5 basis points from prior quarter but increased 39 basis points from prior year same quarter.  Our ratio of average loans to deposits, including repurchase agreements, was 88.1% for the quarter ended September 30, 2019 compared to 87.3% for the quarter ended June 30, 2019 and 89.5% for the quarter ended September 30, 2018.  Net interest income for the nine months ended September 30, 2019 increased $2.7 million, or 2.5%, from September 30, 2018.

Noninterest Income

Noninterest income for the quarter ended September 30, 2019 of $12.4 million was a $0.1 million, or 1.1%, increase over prior quarter, but a decrease of $0.3 million, or 2.2%, from prior year same quarter.  A $0.3 million increase in deposit related fees from prior quarter was partially offset by a $0.2 million negative variance in net securities gains.  The decrease in noninterest income from prior year same quarter included a $0.4 million decrease in loan related fees and $0.1 million decrease in trust revenue, partially offset by a $0.2 million increase in deposit related fees.  Noninterest income for the nine months ended September 30, 2019 was a $2.9 million, or 7.3%, decrease from prior year. The decrease in noninterest income from prior year was primarily the result of a $1.5 million decrease in loan related fees, a $0.6 million decrease in trust revenue, and a $2.3 million decrease in other operating revenue, partially offset by a $0.9 million increase in securities gains and a $0.4 million increase in gains on sales of loans.  The decrease in loan related fees is due to a decline in the fair market value of our mortgage servicing rights.  Other operating revenue for the nine months ended September 30, 2018 included a $1.0 million gain on the sale of a partnership interest resulting from a low income housing tax credit recapture and $1.2 million in bank owned life insurance revenue as a result of death benefits.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2019 of $29.9 million decreased $0.1 million, or 0.5%, from prior quarter, but increased $1.8 million, or 6.3%, from prior year same quarter.  Noninterest expense was impacted quarter over quarter and year over year by a $1.5 million increase in net other real estate owned expense.  This increase was offset by a $1.1 million decrease in personnel expense and a $0.6 million decrease in FDIC insurance quarter over quarter.  Year over year, the increase was also impacted by a $0.3 million increase in data processing expense, offset by a $0.6 million decline in FDIC insurance and a $0.2 million decrease in personnel expense.  The decrease in personnel expense was the result of a tier adjustment to our performance-based bonus accrual.  CTBI’s projected performance for 2019 as measured against its performance based incentive, disclosed in its January 30, 2019 SEC Form 8-K, is expected to be above the minimum acceptable performance level required for an incentive payment but below the target.  Noninterest expense for the nine months ended September 30, 2019 was $89.0 million, a $0.2 million, or 0.3%, decrease from the first nine months of 2018.

Balance Sheet Review

CTBI’s total assets at $4.3 billion decreased $39.6 million, or 3.6% annualized, from June 30, 2019 but increased $163.8 million, or 3.9%, from September 30, 2018.  Loans outstanding at September 30, 2019 were $3.2 billion, an increase of $22.6 million, an annualized 2.8%, from June 30, 2019 and $36.9 million, or 1.2%, from September 30, 2018.  We experienced increases during the quarter of $7.9 million in the commercial loan portfolio, $6.7 million in the residential loan portfolio, $3.6 million in the indirect consumer loan portfolio, and $4.4 million in the direct consumer loan portfolio.  CTBI’s investment portfolio increased $58.3 million, or an annualized 38.9%, from June 30, 2019 and $82.4 million, or 14.5%, from September 30, 2018.  Deposits in other banks decreased $115.7 million from prior quarter but increased $38.3 million from prior year same quarter.  Deposits, including repurchase agreements, at $3.6 billion decreased $52.1 million, or an annualized 5.6%, from June 30, 2019 but increased $93.7 million, or 2.7%, from September 30, 2018.

Shareholders’ equity at September 30, 2019 was $605.5 million, a 7.2% annualized increase from the $594.7 million at June 30, 2019 and a 10.0% increase from the $550.3 million at September 30, 2018.  CTBI’s annualized dividend yield to shareholders as of September 30, 2019 was 3.57%.

Asset Quality

CTBI’s total nonperforming loans, not including performing troubled debt restructurings, were $31.4 million, or 0.98% of total loans, at September 30, 2019 compared to $24.0 million, or 0.75% of total loans, at June 30, 2019 and $21.0 million, or 0.66% of total loans, at September 30, 2018.  Accruing loans 90+ days past due increased $9.3 million from prior quarter and $12.3 million from September 30, 2018.  The increase in 90+ days past due loans included $7.3 million for two loan relationships which are in the process of collection.  We do not anticipate a loss on these credits.  Nonaccrual loans decreased $1.8 million during the quarter and $1.9 million from September 30, 2018.  Accruing loans 30-89 days past due at $22.9 million was a decrease of $7.7 million from prior quarter and $5.2 million from September 30, 2018.  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 September 30, 2019 totaled $56.3 million, compared to $54.6 million at June 30, 2019 and $46.9 million at September 30, 2018.

Our level of foreclosed properties at $19.8 million at September 30, 2019 was a $2.7 million decrease from the $22.5 million at June 30, 2019 and a $9.8 million decrease from the $29.7 million at September 30, 2018.  Sales of foreclosed properties for the quarter ended September 30, 2019 totaled $1.2 million while new foreclosed properties totaled $0.6 million.  At September 30, 2019, the book value of properties under contracts to sell was $2.2 million; however, the closings had not occurred at quarter-end.  Write-downs on foreclosed properties for the third quarter 2019 totaled $2.2 million compared to $0.7 million in the second quarter 2019 and $0.7 million in the third quarter 2018.  The increased in write-downs for the quarter included a $1.7 million write-down related to one commercial property.  As disclosed in our Form 10-K for the year ended December 31, 2018, CTBI is required to dispose of any foreclosed property that has not been sold within 10 years.  As of December 31, 2018, foreclosed property with a total book value of $2.4 million had been held by us for at least nine years.  During the first nine months of 2019, we disposed of all of these properties.  At September 30, 2019, we held no foreclosed property for nine years or more.

Net loan charge-offs for the quarter ended September 30, 2019 were $1.4 million, or 0.18% of average loans annualized, compared to $1.6 million, or 0.20%, experienced for the second quarter 2019 and $1.5 million, or 0.19%, for the third quarter 2018.  Of the net charge-offs for the quarter, $0.5 million were in commercial loans, $0.4 million were in indirect consumer loans, $0.4 million were in residential loans, and $0.1 million were in direct consumer loans.  Allocations to loan loss reserves were $1.3 million for the quarter ended September 30, 2019 compared to $1.6 million for the quarter ended June 30, 2019 and $1.5 million for the quarter ended September 30, 2018.  Our reserve coverage (allowance for loan and lease loss reserve to nonperforming loans) at September 30, 2019 was 110.8% compared to 146.0% at June 30, 2019 and 170.1% at September 30, 2018.  Our loan loss reserve as a percentage of total loans outstanding at September 30, 2019 was 1.08%, down from the 1.10% at June 30, 2019 and 1.13% at September 30, 2018.

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. Community Trust Bancorp, Inc.’s (“CTBI”) 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; 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 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 $4.3 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, 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, 2019  
(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, 2019
   
June 30, 2019
   
September 30, 2018
   
September 30, 2019
   
September 30, 2018
 
Interest income
 
$
46,987
   
$
46,817
   
$
43,607
   
$
139,693
   
$
126,212
 
Interest expense
   
10,468
     
10,790
     
7,471
     
31,164
     
20,337
 
Net interest income
   
36,519
     
36,027
     
36,136
     
108,529
     
105,875
 
Loan loss provision
   
1,253
     
1,563
     
1,543
     
3,006
     
4,418
 
                                         
Gains on sales of loans
   
450
     
518
     
319
     
1,298
     
902
 
Deposit service charges
   
6,859
     
6,525
     
6,671
     
19,504
     
19,372
 
Trust revenue
   
2,725
     
2,765
     
2,836
     
8,065
     
8,650
 
Loan related fees
   
622
     
440
     
1,022
     
1,635
     
3,085
 
Securities gains (losses)
   
14
     
204
     
(2
)
   
574
     
(288
)
Other noninterest income
   
1,719
     
1,800
     
1,817
     
5,735
     
7,992
 
Total noninterest income
   
12,389
     
12,252
     
12,663
     
36,811
     
39,713
 
                                         
Personnel expense
   
15,020
     
16,087
     
15,264
     
47,066
     
46,305
 
Occupancy and equipment
   
2,807
     
2,561
     
2,744
     
8,158
     
8,347
 
Data processing expense
   
1,987
     
1,789
     
1,695
     
5,539
     
4,965
 
FDIC insurance premiums
   
(280
)
   
369
     
314
     
266
     
907
 
Other noninterest expense
   
10,348
     
9,224
     
8,089
     
27,966
     
28,702
 
Total noninterest expense
   
29,882
     
30,030
     
28,106
     
88,995
     
89,226
 
                                         
Net income before taxes
   
17,773
     
16,686
     
19,150
     
53,339
     
51,944
 
Income taxes
   
2,504
     
(1,638
)
   
3,044
     
4,807
     
8,425
 
Net income
 
$
15,269
   
$
18,324
   
$
16,106
   
$
48,532
   
$
43,519
 
                                         
Memo: TEQ interest income
 
$
47,170
   
$
47,009
   
$
43,833
   
$
140,288
   
$
126,890
 
                                         
Average shares outstanding
   
17,726
     
17,721
     
17,691
     
17,720
     
17,683
 
Diluted average shares outstanding
   
17,743
     
17,733
     
17,710
     
17,733
     
17,700
 
Basic earnings per share
 
$
0.86
   
$
1.03
   
$
0.91
   
$
2.74
   
$
2.46
 
Diluted earnings per share
 
$
0.86
   
$
1.03
   
$
0.91
   
$
2.74
   
$
2.46
 
Dividends per share
 
$
0.38
   
$
0.36
   
$
0.36
   
$
1.10
   
$
1.02
 
                                         
Average balances:
                                       
Loans
 
$
3,188,446
   
$
3,178,903
   
$
3,167,357
   
$
3,187,540
   
$
3,137,027
 
Earning assets
   
4,061,410
     
4,069,323
     
3,918,183
     
4,032,753
     
3,905,673
 
Total assets
   
4,341,985
     
4,353,936
     
4,190,768
     
4,316,483
     
4,177,368
 
Deposits, including repurchase agreements
   
3,617,671
     
3,640,061
     
3,539,482
     
3,604,780
     
3,535,806
 
Interest bearing liabilities
   
2,857,468
     
2,883,586
     
2,789,473
     
2,851,830
     
2,796,724
 
Shareholders' equity
   
604,271
     
590,240
     
549,837
     
589,139
     
542,600
 
                                         
Performance ratios:
                                       
Return on average assets
   
1.40
%
   
1.69
%
   
1.52
%
   
1.50
%
   
1.39
%
Return on average equity
   
10.02
%
   
12.45
%
   
11.62
%
   
11.01
%
   
10.72
%
Yield on average earning assets (tax equivalent)
   
4.61
%
   
4.63
%
   
4.44
%
   
4.65
%
   
4.34
%
Cost of interest bearing funds (tax equivalent)
   
1.45
%
   
1.50
%
   
1.06
%
   
1.46
%
   
0.97
%
Net interest margin (tax equivalent)
   
3.59
%
   
3.57
%
   
3.68
%
   
3.62
%
   
3.65
%
Efficiency ratio (tax equivalent)
   
61.16
%
   
62.22
%
   
57.33
%
   
61.32
%
   
60.88
%
                                         
Loan charge-offs
 
$
2,316
   
$
2,797
   
$
2,828
   
$
7,168
   
$
8,331
 
Recoveries
   
(876
)
   
(1,228
)
   
(1,305
)
   
(3,065
)
   
(3,553
)
Net charge-offs
 
$
1,440
   
$
1,569
   
$
1,523
   
$
4,103
   
$
4,778
 
                                         
Market Price:
                                       
High
 
$
44.22
   
$
43.60
   
$
52.80
   
$
44.22
   
$
53.00
 
Low
 
$
38.05
   
$
39.45
   
$
45.65
   
$
38.03
   
$
43.00
 
Close
 
$
42.58
   
$
42.29
   
$
46.35
   
$
42.58
   
$
46.35
 




Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
 September 30, 2019
(in thousands except per share data and # of employees)
   
As of
   
As of
   
As of
 
   
September 30, 2019
   
June 30, 2019
   
September 30, 2018
 
Assets:
                 
Loans
 
$
3,214,785
   
$
3,192,207
   
$
3,177,888
 
Loan loss reserve
   
(34,811
)
   
(34,998
)
   
(35,791
)
Net loans
   
3,179,974
     
3,157,209
     
3,142,097
 
Loans held for sale
   
1,943
     
1,067
     
1,029
 
Securities AFS
   
649,976
     
591,586
     
569,208
 
Securities HTM
   
517
     
619
     
659
 
Equity securities at fair value
   
1,743
     
1,727
     
-
 
Other equity investments
   
15,681
     
16,247
     
19,600
 
Other earning assets
   
155,441
     
271,186
     
124,413
 
Cash and due from banks
   
68,472
     
52,545
     
53,912
 
Premises and equipment
   
44,223
     
44,404
     
45,808
 
Right of use asset
   
14,702
     
15,028
     
-
 
Goodwill and core deposit intangible
   
65,490
     
65,490
     
65,490
 
Other assets
   
139,501
     
160,149
     
151,627
 
Total Assets
 
$
4,337,663
   
$
4,377,257
   
$
4,173,843
 
                         
Liabilities and Equity:
                       
NOW accounts
 
$
54,365
   
$
51,209
   
$
59,379
 
Savings deposits
   
1,385,188
     
1,445,166
     
1,190,977
 
CD's >=$100,000
   
570,158
     
569,829
     
624,801
 
Other time deposits
   
530,262
     
537,933
     
571,685
 
Total interest bearing deposits
   
2,539,973
     
2,604,137
     
2,446,842
 
Noninterest bearing deposits
   
849,582
     
833,044
     
826,804
 
Total deposits
   
3,389,555
     
3,437,181
     
3,273,646
 
Repurchase agreements
   
228,755
     
233,238
     
250,983
 
Other interest bearing liabilities
   
64,162
     
63,667
     
61,433
 
Lease liability
   
15,286
     
15,544
     
-
 
Other noninterest bearing liabilities
   
34,387
     
32,919
     
37,517
 
Total liabilities
   
3,732,145
     
3,782,549
     
3,623,579
 
Shareholders' equity
   
605,518
     
594,708
     
550,264
 
Total Liabilities and Equity
 
$
4,337,663
   
$
4,377,257
   
$
4,173,843
 
                         
Ending shares outstanding
   
17,777
     
17,772
     
17,728
 
Memo: Market value of HTM securities
 
$
517
   
$
619
   
$
660
 
                         
30 - 89 days past due loans
 
$
22,927
   
$
30,616
   
$
28,172
 
90 days past due loans
   
20,330
     
11,076
     
8,005
 
Nonaccrual loans
   
11,090
     
12,902
     
13,032
 
Restructured loans (excluding 90 days past due and nonaccrual)
   
60,413
     
60,713
     
58,008
 
Foreclosed properties
   
19,833
     
22,536
     
29,666
 
Other repossessed assets
   
-
     
-
     
54
 
                         
Common equity Tier 1 capital
   
17.03
%
   
16.83
%
   
16.08
%
Tier 1 leverage ratio
   
13.84
%
   
13.61
%
   
13.37
%
Tier 1 risk-based capital ratio
   
18.82
%
   
18.67
%
   
17.94
%
Total risk based capital ratio
   
19.93
%
   
19.80
%
   
19.11
%
Tangible equity to tangible assets ratio
   
12.64
%
   
12.27
%
   
11.80
%
FTE employees
   
1,001
     
1,002
     
979