EX-99.1 3 ctbi0921er8kex99.htm CTBI 3RD QUARTER 2021 EARNINGS RELEASE 8-K EXHIBIT 99.1

Exhibit 99.1




FOR IMMEDIATE RELEASE
October 20, 2021

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

Pikeville, Kentucky:

COMMUNITY TRUST BANCORP, INC. REPORTS EARNINGS FOR THE THIRD QUARTER 2021

Earnings Summary
                              
(in thousands except per share data)
  
3Q
2021
    
2Q
2021
    
3Q
2020
    
YTD
2021
    
YTD
2020
  
Net income
  
$
21,142
    
$
23,931
    
$
17,447
    
$
68,691
    
$
43,678
  
Earnings per share
  
$
1.19
    
$
1.35
    
$
0.98
    
$
3.86
    
$
2.46
  
Earnings per share - diluted
  
$
1.19
    
$
1.34
    
$
0.98
    
$
3.86
    
$
2.46
  
                                         
Return on average assets
    
1.54
%
    
1.76
%
    
1.38
%
    
1.71
%
    
1.23
%
Return on average equity
    
12.06
%
    
14.20
%
    
10.81
%
    
13.55
%
    
9.26
%
Efficiency ratio
    
53.50
%
    
53.17
%
    
55.99
%
    
52.35
%
    
56.72
%
Tangible common equity
    
11.77
%
    
11.39
%
    
11.68
%
                
                                         
Dividends declared per share
  
$
0.400
    
$
0.385
    
$
0.385
    
$
1.170
    
$
1.145
  
Book value per share
  
$
38.78
    
$
38.36
    
$
36.20
                  
                                         
Weighted average shares
    
17,790
      
17,784
      
17,746
      
17,783
      
17,746
  
Weighted average shares - diluted
    
17,808
      
17,800
      
17,752
      
17,798
      
17,753
  

Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the third quarter 2021 of $21.1 million, or $1.19 per basic share, compared to $23.9 million, or $1.35 per basic share, earned during the second quarter 2021 and $17.4 million, or $0.98 per basic share, earned during the third quarter 2020.  Our loan portfolio quality continues to see improvement, allowing a further reduction in credit loss reserves.  Noninterest income declined; however, total revenue increased as our net interest margin saw improvement resulting from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of Paycheck Protection Program (PPP) loans.  Earnings for the nine months ended September 30, 2021 were $68.7 million compared to $43.7 million for the nine months ended September 30, 2020.

3rd Quarter 2021 Highlights

❖
Net interest income for the quarter of $42.0 million was $2.0 million, or 5.0%, above prior quarter and $4.3 million, or 11.5%, above third quarter 2020.

❖
We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021.  The reduction to our allowance for credit losses was the result of improving credit metrics.  We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million.  Provision for credit losses for the third quarter 2020 totaled $2.4 million.

❖
Our loan portfolio decreased $50.3 million, an annualized 5.8%, during the quarter and $159.7 million, or 4.5%, from September 30, 2020.  Loans, excluding PPP loans, increased $26.6 million during the quarter.

❖
Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020.

❖
Asset quality remains strong from prior quarter as our nonperforming loans, excluding troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021and $29.9 million at September 30, 2020.  Nonperforming assets at $23.0 million decreased $3.9 million from June 30, 2021 and $22.4 million from September 30, 2020.

❖
Deposits, including repurchase agreements, decreased $106.0 million, an annualized 9.0%, during the quarter but increased $326.3 million, or 7.7%, from September 30, 2020.  The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary.

❖
Noninterest income for the quarter ended September 30, 2021 of $14.4 million decreased from prior quarter by $1.1 million, or 7.3%, and $0.5 million, or 3.5%, from prior year same quarter.

❖
Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter.

COVID-19

We continue working with our customers through the COVID-19 pandemic.  At September 30, 2021, the number of customers with CARES Act deferrals reduced to 27 for a total outstanding amount of $15.8 million.  The majority of our CARES Act deferrals have been 90 day deferrals.  Total outstanding deferrals include 6 commercial loan deferrals with a total outstanding amount of $14.3 million, 17 residential loan deferrals with a total outstanding amount of $1.4 million, and 4 consumer loan deferrals with a total outstanding amount of $0.1 million.  These loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act.  Pursuant to the CARES Act, these loan deferrals are not included in our nonperforming loans disclosed below.

At September 30, 2021, we had closed 6,312 Paycheck Protection Program (PPP) loans totaling $401.3 million, including 3,352 loans totaling $124.3 million stemming from the Consolidated Appropriations Act 2021 (second round).  Through September 30, 2021, we have had 4,730 of our PPP loans totaling $297.7 million forgiven by the SBA, including 1,877 loans totaling $35.9 million from the second round.

Net Interest Income

                     
Percent Change
                    
                     
3Q 2021 Compared to:
                    
($ in thousands)
  
3Q
2021
    
2Q
2021
    
3Q
2020
    
2Q
2021
    
3Q
2020
    
YTD
2021
    
YTD 2020
    
Percent Change
  
Components of net interest income
                                                
Income on earning assets
  
$
45,952
    
$
44,105
    
$
43,815
      
4.2
%
    
4.9
%
  
$
134,485
    
$
133,832
      
0.5
%
Expense on interest bearing liabilities
    
3,712
      
3,868
      
5,946
      
(4.0
)
    
(37.6
)
    
11,549
      
20,907
      
(44.8
)
Net interest income (tax equivalent)
  
$
42,240
    
$
40,237
    
$
37,869
      
5.0
%
    
11.5
%
  
$
122,936
    
$
112,925
      
8.9
%
                                                                 
Average yield and rates paid
                                                                
Earning assets yield
    
3.52
%
    
3.41
%
    
3.66
%
    
3.1
%
    
(3.8
)%
    
3.52
%
    
3.99
%
    
(11.9
)%
Rate paid on interest bearing liabilities
    
0.43

   
0.45

   
0.73

   
(4.7
)
    
(40.9
)
    
0.46

   
0.91

   
(50.1
)
Gross interest margin
    
3.09
%
    
2.96
%
    
2.93
%
    
4.3
%
    
5.4
%
    
3.06
%
    
3.08
%
    
(0.6
)%
Net interest margin
    
3.23
%
    
3.11
%
    
3.16
%
    
3.8
%
    
2.3
%
    
3.22
%
    
3.37
%
    
(4.6
)%
                                                                 
Average balances
                                                                
Investment securities
  
$
1,511,178
    
$
1,223,123
    
$
946,426
      
23.55
%
    
59.7
%
  
$
1,266,850
    
$
770,184
      
64.5
%
Loans
  
$
3,400,194
    
$
3,495,655
    
$
3,539,520
      
(2.73
)%
    
(3.9
)%
  
$
3,480,860
    
$
3,421,749
      
1.7
%
 Earning assets
  
$
5,184,749
    
$
5,184,923
    
$
4,768,869
      
0.00
%
    
8.7
%
  
$
5,109,934
    
$
4,475,200
      
14.2
%
Interest-bearing liabilities
  
$
3,410,286
    
$
3,424,218
    
$
3,238,474
      
(0.41
)%
    
5.3
%
  
$
3,390,178
    
$
3,060,851
      
10.8
%

Net interest income for the quarter of $42.0 million increased $2.0 million, or 5.0%, from second quarter 2021 and $4.3 million, or 11.5%, from third quarter 2020.  Our net interest income excluding PPP loans for the quarter ended September 30, 2021 was $37.9 million compared to $36.7 million for the quarter ended June 30, 2021 and $36.6 million for the quarter ended September 30, 2020.  Our net interest margin at 3.23% increased 12 basis points from prior quarter and 7 basis points from prior year same quarter, as our average earning assets decreased $0.2 million from prior quarter but increased $415.9 million from prior year same quarter.  Our yield on average earning assets increased 11 basis points from prior quarter but decreased 14 basis points from prior year same quarter, and our cost of funds decreased 2 basis points from prior quarter and 30 basis points from prior year same quarter.  The improvement in our net interest margin resulted from a redeployment of Federal Reserve funds into our investment portfolio and forgiveness of PPP loans.  As discussed more fully below, the impact of the PPP loans to the net interest margin for the third quarter 2021 was 25 basis points.  Net interest income for the nine months ended September 30, 2021 increased $9.9 million, or 8.8%, compared to the nine months ended September 30, 2020.

The PPP loan portfolio had an annualized yield for the quarter of 12.24%, a 620 basis point increase from the 6.04% yield in the second quarter 2021.  Interest income on the portfolio was $0.4 million during the quarter, down $0.2 million from prior quarter, while the amortization of net loan origination fees from current outstanding loans and recognition of net fee income from paid and forgiven loans was $4.0 million, up $1.0 million from prior quarter.  These fees are amortized over the life of the loan with any unamortized balance fully recognized at the time of loan forgiveness.  The impact of the PPP loan portfolio to the net interest margin was 25 basis points for the third quarter 2021, an 11 basis point increase from the 14 basis points for the second quarter 2021.

Our ratio of average loans to deposits, including repurchase agreements, was 73.1% for the quarter ended September 30, 2021 compared to 75.0% for the quarter ended June 30, 2021 and 82.8% for the quarter ended September 30, 2020.

Noninterest Income

                     
Percent Change
                    
                     
3Q 2021 Compared to:
                    
($ in thousands)
  
3Q
2021
    
2Q
2021
    
3Q
2020
    
2Q
2021
    
3Q
2020
    
YTD 2021
    
YTD 2020
    
Percent Change
  
Deposit service charges
  
$
7,066
    
$
6,358
    
$
6,296
      
11.1
%
    
12.2
%
  
$
19,446
    
$
17,179
      
13.2
%
Trust revenue
    
3,039
      
3,349
      
2,692
      
(9.2
)
    
12.9

   
9,339
      
8,145
      
14.7

Gains on sales of loans
    
1,239
      
1,907
      
2,470
      
(35.0
)
    
(49.8
)
    
5,579
      
4,706
      
18.6

Loan related fees
    
1,050
      
1,004
      
1,383
      
4.7

   
(24.0
)
    
4,324
      
2,300
      
88.0

Bank owned life insurance revenue
    
654
      
581
      
602
      
12.4

   
8.7

   
1,808
      
1,739
      
4.0

Brokerage revenue
    
519
      
554
      
310
      
(6.3
)
    
67.4

   
1,530
      
995
      
53.7

Other
    
821
      
1,768
      
1,158
      
(53.7
)
    
(29.3
)
    
3,460
      
4,247
      
(18.6
)
Total noninterest income
  
$
14,388
    
$
15,521
    
$
14,911
      
(7.3
)%
    
(3.5
)%
  
$
45,486
    
$
39,311
      
15.7
%

Noninterest income for the quarter ended September 30, 2021 of $14.4 million was a decrease of $1.1 million, or 7.3%, from prior quarter and $0.5 million, or 3.5%, from prior year same quarter.  The decrease from prior quarter included decreases in gains on sales of loans ($0.7 million), trust revenue ($0.3 million), securities gains ($0.3 million), and other operating revenue ($0.4 million), partially offset by an increase in deposit service charges ($0.7 million).  The decrease from prior year same quarter included decreases in gains on sales of loans ($1.2 million), loan related fees ($0.3 million), and securities gains ($0.2 million), partially offset by increases in deposit service charges ($0.8 million) and trust revenue ($0.3 million).  Noninterest income for the nine months ended September 30, 2021 of $45.5 million was a $6.2 million, or 15.7% increase from the nine months ended September 30, 2020.

Gains on sales of loans continue to be impacted by the slowdown in the industry-wide refinancing boom.   Deposit service charges were impacted during the quarter by an increase in overdraft charges.  The year over year increase in noninterest income was driven by increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees.  Deposit service charges were primarily impacted year over year by an increase in debit card income.  Loan related fees were primarily impacted by the change in the fair market value of mortgage servicing rights.

Noninterest Expense

                     
Percent Change
                    
                     
3Q 2021 Compared to:
                    
($ in thousands)
  
3Q
2021
    
2Q
2021
    
3Q
2020
    
2Q
2021
    
3Q
2020
    
YTD 2021
    
YTD 2020
    
Percent Change
  
Salaries
  
$
11,962
    
$
11,706
    
$
11,640
      
2.2
%
    
2.8
%
  
$
35,080
    
$
34,651
      
1.2
%
Employee benefits
    
6,891
      
7,254
      
4,497
      
(5.0
)
    
53.3

   
19,566
      
11,670
      
67.7

Net occupancy and equipment
    
2,733
      
2,668
      
2,724
      
2.4

   
0.3

   
8,229
      
8,054
      
2.2

Data processing
    
1,911
      
1,870
      
1,936
      
2.3

   
(1.2
)
    
5,940
      
5,789
      
2.6

Legal and professional fees
    
685
      
753
      
1,001
      
(9.2
)
    
(31.6
)
    
2,331
      
3,057
      
(23.7
)
Advertising and marketing
    
819
      
710
      
797
      
15.5

   
2.8

   
2,251
      
1,999
      
12.6

Telephone
    
486
      
502
      
500
      
(3.1
)
    
(2.7
)
    
1,498
      
1,389
      
7.8

Other
    
4,841
      
4,035
      
6,378
      
20.0

   
(24.1
)
    
13,241
      
18,994
      
(30.3
)
Total noninterest expense
  
$
30,328
    
$
29,498
    
$
29,473
      
2.8
%
    
2.9
%
  
$
88,136
    
$
85,603
      
3.0
%

Noninterest expense for the quarter ended September 30, 2021 of $30.3 million increased $0.8 million, or 2.8%, from prior quarter, and $0.9 million, or 2.9%, from prior year same quarter.  The increase in noninterest expense quarter over quarter included increases in operating losses ($0.3 million), marketing and promotional ($0.2 million), and loan related expense ($0.2 million).  The increase from prior year same quarter was the result of an increase in personnel expense ($2.7 million), partially offset by decreases in taxes other than property and payroll ($1.4 million), net other real estate owned expense ($0.2 million), and repossession expense ($0.2 million).  The increase in personnel expense included a $1.8 million increase in bonuses and incentives as we increased the accruals for incentive payments based on our current projected earnings for the year.  Noninterest expense for the nine months ended September 30, 2021 increased $2.5 million, or 3.0%, compared to the nine months ended September 30, 2020.

Balance Sheet Review

Total Loans
                              
                     
Percent Change
  
                     
3Q 2021 Compared to:
  
($ in thousands)
  
3Q
2021
    
2Q
2021
    
3Q
2020
    
2Q
2021
    
3Q
2020
  
Commercial nonresidential real estate
  
$
732,442
    
$
718,338
    
$
742,436
      
2.0
%
    
(1.3
)%
Commercial residential real estate
    
330,660
      
309,627
      
284,428
      
6.8

   
16.3

SBA guaranteed PPP loans
    
99,116
      
175,983
      
270,271
      
(43.7
)
    
(63.3
)
Other commercial
    
600,583
      
617,781
      
602,218
      
(2.8
)
    
(0.3
)
Total commercial
  

1,762,801
    

1,821,729
    

1,899,353
      
(3.2
)
    
(7.2
)
                                         
Residential mortgage
    
763,005
      
762,649
      
783,818
      
0.0

   
(2.7
)
Home equity loans/lines
    
105,007
      
102,551
      
105,454
      
2.4

   
(0.4
)
Total residential
    
868,012
      
865,200
      
889,272
      
0.3

   
(2.4
)
                               
       
Consumer indirect
    
612,394
      
610,025
      
615,608
      
0.4

   
(0.5
)
Consumer direct
    
155,022
      
151,539
      
153,666
      
2.3

   
0.9

Total consumer
    
767,416
      
761,564
      
769,274
      
0.8

   
(0.2
)
                                         
Total loans
  
$
3,398,229
    
$
3,448,493
    
$
3,557,899
      
(1.5
)%
    
(4.5
)%

Total Deposits and Repurchase Agreements
                              
                     
Percent Change
  
                     
3Q 2021 Compared to:
  
($ in thousands)
  
3Q
2021
    
2Q
2021
    
3Q
2020
    
2Q 2021
    
3Q 2020
  
Non-interest bearing deposits
  
$
1,318,158
    
$
1,286,989
    
$
1,103,863
      
2.4
%
    
19.4
%
Interest bearing deposits
                                        
Interest checking
    
90,657
      
99,226
      
78,989
      
(8.6
)
    
14.8

Money market savings
    
1,210,551
      
1,281,431
      
1,167,516
      
(5.5
)
    
3.7

Savings accounts
    
616,561
      
596,426
      
499,604
      
3.4

   
23.4

Time deposits
    
1,060,309
      
1,059,630
      
1,044,209
      
0.1

   
1.5

Repurchase agreements
    
292,022
      
370,568
      
367,788
      
(21.2
)
    
(20.6
)
Total interest bearing deposits and repurchase agreements
  
$
3,270,100
    
$
3,407,281
    
$
3,158,106
      
(4.0
)%
    
3.5
%
Total deposits and repurchase agreements
  
$
4,588,258
    
$
4,694,270
    
$
4,261,969
      
(2.3
)%
    
7.7
%

CTBI’s total assets at $5.4 billion decreased $108.6 million, or 7.8% annualized, from June 30, 2021 but increased $365.2 million, or 7.3%, from September 30, 2020.  Loans outstanding at September 30, 2021 were $3.4 billion, a decrease of $50.3 million, an annualized 5.8%, from June 30, 2021 and $159.7 million, or 4.5%, from September 30, 2020.  Loans, excluding PPP loans, increased $26.6 million during the quarter, with a $17.9 million increase in the commercial loan portfolio, a $3.5 million increase in the direct consumer loan portfolio, a $2.8 million increase in the residential loan portfolio, and a $2.4 million increase in the indirect consumer loan portfolio.  The PPP loan portfolio declined $76.9 million as a result of SBA forgiveness.  CTBI’s investment portfolio increased $168.1 million, or an annualized 49.0%, from June 30, 2021 and $576.9 million, or 60.6%, from September 30, 2020 as we redeployed funds from our Federal Reserve account into our investment portfolio.  Deposits in other banks decreased $249.8 million from prior quarter and $58.9 million from prior year same quarter.  Deposits, including repurchase agreements, at $4.6 billion decreased $106.0 million, or an annualized 9.0%, from June 30, 2021 but increased $326.3 million, or 7.7%, from September 30, 2020.  The decrease from prior quarter was primarily due to the transfer of a $75 million repurchase agreement into a managed fund with our trust subsidiary.

Shareholders’ equity at September 30, 2021 was $691.6 million, a $7.6 million increase from the $684.1 million at June 30, 2021 and a $47.2 million increase from the $644.4 million at September 30, 2020.  CTBI’s annualized dividend yield to shareholders as of September 30, 2021 was 3.80%.

Asset Quality

CTBI’s total nonperforming loans, not including performing troubled debt restructurings, decreased to $18.7 million at September 30, 2021 from $21.1 million at June 30, 2021 and $29.9 million at September 30, 2020.  Accruing loans 90+ days past due decreased $1.6 million from prior quarter and $11.3 million from September 30, 2020.  Nonaccrual loans decreased $0.8 million during the quarter but increased $0.2 million from September 30, 2020.  Accruing loans 30-89 days past due at $8.9 million decreased $2.0 million from prior quarter and $4.5 million from September 30, 2020.  Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.

Our level of foreclosed properties at $4.3 million at September 30, 2021 was a $1.5 million decrease from the $5.8 million at June 30, 2021 and an $11.3 million decrease from the $15.6 million at June 30, 2020.  Sales of foreclosed properties for the quarter ended September 30, 2021 totaled $2.0 million while new foreclosed properties totaled $0.6 million.  At September 30, 2021, the book value of properties under contracts to sell was $0.4 million; however, the closings had not occurred at quarter-end.

Net loan charge-offs for the quarter were $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2021, compared to a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021 and net loan charge-offs of $1.1 million, or 0.12% of average loans annualized, for the third quarter 2020.  For the nine months ended September 30, 2021, we experienced a net recovery of loan losses of $0.1 million compared to net charge-offs of $5.2 million, or 0.20% of average loans annualized, for the nine months ended September 30, 2020.

Allowance for Credit Losses

We recovered $0.2 million of our provision for credit losses during the quarter ended September 30, 2021 as a result of improving credit metrics.  We also recognized a recapture of allowance for credit losses in the second quarter 2021 with a credit to the provision for credit losses of $4.3 million.  Provision for credit losses for the third quarter 2020 totaled $2.4 million.  Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2021 was 220.0% compared to 197.2% at June 30, 2021 and 160.7% at September 30, 2020.  Our credit loss reserve as a percentage of total loans outstanding at September 30, 2021 was 1.21% (1.25% excluding PPP loans) compared to 1.21% at June 30, 2021 (1.27% excluding PPP loans) and 1.35% at September 30, 2020 (1.46% excluding PPP loans).

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; the effects of the COVID-19 pandemic on our business operations and credit quality and on general economic and financial market conditions, as well as our ability to respond to the related challenges; 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, regulations, and enforcement actions 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 $5.4 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, 2021  
(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, 2021
    
June 30, 2021
    
September 30, 2020
    
September 30, 2021
    
September 30, 2020
  
Interest income
  
$
45,726
    
$
43,875
    
$
43,626
    
$
133,812
    
$
133,293
  
Interest expense
    
3,712
      
3,868
      
5,946
      
11,549
      
20,907
  
Net interest income
    
42,014
      
40,007
      
37,680
      
122,263
      
112,386
  
Loan loss provision
    
(163
)
    
(4,257
)
    
2,433
      
(6,919
)
    
15,091
  
                                         
Gains on sales of loans
    
1,239
      
1,907
      
2,470
      
5,579
      
4,706
  
Deposit service charges
    
7,066
      
6,358
      
6,296
      
19,446
      
17,179
  
Trust revenue
    
3,039
      
3,349
      
2,692
      
9,339
      
8,145
  
Loan related fees
    
1,050
      
1,004
      
1,383
      
4,324
      
2,300
  
Securities gains (losses)
    
(62
)
    
280
      
142
      
50
      
1,328
  
Other noninterest income
    
2,056
      
2,623
      
1,928
      
6,748
      
5,653
  
Total noninterest income
    
14,388
      
15,521
      
14,911
      
45,486
      
39,311
  
                                         
Personnel expense
    
18,853
      
18,960
      
16,137
      
54,646
      
46,321
  
Occupancy and equipment
    
2,733
      
2,668
      
2,724
      
8,229
      
8,054
  
Data processing expense
    
1,911
      
1,870
      
1,936
      
5,940
      
5,789
  
FDIC insurance premiums
    
393
      
323
      
295
      
1,042
      
736
  
Other noninterest expense
    
6,438
      
5,677
      
8,381
      
18,279
      
24,703
  
Total noninterest expense
    
30,328
      
29,498
      
29,473
      
88,136
      
85,603
  
                                         
Net income before taxes
    
26,237
      
30,287
      
20,685
      
86,532
      
51,003
  
Income taxes
    
5,095
      
6,356
      
3,238
      
17,841
      
7,325
  
Net income
  
$
21,142
    
$
23,931
    
$
17,447
    
$
68,691
    
$
43,678
  
                                         
Memo: TEQ interest income
  
$
45,952
    
$
44,105
    
$
43,815
    
$
134,485
    
$
133,832
  
                                         
Average shares outstanding
    
17,790
      
17,784
      
17,746
      
17,783
      
17,746
  
Diluted average shares outstanding
    
17,808
      
17,800
      
17,752
      
17,798
      
17,753
  
Basic earnings per share
  
$
1.19
    
$
1.35
    
$
0.98
    
$
3.86
    
$
2.46
  
Diluted earnings per share
  
$
1.19
    
$
1.34
    
$
0.98
    
$
3.86
    
$
2.46
  
Dividends per share
  
$
0.400
    
$
0.385
    
$
0.385
    
$
1.170
    
$
1.145
  
                                         
Average balances:
                                        
Loans
  
$
3,400,194
    
$
3,495,655
    
$
3,539,520
    
$
3,480,860
    
$
3,421,749
  
Earning assets
    
5,184,749
      
5,184,923
      
4,768,869
      
5,109,934
      
4,475,200
  
Total assets
    
5,457,558
      
5,450,182
      
5,035,874
      
5,376,588
      
4,752,895
  
Deposits, including repurchase agreements
    
4,650,885
      
4,661,615
      
4,276,496
      
4,585,812
      
4,002,194
  
Interest bearing liabilities
    
3,410,286
      
3,424,218
      
3,238,474
      
3,390,178
      
3,060,851
  
Shareholders' equity
    
695,490
      
675,727
      
642,306
      
677,632
      
630,320
  
                                         
Performance ratios:
                                        
Return on average assets
    
1.54
%
    
1.76
%
    
1.38
%
    
1.71
%
    
1.23
%
Return on average equity
    
12.06
%
    
14.20
%
    
10.81
%
    
13.55
%
    
9.26
%
Yield on average earning assets (tax equivalent)
    
3.52
%
    
3.41
%
    
3.66
%
    
3.52
%
    
3.99
%
Cost of interest bearing funds (tax equivalent)
    
0.43
%
    
0.45
%
    
0.73
%
    
0.46
%
    
0.91
%
Net interest margin (tax equivalent)
    
3.23
%
    
3.11
%
    
3.16
%
    
3.22
%
    
3.37
%
Efficiency ratio (tax equivalent)
    
53.50
%
    
53.17
%
    
55.99
%
    
52.35
%
    
56.72
%
                                         
Loan charge-offs
  
$
1,042
    
$
948
    
$
2,268
    
$
3,460
    
$
8,492
  
Recoveries
    
(725
)
    
(1,554
)
    
(1,187
)
    
(3,572
)
    
(3,251
)
Net charge-offs
  
$
317
    
$
(606
)
  
$
1,081
    
$
(112
)
  
$
5,241
  
                                         
Market Price:
                                        
High
  
$
42.95
    
$
45.95
    
$
35.09
    
$
47.53
    
$
46.87
  
Low
  
$
38.20
    
$
39.76
    
$
28.00
    
$
36.02
    
$
26.45
  
Close
  
$
42.10
    
$
40.38
    
$
28.26
    
$
42.10
    
$
28.26
  



Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
 September 30, 2021
(in thousands except per share data and # of employees)
                   
   
As of
    
As of
    
As of
  
   
September 30, 2021
    
June 30, 2021
    
September 30, 2020
  
Assets:
                  
Loans
  
$
3,398,229
    
$
3,448,493
    
$
3,557,899
  
Loan loss reserve
    
(41,215
)
    
(41,695
)
    
(47,986
)
Net loans
    
3,357,014
      
3,406,798
      
3,509,913
  
Loans held for sale
    
12,056
      
4,912
      
20,125
  
Securities AFS
    
1,525,738
      
1,357,597
      
949,089
  
Equity securities at fair value
    
2,461
      
2,523
      
2,212
  
Other equity investments
    
13,026
      
13,915
      
15,010
  
Other earning assets
    
143,789
      
392,591
      
201,651
  
Cash and due from banks
    
66,075
      
63,917
      
58,206
  
Premises and equipment
    
40,145
      
40,391
      
42,115
  
Right of use asset
    
12,399
      
12,729
      
13,536
  
Goodwill and core deposit intangible
    
65,490
      
65,490
      
65,490
  
Other assets
    
147,392
      
133,300
      
143,074
  
Total Assets
  
$
5,385,585
    
$
5,494,163
    
$
5,020,421
  
                         
Liabilities and Equity:
                        
Interest bearing checking
  
$
90,657
    
$
99,226
    
$
78,989
  
Savings deposits
    
1,827,112
      
1,877,857
      
1,667,120
  
CD's >=$100,000
    
565,869
      
561,269
      
533,103
  
Other time deposits
    
494,440
      
498,361
      
511,106
  
Total interest bearing deposits
    
2,978,078
      
3,036,713
      
2,790,318
  
Noninterest bearing deposits
    
1,318,158
      
1,286,989
      
1,103,863
  
Total deposits
    
4,296,236
      
4,323,702
      
3,894,181
  
Repurchase agreements
    
292,022
      
370,568
      
367,788
  
Other interest bearing liabilities
    
58,721
      
58,726
      
60,641
  
Lease liability
    
13,229
      
13,529
      
14,257
  
Other noninterest bearing liabilities
    
33,734
      
43,555
      
39,104
  
Total liabilities
    
4,693,942
      
4,810,080
      
4,375,971
  
Shareholders' equity
    
691,643
      
684,083
      
644,450
  
Total Liabilities and Equity
  
$
5,385,585
    
$
5,494,163
    
$
5,020,421
  
                         
Ending shares outstanding
    
17,837
      
17,831
      
17,802
  
                         
30 - 89 days past due loans
  
$
8,874
    
$
10,847
    
$
13,324
  
90 days past due loans
    
6,650
      
8,283
      
17,989
  
Nonaccrual loans
    
12,084
      
12,863
      
11,880
  
Restructured loans (excluding 90 days past due and nonaccrual)
    
69,190
      
66,887
      
67,500
  
Foreclosed properties
    
4,314
      
5,848
      
15,586
  
                         
Community bank leverage ratio
    
12.71
%
    
12.45
%
    
12.65
%
Tangible equity to tangible assets ratio
    
11.77
%
    
11.39
%
    
11.68
%
FTE employees
    
960
      
961
      
966